Page 92 - Social Enterprise A New Business Paradigm for Thailand

the social economy. Following this, 20 EU member states (including the United Kingdom) have
enacted legislation to support social enterprises. In some cases, countries have passed multiple

laws on the subject. Beyond the EU's own initiatives, other significant drivers include the crisis
and retrenchment of the welfare state, which has led many countries to legislate for the provision
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of social welfare services through social enterprises.
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3) EU Regulation on European Social Entrepreneurship Funds (EuSEFs), 2013
This regulation, which came into force on July 22, 2013, established the use of the label European
social entrepreneurship fund (EuSEF) for investment funds with the explicit purpose of supporting

social businesses. The goal is to attract private sector investment by enabling investors to easily
identify funds aligned with social objectives and to compare their advantages against other fund
types when making investment decisions.

The regulation helps fund managers reduce costs and regulatory burdens when raising capital
across EU member states, while also making it easier for social businesses to access financing. To
qualify for registration and use of the EuSEF label, a fund must allocate at least 70% of its capital
to social businesses and provide standardized information to investors. This includes details such
as the fund’s social objectives, the types of social enterprises it will invest in, and the metrics used

to assess whether its objectives have been met. Additionally, fund managers must demonstrate
sound governance practices and avoid conflicts of interest. National authorities in the fund’s
home member state are responsible for regulatory oversight and may revoke the EuSEF label in
cases of noncompliance.

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4) European Union Programme for Employment and Social Innovation (EaSI)
In late 2015, the European Union launched a program aimed at supporting micro-enterprises and
social enterprises to promote job creation and inclusive social development. This initiative, called

the EU Programme for Employment and Social Innovation (EaSI), is designed to: (1) improve
access to funding for vulnerable groups seeking to launch start-ups or develop their own micro-
enterprises, (2) support the development of social enterprises by enhancing their access to
finance, and (3) build the capacity of microcredit providers and social enterprise finance providers
by offering advisory services and technical assistance.

24 Antonio Fici, European Social Enterprise Law After the “Social Business Initiative” Communication of 2011: A
Comparative Analysis from the Perspective of Worker and Social Cooperatives, CECOP, Brussels, p. 11.
25 Regulation (EU) No 346/2013 of the European Parliament and of the Council of 17 April 2013 on European social
entrepreneurship funds, Official Journal of the European Union, L 115/18, 25.4.2013.
26 Regulation (EU) No 1296/2013 of the European Parliament and of the Council of 11 December 2013 on a
European Union Programme for Employment and Social Innovation (EaSI), Official Journal of the European Union, L
347/238, 20 December 2013, Article 1.
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