What is Social Enterprise
Our definition of social enterprise remains unchanged from when we first started to use the term in 1994: Social enterprise are essentially organisations that are businesses that are governed by social objectives. In later years we have appreciated that these objectives are based on common and shared values
In some cases these organisations have been established for years and have been happy to describe themselves as community enterprise, credit unions or co-operatives. They are joined by an increasing number of new social enterprise projects and companies, set up by social entrepreneurs, voluntary sector activists or community members.
Social enterprises tend to have common characteristics that define enterprises and organisations as social enterprise and being different from other bodies operating in both the private and public/ charity sectors:- Being bound to a set of beneficiaries or community
- Having a democratic structure
- Having common and shared values
- Being open and accountable
- Concerned with empowering members
- Using and developing volunteers
- Offering workers ownership
- Creating social wealth
- Having an emphasis on co-operation and networking
These characteristics help to distinguish a social enterprise from private enterprise
And social enterprise also have characteristics about:
- Taking risks
- Being innovative
- Making profits
- Making quick decisions
- Having workers on the Board
- Having decision making rather than representative governing bodies
- Using loans and investments to fund projects
- Using Assets to raise money
- Flat management structures
- Open to having financial (ethical) investors
