Page 235 - Social Enterprise A New Business Paradigm for Thailand

• The dominant “buy-and-resell” model, which involves collecting products from local
producers and reselling them with minimal value addition, is increasingly outdated. This
approach generates low margins and lacks clear innovation to improve productivity. Many

enterprises still operate without the use of appropriate technologies, such as labor-saving
tools, food preservation techniques, or modern product redesign, to enhance value. As a
result, products often fail to align with evolving consumer preferences in terms of design
and functionality. It is therefore not surprising that many provincial-level companies
struggle to generate sufficient margins or profits to sustain themselves. Most still view their
role as mere aggregators of local goods. Because the mission emphasizes community
support, they are hesitant to set profit margins at levels that would allow for long-term
viability.
• The prevailing “buy-and-resell” business model, where goods produced by local
communities are merely collected and resold without adding value, is now outdated. This

approach results in low profit margins, lacks innovation, and suffers from low productivity.
It fails to utilize appropriate technologies such as labor-saving equipment, food preservation
methods, or modern product redesign that transforms traditional goods into more
marketable forms. In terms of usability and design, many products no longer align with
contemporary consumer preferences. It is therefore unsurprising that many provincial
Pracharath Rak Samakkee companies are unable to generate sufficient margins or profits to
sustain themselves. These companies typically see themselves as intermediaries, simply

aggregating and forwarding local products. Because their core mission emphasizes
community support, they are reluctant to set margins at levels that would ensure financial
viability.
• The deeply rooted belief that the enterprise should not seek profit has become a
fundamental obstacle to achieving sustainability at the provincial level. It makes self-
sustaining business management exceedingly difficult. The model falls somewhere between
a business and an NGO, operating more as a charitable initiative with no clear short- or long-
term strategy. Management is driven more by collaboration and goodwill than by business
discipline or competitiveness.

Management at the provincial level relies heavily on volunteers. All board members,
including the managing director, serve in an unpaid capacity. While this model can keep a
company functioning, particularly when the manager is highly committed, as seen in Phuket,
outcomes generally depend on the amount of time each volunteer is able to contribute.
Volunteer-driven management also results in a wide range of operational approaches.
However, these efforts remain constrained by the original framework: agriculture,
agricultural processing, and community-based tourism. In some provinces, local leaders

have shifted toward social innovation, such as forest conservation, which yields tangible
results but does not align with the project’s formal performance indicators. Consequently,
volunteer managers who are passionate about generating social impact rather than revenue
may feel discouraged or demoralized.

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