WHAT MAKES AN ENTERPRISE SOCIAL?

Defining the Social Enterprise

There exists a variety of definitions for social enterprises, for purposes of having a common reference, we are adapting this explanation provided by the BC Centre for Social Enterprise:

The widest definition: Social enterprises are revenue-generating businesses with a twist. Whether operated by a non-profit organization or by a for-profit company, a social enterprise has two goals: to achieve social, cultural, community economic or environmental outcomes; and, to earn revenue. On the surface, many social enterprises look, feel, and even operate like traditional businesses. But looking more deeply, one discovers the defining characteristics of the social enterprise: mission is at the centre of business, with income generation playing an important supporting role.

Another possible definition: A social enterprise operates like a business, produces goods and services for the market, but manages its operations and redirects its surpluses in pursuit of social and environmental goals.

An equally noble goal of social enterprise (aside from generating revenues to pursue more of a non-profit's mission) is the involvement of the marginalized, thus creating capacity and self-sufficiency for individuals, and impacting their communities and lessening reliance on the social safety net. This element alone can denote a social enterprise.

Some complementary definitions:

			Social enterprise applies an entrepreneurial approach to addressing social issues and creating positive community change.
			A social enterprise is a revenue-generating business with primarily social objectives whose surpluses are reinvested for that purpose in the business or in the community, rather than being driven by the need to deliver profit to shareholders and owners.

This, from the UK:

Social enterprise has six defining characteristics:

			Having a social purpose or purposes.
			Achieving the social purpose by, at least in part, engaging in trade in the marketplace.
			Not distributing profits to individuals.
			Holding assets and wealth in trust for community benefit.
			Democratically involving members of its constituency in the governance of the organization.
			Being independent organizations accountable to a defined constituency and to the wider community.