How Social Enterprise Is Able to Resolve Thai Economic Dilemmas.

Abstract

Social enterprise is a social mission-driven organization which applies market-based strategies for achieving social purpose. The main purpose of social enterprise is to generate profit, like an ordinary business organization. However, rather than maximizing shareholder value, the social enterprise chooses to generate profit to leverage positive social impacts through its operation by, for example, employing individuals from disadvantage backgrounds or lending to micro-businesses that have difficulty accessing investment funds from mainstream banks. Social enterprise is a vehicle for social change which both private andpublic organizations is neglect leading to market system failure. The aim ofprivate organization is to maximize shareholder value or to be profit oriented. They absorb the economic surplus from the social system without creating any positive social impact for society. Public organizations are purely mission oriented and most ofthem are inefficient and finally will become helplessness organization.

Public organizations are not only static but also less likely to create positive social impacts. Social enterprise is proposed to be an alternative organization in terms ofresolving the vicious cycle ofboth public andprivate organizations. Social enterprises are established via social capital rather than financial capital, and most ofthe social enterprise leaders are former successfill leaders in private organizations. They see loopholes in the existing market system anddevote themselves to solving these complex problems.

This paper demonstrates how strong social capital and social enterprise are able to resolve these complex dilemmas, bring the market system backto balance, andtruly serve the economy andthe social system.