Page 39 - Social Enterprise A New Business Paradigm for Thailand

scholar Peter Drucker’s view that entrepreneurship need not be driven solely by profit (Dees,
1998; Davis, 2002) who stressed that, “The purpose of business is to create customers. Therefore,

its function is marketing and innovation; profit is merely a result.”

Social entrepreneurship emerged as a response to the social and environmental inequities
created by capitalism’s expansion. Even as GDPs rise, the benefits are often concentrated in the
hands of a few, leaving much of the population trapped in poverty, facing limited education, and
vulnerable to crime. Simultaneously, the unchecked exploitation of natural resources has
triggered widespread ecological damage. As a corrective force, social movements and
entrepreneurs alike began pushing for an alternative development paradigm, one in which the
private sector, civil society, and individuals all play active roles in social transformation, rather

than waiting for state intervention or subsidies.

A defining trait of social entrepreneurs is their commitment to transforming norms, cultures, and
operational models until they align with socially appropriate values. This journey often takes time
and persistence. A notable example is Grameen Bank in Bangladesh. Initially, it extended
microloans primarily to men for seven years, operating within a patriarchal cultural framework.
However, when these efforts yielded limited success, the bank shifted its focus toward lending
primarily to women, which proved far more effective (Bornstein & Davis, 2010).

Social entrepreneurs differ from social activists. While activists may rely on protest, whether
peaceful or confrontational, to pressure those in power on behalf of the powerless, social

entrepreneurs use both systemic and grassroots approaches to bring about change. Activists may
call for protests, whether peaceful or confrontational, and social entrepreneurs develop and
implement practical, action-oriented solutions that directly address societal problems.

Mair and Marti (2006) synthesized a broad range of research to define social entrepreneurs as
individuals who possess specific traits, behaviors, skills, and vision. These individuals seek out
innovative ways to meet unaddressed social needs, generating positive social impact in the
process. They pursue what is called the “double bottom line,” creating both financial and social
value. Often, they operate in niche markets overlooked or underserved by conventional

businesses. Social entrepreneurs actively identify and pursue opportunities to improve quality of
life and meet basic human needs (Shin & Park, 2019).

Earlier theories of social entrepreneurship often focused on heroic individuals, a concept aligned
with the Great Man Theory (Spear, 2006). This perspective emphasized innate leadership qualities
and suggested that these exceptional individuals, if properly supported, could lead transformative
social change. However, while this theory has inspirational value, it is limited in formulating public
policy. As a result, scholarship began shifting toward institutional approaches that build systemic
and human capacity for long-term impact. Modern theory has since evolved beyond the emphasis

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