Page 49 - Social Enterprise A New Business Paradigm for Thailand

4. Cooperatives – organizations that are jointly owned and democratically governed by their
members;

5. Voluntary and community groups – informal networks of individuals who come together to
carry out community-focused activities.

The social economy plays an essential role in the following areas:

1. Delivering services and support in regions or sectors where government assistance is limited
or unavailable;
2. Advancing sustainable development by backing initiatives that tackle social and
environmental challenges, while promoting long-term sustainability;
3. Stimulating local economies through the promotion of community-based enterprises and job
creation at the grassroots level;

4. Strengthening social cohesion by encouraging civic participation and fostering community
resilience from the ground up.

1.7.2 Social Business

In Thailand, the term “social business” is often used broadly in both public and private sector
discourse. It generally refers to any business that supports disadvantaged or vulnerable groups
and contributes to solving social challenges. For example, a private company that engages in
socially beneficial activities, such as planting trees or building schools, may publicly present itself
as a social business. Similarly, community enterprises or cooperatives that generate benefits for
local members, or organizations that produce environmentally friendly products or use

sustainable production processes, may also identify themselves as part of the social business
ecosystem. Even foundations or associations, non-profit entities that generate income through
business activities, may view themselves as social businesses. However, the definition and
characteristics of a social business vary significantly across countries, shaped by legal frameworks
and the distinct attributes of social enterprises in each context (Cho, Kim, & Oh, 2022; Choi, 2021;
Kannampuzha & Hockerts, 2019). For instance, in Finland, businesses can register as social
enterprises if at least 30% of their workforce consists of people with disabilities or unemployed
individuals. In the United Kingdom, registered social enterprises must reinvest at least 50% of
their profits toward achieving their stated social missions (Kannampuzha & Hockerts, 2019). In
many Western countries, the terms social business and social enterprise are used interchangeably.

As noted earlier, there is substantial overlap among organizational types. In Thailand, social
businesses often mirror the characteristics of broader social-purpose organizations. They tend to
emphasize social innovation and responsible operations, positioning them as a subset of social
organizations. Social enterprises, in turn, represent a legally recognized form of social business,
formally defined by law and supported by the state to achieve social aims through business
mechanisms. (Figure 1.1.) Some social enterprises originate from existing social organizations and

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