Social Enterprises are businesses that have more of a focus towards a positive social/environmental change rather than making the most profit possible. Despite this, social enterprises can still be for-profit, but what they do with that profit is what sets them apart. They re-invest their profit in either their company or into communities in order to make a positive impact on society. Social Enterprises are also autonomous of the state, they are not owned by government.
What differs a social enterprise from a charity is that they can be for profit unlike a charity, and a social enterprise's primary source of income is through trade, not donations.
A social enterprise differs itself from an ethical business from its primary goal. A Social Enterprise's primary goal will be positive change in society. An ethical business will still have the primary goal of profit, but will minimise its negative effect on society possibly as a way to gain a competitive advantage over competitors. One good example of an ethical company would be Lush.
Companies that can be seen as social enterprises are, The Big Issue, The Eden Project, and the Fifteen restaurant.
The eden project is a visitor attraction that houses different plants and biomes in greenhouses and gardens. The attraction is used to raise awareness for the environment and the different plant organisms that grow from around the world. The profit that The Eden Project has made has at least been partially reinvested in improving the facility and experience: New environments and attractions have been made with more focus on educational facilities and there are plans to make other ones in different parts of the country. The company is attempting to raise awareness for plant life and the environment by making these exhibits that protect and ensure that the plant life is maintained, and they educate others on the importance of the environment and sustainability.
In terms of The Big Issue, it attempts to help those who are homeless or nearly homeless gain a legitimate income from selling the issues. In other words, it creates jobs for both the homeless and people working in the industry of magazine.It's articles tackle more political and social issues and focuses on ways to change society It gains it's income from sales and advertising revenue.They are not ran by the government. The Big Issue is now know as one of the most well known social enterprises in the UK.
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