Social Enterprise

Social enterprise-objectives:

Social enterprise

  • Social enterprise (def) – a business with mainly social objectives that reinvest most of its profits into benefiting society rather than maximizing returns to owners.
  • In other words, a social enterprise is a proper business that makes its money in socially responsible ways and uses most of any surplus made to benefit society.
  • Social entrepreneurs are not running a charity though- they can and often do keep some of any profit made for themselves.
  • Social enterprises compete with other businesses in the same market.
  • They use business principles to achieve social objectives.
  • Most social enterprises have these common features:-They directly produce goods or provide services.-They have social aims and use ethical ways of achieving them.-They need to make a surplus of profit to survive as they cannot rely on donations as charities do.

3 main aims:

  1. Economic-make a profit to reinvest back into the business and provide some return to owners.
  2. Social- provide jobs or support for local, often disadvantaged, communities.
  3. Environmental- to protect the environment and to manage the business in an environmentally sustainable way.

Triple bottom line– 3 objectives of social enterprises: economic, social and environmental.

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