Page 150 - Social Enterprise A New Business Paradigm for Thailand

Researchers conducted in-depth interviews with 117 social entrepreneurs across 10 European
countries to investigate the role of the state in shaping social enterprise development. The

findings categorized government involvement in the EU into four primary models. The first two
emphasize public sector support for the social economy through mechanisms at the EU, national,
and local levels. The latter two focus on transitioning the social economy into social enterprise,
each based on different degrees and forms of state engagement (Baglioni et al., 2024).

1) Centralized State-Dependent Model
This model relies heavily on central government support, both financially and through public
policy. Countries employing this approach include Poland, France, Albania, Serbia, and Austria. In
these countries, social entrepreneurship has been integrated into national school curricula.

Despite this, collaboration with other stakeholders tends to be weak. This model has also faced
criticism for emphasizing support for activities rather than long-term sustainability. Many civil
servants have insufficient understanding of the social economy, leading to underappreciation of
the sector’s social and environmental value. For instance, in countries with high unemployment
like Poland and Serbia, governments often treat the social economy as a job creation mechanism.
As a result, many social enterprises lack diversity and are unable to sustain themselves without
state funding.

2) Locally Driven Model for Employment and Community Initiatives

This model relies on local governments and emphasizes job creation and grassroots initiatives. It
is found in countries such as Scotland and Sweden, where the focus is on employing marginalized
groups and delivering social welfare services to vulnerable populations. Social entrepreneurs may
also be entrusted with managing community resources in place of local authorities. Funding
sources under this model include the European Social Fund and the European Regional
Development Fund, although the majority of funding typically comes from local government
budgets. This encourages social enterprises to address local challenges and fosters diversity in
social enterprise models and ecosystems. These social enterprises often depend on public
procurement laws to sustain their operations. However, the model has been criticized for the

limited awareness and understanding of social enterprise among local governments, resulting in
fewer procurement opportunities than expected. Authorities still tend to favor large private firms
that can deliver goods and services at competitive prices. Both Scotland and Sweden continue to
offer state subsidies, Scotland through government-backed loans and Sweden through grants and
loans from the National Investment Fund.

3) Market-Driven Support Model
This model supports the social economy by leveraging market mechanisms, as seen in countries
such as Germany and the United Kingdom. Under this system, there is no direct public funding at
the national policy level. Instead, support is provided in the form of private-sector investment in

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