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a comparative overview of policy instruments across ASEAN countries, compiled by USAID in 2018.
The assessment ranks countries on a scale from 1 to 4 as follows:

1 –Absent

2 – Absent, Initial Phase, Discussion/Planned
3 – Present, Early Stage
4 –Present, Established/Mature stage

Table 3.1 Status of Policy Instruments Supporting Social Enterprises in ASEAN Countries

Specific legal definition Tax exemptions and Incentives to Invest in
Country
of SEs incentives for SEs or buy from SEs

Brunei 1 1 1
Cambodia 1 1 1

Indonesia 1 1 1
Lao PDR 1 1 1
Malaysia 3 1 3
Myanmar 1 1 1
Philippines 2 2 2
Singapore 1 1 1
Thailand 3 2 3
Vietnam 3 1 1
Source: USAID, The Social Enterprise Landscape in ASEAN: A Synthesis Report, 2018.

3.6 Conclusion and Discussion

Over the past two decades, the growth of the social economy and social enterprises has become
a global trend. Nevertheless, social enterprises in many countries, including developed nations,

continue to encounter common challenges, such as low public awareness, difficulty accessing
funding, and the absence of policies or legal frameworks that support their development. A
review of international experiences reveals that the strength of social enterprise ecosystems
varies widely, depending in large part on public policy and the existence of enabling laws.

In the United States, where the government lacks a clear policy on social enterprises, unlike the
European Union, the United Kingdom, or the Republic of Korea, nonprofit organizations must
depend on market mechanisms to generate income for their social and environmental missions.
The significant wealth held by corporations and private foundations has also prompted these

entities to seek tax advantages by allocating resources to socially beneficial causes. Although
some for-profit entities in the U.S., such as Low-Profit Limited Liability Companies (L3Cs), reflect
the social enterprise model seen abroad, only ten states have passed legislation recognizing this

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