We love social enterprise

The term 'social enterprise' is being used a lot these days, but there's also some confusion about what exactly social enterprise is. The other day I heard someone say 'I think we need to become a social enterprise but we don't know what that is'. So, in case you're interested, here's a definition I came across:

The term social enterprise is an umbrella term that is used to describe a method of working. It is not a legal structure in its own right.

To fit with the social enterprise method of working an organisation should:

- have economic and social purposes clearly written in to the governing document.

- be democratic. There should be equity of participation and accountability. Individuals or community members benefitting from the activities of the organisation may have the opportunity to exert influence through representation in their membership and board of management.

- be independent.

- be based in and for the benefit of communities of place and/or interest.

- trade or otherwise earn some proportion of their income although they may be in receipt of grant support from the public or charitable sector.

Social enterprises can use a wide variety of legal structures, including: community interest company (CIC); industrial and provident society (IPS); company limited by guarantee or shares. Social enterprises can also have charitable status.


More information on social enterprise and the Social Enterprise Mark can be found via the Social Enterprise Coalition.

Here endeth today's lesson.