Page 234 - Social Enterprise A New Business Paradigm for Thailand

companies, shareholder equity remained positive despite cumulative losses, indicating that
initial seed capital had not yet been exhausted. Furthermore, 22 companies showed upward
trends in shareholder equity between 2019 and 2023. Financial data for four provinces,

Kanchanaburi, Chanthaburi, Nakhon Pathom, and Surat Thani, was not available for 2023.

In summary, although the network has benefited from significant support from the government
and key anchor institutions such as Thai Beverage Public Company Limited, many enterprises
continue to face operational challenges. Despite these advantages, it has taken over five years
for many companies to begin stabilizing their operations.

3) Qualitative Analysis

The key advantages of the Pracharath Rak Samakkee network are as follows:

• It was intentionally designed from the outset as a network of provincial-level Pracharath
Rak Samakkee companies, supported by a dedicated ecosystem. At the national level,
Pracharath Rak Samakkee Social Enterprise (Thailand) Co., Ltd. serves as the central

coordinating hub, with a strong emphasis on communication and marketing. When the
system was developed a decade ago, market access was one of the most critical, and most
difficult, challenges faced by community enterprises.
• From the beginning, each provincial company was structured around collaboration among
five stakeholder groups: 1) civil society, 2) government, 3) private sector, 4) community
organizations, and 5) academia. Together, these groups formed a self-sustaining ecosystem
that included mechanisms for raising initial capital.

• The network is further supported by a mentoring foundation, the Thai Social Enterprise
Promotion Institute, which provides incubation, training, and essential knowledge. Local
academic institutions also contribute by offering technical and scholarly support.
• Successful business models within the network serve as prototypes for other members, for
example, the model of selling safe agricultural products to provincial hospitals, which has
been particularly effective in Krabi Province.
• The network benefits from broad collaboration with public agencies and private-sector
partners, many of whom are well connected within local business circles and among high-
income social networks in each province.

The key challenges facing the Pracharath Rak Samakkee network are as follows:

• The significance of offline marketing channels provided by the network has declined. With
the rise of social media and mobile platforms, selling goods has become faster, more
convenient, and less expensive. Many community enterprises now run their own online
stores, particularly on Facebook, allowing them to market independently and expand their
reach nationwide. As a result, dependence on the Pracharath network’s sales channels has
dropped considerably. Moreover, revenue from direct online sales is typically received more

quickly than through the network’s billing and payment system.

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