Page 20 - Social Enterprise A New Business Paradigm for Thailand

to improve public and market acceptance. However, the ability to remain competitive will
continue to be a fundamental condition for the long-term success of any social enterprise.

2) Enterprises producing goods and services for underserved or unserved markets

These are markets where demand exists but is not sufficiently met, often due to low
purchasing power. In most cases, the products are intended for the poor or people with
disabilities, and thus these enterprises deserve targeted support. They can be further
classified into subgroups, such as:

2.1 Markets with demand but low or no purchasing power
In these markets, buyers are poor or vulnerable, making it difficult for social enterprises
to generate sustainable revenue. To address this challenge, the following approaches may
be needed 1) introduce new technologies, or 2) apply a Robin Hood model or partial

subsidy system.

This kind of cross-subsidization is already used by large public hospitals and teaching
hospitals. Other examples include the Grameen Bank model, which tackled the issue of
arsenic-contaminated drinking water. In that case, multinational corporations developed
specialized technologies to produce safe drinking water at a price affordable to low-
income consumers. Another case is the distribution of nutritional food to impoverished
children in Bangladesh, which required cooperation from multinational firm Danone, a
French yogurt producer, to establish a facility using cost-lowering technologies that

enabled affordable pricing. These are not premium (Grade A) markets, but rather niche
markets. In Thailand, there is a lack of consolidated knowledge on how to effectively reach
these markets. For example, although the disabled population in Thailand exceeds 2
million, including 200,000 blind individuals, there is little research on disability-specific
market needs.

Addressing these vulnerable market segments requires deep understanding of low-
income consumers and the development of viable models tailored to their realities. This
makes it essential to conduct market research on both people with disabilities and low-

income households, including those in remote or marginalized areas.

2.2 Markets exist, but buyers lack confidence in quality or require international standards
In some markets, demand exists, but buyers are hesitant due to concerns over product or
service quality, or the need for international-level certification, such as carbon accounting
or products that reduce or sequester carbon emissions. These sectors often come with
high costs for certification and quality assurance.

To support access to these markets, it is essential to upgrade the skills of social enterprise

personnel through specialized training programs, along with financial support or subsidies

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