Informal debt: the operations and relationships between debtors and creditors of entrepreneurs at Bangsaen Beach

Abstract

The objectives of this study are to (1) study the background, lifestyle and social network which effectuate the informal debt of entrepreneurs in Bangsaen Beach, (2) study the operations between the creditors and debtors including relatives and family (3) analyze social relationships between the creditors and debtors, and (4) perceive guidance to enhance the quality of their life and social network and diminish the informal debt issues of entrepreneurs in Bangsaen Beach. The tool used in this study is documentary research analyzed with secondary source and interview. The key informants were overall 22 people as follows: 2 loan officers of “People Bank Project” of Government Savings Bank (GSB) in Nongmon Branch and 20 entrepreneurs in Bangsaen Beach.

The results reveal that (1) most of entrepreneurs in Bang Saen has solely operated their own company over 30 years. Besides, they necessitate getting in debt as insufficient income to provide their family. (2) In the process of being in informal debt, the debtors are required to pay by installment including compound interest and principal day by day. Provided that the debtors proceed consecutively with installment plan without lateness and procrastination, the creditors

will approve of their later loan. (3) The relationships between the debtors and creditors can be categorized as follows: the informal loan payable debtor and the credit sales payable debtor. (4) guidance to diminish the informal debt issues is to ameliorate financial statement of the entrepreneurs for loaning in “People Bank Project”, and institute community fund of the entrepreneurs by receiving the deposit and day-by-day installment and appoint the sales marketing team to bolster up the sales figures via online channels. Nevertheless, the informal debt issues might be arduous to be solved; the debtors are accustomed to being in debt.