Having written and spoken much in the past on the conceptual and practical aspects of social entrepreneurship, I now find people more interested in this topic, realizing that sole reliance on the government to solve social problems is slow and incomplete.
According to my own research, from questionnaires sent to 163 various nonprofit organizations (NPOs) in education, youth and community development, some hindrances became apparent that prevent new players from becoming social entrepreneurs.
1) Reputation of existing organizations
86.9 percent of respondents agreed that existing famous organizations have more chance of public, corporate and government sector support than do new, low profile or small organizations, which find it hard to compete with the famous organizations which are very easily able to attract the media and press.
2) Access to clients via branches/subsidiaries
Though organizations with more extensive branches do have higher operating and maintenance costs, 57.4 percent of respondents agreed that organizations with extensive and diverse branches or subsidiaries have an advantage over those with fewer channels to reach target groups.
3) Organization size
Survey results showed 75 percent agreement to large NPO financial resources and personnel, which are much better positioned when competing for contracts or support from the government or private sector. Thus, a larger NPO size and a good reputation are advantages to NPO success.
4) Start–up requirements and registration
Most survey respondents feel that high investment requirements for establishing new philanthropic organizations are an obstacle to their growth and discourage new participants.
Another issue is whether or not the registration process itself is efficient and convenient. Only 24.6 percent of respondents agree that new organization registration is fast and convenient for start-ups, while 37.7 percent disagree, finding the process highly centralized to Bangkok and including investigative checks that take months to complete. One respondent reported that it took him two years to get legal approval from the Ministry of Interior.
5) Public attitude towards non-governmental organizations
Based on the survey, 45 percent of respondents find that individuals have negative attitudes towards philanthropic organizations, particularly doubting their motivations and roles. Some respondents noted that this may be due to an overlap in how people define philanthropic organizations and NGOs.
Some NGOs played significant roles in challenging government policies, and fighting with government officials. These conflicts were repeatedly portrayed on the news and served to foster a generally negative public perception towards NGOs, so many individuals and potential donors feel reluctant to support NGOs.
6) Competition with faith-based organizations
81.9 percent of respondents feel that Thais prefer to donate financially and/or provide other types of assistance to faith-based or religious organizations over other kinds of NPOs because to give to religious organizations can be a means for individuals to accumulate personal religious merit and may motivate many to direct their donations to faith-based organizations in Thailand.
These factors are barriers that make NPOs including social entrepreneurship difficult to grow in Thailand. However, there are other problems and factors that I will mention in some following articles, together with recommendations from my research as well.
Dr Kriengsak Chareonwongsak
Senior Fellow, Harvard Kennedy School , Harvard University
kriengsak@kriengsak.com, kriengsak.com, drdancando.com
Senior Fellow, Harvard Kennedy School , Harvard University
kriengsak@kriengsak.com, kriengsak.com, drdancando.com
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