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Social Enterprise

General characteristics

A business that trades in the market place, but with a view to securing primarily social (rather than economic) ends. Typical social objectives may include: local job creation; filling gaps in local service provision (e.g. childcare, services to the elderly, preventing the village pub from closing); environmental projects; combating social exclusion.There are two main models for social enterprise: the co‑operative (self-help) model, and the community enterprise or charitable model, which aims to benefit people other than its own members.

Ownership: a co‑operative model social enterprise will be owned by its member-beneficiaries; while community enterprises are commonly owned members of the community served, and managed by a governing body on behalf of that community.

Charitable status: some social enterprises are charities where they can meet the usual criteria.

Examples of use

Social enterprises may be found engaged in all types of economic activity, from international organisations (e.g. Fair Trade businesses) to small enterprises meeting very local needs.

Legal forms used

As the term "social enterprise" spans such a range of organisations, examples will be found using all available legal forms.

Profit distribution

Most do not feature profit distribution, though co‑operatives may do.

Participation issues

Most social enterprises are membership organisations and thus will feature internal democratic participatory activities. As social enterprises have to trade successfully to survive, they will also need to engage with their customers/clients, suppliers and others.

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