Social Enterprising advisory
A social enterprise or social business is a business with specific social objectives that serve its primary purpose. Social enterprises seek to maximize profits while maximizing benefits to society and the environment, and the profits are principally used to fund social programs.
The concept of a social enterprise was developed in the U.K. in the late 1970s to counter the traditional commercial enterprise. Social enterprises exist at the intersection of the private and volunteer sectors. They seek to balance activities that provide financial benefits with social goals, such as housing for low-income families or job training.
Funding is obtained primarily by selling goods and services to consumers, although some funding is obtained through grants. Because profit-maximization is not the primary goal, a social enterprise operates differently than a standard company.
While earning profits is not the primary motivation behind a social enterprise, revenue still plays an essential role in the venture's sustainability. Sustainable revenue differentiates a social enterprise from a traditional charity that relies on outside funding to fulfill its social mission. This goal does not mean social enterprises cannot be profitable. Instead, it's simply that their priority is to reinvest profits into their social mission rather than fund payouts to shareholders.
A social enterprise is an organization or business which uses commercial strategies for the benefit of society or the environment while making a profit. In the past and still today, traditional businesses have existed and made profits along the way but have neglected to pay attention to the social and environmental impacts of their activities. Social and environmental impacts are critical if we are to sustain ourselves as a planet and the aim is to increase this positive impact on a grand scale. A good benchmark or guide to use while running a social enterprise is to consider the set of sustainable development goals (SDGs) which are critical and should be linked with the daily activities of social enterprises.
