What is a Social Enterprise?

Social Enterprises are businesses that exist to fulfil a social purpose. They operate in almost every industry in the UK;  from health and social care to renewable energy; from retail to recycling; from employment to sport; from housing to education.

As with all businesses they compete to deliver goods and services but, whatever they do, they are driven by social, ethical or environmental purposes and this is at their very heart.

The profits made by social enterprises are reinvested towards achieving those purposes rather than being driven by the need to maximise profit for shareholders and owners. 

Characteristics of a social Enterprise:

• Social purpose
• Engaging in trade
• No private profit distribution
• Assets held for community benefit
• Democratic
• Accountable

The social enterprise sector is diverse and includes Community Enterprises, Development Trusts, Community Interest Companies, Credit Unions, Social Firms, Housing Associations and Football Supporters’ Trusts.

Social Enterprise UK has a wealth of further detailed information and resources to support the sector.

What’s the difference between a Co-Op and a Social Enterprise?

CASE Works with both co-ops and social enterprises – understanding the difference between the two can sometimes be confusing. 

Social enterprises are defined by their mission – existing to fulfil a social purpose, whilst co-ops are defined by their ownership structure (who their members are and how decisions are made). 

Many organisations are both – for example co-ops that trade for social benefit, or serve the needs of a community.

Find out more about Co-Operatives