In more detail
A social enterprise is a business organisation which aims to add social value rather than make a private profit. Social value is shared wealth: social enterprises exist to provide things like: community meeting places, training and support for community groups; social care; environmental improvements; youth services; health services; services to job-seekers; and community transport.
Legal structure
There is no set legal structure for a social enterprise: they can be set up as companies limited by guarantee (non-profit companies) or community interest companies (which can be non-profit or profit-making but which exist primarily to serve community needs). Some social enterprises may be registered charities or operate as charitable incorporated organisations (which have charity status but also have limited liability). Social enterprises can also be 'community benefit societies' which use a democratic structure like a cooperative. Sometimes, community groups or even bits of the council can act like social enterprises. And private profit making businesses may forego a profit in order to provide some useful social benefit instead.
Earnt income
Unlike public agencies and a lot of community and voluntary groups, social enterprises earn most of their oncome by contracting to provide useful services. These may be services related to those they exist to provide (like health services for example), or a social enterprise may make money trading as a company (doing grounds maintenance work and landscape gardening, for example) and use the profits to fund work of social benefit (eg training and employing disabled people).
The video below was produced by Social Enterprise UK and was made by Claire Pinegar for a presentation in Parliament in 2015:
Why does Social Enterprise Matter?
You may decide that social enterprise should play a part in your plans and projects for neighbourhood improvement. Earning income, rather than relying on grants, may make your work more sustainable. You may be able to run a business using partly volunteer labour that is able to provide services which the private sector and public agencies cannot. A social enterprise which is used as a vehicle for neighbourhood improvement and also specialises in delivering services in and around the neighbourhood is, in effect, a 'neighbourhood company'.
A neighbourhood company could be as important in improving the area as a parish council or a neighbourhood forum.
| Key Facts:
Social entreprises aim to make a social (shared) profit, rather than a money profit that is paid to shareholders. Neighbourhood improvement aims to increase shared wellbeing. Social enterprise could be another vehicle for improving your neighbourhood. |
Page Links from here
See Social Enterprise UK for information about, and advice for, social enterprises.
In the toolkit, see:
OR you can use the navigation menu above right to look at other parts of the toolkit.
BIRMINGHAM COMMUNITY PLANNING TOOLKIT DEFINITION SHEET This sheet may be reproduced in paper or electromic or any other form but please mention it was made by Chamberlain Forum Limited for Birmingham City Council supported by Department for Communities and Local Government.
| created: 2016-05-25 13:59:17 | by: admin | status: f published |