Page 88 - Social Enterprise A New Business Paradigm for Thailand

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4. Collective interest cooperative societies (2001) in France, later amended by the Law on the
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Social and Solidarity Economy in 2014
It is worth noting that social cooperatives recognized under Italian law since 1991, and

subsequently in other European legal systems, differ significantly from traditional cooperatives,
including those defined under Thai law. These social cooperatives operate primarily for the
benefit of society rather than prioritizing the interests of their members. A clear example of the
continuing popularity of social cooperatives in Europe is found in Belgium. In 2019, Belgium
repealed its legislation recognizing social purpose companies and replaced it with a law that
formally acknowledges cooperatives as accredited social enterprises. Under the new law, such
cooperatives must demonstrably generate positive impacts for people, the environment, and
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society .

Although social enterprises in Europe pursue a wide range of social objectives, including in
welfare, healthcare, and education, one particularly prominent feature in many countries is the
emergence of work integration social enterprises (WISEs). This emphasis stems largely from
persistent unemployment across the region, which creates a serious risk that certain groups may
be permanently excluded from the labor market. These vulnerable groups include persons with
disabilities, former prisoners, and individuals recovering from substance addiction. Several
European laws have been enacted to promote employment through social enterprises. For

example, Finland’s 2003 Social Enterprise Act specifically defines social enterprises as businesses
established to employ persons with disabilities or individuals who have been unemployed for an
extended period. Poland’s 2006 Act on Social Cooperatives aims to support the employment of
disadvantaged groups such as ex-offenders, the long-term unemployed, people with disabilities,
and those recovering from alcohol or drug addiction. Similarly, Spain’s 2007 legislation on
employment-focused social enterprises shares this objective.

In addition to these legal frameworks, numerous European countries have implemented
programs specifically designed to support social enterprises engaged in job creation. The strong

emphasis by public institutions on the employment role of social enterprises has enabled these
organizations to access a range of government subsidies and grants. Consequently, WISEs can be
viewed as key instruments used by European governments to implement labor market activation
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policies .

15 Law no. 2001/624 of 17 July 2001.
16 Law no. 2014/856 of 31 July 2014.
17 Code of Companies and Associations of 2019, Article 8, para.1; Royal Decree of 28 June,2019, Article 6, para 1.
18 EMES European Research Network, Social Enterprise in Europe: Recent Trends and Developments, WP no. 08/01,
p. 9.
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