Page 28 - Social Enterprise A New Business Paradigm for Thailand

A study commissioned by the NRCT on social enterprises reveals that these ventures typically
operate in vulnerable markets, where demand is high, but purchasing power is low, or where

demand is scattered and difficult to consolidate. In other cases, high costs of operation
become a major barrier, hindering social enterprises from effectively accessing these markets.
As a result, financial sustainability becomes a long-term challenge.

The National Research Council of Thailand (NRCT) is mandated to promote research,
development, and application of science and technology, including the support of social
science research. As part of this mission, the NRCT should develop a dedicated research plan
focused on building and supporting social enterprises.

1) Definition of Social Enterprise (SE)
The following criteria define what constitutes a social enterprise for the purpose of this

research and development agenda:

1) A business registered with the Office of Social Enterprise Promotion under the Social
Enterprise Promotion Act, B.E. 2562, and legally permitted to identify itself as a social
enterprise.
2) A business whose products, services, or production processes directly address social
problems, such as reducing energy consumption, conserving natural resources, or
minimizing environmental impacts. This includes both businesses with an established
track record and those without prior performance but with clear research proposals

and business models.
3) A business that provides products or services to vulnerable groups, including the poor,
persons with disabilities, and remote or crisis-affected populations, such as ethnic
minority communities in Thailand.
4) A business whose articles of association stipulate that no less than 5% of profits must
be reinvested in social causes, and which agrees, upon receiving NRCT funding, to
return at least 5% of revenues generated from funded outcomes back to the NRCT.

The definition of vulnerable groups includes 1) children, 2) pregnant women, 3) persons

with disabilities, 4) the elderly, 5) the poor, 6) the homeless, 7) Thais living in remote and
fragile areas, such as hill tribe people and those residing in watershed areas, and 8) Thai
groups who do not yet have housing rights, such as sea nomads.

Social innovation refers to mechanisms and tools that promote a stronger, more equitable,
and transparent society. It also includes public policies and participatory frameworks co-
created by citizens that aim to solve or alleviate social problems. Examples of such policies
and tools include 1) mechanisms and 2) tools used to strengthen society and promote

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