Thais blend profit with social good

Entrepreneurs setting up companies with a conscience

BANGKOK — Six years ago, Somsak “Pai” Boonkam drew up a plan with two villages in northern Thailand for tourists to stay with local families and immerse themselves in hill-tribe culture. The aim was for the villagers to see some financial benefit from their country’s multibillion-dollar tourism industry.

Pai was sure it would be a hit with tour operators in Bangkok — but he was wrong. “They weren’t even interested to go and inspect the places,” he said.

That pushed the former engineer, now 34, to set up Local Alike, a travel consultancy that promotes sustainable tourism in 70 villages.

“I grew up in the same situation where there weren’t many economic opportunities, so it attracts me to work for the people,” said Pai, who lived with his grandparents in a village in northeast Thailand until he was 8 while his parents traveled in search of laboring work.

A growing number of young Thai entrepreneurs like Pai are getting involved in activities that have traditionally been the domain of the government and development groups — from providing water in remote communities to helping coffee farmers earn a fair income.

This new generation of business owners believes running companies that invest in tackling social and environmental causes is a better way to help than relying on donors’ whims.

“There are so many problems in Thailand that need to be solved,” said Pai. “I see (this as) the new pattern of doing business — doing good while making money.”

Half of Local Alike’s business units are now financially sustainable and it runs a development fund that supports local projects, he said.

Aliza Napartivaumnuay, 34, grew up in Kolkata, Rome and Seattle before moving back to Bangkok. She spent nearly a decade working in the retail supply chain before co-founding Socialgiver more than two years ago.

The online business offers deals on leisure services, including hotel rooms, restaurant tables and spa packages. The proceeds fund social and green projects, such as reforestation, children’s education and hospital beds for poor patients.

The idea was not to set up a business that spoke only to people who already care about such issues.

“We wanted to create something more inclusive and approachable by offering services users are accustomed to spending on,” said Aliza.

When Ayu “Lee” Chuepa wanted to help coffee farmers in his community earn a fair income, he had a hard time convincing villagers to work with him due to his youth and inexperience.

“My mother said that is to be expected. So I asked, ‘If you weren’t my parents, would you have joined me?’. They said, ‘Of course not. Are you crazy?’” he recounted, laughing.

Things have since improved. The Stock Exchange of Thailand, for example, now has an online platform that promotes investment in social enterprises.

But the public perception that such businesses offer lower-quality products still needs to be tackled, experts say.

“Since the beginning, I didn’t want to sell our products by making people feel pity. I want them to buy because they’re good,” said Lee, who hopes the division between social and traditional businesses will fade with time.

“I want everyone in the world to be a social entrepreneur, doing good,” he said.

I see (this as) the new pattern of doing business — doing good while making money.” Somsak “Pai” Boonkam,