Page 17 - Social Enterprise A New Business Paradigm for Thailand

The primary success factors identified include:

1) Visionary leadership and strong teams, such as Meechai Viravaidya from the Population
and Community Development Association and Vichien Phongsathorn from the Premier

Group.
2) Effective business models that meet previously unaddressed market needs and support
long-term financial sustainability, for example, Yuen Yen.
3) Networking and communication capabilities, especially in marketing and brand messaging,
as seen with Pracharath Rak Samakkee Phuket.
4) Innovation and adaptability, exemplified by platforms such as Taejai.com, and Zero
WasteYOLO.

One factor that stands out in international contexts, a clearly defined social mission, is less

emphasized in Thailand. Some Thai social enterprises do not even refer to themselves as
“social enterprises” in their marketing. This may be due to the general lack of public
understanding of what a social enterprise is. Consumers often fail to recognize the collective
value being created and may assume that anything labeled “social” should be free or priced
below market. Furthermore, social entrepreneurs are sometimes perceived as less competent
in business, with the assumption that they only work in the social sector because they lack the
skills to compete in mainstream commerce.

17. Social enterprises are showing improving trends in revenue and profitability

An analysis of financial statements from a sample of 256 social enterprises shows encouraging
progress. Between 2019 and 2023, the number of enterprises reporting revenue increased
from 172 to 241, while those reporting net profit grew from 69 to 138. Although revenue and
profit remain highly concentrated, with the top 10 enterprises accounting for 77 percent of
total revenue and 80 percent of total profit, there are early signs that this concentration may
be starting to decline. That said, liquidity across the sector has deteriorated over the same
period.

18. Total revenue and net profit have grown significantly, with high average annual growth rates

Between 2019 and 2023, total revenue among social enterprises rose from 3.576 billion baht
to 5.927 billion baht, and net profit increased from 90 million baht to 348 million baht. These
figures represent an average annual growth rate of 13% for revenue and 40% for net profit.
Despite ongoing structural challenges, these financial indicators point to a positive overall
trend for the sector.

19. Financial sustainability of the Pracharath Rak Samakkee roup
An analysis of the financial statements of non-profit-distributing social enterprises co-founded
by the state, specifically the Pracharath Rak Samakkee group, initiated under Prime Minister

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