Page 14 - Social Enterprise A New Business Paradigm for Thailand

12. Current limitations faced by social enterprises
At the 2024 annual assembly of community enterprises, attended by 80 members, four key

limitations of operating as a social enterprise were identified:

1) Lack of recognition: Social enterprises remain unfamiliar to most government agencies,
including local administrative organizations (LAOs), the private sector, and the general
public. This lack of awareness becomes especially problematic when applying for benefits
such as access to public procurement. As a result, many state agencies hesitate to grant
legal privileges due to lack of awareness and understanding.
2) Insufficient business skills and access to funding: Both entrepreneurs and workers often
lack the business acumen necessary to manage and grow an enterprise. Most social

enterprises require significant capacity building and support to strengthen their
operational and financial models.
3) Complexity and low incentive of the registration process: The procedures for registering
as a social enterprise, as well as understanding the associated benefits, are perceived as
confusing. The legal and technical language poses a barrier, and the incentives offered are
not compelling enough to encourage widespread formalization.
4) Unpreparedness for external challenges: Many social enterprises lack the knowledge and
readiness to respond to broader environmental and systemic challenges such as climate
change and environmental disruption.

13. CSR and ESG budgets in the private sector have yet to fully support social enterprises
An analysis of corporate social responsibility (CSR) and environmental, social, and governance
(ESG) practices among Thai companies listed on the stock exchange suggests that these
mechanisms, while increasingly structured, are not yet significantly leveraged to support social
enterprises. Key findings include:

1) Large corporations allocate considerable CSR budgets, though often not to their full
regulatory ceiling. These companies typically conduct CSR activities using their own staff
and resources. Social entrepreneurs observe that most listed firms do not use the full 2%

budget allowance to support external social enterprises.
2) CSR implementation is becoming more systematic, now framed within the broader ESG
agenda. This has led to greater alignment with international standards and increased
pressure for compliance.
3) External forces are the primary drivers of ESG compliance. Influential global actors such
as the United Nations and international trade partners are setting high expectations,
making ESG adoption a serious and standards-driven undertaking. It is no longer just

greenwashing.
4) In Thailand, ESG pressure comes mainly from the Stock Exchange of Thailand (SET). In
2023, 76% of the 692 listed companies disclosed ESG data through public online platforms,

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