Social enterprise
Social enterprise is not like normal business - you start one
because you want to help a community or the environment. Although
they generate profit, it's not really about making money for
yourself - but some people find that helping is reward enough. This
guide looks at:
- What social enterprise is
- Why it might suit you
- Why it might not suit you
- The main types of social enterprise
- Who to consult
What social enterprise is
A social enterprise is an enterprise or business whose core
purpose is to help in a social or environmental way. Instead of
striving for more shareholder value, it aims to generate profit to
achieve social or environmental goals by harnessing market
efficiency. Well-known examples include The Big Issue and Jamie
Oliver's restaurant Fifteen, which encourages disadvantaged young
people into work as chefs.
- Core purpose is to generate profit to further environmentally
or socially helpful aims
Why it might suit you
To run a successful social enterprise, you really do need to
believe in your cause. This isn't really the best way to make
yourself a millionaire, as most profits are invested in furthering
social aims. But if improving your community or changing the world
for the better is what drives you, it could just be the perfect
thing for you.
- If you believe in your cause
- If want to improve your community or the world
Why it might not suit you
If you want to make a lot of money, social enterprise may not be
for you, as you need to be willing to reinvest profits into social
or environmental causes. This also makes it much more difficult to
find investment, as there probably won't be worthwhile return for
investors. You also often need to be willing to explore and develop
new business models, as it's not a typical form of business.
- If you want to make a lot of money it's probably not for
you
- Difficult to find investment
- You need to be willing to explore new business models
The main types of social enteprise
Social enterprises come in all shapes and sizes, but there are a
few particularly widespread models. Community development trusts
are community led and owned and strive to bring about improvements
to their area and community. Housing associations are
not-for-profit and help house people in the community. Worker-owned
co-operatives are entirely owned by their workers - there are no
outside shareholders. And leisure centres provide activities for
the community.
- Community development trusts, housing associations,
worker-owned co-operatives, leisure centres
Who to consult
The Social Enterprise Coalition are a group focused entirely on
promoting and helping social enterprises - visit their website at
www.socialenterprise.org.uk
or call 020 7793 2324 for information. They have regional networks
that can give you information based on your particular area.
- Contact the Social Enterprise Coalition
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