Page 148 - Social Enterprise A New Business Paradigm for Thailand

how social enterprises can attract external funding from investors who seek varying levels of
return and are drawn to different financial tools. Internally, fundraising through operational

income often relies on sponsorship from target audiences, for example, revenue or membership
fees from social enterprises themselves, or sponsors who are beneficiaries or customers who
value products and services that help alleviate social problems or contribute to building a better
society.

Figure 4.4 Types of Investors

Mechanism and Instruments for
Financial Support

Externally Internally
Sourced Sourced
Sources of Funding

Target Group &
Philanthropist Impact Investor General Investor Government
Stakeholders

• Donations • Registered Capital • Registered Capital • Government • Sponsorship
• Mass Funding • Debt Instruments • Debt Instruments Contracts • Revenue
• Blended Finance • Blended Finance • Government • Membership Fees
• Fundraising • Fundraising Grants
through Quasi- through Quasi-
equity Instruments equity Instruments
• Crowdfunding • Social Impact Financial Tools to Support Social Enterprises
• Social Impact Bonds
Bonds • Impact
• Impact Investments
Investments

Source: Adapted from “Financial Tools to Develop Social Entrepreneurship” by Popov E.V., Veretennikova A.Yu., and
Kozinskaya K.M., 2019, Economic and Social Changes: Facts, Trends, Forecast, 12(5), Figure 2, p. 95.

4.3 Midstream Incubators and Support Organizations for SE

Another essential component of the social enterprise ecosystem, beyond sources of funding, is
the presence of incubators, which help social enterprises gain stability during their formative
stages. These organizations provide technical support, mentorship, and coordination in accessing
financial resources. Prominent incubators around the world include those affiliated with the
Yunus Center, which will be discussed in greater detail in the following section. Another
internationally recognized incubator is Ashoka: Innovators for the Public, a U.S.-based
organization founded in the state of Virginia by William Drayton in 1980. Ashoka focuses on

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