- 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:
- Economic-make a profit to reinvest back into the business and provide some return to owners.
- Social- provide jobs or support for local, often disadvantaged, communities.
- 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.