Social Enterprise: Defining the
Movement
What is a social enterprise?
A social enterprise is an organization or venture that achieves its
primary social or environmental mission using business methods. The
social needs addressed by social enterprises and the business models
they use are as diverse as human ingenuity. Social enterprises build a
more just, sustainable world by applying market-based strategies to
today's social problems.
What is the Social Enterprise Alliance?
The Social Enterprise Alliance is the only member organization in North
America to bring together the diverse field of social enterprise. It
serves as advocate for the field, hub of information and education, and
builder of a vibrant and growing community of social enterprises.
Are all social enterprises nonprofits?
The social enterprise movement includes both nonprofits that use
business models to pursue their mission and for-profits whose primary
purposes are social. Social mission is primary and fundamental; the
organizational form depends on what will best advance the social
mission.
Where do "social entrepreneurs" fit in?
Social entrepreneurs are individuals who pursue opportunities to create
pattern-breaking change in inequitable systems, whether through social
enterprises or other means.
What about corporate social responsibility?
Many companies whose primary purpose is to create value for ownership
are also committed to adopting a wide range of socially and
environmentally responsible practices in their operations. Because
their social missions are not primary, they are not considered social
enterprises.
What kinds of business models do social enterprises use?
Social enterprises use an endless array of business models for the
common good. Samples include: retail, service and manufacturing
businesses that help people overcome employment barriers; contracted
providers of social and human services; fee-based consulting and
research services; community development and financing operations; and
even technology enterprises. Chances are you already do business with
social enterprises without even knowing it.
Why do people launch social enterprises?
Many nonprofit organizations see social enterprise as a way to reduce
their dependence on charitable donations and grants while others view
the business itself as the vehicle for social change. Whether
structured as nonprofits or for-profits, social enterprises are simply
launched by social entrepreneurs who want to improve the common good
and solve a social problem in a new, more lasting and effective way
than traditional approaches. They are conceived and operated by
visionary entrepreneurs who recognize potential where others may not
see it and who apply discipline, pragmatism, courage and creativity to
pursue their solution in spite of all obstacles, toward a world that is
more abundant, secure and inclusive for all.