Page 227 - Social Enterprise A New Business Paradigm for Thailand

grants, sometimes in the millions of baht. Consequently, many entrepreneurs or
organizations engaged in social activities remain disinclined to pursue formal SE registration.

2. Government promotion agencies tend to focus on ideal outcomes and expect social impact
too quickly. New enterprises believe that creating social impact, required of registered

social enterprises, takes time and sustained effort and cannot be demonstrated within the
timeframes often imposed by the state. Not registering allows them more flexibility to
operate in line with real-world conditions and to make autonomous decisions about how to
use their resources and profits. For example, an agricultural processing company, despite
meeting the criteria of a social enterprise and once considering registration, decided against
it. The requirement to report social impact using formal assessment tools was seen as too
restrictive, particularly when meaningful results could not be shown quickly. Likewise, a
company conducting a 12-year R&D project felt that the short-term reporting requirements

would not reflect the true health benefits of the innovation. In both cases, the registration
process was seen as adding unnecessary operational burden.

3. Limitations of Small Organizations

Some organizations engaged in social initiatives are not yet equipped with the necessary
resources, such as personnel, production capacity, or business management expertise, to
meet legal documentation requirements or operate at a scale consistent with commercial
enterprises. This is especially true for small or early-stage organizations, which often
struggle to meet the operational standards expected of registered entities. One foundation,
for example, faces constraints stemming from limited resources. The number of children

who can participate in the foundation’s work program each day depends on whether their
guardians are available to bring them. Similarly, the production of woven fabrics for sale
hinges on the availability of the children, making it difficult to maintain consistent output.
As a result, the foundation cannot produce goods at scale, plan ahead, or fulfill large-volume
orders. Moreover, the foundation already receives support under alternative legal
frameworks, such as the Promotion and Development of the Quality of Life of Persons with
Disabilities Act B.E. 2559 (2016), which allows companies to fulfill legal employment

obligations by outsourcing goods or services to organizations that support people with
disabilities. In summary, organizations that register as social enterprises tend to have clear
missions to address societal problems and value the access to funding, benefits, and
government support that help them operate more sustainably. On the other hand,
organizations that choose not to register often find the legal and administrative processes
overly complex and burdensome, especially in terms of documentation. These groups
typically favor operational flexibility aligned with their organizational capacity, resource
limitations, and internal structures, particularly when government incentives are seen as
insufficient. Importantly, not registering as a social enterprise does not imply an absence of

social purpose. Rather, these organizations often address social challenges through
approaches that better suit their own contexts.
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