WHAT IS A SOCIAL ENTERPRISE?
Social enterprises are businesses with social and environmental missions at the heart of what they do.
Although sharing similarities to a traditional profit driven business, a social enterprise stands apart for a number of reasons. Differing also from a traditional ‘not-for-profit’ Charity or other community organisation- Social Enterprise is about creating sustainable ways in which to raise funds through delivery of products / services, which in turn are then responsibly reinvested back into their mission. Whilst private businesses operating in an ethical way, public sector arms-length companies (ALEOs) and non trading charities are not social enterprises, some of these may be on a journey as emerging social enterprises.
Differing also from a traditional ‘not-for-profit’ Charity or other community organisation- Social Enterprise is about creating sustainable ways in which to raise funds through delivery of products / services which in turn are then responsibly reinvested back into their mission.
Reflective of the variety to format and focus a social enterprise can encompass, there is no legal definition of a Social Enterprise in Scotland. However, there is recognised Voluntary Code of Practice which highlights certain criteria, values and behaviour recognised by the social enterprise community in Scotland.
A social enterprise can present in a variety of formats:
Why become a social enterprise?
Social enterprise is an innovative way of integrating business with community; primarily aiming to tackle social issues whilst empowering a community with a stronger local economy and opportunities such as volunteering, skills development and employment.
In the 2021 census Social Enterprise was noted as supporting almost 90,000 full time equivalent employees and adding a £2.63bn contribution to Scotland’s economy!
For example, they can help:
- A social need, such as providing health, social care services or childcare provision
- Strengthen a community with resources by running a community centre
- Protect the environment with reusable energy or by tackling food waste
- Contribute to local economy by resourcefully retailing local produce
- Increase prospects by creating opportunities to learn skills
- Improve mental wellbeing and social inclusion through social activities or sport
Are you considering potential ideas for creating a social enterprise business but unsure where to start? Contact our Social Enterprise Officer.
