How Social Enterprises Work
At their core, social enterprises use business strategies to achieve social or environmental goals. They generate income by selling products or services — just like any other business — but instead of distributing profits to shareholders, they reinvest them to further their mission.
This is what sets them apart from traditional charities, which often rely solely on donations or grants to operate. For example, a charity might offer job training for people experiencing long-term unemployment, funded entirely by donations. A social enterprise, on the other hand, might run a second-hand furniture store where profits go directly into funding that same job training programme — and the trainees might even gain work experience by helping run the shop.
This is what sets them apart from traditional charities, which often rely solely on donations or grants to operate. For example, a charity might offer job training for people experiencing long-term unemployment, funded entirely by donations. A social enterprise, on the other hand, might run a second-hand furniture store where profits go directly into funding that same job training programme — and the trainees might even gain work experience by helping run the shop.
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How to Start a Social Enterprise
Whether you're driven by a desire to reduce inequality, protect the environment, or uplift your local community, building a successful social enterprise starts with a clear vision and a solid foundation.