Page 46 - Social Enterprise A New Business Paradigm for Thailand

1. Purpose:
Both social businesses and foundations share a goal of tackling social problems. However,

cooperatives are oriented toward solving the problems of their own members, rather than
addressing broader societal needs.

2. Funding Sources:
Foundations rely almost entirely on donations and often lack a focus on generating revenue,
which can compromise long-term sustainability. In contrast, social businesses may start with
donated funds but are expected to evolve toward financial self-reliance through loans and
revenue streams. Foundations may or may not generate income; social businesses must.

3. Ownership:
Social businesses have shareholders. These may include grantors focused on impact or

investors aiming to recoup their initial investment. Under Yunus’s definition, any investor who
is not a grantor must be from a disadvantaged group. Non-impoverished investors can reclaim
their capital but relinquish long-term ownership rights. Foundations and non-profit entities
have no owners and are managed by a board. Cooperatives are member-owned.

4. Profit Orientation:
Both social businesses and cooperatives generate profit to sustain operations. But for social
businesses, profit is not the main goal. Foundations, meanwhile, are typically non-profit by
design and do not aim for profit at all.

5. Capital Return and Financial Benefit:
In Yunus’s model, social businesses must return only the original capital, no profit or dividend
is paid. Foundations operate solely on donations and do not repay any capital. Cooperatives,
in contrast, allow members to invest and share in profits through dividends.

1.5 Definition of the Term “for Social”

Despite its widespread usage, the term “for social” remains the subject of ongoing debate among

scholars, who continue to explore the best way to define its meaning and application. Beckmann,
Zeyen, and Krzeminska (2014) proposed that the term can be understood through three distinct
conceptual approaches:

1. Normative Approach
This method defines “for social” based on ethical theories and philosophical principles. For
instance, the term may align with utilitarianism, in which actions are deemed social if they
serve the broader welfare of society. Alternatively, it may reflect Amartya Sen’s capability

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