Page 7 - Social Enterprise A New Business Paradigm for Thailand

various forms such as tax incentives, dedicated capital markets, and preferential procurement
programs. Such policies have enabled the rapid growth of social enterprises, particularly in the

European Union, by fostering a favorable environment made possible through state support.
Nevertheless, international success stories tend to rely on a combination of sound business
models, financial sustainability, and the ability to clearly demonstrate or measure impact. These
elements are critical for attracting resources in competitive funding landscapes.

By comparison, social enterprises in Thailand are few in number. They are difficult to establish,
vulnerable to failure, and slow to grow. Public support is minimal. These enterprises are rarely
included in state procurement processes due to their limited visibility, and government funds
earmarked for social enterprise development have yet to be deployed at scale. Access to tax

benefits is often delayed, as it may take years for a new enterprise to reach profitability. An
analysis of the financial performance and sustainability of the 256 social enterprises studied
reveals that most require significant time to become viable and rarely achieve profitability within
their first five years. Many depend on external support, such as funding, technology, or human
resources from parent organizations or affiliated entities, to remain operational. Key success
factors for social enterprises include the leadership’s capabilities, vision, and commitment; a
viable and resilient business model; strong marketing and networking strategies; and effective
communication. However, challenges persist. These enterprises often operate in fragile markets
with low purchasing power and face inherent limitations due to their typically small scale.

This study recommends that the government increase budget allocations and more clearly
define the role of the Office of Social Enterprise Promotion (OSEP), particularly in facilitating
access to public procurement opportunities. It also urges the Ministry of Finance, other relevant
ministries, and the Thai Health Promotion Foundation (ThaiHealth) to refine and expand policy
tools that promote sector growth. ThaiHealth has supported social enterprise development
since its early stages. Finally, the study has produced a dedicated research and innovation
roadmap to support social enterprise development in Thailand. This roadmap was submitted to
the National Research Council of Thailand (NRCT), fulfilling the core mandate of this project.

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