Page 320 - Social Enterprise A New Business Paradigm for Thailand

Chapter 11

Success Factors and Key Challenges for Social Enterprises

The growth of state-supported social enterprises in Thailand lags behind other countries.
Despite the enactment of the Social Enterprise Promotion Act in 2019, Thailand has
experienced sluggish growth in the registration of social enterprises. As of March 2025, six years

later, only 345 enterprises have registered as social enterprises.In contrast, the rate of growth
in other countries has been far more rapid. For instance, in Italy, the number of registered social
enterprises increased by 2,626 companies within four years, representing an 839% growth rate.
In France, the number rose from just 17 companies to 1,000 over three years, with employment
rising from 18,000 to 666,000 people by 2022. Meanwhile, in the United Kingdom, the number
of Community Interest Companies (CICs) increased more than fivefold, from around 5,500 in
2011 to 28,878 in 2023.

This chapter seeks to examine the determinants of success, limitations, and challenges faced

by social enterprises in Thailand. Findings from the previous chapter on financial sustainability
suggest that social enterprises with access to networks or those that originate as spin-offs from
companies or foundations tend to have a higher survival rate than those founded independently.
In addition to the analysis previously presented, this chapter incorporates insights from
interviews with key stakeholders to address three guiding questions:

1. What are the core drivers of success for social enterprises in Thailand?
2. What structural limitations and challenges do they face?
3. What policy mechanisms are needed to support the growth and scale of social enterprises?

11.1 Success Factors

Drawing on interviews and a review of the financial performance and sustainability of social
enterprises presented in Chapter 8, this section summarizes the key factors that contribute to
the success of social enterprises in Thailand.

1) Visionary, Committed Leaders with Strong Teams
In Thailand, interviews indicate that visionary leaders, those who embrace risk, remain
steadfast, and are backed by strong teams, are a crucial factor in the success of social
enterprises. These individuals are able to navigate adversity and guide their organizations
toward meaningful impact.

The study found that many of these leaders were shaped by formative experiences that
nurtured empathy for the underprivileged, often rooted in family values or early life encounters.
Those with high levels of social capital tend to hold a distinct advantage, as seen in the case of

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