What is Social Enterprise
Social enterprise is a description used by a growing number of organisations and projects that are essentially concerned with both trading and achieving social objectives; getting an income from both grants and sales.
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.
According to the the Office of the Third Sector social enterprise is defined as:
- Being a businesses with Primarily social aims
- When surpluses are reinvested for social purpose
- Having enterprises that tackle a wide range of social and environmental issues
- Creating business solutions to achieve public good
- Contributing to strong, sustainable and inclusive economy
The above a is paraphrase of their description of social enterprise. For the full definition and more information about the office please go to the website www.cabinetoffice.gov.uk/third_sector/social_enterprise/
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 governed by Social Objectives
- Being bound to a set of beneficiaries or community
- Having a democratic structure
- Having altruistic 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
- Having financial (ethical) investors
