ENT3-A1. What is a social enterprise

TIMING/ LENGTH (IN MINUTES): 15′

DESCRIPTION

Next, we will talk about different concepts that will help us to better understand what social enterprise is and to know this alternative that is more and more present every day.

DEVELOPMENT/ METHODOLOGY

LEARN

WHAT IS A COMPANY?

A company is a group of people and resources that seek to achieve economic benefit from the development of a particular activity. It must seek profit and achieve a series of objectives.

WHAT IS THE 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.

Social enterprises exist at the intersection of the private and voluntary sector… to balance activities that provide financial benefits with social goals.

You can learn more on this topic here: https://www.investopedia.com/terms/s/social-enterprise.asp

The European Commission also has its definition: in the social enterprise, the social mission is more important than profitability or dividend distribution. And it sets out three qualities that would be found in a social enterprise:

• Those for whom the objective of the common good is the motive for their commercial activity;
• Those who mostly reinvest their profits in the achievement of the social objective;
• Those in which the method of organization and ownership system reflects the business mission using democratic and participatory principles and focusing on social justice.

DO

Now, we invite you to think on the purpose of social enterprises. Write down 3 purposes you think that could fit in social enterprises.

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DIFFERENCES BETWEEN SOCIAL ENTERPRISE AND ORDINARY ENTERPRISE

Although in the previous sections we have already listed what the characteristics of ordinary companies and social enterprises are, we would like to leave you with a small table so that we can clearly see what the differences are between the two companies: