Page 13 - Social Enterprise A New Business Paradigm for Thailand

In contrast, the rate of growth in other countries has been far more rapid. For instance, in Italy,
the number of registered social enterprises increased by 2,626 companies within four years,

representing an 839% growth rate. In France, the number rose from just 17 companies to 1,000
over three years, with employment rising from 18,000 to 666,000 people by 2022. Meanwhile,
in the United Kingdom, the number of Community Interest Companies (CICs) increased more
than fivefold, from around 5,500 in 2011 to 28,878 in 2023.

11. The benefits offered to social enterprises are not sufficiently attractive
As of March 2025, only around 345 organizations have registered under the Social Enterprise
Promotion Act B.E. 2562, which is a very modest increase considering the time elapsed since
the law’s enactment. This number also represents only a small fraction of the over 100,000

organizations in Thailand that carry out socially driven activities. A key reason is that many
public-interest organizations do not perceive the added value of registration. Foundations that
are recognized by the Revenue Department as public charities already receive corporate tax
exemptions. Cooperatives are not subject to corporate income tax and are further exempt from
taxes on dividends and interest earned on savings accounts. Community enterprises also enjoy
tax benefits and preferential access to government procurement. Additionally, public
awareness of the social enterprise model remains low. It is therefore unsurprising that the
number of registered social enterprises has not grown significantly.

Moreover, existing social enterprises in Thailand not only remain few in number, but they also
do not receive the full range of promised benefits. The government has yet to allocate capital
to the fund intended to support these enterprises. Most social enterprises are still in early-
stage development and have yet to achieve profitability, which means they are not in a position
to benefit from tax deductions. Even when investors have received such deductions, they are
required to repay the tax benefit if they later seek to redirect that capital to support a new
social enterprise, creating unnecessary administrative burdens.

Furthermore, other government support programs, such as those under the Board of

Investment (BOI) and the Ministry of Agriculture and Cooperatives, provide financial incentives
for companies supporting community enterprises that are often equal to or greater than those
provided to social enterprises. As a result, the incentives to formally register with the Office of
Social Enterprise Promotion are perceived as weak. Interviews also revealed that social impact
reporting requirements are overly burdensome for small-scale social enterprises, and many
believe the state is overly focused on delivering measurable outcomes in the very first years of
operation.

vi