Social Capital, Social Enterprise and Community Development: A Case Study of Doi Chaang Coffee

Abstract

The legend of the Doi Chaang Coffee Business started from the Arabica coffee beans that His Majesty King Rama IX gave to hill farmers in the Doi Chang area to replace opium cultivation. The coffee grew well but there were problems with having to sell the coffee beans at a low price. Therefore, most farmers destroyed their coffee plants. Nevertheless, some escaped destruction. This problem meant that Mr. Panachai Phisailert, the village Headman of the Doi Chaang community, had to try to find a solution by consulting Mr. Wicha Phromyong, one of the co-founders of Doi Chaang Coffee. He had the idea of creating a coffee business in the community. Mr. Wicha Phromyong tried hard to find someone who would help him set up a coffee business. Finally, he met Mr. Pitsanuchai Keawphichai, a business man in the hotel industry. Mr. Pitsanuchai Keawphichai understood the aspirations of the Doi Chaang people and he decided to assist them in establishing a coffee business. He worked out a suitable business model for starting a coffee business based on community involvement - a social enterprise model. Thus Doi Chaang Coffee Co., Ltd., a genuine social enterprise, began operation in 2003 with three co-founders, and with Mr. Panachai Phisailert acting as managing director.