Page 246 - Social Enterprise A New Business Paradigm for Thailand

tend to invest more in communication and public relations, brand building, and the
expansion of distribution channels, leading to increased expenditures in these areas (Ashta,
2020).

• Revival and Decline Stage: At this stage, social enterprises experience a decline in resources,
including reduced sales, profits, and budgets for research and innovation. Nonetheless, they
often engage more actively in projects that create social value as a means to enhance their
reputation and attract additional funding. These enterprises also seek increased
collaboration with stakeholders to align interests and generate mutual benefits (Ashta, 2020;
Gamal, Wahba, & Correia, 2022).

The organizational life cycle can be identified using indicators such as age, asset growth rate,
sales growth rate, and dividend payout ratio (DVP) (Gamal, Wahba, & Correia, 2022). In
particular, the age of a social enterprise can serve as a basis for classifying its life cycle stage:

start-up (0–4 years), growth (5–8 years), and maturity (9 years and above) (Ashta, 2020).

(3) Subgroups of Social Enterprises

This study emphasizes two subgroups of social enterprises: (1) the flexibly supported spin-off
group and (2) the Pracharath Rak Samakkee group, as previously discussed in Chapter 7. The
first group comprises entities that have spun off from private companies or parent organizations
and transitioned into social enterprises, each with varying levels of preparation and support.
The second group receives direct backing from the government, which plays an active role in
both their establishment and operations. These enterprises follow a standardized model that
focuses on agriculture, agro-processing, and tourism, and are managed by volunteer board

members. The key characteristics of each subgroup are summarized below.

3.1) Spin-off Group

Spin-offs, subsidiary organizations that emerge from parent entities, are playing an increasingly
significant role in business operations. These new organizations typically introduce new
products or services or expand the business lines of the parent company, thereby driving
market growth through innovative models, concepts, and approaches. The term “spin-off” is
used interchangeably with labels such as intra-industry spin-off, spin out, split off, split up, or

carve out. Scholars have proposed a range of definitions for spin-offs, which are summarized
below.

Scholars offer differing perspectives on what constitutes a spin-off. Barbaroux (2013) describes
it as a new organization established by individuals formerly affiliated with a parent organization,
leveraging transferred resources, technologies, and knowledge. In this view, spin-offs are legally
separate entities formed to implement new operational concepts, innovations, or technologies,
often originating from universities or parent organizations. He further classifies them into two
types: corporate spin-offs and academic or university spin-offs.

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