Page 129 - Social Enterprise A New Business Paradigm for Thailand

growth of social enterprises, particularly by offering valuable insights into the benefits, limitations,
and challenges of governance in this sector.

The European Union has also maintained a consistent policy to support social enterprises. The

development of social enterprises in Europe differs from that in the United States and the United
Kingdom. In the early stages, European thinking placed strong emphasis on organizational
structures that promote participatory decision-making among stakeholders. As a result, one of
the most prominent types of social enterprises during the 1990s was the social cooperative,
which originated in Italy and spread to other European countries. Another defining feature of
European social enterprises is the work integration social enterprise (WISE) model, which
emerged in countries such as Finland, Poland, and Spain. These enterprises focus on integrating

marginalized groups into the workforce. Governments across Europe therefore play a significant
role in supporting social enterprises, helping them deliver public services in areas where the state
alone cannot meet the demand.

Since 2011, the European Union has implemented dedicated strategies to promote social
business, introducing financial instruments to incentivize private investment and offer loan
guarantees to social enterprises. Currently, EU regulations and national laws of member states
recognize a wide variety of social enterprise models. Some countries have also passed legislation
formally recognizing Benefit corporations. Nevertheless, social cooperatives remain widely

popular across the region.

It should be noted, however, that the social cooperative model in Europe may not directly align
with the Thai context. In Thailand, cooperatives have not evolved with a broad-based focus on
generating social impact. Still, the financial tools and mechanisms employed by the EU to
promote social enterprise are valuable learning opportunities and could be evaluated for their
relevance and adaptability to other national contexts.

The Republic of Korea serves as a key example of a country where the government has actively
utilized policy, legislation, and significant budget allocations to stimulate the establishment of
social enterprises. Although there are various laws related to organizations within the broader

social economy, the most widely discussed and significant legislation in incentivizing social
enterprise development is the Social Enterprise Promotion Act (SEPA) of 2007. Social enterprises
that meet the criteria set by law and are registered under SEPA are eligible for numerous benefits.
These include financial subsidies or support for land purchases, installations, and equipment;
national and local tax reductions or exemptions for social enterprises and their supporting
organizations; government procurement incentives that prioritize goods and services produced
by social enterprises; partial government support for employee insurance contributions; as well

as advisory services, education, and training programs. Additionally, selected social enterprises
that provide social services may receive financial assistance for personnel costs, consultancy fees,

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