Social enterprise

Social enterprises are businesses trading for social and environmental purposes.

Many commercial businesses would consider themselves to have social objectives, but social enterprises are distinctive because their social or environmental purpose is central to what they do. Rather than maximising shareholder value their main aim is to generate profit to further their social and environmental goals.

According to 2005-2007 data from the Annual Survey of Small Business UK, there are approximately 62,000 social enterprises in the UK with a combined turnover of at least £27 billion. Social enterprises account for 5% of all businesses with employees, and contribute £8.4 billion per year to the UK economy.

The social enterprise movement is inclusive and extremely diverse, encompassing organisations such as development trusts, community enterprises, co-operatives, housing associations, social firms and leisure trusts, among others. These businesses are operating across an incredibly wide range of industries and sectors from health and social care, to renewable energy, recycling and fair trade.

Social enterprise is a business model which offers the prospect of a greater equity of economic power and a more sustainable society – by combining market efficiency with social and environmental justice.