Page 188 - Social Enterprise A New Business Paradigm for Thailand

significant support, including a five-million-baht grant from the regional cluster of three provinces
(Nakhon Phanom, Sakon Nakhon, and Mukdahan) to build a standard-compliant organic rice mill for
export. After registering as Khao Suk Organic Rice Co., Ltd., the group received further assistance from
the Ministry of Commerce to exhibit its products internationally, including funding of up to 150,000
baht per event for booth setup.

Source: Interview.

Both cooperatives and community enterprises receive government support as key instruments
for driving grassroots economic development. Cooperatives are systematically promoted and
developed by the Department of Cooperative Promotion, with financial backing provided through
the Cooperative Fund, a clearly designated funding source. One notable support measure is the
provision of low-interest loans. In contrast, community enterprises are supported by multiple

agencies, particularly in areas such as product development, value enhancement, the creation of
new marketing channels, network building, and training entrepreneurs in management skills.
Table 6.7 compares the structures and operational characteristics of cooperatives and community
enterprises.

Table 6.7
Comparison of the Structures and Operational Characteristics of Cooperatives and Community
Enterprises
Cooperatives Community Enterprises
1. Structure and Management
May or may not be a legal entity but can
Legal entity under the Cooperative
Legal status register for support under the Community
Act, B.E. 2542, with a clear structure
Enterprise Promotion Act, B.E. 2548 (2005)
Formal structure, management Informal structure, flexible management,
Management committee elected, clear division of roles depend on leadership and members’
structure
responsibilities capabilities
Democratic system, “one person, one Joint decision-making among members,
Decision-making
vote,” formal annual meetings flexible and less formal
Clear business operations, formal Flexible operations, focus on specific
Operations
accounting standards activities, simple accounting system

Resource Capital through shareholding, access Relies mainly on local resources and
management to external funding member support
2. Legal Framework and Oversight
Cooperative Act, B.E. 2542 (1999) Community Enterprise Promotion Act, B.E.
Relevant laws
and its amendments 2548 (2005) and its amendments
Department of Cooperative Department of Agricultural Extension, and
Supervisory agencies Promotion, Cooperative Auditing Provincial and National Community
Department Enterprise Promotion Committees
Strict financial audits by licensed More flexible reporting system, focused on
Audit system
auditors annual status reporting
Comprehensive standards covering
Operational standards management, finance, and internal Emphasis on self-reliance and local
economic development
controls
155