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  Department of Business Development

Community Business

1. Definition
        Community business refers to the groups of local people conducting businesses to gain higher incomes to local people or create potentials of local communities by setting community shops.
        Community shop refers to shops or groups of people trading in villages. Local people are shareholders and committee members are selected to manage the shops. Dividends (return form purchase) will be paid to the members.

2. History of Community Shop
        The government has a policy to distribute income to provincial areas to avoid income concentration in the city where most people have been taken advantages consumer products and lack of bargaining power and do not have chance and channel to develop their expertise commercially. Thai economic crisis causes decreases in population revenue. It is necessary for public authorities to work together to enhance efficiency and activities of communities and occupations.
        The Ministry’s policy emphasizes on the establishment of people network in order to set community shops in remote areas. People, than, can buy consumer goods in fair prices and increase their bargaining power. Community shops will be a learning centers under the management of local people and public sectors will provide financial and academic support including accounting and management.

3. Management Structures of Community Shops comprise
          3.1 Shareholders : Member of community shops have rights to participate in management by selecting shop committee and setting policies and regulations of shops to be guidelines for the operation of the committee. Members will also buy goods from the shop.
          3.2 Committee will have 7-10 members, namely, Chairman, Deputy Chairman, Procurement Committee, Audit Committee, Accounting Committee, Finance Committee. Committee shall be high-responsible, honest and dedicated persons.
          3.3 Shop manager will be recruited from Committee members to manage and control shops such as selling and making orders under the approval of the Committee.

4. Selection and Establishment of Community Shop
        To enhance the establishment of community shops, it is necessary to consider preparedness and intention of community members. Without member collaboration, shop cannot run efficiently.
        From part experience, shops in remote areas will accomplish their goals more than shops in cities with convenient transportation. To accomplish the goals of selecting and establishing community shops, the following shall be taken into consideration:
        1) Community members are ready to and intend to set shops.
        2) Villages are located in remote areas or inconvenient areas.
        3) Members shall provide collaboration and but goods from shops.
        4) Committee shall dedicate, are honest and manage the shop transparently.
        5) Sell on cash or a small proportion of sales on credit.

Location of Community Shop
        Shops should be located in community areas and shall be granted permission from the public or owners to occupy such areas.

        5. Shop problems : Presently, social and economic environments have been changing so it is more convenient to transport between places. There is higher numbers of entrepreneurs in all areas with higher growths. The necessity of setting community shop is lower. The Department turns to focus on the sustainability of potential shops. New shops will be located in villages with proper economic environment.
        From all community shops supported by the Department during 1987-2006, 456 shops have been operating (28 shop with first capital and 28 shops with second capital) in 67 provinces.

5 .Development of Community Shop under the Support of the Department of Business Development
        1) provide management knowledge and set management systems.
        2) provide advices, solve problems and monitor their operations at the Provincial Business Development Offices
        3) develop product displays and shop images as convenient shops to complete with other retail shops and set the National Best Shop competition.