What is a Social Enterprise
A social enterprise is an independent business, autonomous of state/government control and is set up to create employment for those severely disadvantaged in the labour market. The different types of social enterprises are co-operative, mutual organization, a disregarded entity, a social business, a benefit corporation, a community interest company, a company limited by guarantee or a charity organisation.
The Big Issue as a Social Enterprise
The Big Issue is classed as a social enterprise because all of the profits made by the big issue group are reinvested back into helping vendors with a "Hand up, not a hand up"
The Big Issue is a social enterprise as helps its vendors in reinvesting and improving their lives by providing training and employment opportunities and is dedicated more for the people than for the company itself.
Social enterprises aim to make a profit like traditional businesses, but the end goal is not to generate dividends for investors, social enterprises take their profits and reinvest or donate them into projects, ideas or initiatives that create positive social change in communities. They use the money generated to tackle social problems or provide training and employment opportunities for people who are unable to access work.
They can offer socks to homeless people for every sock bought in their shop like Jollies Socks. Or create innovative products that help disabled people and promote social inclusion using the proceeds from the sale of bags like Trabasack. Or making jewellery can also help people with anxiety be welcomed back into the community.
At SEUK’s last count, there were 100,000 social enterprises in the UK that contributed £60 billion to the economy.
Compared to other companies, social enterprises are more likely to have directors from non-white ethnic backgrounds, too.
Most people working for social enterprises live in the community around the company, and nearly a quarter of social enterprises run in the most deprived areas of the country.
By selling products and services on the open market, social enterprises create employment and investment in their chosen sector or local communities. They use the money generated to tackle social problems or provide training and employment opportunities for people who are unable to access work.
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