What is Social Enterprise?
A social enterprise or social business is defined as a business that has specific social objectives that serve its primary purpose. Social enterprises seek to maximize profits while maximizing benefits to society and the environment. Their profits are principally used to fund social programs. While earning profits is not the primary motivation behind a social enterprise, revenue still plays an essential role in the sustainability of the venture. Sustainable revenue differentiates a social enterprise from a traditional charity that relies on outside funding to fulfill its social mission. This goal does not mean social enterprises cannot be profitable; it’s simply that their priority is to reinvest profits into their social mission, rather than fund payouts to shareholders.
If you are considering transitioning your traditional business into a for-profit or nonprofit social enterprise, contact us today to book a consultation and learn more about how we can help!