Learning Experiences from Selected Adventist Entrepreneurs in Thailand By Phattharawadi Satongchue An Independent Study Submitted in Partial Fulfilment of the Requirement For the Degree of Master of Business Administration (Management Emphasis) Faculty of Business Administration Asia-Pacific International University May 2023
i Title of Study Learning Experiences from Selected Adventist Entrepreneurs in Thailand By Phattharawadi Satongchue APPROVAL BY ADVISOR: ………………………………….. Dr. Wayne Hamra 11 January 2023 Date Approved
ii Abstract Not all Adventists wish to work for Adventist organizations. Instead of working in firms where it may be difficult to keep the Sabbath, some could become entrepreneurs so that they might earn a living while living according to their beliefs. Operating their own businesses may also allow them to be a greater blessing to others than by working in a firm as a hired employee. This research project investigated how selected Adventist entrepreneurs in Thailand set up their businesses, what were the experiences that they went through, and what can aspiring entrepreneurs who are interested in operating their own businesses learn from their experiences. The research methodology utilized was multiple in-depth interviews about the launching and operation of three small businesses, along with analysis of their financial statements. The results indicated that Adventist entrepreneurs had differing motivations in setting up their businesses, and each of them had different perspectives and attitudes about running them. Their interview data and Financial Position and Financial Activity Statements showed that their Adventist beliefs inspired, encouraged, and pushed these entrepreneurs to maintain positive attitudes and faith in God, which helped them to manage their businesses well. The research findings reveal that the selected Adventist entrepreneurs were at different stages in their spiritual journeys. That was because of differences in their backgrounds, social circles, and surroundings. Keywords: Entrepreneurs, Seventh-day Adventists, Thailand, launching a small business learning experiences
iii Acknowledgements I would like to express my sincere thanks to my Independent Study advisor, Assistant Professor Dr. Wayne Hamra, for his invaluable help and constant encouragement throughout the course of this research. I am most grateful for his teaching and advice, not only in regard to research methodologies, but also regarding many other topics in academic and spiritual fields. I would not have achieved this far, and this Independent Study would not have been completed without all the advice that I have received from him. In addition, I am grateful for the Adventist International Mission School’s administrators, Mrs. Ida Patricia Ann Foster, Mr. Ranjan Penugula Lazarus, and all the School Association Committee members who allowed me – a school staff member – to join the SAUM Cohort Program at AsiaPacific International University. Finally, I most gratefully acknowledge my family and my friends for all their support throughout the period of this research. Phattharawadi Satongchue
iv Table of Contents Chapter 1 Introduction ..................................................................................................................................1 1.1 Introduction.........................................................................................................................................1 1.2 Brief Story of One Adventist Entrepreneur ........................................................................................2 1.3 Problem Statement of Research ..........................................................................................................3 1.4 Research Rationale and Purpose .........................................................................................................4 1.5 Research Objectives............................................................................................................................4 1) To study how selected Adventist entrepreneurs set up their businesses........................................4 2) To study the experiences of selected Adventist entrepreneurs and learn how they became entrepreneurs.........................................................................................................................................5 3) To share the findings about these entrepreneurs with young Adventists and those who may be interested in becoming entrepreneurs....................................................................................................5 1.6 Scope and Delimitations of the Research ...........................................................................................5 1. Selected Seventh-day Adventist entrepreneurs only.........................................................................5 2. Relatively recent financial statements for 3-4 years only. ...............................................................5 1.7 Research Question(s) ..........................................................................................................................6 1. How did selected Thai Adventist entrepreneurs start their businesses?............................................6 2. What have selected Adventist entrepreneurs in Thailand experienced when starting their businesses?............................................................................................................................................6 3. What can young Adventists or other interested readers learn from the experiences of selected Thai Adventist entrepreneurs?.......................................................................................................................7 1.8 Benefits to be derived from the research ............................................................................................7 Chapter 2 Literature Review.........................................................................................................................8 2.1 Introduction.........................................................................................................................................8 2.2 Concepts and related theories .............................................................................................................8 2.3 Related research works or publications ..............................................................................................9 Seventh-day Adventists..........................................................................................................................9 Small Business ....................................................................................................................................10 Different between small business and an entrepreneur......................................................................10 Business establishment process ..........................................................................................................11 The operation of business in Thailand................................................................................................13 2.4 Restatement of research objectives and questions............................................................................16 2.5 Research Hypotheses........................................................................................................................18 2.6 Research model or conceptual framework........................................................................................19 2.7 Conclusion ........................................................................................................................................19
v Chapter 3 Research Methodology...............................................................................................................20 3.1 Introduction.......................................................................................................................................20 3.2 Research design ................................................................................................................................20 3.3 Population and sampling frame (Quantitative studies) or participants.............................................20 3.4 Data collection method(s) and procedures........................................................................................21 3.4 Research instrument or measures, including validity and reliability ................................................22 Interview questions.............................................................................................................................22 3.6 Data analysis techniques...................................................................................................................24 3.7 Ethical Considerations......................................................................................................................25 3.8 Conclusion ........................................................................................................................................25 Chapter 4 Results of Study .......................................................................................................................26 4.1 Rationale and experience in launching their new business...............................................................26 (1) PAUL Trading Limited Partnership........................................................................................26 (2) APD Sport Limited Partnership ..............................................................................................28 (3) Big Bass Drinking Water Plant...............................................................................................29 4.2 Order of presentations in line with research objectives and data analysis........................................33 (1) Financial Statement Analysis of PAUL Trading Company, Ltd. ...........................................34 (2) Financial Statement Analysis of APD Sport Company Limited.............................................41 (3) Big Bass Drinking Water Plant Financial Analysis................................................................47 Chapter 5 Discussion ..................................................................................................................................56 5.1 Brief presentation as per objectives of study ....................................................................................56 Objective 1: Business Establishment ..................................................................................................56 Objective 2: Business Operational Experiences .................................................................................56 Objective 3: Things to Share with Young Adventists and Other Interested People ...........................60 5.2 Discussion of results based on proposed research model .................................................................61 Chapter 6 Conclusion and Recommendations............................................................................................62 6.1 Conclusion ........................................................................................................................................62 6.2 Limitations of the study ....................................................................................................................63 6.3 Recommendations.............................................................................................................................64 6.4 Direction for Future Research...........................................................................................................65 References...................................................................................................................................................67
vi List of Tables Table 1 PAUL Trading Ltd Part 2014-2018 Statements of Financial Activity 34 Table 2 PAUL Trading Ltd Part 2014-2018 Statements of Financial Position 37 Table 3 PAUL Trading Ltd Part 2014-2018 Statements of Financial Position 38 Table 4 PAUL Trading Ltd Part 2014-2018 Statements of Financial Position 39 Table 5 PAUL Trading Ltd Part 2014-2018 Statements of Financial Position 39 Table 6 APD Sport Company Ltd 2016-2019 Statements of Financial Activity 42 Table 7 APD Sport Company Ltd 2016-2019 Statements of Financial Position 44 Table 8 APD Sport Company Ltd 2016-2019 Statements of Financial Position 45 Table 9 APD Sport Company Ltd 2016-2019 Statements of Financial Position 46 Table 10 APD Sport Company Ltd 2016-2019 Statements of Financial Position 47 Table 11 2019 BIG-BASS WATER PLANT Statement of Financial Activity 49 Table 12 2020 BIG-BASS WATER PLANT Statement of Financial Activity 50 Table 13 2021 BIG-BASS WATER PLANT Statement of Financial Activity 51 List of Figures Figure 1 Research Model or Conceptual Framework 19
1 Chapter 1 Introduction 1.1 Introduction The Seventh-day Adventist Church or the Adventists is a Millennialist Protestant Christian denomination founded in 1863 in the United States. They are called Seventh-day Adventists based on the church's observance of the "biblical Sabbath" on Saturday, the seventh day of the week. "Advent" means coming and refers to their belief that Jesus Christ will soon return to this earth (BBC, 2009). Adventists have over 20 million members worldwide who worship in about 162,000 congregations. They operate over 8,000 schools from kindergarten to the university level around the world, with more than 2 million students. They also own and manage 198 hospitals across the globe. Adventist believers live in more than 200 different countries worldwide; they are truly a global family (Seventh-day Adventist Church, 2021). The Seventh-day Adventist Church in Thailand was established in 1919. The first director of the Thailand SDA Mission was Pastor F. A. Pratt, and Pastor Longway was the Secretary and Treasurer. They worked under the oversight of the regional headquarters office located in China. Pastor Pratt and Pastor Longway brought their families with them to Thailand, and started their mission in a shophouse at Lumpini, Sapaan Luang. They started a small group, a Sabbath School class, to study the Bible. Tan Thiam Tsua was one of the first Chinese Church members;he consecrated his own house as a place for the Sabbath School class to study. They continued to meet there until 1921, when they rented a house on Si Phraya Road to use as a place for worship (A Century of Unity, 2006).
2 Pastor V.L. Kon received an invitation from Malayan Union Mission to serve as the Union’s ‘literature evangelist in Thailand (A Century of Unity, 2006). Pastor Kon taught the Bible study to Nai Pleng Vitiamyalaksna. Nai Pleng was a young Thai man who was searching for life's meaning. Nai Pleng decided to follow Christ. At first, he hid his new faith from his friends. Nai Pleng was the first Thai who was an Adventist member. He later became a literature evangelist, studied in Singapore, and became a prominent worker for the church in Thailand (A Century of Unity, 2006). There are more Thai believers now who have different occupations. Some are teachers, doctors, nurses, and others are entrepreneurs who have established their own businesses. Thus, the group of people who call themselves Adventists has become a society that has grown and expanded. They have also founded various institutions in Thailand, such Bangkok Mission Hospital, Chiangmai Adventist Academy, Thepamnuay Vitaya School, etc. (A Century of Unity, 2006). In 2020, the Thailand Adventist Mission reported 14,859 baptized church members worshipping in 54 churches and 74 small groups throughout the country (Office of Archives, Statistics and Research, 2021). 1.2 Brief Story of One Adventist Entrepreneur There is an Adventist entrepreneur who adheres to the church’s beliefs and runs his own business as an Adventist member. Paul Trading Company Limited was registered as a business on 17 November 2006. Located at 64 Moo 12, Tambon Sop Poeng, Amphur Mae Taeng, Chiang Mai Province, it is operated by Mr. Paul Phoophichiprai. Paul was born into an Adventist family. He
3 graduated from Chiang Mai Rajabhat University in the year of 2006. He lost his eyesight as the result of an autoimmune system disease that resulted from an illness. But Paul was determined to produce high-quality and healthy foods that emphasized a safe production process for consumers. Here are some examples of his products: 1) Peanut Butter (Both Unsweetened and Sweetened), 2) Almond Butter (Both Unsweetened and Sweetened), 3) Aromatically Roasted Sesame Oil, 4) Cold-Pressed Peanut Oil, 5) Cold-Pressed Perilla Oil, 6) Cold-Pressed Sunflower Seed Oil, 7) Cold-Pressed Sesame Oil, 8) Black Sesame Paste, 9) Black Molasses (PAUL Trading Company Limited, 2021). He started by investing only 30,000 Baht with two workers, including himself. He never gave up on what he had started, and with the support of his family and friends, he has 50 employees nowadays. He has become a Thai businessman, and many Thai people know him from his brand and products, Paul Food Brand (the first locally produced peanut butter brand in Thailand). His success not only helped him to have a regular income. His accomplishments appear to have made him a blessing to people around him, for example, his employees, his family, and all of his customers. 1.3 Problem Statement of Research Adventist members have certain beliefsthat make them face difficultiesin working as hired employees who are expected to work six days each week. These beliefs include keeping the Sabbath day holy by resting on it. The researcher knows an Adventist member who had a problem in the workplace because of trying to rest on the Sabbath day; her workplace was at a non-Adventist organization where she worked as the Marketing Manager. Her organization always requested her to work on Saturday; at
4 first, she followed these requests, but the more she did, the more she felt that this violated her beliefs, until she decided to quit her job. She was blamed by people around her, “why did you leave that job?”, since the job was a good one with a high salary. “Many people want to get that kind of job, but you have rejected it.” She tried to explain why she had to quit her job, but those people saw her as too serious about religion. Later on, she got a new job; this time she didn't need to work on Saturday. But then she met with a non-Adventist colleague, who invited her to join a party after working hours. They offered her alcohol, dancing, and pork food as part of the menu, and some other foods that Adventist people are not supposed to eat. She tried to reject every invitation, and not put herself in temptation, but that made her have no friends in the workplace. She always left them to avoid all the attractions that she believed. 1.4 Research Rationale and Purpose The rationale and purposes of this research study are to learn from, analyze, and share the experiences of selected Thai Adventist entrepreneurs who have established and successfully operated their own businesses with young Adventists and others who may be interested in launching and operating their own businesses in Thailand. 1.5 Research Objectives 1) To study how selected Adventist entrepreneurs set up their businesses. – What problems and did the entrepreneur face along the way?
5 2) To study the experiences of selected Adventist entrepreneurs and learn how they became entrepreneurs. – How did they resolve the issues and adapt to changes in accordance with their Adventist beliefs? – How successful with a value Adventist entrepreneur established their businesses despite some limitations imposed by the church doctrines (e.g., Sabbath observance, tithing, and avoiding unhealthy foods). 3) To share the findings about these entrepreneurs with young Adventists and those who may be interested in becoming entrepreneurs. – These stories, advice, and tips may encourage or guide believers who would prefer working for themselves rather than for an Adventist or non-Adventist organization. 1.6 Scope and Delimitations of the Research 1. Selected Seventh-day Adventist entrepreneurs only. Since there are many Adventist entrepreneurs, the researcher could not speak with or study the experiences of all of them. So, the researcher selected only some business owners who could be easily contacted and were willing to describe their experiences and provide other information about their businesses. 2. Relatively recent financial statements for 3-4 years only. Only relatively recent financial statements of these businesses will be reviewed for a period of 3-4 years, so the study will not cover the entire life of these businesses. Review of the financial
6 statements will help in understanding the financial effects of important decisions made by these entrepreneurs, focusing especially on their pre-COVID operations. 1.7 Research Question(s) 1) How did selected Thai Adventist entrepreneurs start their businesses? – What inspired them to set up their businesses? – How did they obtain investment capital? The creative mind and inspiration provide power to start to do something. The beginning is usually the most challenging time. For entrepreneurs, planning and making wise choices are very important. They have to start with the funds that they have in hand. Where and how can they get more funds? And how can they not only not lse these funds, but also recover them in a timely fashion with a gain over the investment capital’s original value? 2) What have selected Adventist entrepreneurs in Thailand experienced when starting their businesses? - What were the challenges that they faced? - How long did it take their businesses to reach the breakeven point? - What inspired them to develop their creative ideas in the particular businesses they started? - How did they decide where to establish their business (along with some supporting reasons)?
7 Learning directly from another person's experiences is the best option, and this can help people move faster rather than starting everything from scratch. At least, they can adapt, apply, and focus more on the details in each working process and have more ideas in that particular field. 3) What can young Adventists or other interested readers learn from the experiences of selected Thai Adventist entrepreneurs? This question is the main point of this research paper, because the more readers can learn from this paper, the more valuable the study will have been, and that benefits not only the readers and the researcher, but all Adventist people in Thailand. 1.8 Benefits to be derived from the research This study may help readers to see a picture of how selected Adventists became entrepreneurs. It may also help explain step by step what they did and how they managed to succeed and keep their businesses sustainable, even during the COVID-19 pandemic. This is something that we cannot learn theoretically from a class, but only through life experiences. The researcher believes that this research study would share the experiences of the selected Adventist entrepreneurs and encourage young Adventists and those interested in becoming entrepreneurs in the future.
8 Chapter 2 Literature Review 2.1 Introduction Many studies mentioned about the important, different view and the features of Entrepreneurship. Seth (2021) said Entrepreneurship is important, because it has the ability to improve standards of living and create wealth, drive and improved products enable new markets to be developed not only for the entrepreneurs but also for related business. Tatarchuk said, Entrepreneurship is not only about money. It is to create value and make change in the world (McChesney, 2016). Entrepreneurship features is an experience (Christopher I. Rider, P. T., 2019). 2.2 Concepts and related theories Although Adventists have 28 Fundamentals Beliefs, only one of these is directly relevant to this research study. This is Fundamental Belief 20: The Sabbath. Many employees in Thai firms are required to work 6 days each week. Sometimes it is hard for Adventists to find jobs that do not involve working on Saturday, because normally most firms work from Monday to Saturday, and rest on Sunday. Adventists believe that the Sabbath, Saturday, is a day to remind them of Gods’ creation. He used the first six days to create this earth and on the seventh day, He set it aside as a holy day for reflection, enjoyment, and worship (Seventh-day Adventist Church, 2021).
9 The Sabbath is kept from sundown on Friday to sundown on Saturday. All essential work needs to be done by Friday before sunset. Adventist people call Friday the “preparation day”; after sunset, they spend it by worshipping with family, and on the Saturday morning, they worship with family and other church members. On Saturday afternoon, they may assist the less fortunate, including visiting patients, encouraging each other in small groups, praying for each other, and praying for the needy. The need for more Adventists to become entrepreneurs is so that their work will not make it difficult for them to obey God’s laws. 2.3 Related research works or publications Seventh-day Adventists The Seventh-day Adventist Church has been involved in helping entrepreneurs who are affected by the COVID-19 pandemic, which has resulted in a deteriorating economy and directly affected most entrepreneurs. The project has been organized by the government and with the cooperation of the church leadership of the Atlantic Colombian Conference of the Seventh-day Adventist Church. The project called the Banner project. The Banner project supports entrepreneurial projects and business idea with advice, strategies, market studies, and financing. This has allowed participants to come up with business opportunities and proposal to move their ideas forward. The program has included developing skills and acquiring tools to help the entrepreneurs carry out their projects successfully (Adventist Review Media, 2021)
10 Small businesses Gandy (2015) said a small business is a firm with less than 500 employees. Other descriptions of firm size categories include very large more than 500 employees; large 200 to 500 employees; medium 50 to 200; small fewer than 50 employees; and micro fewer than 10. Accordingly, the Adventist entrepreneurs slated to be covered in this research paper are all in the group of Small and Micro businesses. Differences between a small business and an entrepreneur A small business owner operates a business with the personal goal of providing income for the family, while an entrepreneur has the goal of growth and achieving profit (Ionitã, 2012). Similarly, Hurst et al., (2011) discussed that most small business owners have little desire to grow large or to innovate, unlike entrepreneurs. Small business owners intend to provide an existing service to an existing market, while entrepreneurs intend to bring a new idea to market or to enter an unserved market (Hurst et al., 2011). Small business owners’ main reason for starting a business is usually for non-pecuniary benefits, such as wanting to be their own boss and wanting a flexible schedule and work hours (Hurst et al., 2011)
11 Business establishment process (1) Do Marketing Research The Thai SMEs Center (2018) listed the steps to running a business, and the first step is to do marketing research. Marketing Research is important for entrepreneurs to know what consumers need and what industry requires. Also, who is looking for a product that they’re going to sell, and who is talking about those particular products? Marketing research can make researchers aware of what the consumer wants, or customer feedback that will lead to better development and improved products in the future. (2) Write a business plan To write a business plan is important, because that will help the entrepreneur to analysis the weaknesses and strengths of their business, including knowing and understanding the details of the business as well as finding opportunities for business development in the future. It also reduces the risk of making wrong business decisions. (3) Do a marketing plan Entrepreneurs need to have an action plan for a marketing strategy covering a period of time (1 month, 3 months, or 1 year). The goal of any marketing plan is to create a clear direction for the business. This includes an overview of the marketing and advertising goals, details and duration
12 of the marketing plan and performance indicators KPI (Key Performance Indicators). The goal of any marketing plan is to create a clear direction for the business. (4) Find funding sources After going through the process of looking for an interesting business, collect partners. Planning for business operations in terms of the strategic action plan requires that the budget has been completed. The next step is to turn on the switch and start a business. In the process of finding sources of funds, financing will be classified according to different types such as short-term funding sources, long-term funding, external funding sources, and internal funding. (5) Build a target customer base Finding out who the target customers are for the product is very important, because the entrepreneur will be able to plan better marketing strategies. If the entrepreneur doesn’t know who the real customer is, that product may be sold through the wrong sales channels and eventually become unsellable. Sales strategy or marketing strategy is popularly analyzed according to the steps of STP (Segmentation, Targeting and Positioning), which the entrepreneur must know how to analyze.
13 (6)Plan for payments and the receiving process. Payable should be planned according to income. Consider what the necessary expenses are, with a portion of the income for savings. If the income is found to be insufficient, the entrepreneur should find a way to reduce the expenses or increase the income. Be prepared to deal with uncertainty. The business must have an emergency savings of 3 - 6 times the expenses. If there is a need for monthly repayment, consider the uncertainty of future income before making any decision to borrow money from outside sources. It may be necessary to find an additional source of income or to invest the assets that are available from the inventory. The operation of business in Thailand Thailand Department of Business Development & Ministry of Commerce, 2019, said, business operations may carry out in many forms, either by a single person who owns the business alone, or by co-investing with other people as a group. To conduct trading business in any form, the operator must consider the important components, such as the nature of the business, finance, knowledge, and ability to operate the business, etc., in order to succeed with the highest benefits and profits. Sutevski (2021) listed the 7 ways to simplify a small business operation: (1) Plan everything ahead of time. He said having long-term goals is important for both the business owner and the employees, so that they will be able to understand and finish their tasks. It
14 is critical for the entrepreneur to effectively manage the employees’ workflow by clearly communicating their tasks and deadlines well in advance. (2) Streamline the Human Resource Management process. Sutevski said a small business owner has to post job advertising, scan applicants, filter their applications by qualifications and experience, and conduct interviews. Training the new employee is the biggest challenge. Many entrepreneurs end up spending a great deal of their time calculating payroll and employee benefits. He said hiring a new employee for a vacant position is not easy, especially when they don’t have a dedicated HR department. Sutevski suggested two ways they can streamline HR management operations. Firstly, outsource these tasks to recruitment agencies. Secondly, implement a highquality and reliable HRMS (Human Resource Management System) software solution. (3) Automate Payment and payrolls. Sutevski said the small business should update their payment and banking system, because most customers no longer want to pay with cash. They order products online and make payment through e-wallets, direct deposits, and credit cards. With an automated payment system, they don’t need a cashier or receptionist. Besides, manual errors are not uncommon these days and it is easy to track transaction into dedicated EPOS (Electronic Point of sale) Software to further streamline the operations. (4) Sutevski suggested Upgrading the Accounting Solutions. He said the automated accounting system can save a lot of time and money compared to manual accounting. These error-free
15 bookkeeping software systems are designed to simplify small business financial accounting. Sutevski gave QuickBooks as an example. In Thailand, there are some popular accounting programs which are very convenient for the small business entrepreneur, such as CD Organizer, Prosoftibiz, Smemove, Business Plus, and AccCloud (TopHit Thailand, 2021). (5) Sutevski suggested not spending too much time in meetings. He said instead of having meetings every single day, which take more than an hour for every meeting, it would save a lot of time, if the entrepreneur would send an email or online communication such as Facebook Messenger, or LINE application to inform their employees. Sutevski says that fewer in-person business meetings means less talk and more work. And if it is absolutely necessary, consider organizing a virtual meeting at least once a week. (6) Manage the customers. Sutevski focuses on customer relationship management. He gives examples like, consider offering personalized discounts and bonuses, reply to their feedback on social media and answer their queries. He said CRA (customer relationship management) is crucial to automating success in the business. Heyward, 2021, also said it’s not about who’s first, it’s about who does it best, and best these days is the business that delivers the most value to the consumer.
16 (7) Use the Cloud. Sutevski said Cloud technology is the easiest and cheapest way to transform the outdated business into digital space. These solutions can store a large volume of the business information, such as storing data and creating a backup of confidential information. 2.4 Restatement of research objectives and questions According to research objectives, the researcher first wants to study how selected Adventist entrepreneurs set up their businesses, along with the question: What problems and temptations did the entrepreneur face along the way? And the main research question for this objective is how did selected Thai Adventist entrepreneurs start their businesses? What inspired them to set up their businesses? How did they obtain investment capital? The creative mind and inspiration provide power to start to do something. The beginning is usually the most challenging time. For entrepreneurs, planning and making wise choices are very important. They have to start with the funds that they have in hand. Where and how can they get more funds? And how can they not only not lose these funds, but also recover them in a timely fashion with a gain over the investment capital’s original value? Second, the researcher wants to study the experiences of selected Adventist entrepreneurs and learn how they became entrepreneurs. What have selected Adventist entrepreneurs in Thailand experienced when starting their businesses? For example, what were the challenges that they faced? How long did it take their businesses to reach the breakeven point? What inspired them to
17 develop their creative ideas in the particular businesses they started? How did they decide where to establish their business (along with some supporting reasons)? The researcher believes that learning directly from another person's experiences is the best option, and this can help people move faster rather than starting everything from scratch. At least, they can adapt, apply, and focus more on the details in each working process and have more ideas in that particular field. How did they resolve the issues and adapt to changes in accordance with their Adventist beliefs? And how successful was an Adventist value as an entrepreneur established a business, despite some limitations imposed by the church doctrines (e.g., Sabbath observance, tithing, and avoiding unhealthy foods). Along with the research question: What have selected Adventist entrepreneurs in Thailand experienced when starting their businesses? What were the challenges that they faced? How long did it take their businesses to reach the breakeven point? What inspired them to develop their creative ideas in the particular businesses they started? How did they decide where to establish their business (along with some supporting reasons)? A third objective for this research is to share the stories of these entrepreneurs with young Adventists and those who may be interested in becoming entrepreneurs. These stories, advice, and tips may encourage or guide believers who would prefer working for themselves rather than for an Adventist or non-Adventist organization. In other words, what can young Adventists or other interested readers learn from the experiences of selected Thai Adventist entrepreneurs? This
18 question is the main point of this research paper, because the more that readers can learn from this paper, the more valuable the study will have been. And ultimately it can benefit not only the readers and the researcher, but all Adventist people in Thailand. 2.5 Research Hypotheses Hypothesis 1A: Selected Adventist entrepreneurs have been able to manage their businesses well and still live in harmony with their fundamental beliefs. Hypothesis 1O: Selected Adventist entrepreneurs have not been able to manage their businesses well and still live in harmony with their fundamental beliefs. Hypothesis 2A: Young Adventists and people interested in operating small businesses can learn valuable lessons through the experiences of selected Adventist entrepreneurs. Hypothesis 2O: Young Adventists and people interested in operating small businesses cannot learn valuable lessons through the experiences of selected Adventist entrepreneurs.
19 2.6 Research model or conceptual framework Figure 1 Research Model or Conceptual Framework Their Experiences Their Experiences According to the conceptual framework above, the researcher wants to show the overview of how Adventist entrepreneurs deal with their business operations. And what can young Adventists, or people who are interested in this field, learn through their working experiences? 2.7 Conclusion To combine and apply both the business world and Adventist fundamental beliefs is a part of this research. Highly successful Seventh-day Adventist entrepreneurs have reached soaring heights in the business world by adopting a high work ethic that puts God first (McChesney, 2016). The researcher will focus on what the readers can learn from this paper in a very useful of methodology found in the next chapter. Adventists Entrepreneurs Launching and Operating Their Businesses Their Experiences What Young Adventists/Prospective Entrepreneurs Can Learn from Them
20 Chapter 3 Research Methodology 3.1 Introduction Qualitative Research will find out the truth from the event’s “Realistic environment. The main focus is on analyzing the relationship between events and environments in order to gain insight from a multidimensional perspective (PM Nakhonsawan, 2011) by using qualitative research in the form of Narrative Research (Jongsuksomsakul, 2018). The experiences of the selected Adventist entrepreneurs will be gathered through interviewing each respondent more than once. It will probably take several interviews to collect the necessary data by using the in-depth interview method. 3.2 Research design This independent study project primarily uses a Descriptive Research Design to gather the needed qualitative methods. This design allows the researcher to state the concern being studied, design interview questions, analyze information, and summarize the findings. 3.3 Population and sampling frame (Quantitative studies) or participants (Qualitative studies) The population of this study refers to the three small businesses of the selected Adventist entrepreneurs, which are as follows
21 1) PAUL Trading Limited Partnership 2) APD Sport Limited Partnership 3) Big Bass Drinking Water Plant. This study requires the researcher to analyses the financial statements of each entrepreneur from 2017 – 2019. Additionally, the researcher will learn about their experiences, since they first set up their businesses in Thailand. 3.4 Data collection method(s) and procedures According to Gandy (2015), she was using data collection and its procedures as follows: (1) Introduce self to participant(s) (2) Present consent form, go over contents, answer questions and concerns of participant(s) (3) Give participant a copy of the consent form. (4) Turn on recording device. (5) Follow the procedure to introduce the participant(s) with a pseudonym or other identification, noting the date and time. (6) Begin the interview with question #1; follow through to the final question. (7) Follow up with additional questions. (8) End interview. (9) Thank the participant(s) for their part in the study. Reiterate contact numbers for follow up questions and concerns from participants. (10) End the interview procedures.
22 3.4 Research instrument or measures, including validity and reliability Data collection methods using in-depth interviews in which the researcher asks the same questions to all the participants makes those questions the control variables. All the interview questions relate to the objectives of the research and are divided into 3 parts as follows: Interview questions Business Set Up 1. When did you start your business? 2. How many employees or partners do you currently have? 3. What inspired you to develop your business idea? 4. What have you enjoyed the most about starting your own company? 5. How did you decide where to establish your business? 6. How did you first select your coworkers? 7. How did you raise funding? 8. What strategies did you first use to market your business? 9. What kind of organizational culture does your business have?
23 How did you establish this culture in the workplace? Experiences 1. Knowing what you know now, is there anything you would have done differently when you were first starting out? 2. What challenges did you have to overcome at the beginning of your journey? 3. How do you define success? 4. What are the qualities of a good entrepreneur? 5. How long did it take you to find success? 6. How many businesses did you tried before ending up with the current one, and why this one? Things to share with young Adventists and other people who are interested: 1. What advice would you give to someone who is trying to become an entrepreneur? 2. What new business ideas (if any) are you working on now? 3. How did you avoid working on Sabbath? 4. Do you agree that Adventists should establish their own businesses? If yes, please tell the reason why. If no, also tell the reason why, or another answer may be given as well.
24 5. What are the advantages and disadvantages for an Adventist becoming an entrepreneur? 6. Is there any way for a beginner to start his or her own business without indebtedness? 3.6 Data analysis techniques This research is being worked on during the Covid-19 pandemic. It’s not convenient or safe for either the researcher or the participants to have face to face interviews. Thus, the researcher chose to hold the interviews through video calls. The researcher writes a letter to request an interview with each entrepreneur, then waits until they respond. The scheduled time with each of them is set according to their convenience. To get through the depth-interview process the researcher starts the recording and also uses mobile recorded audio for the backup. The audio was loud and clear for the researcher to transcribe later. The researcher uses a pen and small notepad to record the day and the time of the interview. The researcher requested a copy of the financial statement in PDF form for the years of 2017 – 2019 from each entrepreneur then entered the data sources into software for analyzing. The collection and storage of all data are in alignment with IRB requirements. The researcher is the only person who has exclusive access to all the data. The electronic data is stored on a personal, password protected, external hard drive and will be deleted after 5 years.
25 3.7 Ethical Considerations The researcher will conduct this study after receiving approval from the IRB and the requisite committees at Asia-Pacific International University. The three-basic ethics of research involving human subjects, (a) the principles of respect of persons, (b) beneficence, and (c) justice (Belmont, 1979), will all be followed. The researcher will ask for permission from the participants to share their data in the complete report. However, the identities of the respondents and their firms will not be revealed in presentations or publications. 3.8 Conclusion In this chapter, the description of the research methodology, population and sample size, research instrument and data collection method have been discussed. This chapter also includes ethical consideration which have been explained. The next chapter will cover the findings of the study after analysis. The results will be presented and explained.
26 Chapter 4 Results of Study 4.1 Rationale and experience in launching their new business (1) PAUL Trading Limited Partnership Mr. Paul Phoophichitprai was born into an Adventist family. He graduated from Chiang Mai Rajabhat University in 2006. Paul was determined to produce high-quality and healthy foods and emphasize a safe production process for consumers. Paul Trading, a food production company that focuses on producing fresh and natural foods, was founded on November 17, 2006, at 64 Moo 12, Sop Pong Subdistrict, Mae Tang District, Chiang Mai Province. It was founded and owned by Mr. Paul, who is visually impaired due to an immune system disease called Behcet’s (beh-CHETS) Disease that slowly eats up visual ability and, in the end, may destroy vision completely. As a university student, Paul couldn’t accept his disease and tried to fight it. However, by 2001 he had completely lost his eyesight. With the loss of his eyesight, he lost his determination in life and felt meaningless. For 2 years, he locked himself away from the world, thinking that he couldn’t do anything. His father, however, didn’t give up on him. He encouraged Paul to strengthen his mindset and determination in life. By the grace of God, Paul went on to finish his studies in Rajabhat University. Upon finishing his studies, Paul thought to himself, “What can I do after this?” God enlightened him to look back at his problem and the cause of it. Paul found out that it was his way of life, especially the food that he consumed. He then felt that he could do something about this. With his knowledge and a love for food, Paul came up with the idea of starting a production company that uses only natural ingredients and no preservatives. From the hardships that he faced
27 because of his condition; Mr. Paul became determined to produce high quality foods with a strong focus on safety in the production process. The main guidelines for his products were taken from the lessons that he gained because of his health problem. Even though he lost his eyesight, he didn’t lose his vision of a better life for his customers through his products. Paul Trading produces products that are healthy and nutritious for customers by using the best, freshest, and most natural ingredients. These products are produced, packed, and delivered to their customers in the best possible ways to ensure that the customer gets the best and most nutritious products possible. To back up these claims, Paul’s products have been certified as GMP (Production) Standard "No. 8-4-15-50-09-00861" and received "Halal" from the Halal Standards Institute of Thailand to indicate that the food products are not contrary to Islamic principles. Thus, they are not only safe and healthy, but also enjoyable and acceptable for everyone. The first product that Paul came out with was peanut butter. He remembered about how missionaries whom he had met in the past through his father loved to eat peanut butter and bread. Paul decided to come out with formulas and recipes for this product. At this moment, the company has many more products: peanut oil, sesame oil, sunflower oil, almond butter, and dried fruit bars in addition to the peanut butter. All this is accomplished with 50 employees. And his products under the brand PAUL FOOD are on sale in hypermarkets. With the net income he gets from the sale of his products, he established a foundation to support disadvantaged children through educational scholarships. There are many students who are unable to study due to the lack of funding for their school fees. Mr. Paul’s foundation helps these students get the education that they need.
28 As for Paul, despite his shortcomings in life, he says “In my life today, I have adhered to the teachings of King Rama IX, which teach us to live sufficiently. Make oneself beneficial to society, whether it is my business administration or daily life, I will use the King's Sufficiency Economy Philosophy to guide me to move forward in every situation. It gives me the inspiration to face various problems under more pressure than others." With the story and background of PAUL Food, I found out and strongly believe that his small business is something that has helped Paul successfully navigate the adversity that he has faced. With the growth of small businesses throughout the years, PAUL Food was established, and many people can be blessed and benefited by the products that he produces. (2) APD Sport Limited Partnership Mr. Piya Ekwiriyathorn was born into an Adventist family; both his father and his mother were teachers and worked in an Adventist institution. Piya liked to play football ever since he was a child. Many times, during his university studies, he participated in football games with his friends. Piya was often chosen as a goalkeeper. The goalkeeper must have gloves to catch and block the ball from entering the goal. Later he graduated from an Adventist university. He started working at Mt. Olympus Water & Theme Park, a company related to family vacations with a large water park and other attractions including restaurants. Later in June 2013, Piya began to work at Taivas Consulting Co. Ltd., a company that engaged in wholesale and retail sales of motor vehicles and motorcycles, plus repair services, as well as sales of machinery and equipment for industrial use. In 2016, he established the APD Sports Company Limited with two of his friends, Mr. Phisan Dokmaikaew and Mr. Jintasanti Uttamawetin. They registered the company under the Civil
29 and Commercial Code as legal entity No. 0105559043981 on March 14, 2016. It is located at 191/229 Gusto Village, Ramkhamhaeng, Ratpattana Road, Saphan Sung Sub-district, Saphan Sung District, Bangkok. The company is engaged in manufacturing and distributing all kinds of sports equipment. The main products and activities of the company are selling goalkeeper gloves and producing football team shirts, polo shirts, t-shirts, activity shirts, framing work, screening work, and brand design. On February 6, 2020, Piya invited a pastor friend to visit his business. The pastor dedicated his shop to God and sought blessings for Piya and his two friends’ company. Since he is very active in sports activities, every time he participates in activities related to sports, he is happy. So, he never gets tired of doing what he loves. Therefore, the business has expanded until Piya and his friends opened a football stadium named APD football arena. On January 30, 2020, Piya invited a pastor friend to pray for this new venture. To open this football field for rent, he and his friends also announced they were recruiting teams to participate in football competitions, 6 people per team, and they would accept only 12 teams. Each group was required to pay an application fee of 3,000 Baht per team with a refundable insurance fee of 20,000 Baht per team. Due to the COVID-19 crisis, applicants have had more time to form their teams, causing the competition to be postponed indefinitely. That also has required another business strategy in order to adapt to the pandemic situation. The various products in their inventory are still being sold as usual, but more through online platforms. (3) Big Bass Drinking Water Plant Mr. Pornchai Raebut was born in a Buddhist family and grew up in a Buddhist society at 167 Moo 4 Mittrapap, Muak Lek district, Saraburi Province. Initially, the family made a living as dairy farmers by raising cows and selling cow's milk to a dairy cooperative, which uses the milk
30 to produce various products. The middleman who bought Pornchai’s milk was the Dairy Farming Cooperative. After deducting his expenses, he had around 16,000 Baht left per month. Since there were four family members, they would get 4,000 Baht each, which is considered hard work and low income when compared to the value of what they have done. They had to wake up at 5 a.m. every day to milk the cows, plus taking care of them day and night. In 2017, there was an epidemic that sickened the local cattle, causing many of their cows to die. At the end of 2018, Pornchai had an idea about changing the family business from producing cow's milk to setting up a drinking water plant. So, they sold all the rest of the cattle. Pornchai thought of building a drinking water plant because he believed that water is necessary for everyone's daily life, so he would be able to sell it. Everyone in the family agreed to build a drinking water plant. So, they took their savings from the past milk production. Combined with the money from selling the cows, they had more than 400,000 Baht to invest in the water plant. The transaction details were as follows: 1) They took about 200,000 Baht to build a water plant building, 2) Another 200,000 Baht was used to build a water pipe system and buy a groundwater drilling machine. But that was still not enough for all the expenses. Therefore, Pornchai had to borrow another 200,000 Baht from the Government Savings Bank to buy a water filter, connect the water plant's electrical system, and pay for the construction workers. Nonetheless, this amount was still not enough to open a water plant. They lacked water tanks and bottle packs that would be used for medium and small packs of water, along with tank neck labels and block values that would be screen printed on the water bottles, and dryers to be used to seal the necks of the tanks. They also needed pickup trucks to deliver their products to customers. Therefore, they had to borrow more than 200,000 Baht from their neighbors, the first 100,000 Baht to buy those necessities, and the other 100,000 Baht for a down payment on the
31 installment purchase of a pickup truck. The installment payment was about 8,000 Baht per month, with a total of 36 installments for three years. Subsequently on February 20, 2019, Mrs. Napawan Raebut (Pornchai's mother) registered the new business with the Department of Business Development. At the Central Commercial Registration Office, the name of the commercial operation was registered as "Big Bass Drinking Water," and the type of commerce is the production and distribution of drinking water. The drinking water business is all about the quality or standard of the product. Pornchai had to apply for a FDA (Food and Drug Administration) number, with the FDA number having a total of 13 digits. Pornchai prepared all the various documents and detailed product information for the FDA number. The Food and Drug Administration spent months reviewing his product quality and production standards according to their requirements. While waiting for the FDS number, Pornchai and his family could not sell water, so they were without any income. This was a challenging time. They had just invested a large sum of money, and yet they had no income. There were also the debt payments that they needed to pay. But they did not give up. Finally, they received a source number 19-2-01662-6-0001, which included bottling the water and having its own branded logo. After completing all the steps, they successfully brought the product to market. During the first phase, they didn’t sell much because their new product was not known to people in the area and there were several competitors, so customers chose to buy from companies that were more familiar to them. And there were also internal problems which came from the coworkers. It was a family business, so everyone who worked in it was a brother, uncle, or aunt. All were related to each other, and that caused conflicts and disagreements. Because selling drinking water was a new experience for everyone, they didn’t have a clear understanding of the beginning and the end of the working process. There were disputes, with people blaming each other until
32 some of them resigned, and this caused Pornchai to be very stressed because everyone was blaming him. He was the one who had dreamed of starting this new business, but he had no experience in managing people or managing the work. He couldn’t control his emotions many times, resulting in misunderstandings with uncles and aunts, which caused each person to quit their jobs one by one, until only his parents and Pornchai himself were still working. This caused Pornchai to be so stressed that he did not want to go further, and he gave up on his work. Even his parents were arguing with him. All of this made Pornchai very sad to have decided to run a drinking water business with his family members. He stopped working and left everything behind. His father and mother were very distressed because they had to bear the debts and the management. Pornchai left the house for a long time, but his parents still ran the water business with the support of his older brother. As time passed by, Pornchai met a friend who was an Adventist. She invited him to learn about her God’s love, which made Pornchai calm down. He wanted to start a new life, and that friend helped him to learn all the 28 fundamental beliefs of the Adventists. He also learned more about the important parts in the Bible at a Sabbath School class with some students and the church pastor. He took time to learn every Saturday during the Sabbath School class time until as time passed by, the church was faced with the COVID-19 pandemic. This caused the church members to only participant through online worship, including online Sabbath School classes. He studied for around six months and tried to follow various beliefs such as eating healthy foods and taking a Sabbath break from his work. By then, he was prepared to follow through and accept this new faith. He decided to get baptized on Sabbath, December 12, 2020. After time, he returned to work at home as usual. His parents saw a change in Pornchai. He returned to live like a farmer and started a new life with his water business again. But still, he had
33 a problem; no one in his family knew about the Sabbath. They didn’t understand why he had to stop his work. They made him worship on Sabbath morning and go out to sell water on Sabbath afternoon, which is very contrary to Adventist beliefs. Pornchai argued that he didn’t work alone; he worked with family members. Everyone stopped working and rested on Sunday, so nobody understood on him. They were unhappy because if Pornchai was off on Saturday, it would mean that Pornchai was off for two days a week, both Saturday and Sunday. So, after worshiping on Sabbath morning, Pornchai had to go out to sell drinking water in the afternoon. And Sunday was everyone's holiday, including the customers themselves. They would not order drinking water on Sunday because they knew that the shop was closed. Only if a customer went to buy drinking water directly at the water plant would they sell water on Sunday. It was something that Pornchai had to face. As an Adventist member, he could follow all the other practices except for keeping the Sabbath day. He still needed to adjust and asked God to help him with the rest of his faith because he's working among people who do not know and understand his beliefs. 4.2 Order of presentations in line with research objectives and data analysis Each entrepreneur in this study had a different motivation when setting up a new business. For example, Mr. Paul started his business because he saw an opportunity and wanted to be independent, while at the same time being a blessing to other people around him. For APD Sports, Mr. Piya and his two friends started their business because they loved football and played it as well. Mr. Pornchai started his water business because his former business was faced with a problem, and he was tired of trying to find a better solution as mentioned previously.
34 (1) Financial Statement Analysis of PAUL Trading Company, Ltd. Mr. Paul was faced with the high cost of sales and operating expenses, since his investment in a new product included employees' daily wages, and since the company needed to follow Thai labor policies. For example, if the labor office set the minimum wage in Chiang Mai Province at 325 Baht per day, then they must also follow this guideline, no matter whether the company will gain or lose. At the same time, the company also expanded their business, and as a result, the operating expenses eventually became higher than the income. The overview in Table 1 PAUL Trading Ltd Part 2014-2018 Statements of Financial Activity shows that PAUL Company had 3 years of profit, followed by 2 years of losses. There were certain things that happened because they suddenly experienced losses in the last two years of the Statement of Financial Activity from 2014-2018. Table 1 PAUL Trading Ltd Part 2014-2018 Statements of Financial Activity
35 In the year of 2016, sales suddenly increased, almost tripling from 10.3 million Baht in 2015 to 29.2 million Baht in 2016. This represented a difference of around 18,893,919 Baht when compared to 2015. Aside from peanut butter - creamy, crunchy, and along with sweetened and unsweetened products - in the year of 2016, Mr. Paul began producing many new products. These included items such as almond butter, sesame oil by cold pressing process, rice bran oil, peanut oil, coconut oil, white sesame seeds, black sesame seeds, red sesame seeds, molasses, cereal bars with dates, mixed fruit bars with dates, chocolate bars with dates, cookies, cereal bars, black sesame cookies, sesame bars, cashew nut bars, black sesame bars, and almond bars. Paul had more distribution channels which included supermarkets like the MALL, Tesco Lotus (now Lotus’s), and all the vegetarian food stores in Chiang Mai Province, including some Seventh-day Adventist institutions like the Mission Hospital store and the Ekamai International School store. The company also launched online sales using the Lazada and Shopee platforms. In addition, they also created their own website under the PAUL Food brand. The company also hired a sales manager in each part of Thailand. All those results were reasons why suddenly sales rapidly increased in the year 2016 and thereafter. Because the company was not able to control the expenses, even though sales were high, in the last two years they finally experienced losses. The reasons why were because expenses finally overtook income in 2017, and even more so in 2018. Mr. Paul was a little too fast in making the decision to invest in so many new products at the same time. All those additions mentioned above affected his expenses. And since he didn’t have a proper financial plan in the beginning, that’s why the company ended up losing money during those 2 years. The total income became less than the total expenses. That wasn’t a good sign.
36 Another interesting part that appears on PAUL’s Statement of Financial Activity was the increasing profit from 2014-2016, which was rapidly followed by losses in 2017 to 2018. Even though their sales for those years were higher than the previous years, total assets were lower than the 3 years before. This change happened suddenly. From 2014 – 2016 they continued to have more demand for their products, and each year they had higher earnings; that’s why the company desired to invest in expanding their business. They invested in another building and purchased a new machine as mentioned previously in order to produce more products. Since there were some changes in their internal operations, changes were also needed in the company’s working processes. New internal controls were set up by dividing work to different departments according to the needs of their internal system. For example, in the production department, there were sub duties like the production of sesame oil, peanut butter, and some of the other products. In the office, sub positions included the marketing officer, financial officer, purchasing officer, store officer, and logistics officer. The company needed to hire professional trainers from outside to train all the employees, teaching and guiding them to work in the proper way, and the trainer needed to especially work with the leaders from each department. Since the company hired professional trainers, professional fees also needed to be paid as well, and that was part of the operating expenses of the company. According to Table 2 PAUL Trading Ltd Part 2014-2018 Statements of Financial Position below, the Cash and Cash Equivalents in 2017 increased to 681,265.90 Baht. An increase in cash equivalents meant that the liquidity of the company was good; that is considered healthier and poses less of a risk. It means that the company would also receive a lower interest rate for loans, which would translate into higher profitability.
37 Table 2 PAUL Trading Ltd Part 2014-2018 Statements of Financial Position Table 1 PAUL Trading Ltd Part 2014-2018 Statements of Financial Position According to Table 2, in 2014 the inventories had the highest balance if compared to the other years. The inventory level depends on customer orders. PAUL Company will not produce more than customers’ order; they will only produce some extra products for sale in the front shop, and each product has an expiration date. The company must be careful with the inventories to not have too much or too little. At the end of the year, the financial statements showed that the company had some leftover raw materials. These materials were bought according to the orders of his customers, and by the end of 2016, there were many orders. The company needed to have enough stock of raw materials to produce what was ordered, so that’s why the cost of raw material was quite high. The materials were still in the process of being produced as products, after which they would be packed and ready to sell. Since every adjustment and expansion resulted in using higher funds than usual, the Company decided to get some short-term loans to keep the business running. This explains the increase in short-term loans that appear in Table 3 starting in 2016. Short-term loans were part of the Current Liabilities in the financial statement, which also showed hire purchases payable due within one year. The Net Liabilities for hire purchase contracts were of some benefit to the Company each year. PAUL Company needed short-term loans every year to invest in their new
38 products, for example, fruit bars and other new products under the PAUL Food brand. Paul wanted to do that to separate the capital for each product. By not combining all the products into one financial budget, it was easier for him to manage. If the company needed emergency funds to be used operations, only the necessary part will be affected. Table 3 PAUL Trading Ltd Part 2014-2018 Statements of Financial Position Among the Liabilities are Hire Purchase Payables due within one year. In Table 3, creditors such as financial institutions are also shown. To apply for short-term loans when the emergency use of money was required, financial liquidity documents had to be prepared. The firm determined to repay creditors within a one-year period to not be overwhelmed with debt, and to maintain its good credit with financial institutions as well. From 2016 to 2017, Paul invested in various products as mentioned previously. That’s why his short-term loans also rapidly increased. According to the auditor’s report, he not only invested in new products, but he also invested in new machines. For instance, he purchased 3 bar press machines, which were 103,460 Baht each, and another 2 oil press machines, which were 144,339 Baht each. According to Table 4, the liabilities under the hire purchase-net contract are the trucks purchased in the company’s name which are used to transport all the goods to customers. The
39 Company would take some of the proceeds from the previous year's profits for paying down debt and leave some that can be paid in annual installments according to the agreement period. Table 4 PAUL Trading Ltd Part 2014-2018 Statements of Financial Position This allowed the company to purchase a truck as a short-term debt, and it also helped with the distribution of goods. The company was able to use the yearly cost of that payment to compute a yearly tax deduction. Table 5 above shows there are three shareholders, and the other two shareholders were his parents, his mother and father. They may help him as they can, but they are not the main persons to manage the business; they are in the position of giving advice and supporting him more. Table 5 PAUL Trading Ltd Part 2014-2018 Statements of Financial Position So, Paul divided all the duties to each of his employees, most of whom do not have bachelor’s degrees. Each of them has a different personality and different abilities, and some need
40 to be trained more than others. Paul took some time to learn about each of them to find out which position he should put them into; what area of his business process is suitable for their personalities and abilities? In the years from 2014–2018, the PAUL company financial statements showed that the company’s main expenses were cost of sales and operating expenses. Paul said all the expenses were necessary, and 10% of his profit was paid as tithe to the Seventh-day Adventist church and to support the Education Opportunity Foundation (EOF), which is also a Seventh-day Adventist organization. The EOP area is next to Paul’s factory, and even though he was the manager, his salary was almost the same as his employees. None of them have a salary higher than 20,000 Baht per month, but each one lives peacefully and tries to save as much as they can. Most of his employees have their own car, their own motorcycle, and their own land. He says that this was a blessing from God. They never feel like they had no money because God always provided for them. Paul has a plan to manage this issue of recent losses because they will affect his long-term operations. He planned to sell more and focus more on the marketing process because the more he can sell, the more the income there would be to cover the expenses. But they also need to make sure that their operating expenses should be as low as is practically possible. This means that they need to economize in every way. PAUL Company’s business position after 2018 to the current year has gotten worse, even though they were trying to focus more on the marketing and sales processes. But their income still did not reach the level that they had anticipated; they only came to the break-even point. The company is only able to maintain the business. Since demand and supply are in parallel lines, there has been less demand, and that has affected the supply. The cost of all raw materials has increased
41 but there has been less demand because customers have less cash in hand. Paul said that there have been certain reasons for those issues. He gave some examples: (1) The COVID-19 pandemic, and (2) The war between Russia and Ukraine. Those have caused higher inflation which decreased most people’s quality of life, including customers, business owners, and all the ordinary people. Mr. Paul continues to solve these issues by focusing more on selling his products, because higher sales would mean that he could gain more profit and cover the operating expenses. Mr. Paul had a unique practice established in his business as an Adventist entrepreneur. He returns tithe, which is 10% of his business profit, to the EOP foundation (Education Opportunity Program). He closes his Company every Saturday and joined the Sabbath worship program with his family. Sometimes he also worshipped with the villagers. He also avoids unhealthy foods, which are not good for his health, and his whole family follow the church doctrines. So, these things are part of his lifestyle, and all his workers also did the same thing. (2) Financial Statement Analysis of APD Sport Company Limited In its early operation, APD Sport faced with a problem because of the poor quality of cloth material produced by a factory in Pakistan. They had paid a high price for good quality cloth but received low quality products. Piya solved the problem by looking for another clothing manufacturer in Pakistan and dealing with them online. He sent them his clothes and compared the resulting products with those from his target factories. He finally found the best factory with a suitable price. Mr. Piya also closed both his online and front shop on Saturday and took his baby girl to church along with his parents. According to Table 6, the Statements of Financial Activity showed that in 2016, APD lost 18,648.42 Baht. Since 2016 was APD Company’s first year of operations and first time to submit
42 their financial statements to the Thai revenue office, it is not surprising that the company did not show a profit during their first year of business. Their financial statements were not yet organized in a systematic process, and that was part of the reason why their net income was negative. Table 6 APD Sport Company Ltd 2016-2019 Statements of Financial Activity The Income Statement shows that they didn’t pay any income tax for their first year of operation. That made sense enough, said Piya, because it’s not necessary for the company to make a profit in the first year. In 2018, their profit and loss statement showed that they posted a gain, and it was the highest profit when compared to the other years. , This occurred because they offered different promotions to their customers. For example, they advertised more on online channels such as Facebook, their website, and through their dealers in different places all around Thailand. And 80% of their income came from online sales through Facebook and Line, while15% came from their dealers or their partners. The last 5% came from sales through Shoppee and their storefront shop.
43 The operating expenses from 2019 to 2020 were relatively high. There was a change in how they rented out a football field to their customers. That was also one of their income items, having been one of their plans since the beginning. That’s why their operating expenses jumped up from 2018 and onwards. They also added more equipment like printers and some office chairs and tables for office use as well. According to Table 7, their operational results were positive from 2017 to 2019. All workers were participating in the marketing process, some by advertising more online, some promoting the firm as brand ambassadors by using football player connections. They even shared a percentage of the proceeds with their dealers: for example, they gave 20% of the product price to their dealers. Their customers, including VIP customers, always purchased products from them. The VIP customers received special credit; for example, they received a 10% discount from the full price. One promotion that was offered to customers was to accumulate points from each purchase, and then exchange those points for any product. One of the main attractions is that the quality of their products is quite good when compared to other shops. Most of the customers choose to purchase again. Their location also contributed to their gaining profit. They chose a place that was not too crowded, and the environment was good for playing and enjoying sports. It did not matter whether the customers were players or observers; they all enjoyed their service. The first COVID case in Thailand was in February 2020. After that it separated all around Thailand, the APD financial statement continued to show a profit. They managed their business by selling out some of their products in the first 3 months of the year. After that, all the products were stocked in the inventory, but because they had seen this pandemic coming, they found a way to sell cloth masks to maintain their cash flow. At the same time, they also sold the leftover