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What is a social enterprise ?
It is a business or organisation that aims to generate revenue and achieve social, environmental or cultural objectives
What does a social enterprise do ?
It combines the principles and practices of traditional business with a focus on addressing social issues and creative positive social impact
What else does a social enterprise do ?
It reinvests a significant portion of their profits back into their mission rather than maximising profits for shareholders
What do social enterprises in the private sector do ?
They look to make a profit whilst improving one or more aspects of society such as environmental, education or health concerns
What do social enterprises in the private sector aim for ?
Create jobs
Improve social mobility
Provide opportunities for marginalised groups
Advantages of social enterprises
They often develop creative and innovative solutions to social challenges
By generating revenue they can become financially self-sustaining
This reduces their reliance on donations and grants, making them less vulnerable to political and economic change
They create jobs which supports economic development particularly in developing communities
They provide training and employment which can lead to increased social mobility and better quality of life
They work with a wide range of stakeholders
Disadvantages of social enterprise
Achieving financial stability can be difficult, especially during the initial stages
Balancing a social mission with making money can be a delicate balancing act
They have to navigate complex legal frameworks and tax structures
It may be difficult to quantify and measure the success of social enterprise activities
It may be difficult to grow
Obtaining additional finance to expand into new markets or reach a larger audience is likely to be difficult
What do social enterprises in the public sector do ?
They provide socially-focused services with the aim of making a profit or surplus
What are cooperatives ?
They are a form of for-profit social enterprise that are owned and run by and for their members with the principle that working together means more power
What does each member in a cooperative own ?
Each member owns one share and has one vote on key decisions
What happens to profits in a cooperative ?
Profits are either shared equally between members or reinvested for their benefit
Disadvantages of cooperatives
Decision-making can be time-consuming as members have the right to have a say
When a member leaves a cooperative their share is relinquished and they receive no further benefits
Disagreements can occur when members possess differing social and commercial objectives
What are the different types of cooperatives ?
Employee cooperative
Community cooperative
Retail cooperative
Producer cooperative
Financial cooperative
Housing cooperative
Characteristics of employee cooperative
Owned equally by workers within the business
Each employee has a vote in business decisions
Profit is shared equally between employees
Characteristics of community cooperative
Owned by members of the local community
Members usually contribute time as well as finance to the cooperative
Profit is commonly reinvested to continue providing socially valuable products
Characteristics of retail cooperative
A group of independent retailers come together and operate under one brand name
Buying power is increased and marketing costs are shared
Characteristics of producer cooperative
Groups of manufacturers work together during the production process
Sharing and maximising the use of expensive capital equipment is often a key aim
They are common in agriculture
Characteristics of financial cooperative
Organisations that provide financial services to individuals that may not otherwise qualify for standard banking products
Focused on a particular community
Social aims take precedence over profits
Characteristics of housing cooperative
Organisations that provide housing for members
Members collectively own and benefit from socially cohesive and lower cost dwellings
