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Revision as of 14:35, 16 May 2005 by 62.255.32.14 (talk)(diff) ← Previous revision | Latest revision (diff) | Newer revision → (diff)Social Enterprise is a relatively new term for a type of business that has been in existence for at least a century.
Briefly, social enterprises are businesses which trade in goods or services and aim to make a profit (or surplus). However, whereas conventional businesses distribute their profit among shareholders, in social enterprises the surplus goes towards one or more social aims which the business has - for example fair trade, vocational training for disabled people, or environmental issues.
The need to deliver on both financial and social performance targets is often referred to as having a double bottom line.
Social enterprises are distinct from charities (although charities are also increasingly looking at ways of maximising income from trading), and from private sector companies with policies on corporate social responsibility.
Current social enterprises include community enterprises, credit unions, trading arms of charities, employee owned businesses, co-operatives, development trusts, housing associations, social firms, and leisure trusts.
According to the DTI, however, there is no single legal model for social enterprise. They include companies limited by guarantee, industrial and provident societies and companies limited by shares; some organisations are unincorporated and others are registered charities. Social enterprises are diverse.
Some well known social enterprises include: Welsh Water (Glas Cymru), Cafe Direct, The Big Issue, & The Co-operative Group.
3 common characteristics of social enterprises as defined by Social Enterprise London are:
Enterprise orientation: They are directly involved in producing goods or providing services to a market. They seek to be viable trading organisations, with an operating surplus.
Social Aims: They have explicit social aims such as job creation, training or the provision of local services. They have ethical values including a commitment to local capacity building, and they are accountable to their members and the wider community for their social environmental and economic impact.
Social ownership: They are autonomous organisations with governance and ownership structures based on participation by stakeholder groups (users or clients, local community groups etc.) or by trustees. Profits are distributed as profit sharing to stakeholders or used for the benefit of the community.
Social Enterprise, also known as the ‘Third Sector’ derives from Social entrepreneur, the term originally given to 19th century philanthropic businessmen and industrialists, who had genuine concern for the welfare of their employees.
Links
Social enterprise in the UK is represented by a national network (the Social Enterprise Coalition), by similar groups in each region of England, and in Northern Ireland, Scotland & Wales: UK National - East of England - East Midlands London North East South East South West (There is no website for North West, West Midlands, or Yorkshire & Humberside at present) Scotland Wales (There is no website yet for Northern Ireland)