Page 9 - Social Enterprise A New Business Paradigm for Thailand

the Office of Social Enterprise Promotion (OSEP) under the Social Enterprise Promotion Act B.E.
2562 (2019). Registration allows an enterprise to formally call itself a “social enterprise” and

receive legal benefits, including: (1) corporate income tax exemption for non–profit-distributing
social enterprises; (2) personal income tax exemption for investors who provide capital to such
enterprises; and (3) permission to issue or offer shares without prior approval from the Securities
and Exchange Commission (SEC). Furthermore, government agencies may procure goods and
services from social enterprises using direct selection methods, even when procurement exceeds
500,000 baht.

The research team analyzed financial statement data from 256 social enterprises over a five-year
period (2019–2023), using records from the Department of Business Development’s database.

Additionally, interviews were conducted with a total of 50 entities, including social businesses,
formally registered social enterprises, and relevant government agencies.

The key findings of this study, in line with its research objectives, are as follows:

1. Key success factors for social enterprises in other countries
A review of international experience highlights several critical elements, clearly defined and
measurable social objectives, resilient and committed leadership teams, strong business
models that enable financial sustainability, the ability to innovate and adapt, robust
networking and marketing capabilities, and effective communication strategies.

2. Success is not limited to startups or newly formed enterprises
In developed countries, many successful social enterprises are not necessarily new companies
or innovation-driven startups. In fact, grant-based funding remains a significant support
mechanism, comprising 36% of support in the United Kingdom and 30% in Sweden. In the
United States, a well-developed financial ecosystem supports social enterprises through large
prize funds that cover both early and mid-stage operations, provided these enterprises
demonstrate solid business models and rigorous impact assessment. In the European Union,
public procurement plays a vital role in enabling the growth of social enterprises.

3. Social enterprises require a supportive ecosystem
Social enterprises need a strong enabling environment to thrive. The experience of
Muhammad Yunus, creator of the “social business” concept and Nobel Peace Prize recipient
alongside Grameen Bank, underscores this point. His model of microfinance for the poor shows
that social problems can be addressed while building sustainable businesses, provided the
ecosystem is supportive and well-designed. In Yunus’ss case, Grameen Bank played a central
role in building the necessary infrastructure to support a network of social enterprises.

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