What is a Social Enterprise?

Social enterprises are businesses with primarily social aims that have participatory ownership and management.   Any surpluses are reinvested in the business or in the community rather than profiting shareholders and owners.  

Social enterprises tackle a wide range of social and environmental issues and operate in all parts of the economy.  Examples include agriculture, clothing manufacture, music and dance, care services, housing and recycling.  ESN has developed a number of social enterprise case studies.  There are a number of social enterprises in Northamptonshire, some of which are included in our Social Enterprise Directory.

Structures

There is no single legal model for a social enterprise.  They may be unincorporated associations, companies limited by guarantee, Industrial and Provident Societies, occasionally companies limited by shares and some are registered charities.  A company structure specifically for social enterprises was introduced in 2005, the Community Interest Company.  Our Social Enterprise Start Up Pack provides more guidance.

Enterprise types

There are many forms of social enterprise including:

• Community enterprises
• Social firms (employing people with a disability or disadvantage in the labour market)  (www.socialfirms.co.uk)
• Mutual organisations including co-operatives (www.co-operatives-uk.coop)
• Development trusts   (www.dta.org.uk)
• Intermediate Labour Market organisations (employing the previously long term unemployed) 
• Trading arms of charities

For more information see the Social Enterprise Network.