Page 151 - Social Enterprise A New Business Paradigm for Thailand

the social finance market. The focus is on attracting investors and private entities interested in
funding socially beneficial activities with strong growth potential. A clear example of this

approach is the use of Social Impact Bonds (SIBs), such as the Peterborough case discussed earlier.
In this model, the state encourages social enterprises to manage public welfare services through
contracting arrangements rather than traditional public sector provision. Unlike the first two
models, this system does not emphasize job creation for vulnerable groups. Nevertheless, social
enterprises operating under this model may still receive support from international organizations,
particularly the European Union, through financial instruments or collaborative programs.

4) Community and Locally Driven Model
This model is prominent in the Netherlands and Italy, where local communities and organizations

lead the charge in supporting social enterprise development. In Italy, the model particularly
emphasizes employment for disadvantaged groups, whereas the Netherlands relies less on state
funding and more on market-based self-sufficiency. Organizations following this model often draw
on local government funds or community capital, structured through cooperatives, associations,
and local social enterprises. However, accessing capital and winning public procurement contracts
remain significant challenges in both countries. Social enterprise education in schools is still
limited, although some universities provide strong academic support and expertise in specific
areas (Baglioni et al., 2024).

4.5 Conclusion

The ecosystem for social enterprises serves as the wind beneath their wings. Among its many

components, the availability of financial resources, particularly in Western countries, is one of the
most crucial factors. These resources are often structured into several distinct models: (1) the
Financial Instrument Mix Model, which combines a range of tools such as grants and low-interest
loans to align with the social mission and capacity of the enterprise, exemplified by the Calvert
Fund; (2) the Patient Capital Model, characterized by long-term, low-interest funding provided by
groups such as The Acumen Fund; (3) the Social Stock Exchange Model, in which platforms like
the Impact Investment Exchange (IIX) in Singapore enable the listing and funding of social

enterprises, similar exchanges now also exist in Brazil, Canada, and India; (4) the Crowdfunding
Model, which raises capital from the public through online platforms and small collective
contributions; and (5) the Social Bond and Social Impact Bond Models, which channel investment
toward social development initiatives with measurable outcomes.

In addition to the models mentioned above, there are also capital sources and financial markets
specifically designed for micro-investors and small-scale lenders. This topic will be explored in the

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