Developing Mechanisms to Upgrade Local Entrepreneurs into Social Enterprises for Poverty Alleviation and Sustainable Economic Development in Kalasin Province

Abstract

Research Title: Developing Mechanisms to Upgrade Local Entrepreneurs into Social Enterprises for Poverty Alleviation and Sustainable Economic Creation in Kalasin Province. This action research aimed to: (1) study and analyze the potential of local entrepreneurs while establishing a theoretical framework to upgrade them into social enterprises; (2) develop mechanisms and evaluate the efficiency of appropriate support processes for poverty alleviation; and (3) transfer knowledge and development guidelines to communities and relevant agencies. Data collection tools included questionnaires, in-depth interviews, observations, and focus group discussions, which were developed based on a literature review and tailored to the local context. Data were gathered from a target group comprising 18 business units and 42 impoverished households in Kalasin Province.

The research findings reveal that local entrepreneurs in Kalasin Province possess strong inherent potential and solid baseline assets. The research project successfully drove and facilitated the official registration of 14 business units as pre-social enterprises (Pre-SE) under the Office of Social Enterprise Promotion (OSEP). The remaining 4 business units are currently in the process of preparing documentation and amending their organizational objectives to meet regulatory criteria, reflecting localized constraints and challenges within institutional voids.

Furthermore, the developed "6-Step Incubation Mechanism" comprises the following

Step 1: Assessing the potential for social enterprise (SE) development by linking it with the area-based poverty alleviation model (Flagship) and establishing a social entrepreneur incubation center.

Step 2: Exchanging and sharing critical success factors in SE evaluation across the social enterprise network.

Step 3: Preparing potential enterprises for official SE registration in the area, enhancing the capacity of community enterprises to transition into social enterprises, establishing the university's Social Entrepreneur Incubation Center, and systematically integrating impoverished target households into core SE operational activities—specifically in production, processing, and product development—to foster a sustainable business network.

Step 4: Developing SE management skills for the Area-Based Development Management (ADM) research team, entrepreneurs, and relevant stakeholders.

Step 5: Monitoring and evaluating the operational performance of the target groups' social enterprises during the registration application process and

Step 6: Synthesizing operational results, extracting lessons learned, exchanging knowledge based on the local context, and compiling the project’s final performance report.

This mechanism proved highly effective in dismantling structural economic oppression by systematically integrating impoverished households into the supply chains of the upgraded enterprises. In terms of economic impact and knowledge transfer, this incubation and supply chain integration generated measurable positive changes, increasing the average monthly income of impoverished households by 1,494 Baht or 23.25% from the baseline (from an average of 6,425 Baht/month to a new average of 7,919 Baht/month). These empirical success indicators and body of knowledge have been synthesized into guidelines for communities and institutional stakeholders to serve as a model for sustainable economic and social development in other regions.