Page 10 - Social Enterprise A New Business Paradigm for Thailand

4. Dedicated funding sources are a critical component of the social enterprise ecosystem
An effective ecosystem for social enterprises must include legal and social institutions

governed by principles of transparency and fairness, along with public recognition and cultural
reinforcement of civic values. In addition to incubation systems, R&D support, and impact
assessment, one of the most vital elements is access to funding. In developed countries,
dedicated financial instruments and investment markets for social enterprises have emerged.
These can be categorized into several models:

1) Impact investment funds, which offer long-term, low-interest capital (often called “patient
capital”), as exemplified by The Acumen Fund.
2) Social Bonds and Social Impact Bonds, which mobilize debt financing linked to measurable

social outcomes.
3) Multi-instrument support models that blend different financial tools, such as grants and
low-interest loans, tailored to the social mission and organizational capacity of enterprises.
Examples include support from the Asian Development Bank (ADB) and the Calvert
Foundation.
4) Crowdfunding platforms, which enable public participation in funding social missions.
5) Social Stock Exchanges (SSE), such as the Impact Investment Exchange (IIX) in Singapore,
and similar platforms in Brazil, Canada, and India.

In addition to these models, microfinance institutions and capital markets for small-scale
investors also serve as important sources of funding in many contexts.

5. Public policy approaches to social enterprise development abroad fall into two main
categories
First, in Anglo-Saxon countries, policy is driven primarily by market mechanisms. Social
enterprises in this context operate within hybrid models, straddling both non-profit and for-
profit sectors. These enterprises generate income to sustain their operations via market
activities, but are built on business models with clear social missions and demonstrable,

measurable outcomes. For instance, the United States offers no specific tax incentives for social
enterprises, but provides official recognition through legal forms such as Benefit Corporations,
B Corporations (B Corps), and Low-profit Limited Liability Companies (L3Cs). In the United
Kingdom, similar recognition exists in the form of Community Interest Companies (CICs), with
comparatively greater collaboration between the state and the enterprise sector than in the
U.S.

Second, in continental Europe, governments play a more proactive role by directly investing in
social enterprise development. Social enterprises are treated as a part of the broader social

economy, and state funding is used as a tool to reduce inequality and social exclusion. Public

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