Page 51 - Social Enterprise A New Business Paradigm for Thailand

Bellostas, López-Arceiz, and L. Mateos (2016) synthesized these defining features, as outlined in
Table 1.1, using criteria developed by the EMES Research Network for Social Enterprise

(http://www.emes.net/).

Economic Dimension Social Dimension Participatory Governance
Continuous production of Clearly defined social Autonomous management
goods and/or services objectives and decision-making
Decision-making power is not
Initiated by groups of citizens
Assumption of economic risk solely dependent on capital
or civil society
owners
Employment creation or at Profit distribution is limited Multistakeholder participation
least payment of minimum according to predefined
wage criteria in management decisions
Source: Bellostas, López-Arceiz, and L. Mateos (2016, p. 37)

In this study, the following definitions will be applied:

• Social organization refers to any organization with a social mission, regardless of whether it
generates profit.

• Non-profit social organization applies to entities and ventures that do not seek profit, such as
foundations and associations.
• Social business is defined broadly to encompass all types of businesses engaged in socially
oriented activities, whether through the production, processing, or sale of environmentally
friendly products, or through clearly defined corporate social responsibility (CSR) initiatives
aimed at solving social problems.
• Social enterprise refers specifically to organizations that are formally registered under the
Social Enterprise Promotion Act (Second Edition), B.E. 2562 (2019). These are recognized as
social businesses under Thai law. They aim to address social problems through commercial

means, such as the sale of products or services. In other words, a social enterprise is a
business with a dual purpose: generating profit and delivering social impact. The profits
earned serve as a mechanism to drive the organization toward its social mission. The Thai
term used for social enterprise is “wisahakit peu sangkom”.

Under Thai law, a social enterprise is a profit-generating entity, much like any conventional
business. However, it is legally required to allocate at least 70% of its profits to benefit society or
the community, beyond its members, and to do so consistently on an annual basis. (Further
details regarding legal entity types are presented in Chapter 6.)

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