"Social Enterprises are businesses that are run in order to fulfil social aims. They bring people and communities together for economic development and social gain."

 

Social Enterprises are part of the growing 'social economy'. The social economy is a thriving and growing collection of organisations that exist between the traditional private sector on the one hand, and the public sector on the other. Sometimes referred to as the 'third sector', it includes voluntary and community organisations, foundations and associations of many types.

 

They stand out from the rest of the social economy as organisations that use trading activities to achieve their goals and financial self-sufficiency. They are businesses that combine the entrepreneurial skills of the private sector with a strong social mission that is characteristic of the social economy as a whole.

 

Social Enterprises have a governance structure based on participation by the workforce and/or other stakeholder groups. This participation will vary according to the different models applied to the needs of diverse circumstances.

 

Social Enterprises come in a variety of forms, which includes:

• Employee-owned businesses - creating jobs and rescuing jobs as part of economic development strategies.
• Credit Unions - providing access to finance.
• Co-operatives - associations of persons united to meet common economic, and social needs through jointly owned enterprises.
• Development Trusts - key actors in community-based regeneration.
• Social Firms - providing employment and training to people with disabilities and other disadvantaged groups.
• Intermediate Labour Market Companies - providing training and work experience for the long-term unemployed.
• Community Businesses - Social Enterprises, which have a strong geographical definition and focus on local markets and local services.
• Charities Trading Arms - enabling charities to meet their objectives in innovative ways, such as Fair Trade companies.