Page 87 - Social Enterprise A New Business Paradigm for Thailand

In the final section, the chapter will provide a broad overview of the development of social
enterprises in the ASEAN region, offering comparative insights between Thailand and its

neighboring countries.

3.1 Social Enterprises in the European Union

The European Union (EU) comprises 28 member states across Western, Central, and Eastern
Europe. Within the EU, social enterprises are categorized as part of the “third sector” or the
broader “social economy.” The narrative of social enterprise development in the EU often begins
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with Italy’s enactment of the Law on Social Cooperatives in 1991 . This legislation classified
cooperatives into two types: A-type social cooperatives, which provide services in social welfare,
healthcare, and education; and B-type social cooperatives, which promote employment for
disadvantaged groups.

In 2006, Italy expanded its legal framework by passing a law on social enterprises that
encompassed a broader range of organizational forms beyond cooperatives. These included both
non-profit organizations and business entities whose primary aim was not to distribute profits to
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shareholders . To qualify, such entities were required to enable stakeholder participation,
including workers and beneficiaries, and to engage in activities that deliver social utility, as legally

defined. These activities include the provision of social welfare services, employment promotion,
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environmental protection, healthcare, and education . The 2006 legislation has since been
repealed and replaced by a new law enacted in 2017, which legally recognizes social cooperatives
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as social enterprises op legis (by operation of law) . This newer legislation also allows other
organizational forms to qualify as social enterprises, provided they meet the characteristics and
conditions stipulated by law.

Other European countries have also developed legal frameworks to support social enterprises,
most of which initially took the form of cooperatives. Notable examples include:

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1. Social solidarity cooperatives (1998) in Portugal
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2. Social initiative cooperatives (1999) in Spain
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3. Limited liability social cooperatives (1999) in Greece

8 Law of 8 November 1991, no. 381 on cooperative sociali (social cooperatives)
9 Legislative Decree no. 155/2006
10 Jacques Defourny and Marthe Nyssens (eds), Social Enterprise in Europe: Recent Trends and Developments, EMES
European Research Network, WP no. 08/01, September 2008, p. 6.
11 Legislative Decree no. 112/2017
12 La-Decree no. 7/98 of 15 January 1998 on cooperativas de solidariedade social.
13 Law no. 27/1999 of 16 July 1999 on cooperativas de iniciativa social.
14 Laws no. 2716/1999and no.4019/2011 on Social Cooperatives.
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