What is a social enterprise?

There is often great debate in the sector regarding exact definitions of a social enterprise. The debate continues in distinguishing the enterprise from the entrepreneur. While some definitions are given below for Firstport what matters is what happens and put simply we can think:



Social – not individually motivated but with a wider benefit;

Enterprise – a new idea or initiative seeking to be financially sustainable.



In not getting caught up in the definition debate Firstport will work with you if you are looking to establish an initiative that will have direct social/environmental benefit. This may include:

  • Providing employment opportunities to those often excluded from a mainstream workforce e.g work for people with mental health difficulties, long term unemployed etc
  • Providing services to those who may not receive a service without a new initiative e.g. – health and care, youth services, support for the elderly, young mothers etc
  • Providing services in a geographical area that otherwise may not receive it, e.g. access to transport, local shop
  • It may be more mainstream business that aims to then divert profits to community causes e.g a restaurant, shop or product sales
  • Community services you have identified a need for based on your own experience

Definitions



Scottish Social Enterprise Strategy, 2007

“What is social enterprise?

Social enterprise is a way of doing business. Social enterprises are run to generate profits

that are used to provide social, community or environmental benefits. Sometimes

this is referred to as ‘more than profit’. The most commonly used definition is that

“… social enterprises are businesses with primarily social objectives whose surpluses are

principally reinvested for that purpose in the business or in the community, rather than

being driven by the need to maximise profit for shareholders or owners” (DTI, 2002).

Characteristics of social enterprises:

  • Social, community or environmental purpose.
  • Delivery of social purpose mainly through trading, whether through direct sales to

    the public or under contract to public or private organisations.
  • Profit-making, but this is primarily invested in the business or the community, not

    distributed to shareholders”.



Scottish Social Enterprise Coalition

“Social enterprises are dynamic businesses with a social purpose.  They have social aims, trade in competitive markets and reinvest their profits for community benefit. DTI research in 2005 indicated there are at least 1,100 social enterprises in Scotland, employing 30,000 people and adding £1.25bn to the national economy.  More recent local and national studies suggest the true figure could be more than 3,000”..