Page 178 - Social Enterprise A New Business Paradigm for Thailand

Chapter 6
Public Organizations and Social Enterprises in Thailand:

Legal Developments and Business Incentives

Social enterprises are businesses that incorporate social objectives into their operations. These
organizations can take the form of non-profit entities, such as associations and foundations, which
may generate income to support their missions. They can also be for-profit entities, such as
companies or partnerships, that reinvest profits for social benefit. Additionally, there are
member-based organizations like cooperatives and community enterprises, considered

grassroots social enterprises. These entities generate income for the benefit of their members,
contributing to economic and social development at the community level. Various types of public
organizations have been established under different Thai laws, depending on their legal status,
and many existed long before the enactment of the Social Enterprise Promotion Act, B.E. 2562
(2019).

In this chapter, the term “social enterprise” is used broadly to refer to all types of business
organizations with social objectives, including those formally registered as social enterprises. The
Social Enterprise Promotion Act, B.E. 2562 (2019) allows any legal entity under Thai law whose

primary purpose is social to apply for registration as a social enterprise. Once registered, these
entities are eligible for various benefits provided under this Act and related legislation. Thus,
associations, foundations, cooperatives, community enterprises (if they hold legal entity status),
as well as companies and partnerships that meet the legal criteria, are all eligible to apply for
social enterprise registration. However, a key question remains: Do existing policies and laws offer
sufficiently strong incentives to motivate public organizations or social investors to register or
establish themselves as social enterprises?

This chapter is organized into two parts. The first part explores three categories of social

organizations commonly involved in social business:

(1) Non-profit or non-revenue-sharing organizations, such as associations and foundations
(2) Member-based organizations, such as cooperatives and community enterprises
(3) For-profit or revenue-sharing organizations, such as legal partnerships and limited companies

Part 2 focuses on social enterprises under the Social Enterprise Promotion Act, B.E. 2562 (2019).
The author provides an overview of legal developments, government benefits, and support
mechanisms currently available to these three groups, aiming to address key questions: How are

these organizations supported differently? Do government regulations offer meaningful

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