Social enterprises are a type of company that prioritizes the interest of the planet, and people above all else, even shareholder gain. A social enterprise is a business that has a social and environmental mission at its core and one that invests its profits to achieve these goals. Read on to find out more.
The importance of social enterprise
When it comes to running a business there are many things you will need. Not least among these are the values that you will use to guide not only what you are working too, but the way in which you work.
Indeed, social enterprise is a critical value both for those looking to run their business in a responsible way, and for those looking to appeal to more customers. After all, many consumers are now looking specifically for sustainability and ethical businesses in the marketplace.
The categories of social enterprises
There is a range of different types of businesses that fall under the banner of social enterprise.
Credit unions
The first type of social enterprise is known as a credit union. These are financial cooperatives whose mission is to help individuals and communities borrow or save money. They tend to cater specifically to marginalized people or communities.
Cooperatives
Another type of social enterprise is cooperative. The key feature of a cooperative is that they are run by and for its members and offer a service that they all benefit from. Cooperatives are jointly owned enterprises and can be commercial businesses where employees own shares in the company.
Community-based organization
The aim of a community-based organization is to create jobs for people within the community that it serves. They are usually locally based and focus on offering services that meet the needs of the local market.
Non-Governmental Organizations with commercial arms
A Non-Governmental Organization is a non-profit that brings in income by selling services and goods. Therefore it does not need to rely on government donations or grants to run.
Social firm
A social firm is a company whose mission is to offer opportunities for those that find themselves marginalized in the labor market. Indeed,
Expert on Social Enterprise, Leigh Morgan names some great examples of businesses that are already successfully operating as Social firms including Auticon UK.
Auticon UK is an IT consulting firm that employs over 250 professionals, all of which are on the autistic spectrum. Their main aim is to boost employment options for autistic adults, globally.
Definition: A business set up to create employment for those most severely disadvantaged in the labor market.
Microfinance
Microfinance social enterprises are designed to help small businesses and entrepreneurs access financial services that they would otherwise find difficult. They can offer both loans, and support to help businesses get off the ground, and expand once up and running.
Fairtrade
The last type of social enterprise is fair trade business. These are set up to encourage sustainability, as well as better pay, and conditions for farmers and manufacturers.
Final thoughts
Now you know more about the different types of social enterprise, you can choose the one that will work best for your business.
