The Success of Social Enterprises in Driving the Thai Economy

Abstract

The government has enacted the Social Enterprise Promotion Act 2019 with the aim to utilize it as a mechanism for national development and reducing social inequality which, in turn, serve as the main driving factors for the Thai economy. Therefore, the study on the success of the social enterprises in driving the Thai economy should be conducted in order to provide information for the planning and implementing of the government policies. The objectives of this research were to: 1) study the relationship of factors affecting the success of the social enterprises in driving the Thai economy; and 2) develop a model for the success of the social enterprises in driving the Thai economy. This research employed a mixed research methodology combining quantitative and qualitative methods. The quantitative research, the research sample consisted of 300 executives of Pracharath Rak Samakkee (SE) Co., Ltd. The sample size was determined based on the criterion of 20 times the observed variables. They were selected via stratified sampling. Data were collected with the use of a questionnaire and analyzed with a structural equation model using the statistical software. The qualitative research component, in-depth interviews were conducted with 11 key informants including 2 senior executives, 3 community leaders, and 6 executives from different levels. The findings showed that: 1) the factors affecting the success of the social enterprises in driving the Thai economy included marketing management, context of community resource accessibility, administration and management, and financial management, respectively; and 2) the model for the success of the social enterprises in driving the Thai economy consisted of  product development, responding to customer needs, marketing communications, resources, raw materials, production from the community, participation, capital accessibility, cost management, and financial operations. It was found that all components of the model for the success of the social enterprises were appropriate. These research findings can be used as the guidelines for planning and implementing the government policies and can serve as the mechanism for national development and reducing the economic disparities of society. They also provide recommendations on the support of new marketing channels for the promotion of fundraising for the social enterprises, the review of the measures and the promotion of the application of the Philosophy of Sufficiency Economy in order to strengthen the community and enable people to have a good quality of life in a sustainable way.