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    Final Report Maam Ency

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    Precious Hope Caritan
    A social enterprise is a business with social objectives that seeks to maximize profits while also providing benefits to society and the environment. Unlike traditional businesses, profit maximization is not the primary goal of social enterprises. They use profits primarily to fund social programs. Social enterprises were developed in the 1970s UK as an alternative to traditional commercial enterprises. They exist at the intersection of private and nonprofit sectors, balancing financial and social goals such as providing affordable housing or job training. Funding comes from selling goods and services, though some comes from grants.

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    Final Report Maam Ency

    Uploaded by

    Precious Hope Caritan
    21 views3 pages
    A social enterprise is a business with social objectives that seeks to maximize profits while also providing benefits to society and the environment. Unlike traditional businesses, profit maximization is not the primary goal of social enterprises. They use profits primarily to fund social programs. Social enterprises were developed in the 1970s UK as an alternative to traditional commercial enterprises. They exist at the intersection of private and nonprofit sectors, balancing financial and social goals such as providing affordable housing or job training. Funding comes from selling goods and services, though some comes from grants.

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    A social enterprise is a business with social objectives that seeks to maximize profits while also providing benefits to society and the environment. Unlike traditional businesses, profit maximization is not the primary goal of social enterprises. They use profits primarily to fund social programs. Social enterprises were developed in the 1970s UK as an alternative to traditional commercial enterprises. They exist at the intersection of private and nonprofit sectors, balancing financial and social goals such as providing affordable housing or job training. Funding comes from selling goods and services, though some comes from grants.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    21 views3 pages

    Final Report Maam Ency

    Uploaded by

    Precious Hope Caritan
    A social enterprise is a business with social objectives that seeks to maximize profits while also providing benefits to society and the environment. Unlike traditional businesses, profit maximization is not the primary goal of social enterprises. They use profits primarily to fund social programs. Social enterprises were developed in the 1970s UK as an alternative to traditional commercial enterprises. They exist at the intersection of private and nonprofit sectors, balancing financial and social goals such as providing affordable housing or job training. Funding comes from selling goods and services, though some comes from grants.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    What Is a Social Enterprise?

    A social enterprise or social business is defined as 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.

    KEY TAKEAWAYS

    A social enterprise is a business with social objectives.

    Maximizing profits is not the primary goal of a social enterprise as is with a traditional business.

    Unlike a charity, social enterprises pursue endeavors that generate revenues, which fund their social
    causes.

    Regarding employment, preference is given to job-seekers from at-risk communities.

    Funding for a social enterprise is often obtained by selling services and goods.

    Understanding Social Enterprises

    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.
    The Organisation for Economic Co-operation and Development (OECD) identifies social enterprises as
    being highly participatory, with stakeholders actively involved and a minimum number of paid
    employees.

    Social Enterprise vs. Social Entrepreneurship

    A social enterprise is not to be confused with social entrepreneurship, which focuses on individuals who
    develop solutions to social and environmental problems using existing business techniques and
    strategies. Social entrepreneurs seek innovative ways to drive change, whereas social enterprises form
    to fulfill a business purpose and solve societal needs through their commercial activities.

    Examples of a Social Enterprise

    Many social enterprises successfully maximize improvements in social well-being. For example, Warby
    Parker is an American eyeglass retailer that donates a pair of glasses to someone in need for every pair
    sold. TOMS, a California-based retailer, similarly has pledged to donate a pair of shoes or sunglasses for
    every pair sold. Also, Radicle trains businesses and gives them software tools to track and cut their
    greenhouse gas emissions.

    One crucial group within the social enterprise ecosystem is the beneficiaries and customers who use the
    services that social businesses and nonprofits provide. Customers are those who pay for a good or
    service, while beneficiaries are those whom an organisation seeks to help. In some social enterprises
    (for example, a low-cost grocery store located in a ‘food desert’), these two groups may be the same; in
    other models, they may be different. However, both customers and beneficiaries provide crucial
    feedback that shapes the ways in which social enterprises devise and refine their aims and models.

    Governments are also an important part of the social enterprise ecosystem. Governments play a key
    role in setting collective priorities for addressing social needs, and they provide funding and other
    support for innovations and initiatives that meet those needs. Government policies may also expand or
    limit the available options for social enterprise models – for example, by determining how certain types
    of organisations are taxed and regulated. We will learn more about what the UK government has done
    to promote social enterprise in the next step.
    In addition to the government, other funding sources enable social enterprises to start up – and scale up
    – their innovations. These funders include impact investors who seek both a financial and a social return,
    as well as foundations and other traditional philanthropic organisations that provide grants to nonprofit
    social enterprises. The availability, flexibility, and conditions of funding may determine which
    organisations grow and thrive, and which fail to get past the initial idea phase.

    Universities, independent research organisations, and other institutions can also support social
    enterprise by evaluating the impact of different models and disseminating relevant research findings. In
    this area, the role of enabling organisations, which open channels of communication and collaboration
    among all of the key players discussed above, is especially important.

    Finally, peer organisations also form a crucial part of the social enterprise ecosystem. Social enterprises
    may compete for funding or customers with one another or with other nonprofits or businesses, but
    they can also share information and best practices, collaborate, and support complementary initiatives.

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