Page 265 - Social Enterprise A New Business Paradigm for Thailand

rates of 13% and 40%, respectively. Despite the continued concentration of revenue and profits
among a small number of enterprises, this trend has begun to decline. In 2023, the top ten
social enterprises still accounted for as much as 81% of total revenue and net profit.

Over the 2019–2023 period, the overall financial performance of social enterprises showed

signs of improvement. Their ability to generate net profit strengthened, shifting from
substantial losses in 2019 to achieving profitability. Assets were utilized more effectively,
leading to higher returns. Social enterprises were also increasingly able to deliver profits or
returns to their shareholders. However, despite these gains in revenue and net profit, many still
struggled with liquidity and debt repayment. Their capital structures suggest that while they
have maintained the ability to service debt, vulnerabilities remain.

These findings give rise to several recommendations for improving and developing social
enterprises. Flexible spin-off enterprises demonstrate greater financial sustainability than other
types, largely due to well-structured organizations and business models that generate revenue

from the outset and offer socially responsive innovations. Enterprises established before 2014
also show stronger financial resilience than those founded more recently. Larger enterprises,
defined as those with assets exceeding 10 million baht, consistently outperform smaller ones
in terms of financial stability. Moreover, enterprises engaged in manufacturing tend to be more
sustainable than those focused on trading or services. Similarly, enterprises dedicated to
addressing environmental issues exhibit stronger financial performance than those tackling
social or community challenges or promoting employment opportunities. This pattern also

holds true for social enterprises that have registered for tax incentives, which appear to be more
financially sustainable than those that have not. To help these enterprises achieve their
intended social goals, the following key recommendations are proposed:

1. The government should reinforce the social enterprise ecosystem by acting as a “wind
beneath the wings” through targeted support such as business coaching, funding
opportunities, network development, expanded distribution channels, marketing education,
public fundraising platforms, and matchmaking services between social enterprises and
potential partners or customers (both B2B and B2C). It should also promote a mindset shift

among entrepreneurs and support them in designing business models that generate
sustainable income and profits. This recommendation is grounded in the study’s findings,
which show that flexible spin-off social enterprises tend to outperform their peers in both
revenue and profitability. Their advantage lies in early access to expert guidance, well-
structured organizational planning, and the ability to build scalable, socially driven business
models from the outset.
2. To effectively raise public awareness of social enterprises, the government should introduce
dedicated outreach tools, such as official websites and mobile applications. These
enterprises need clear and consistent communication to highlight their social mission to

target audiences. Findings from the study indicate that social enterprises often need time
to build value and achieve financial sustainability. Interviews also highlight the need to
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