Question

Programs, guidelines, practices & activities followed for Social Enterprise.

Answer 1

social enterprise is an operator in the social economy whose main objective is to have a social impact rather than make a profit for their owners or shareholders. It operates by providing goods and services for the market in an entrepreneurial and innovative fashion and uses its profits primarily to achieve social objectives. It is managed in an open and responsible manner and, in particular, involves employees, consumers and stakeholders affected by its commercial activities.

The Commission uses the term 'social enterprise' to cover the following types of business:

• Those for who the social or societal objective of the common good is the reason for the commercial activity, often in the form of a high level of social innovation
• Those whose profits are mainly reinvested to achieve this social objective
• Those where the method of organisation or the ownership system reflects the enterprise's mission, using democratic or participatory principles or focusing on social justice

There is no single legal form for social enterprises. Many social enterprises operate in the form of social cooperatives, some are registered as private companies limited by guarantee, some are mutual, and a lot of them are non-profit-distributing organisations like provident societies, associations, voluntary organisations, charities or foundations.

Despite their diversity, social enterprises mainly operate in the following 4 fields:

• Work integration - training and integration of people with disabilities and unemployed people
• Personal social services - health, well-being and medical care, professional training, education, health services, childcare services, services for elderly people, or aid for disadvantaged people
• Local development of disadvantaged areas - social enterprises in remote rural areas, neighbourhood development/rehabilitation schemes in urban areas, development aid and development cooperation with third countries
• Other - including recycling, environmental protection, sports, arts, culture or historical preservation, science, research and innovation, consumer protection and amateur sports

The Social Business Initiative

The social business initiative (SBI), launched in 2011, aims to introduce a short-term action plan to support the development of social enterprises, key stakeholders in the social economy and social innovation. It also aims to prompt a debate on the avenues to be explored in the medium/long term. There are 11 priority measures, organised around 3 themes:

Theme 1: Making it easier for social enterprises to obtain funding

Theme 2: Increasing the visibility of social entrepreneurship

Theme 3: Making the legal environment friendlier for social enterprises

Initiated by the SBI, the Commission and the expert group on social entrepreneurship, established a 5 pillar strategy aimed at increased access to funding, access to markets, improved framework conditions, foster social innovation and continue to work on internationalisation. See more on the implementation of the 5 pillar strategy.

Expert group on social entrepreneurship

Key documents

Videos

Publications

Events

Other policy actions linked to social economy

The diversity of business sectors in which social enterprises operate is matched by the diversity of social needs they are set up to meet. Some have a particular geographic focus, aiming to improve the life of a particular community. Some work with specific groups: young people; old people; homeless people or those leaving prison. Many social enterprises are involved in supporting disadvantaged people to develop confidence and skills; or creating work opportunities for those who would otherwise find it difficult to get a job. There are social enterprises focusing on protecting the environment, tackling poverty and improving health and well-being. Again, if there’s a social or environmental need t

The defining characteristics of a social enterprise, as we have stated, are trading for a social purpose and reinvesting its profits to further its social aims. Within that quite broad definition are different models of ownership. The co-operative movement is one of the roots of social enterprise and many social enterprises still adopt a co-operative structure. Some social enterprises are owned by their employees, some by their customers, and others are owned by members of the local community they serve. Not all co-operatives are social enterprises, however. Some co-operatives simply trade for financial profit, like any other commercial business. There are also many social enterprises that are not co-operatives. Some are owned by individuals or groups of people committed to trading for a social purpose; others are owned by a charity and pay any profits they make back to that charity. Different models of ownership can bring different benefits. The important thing is making sure the social enterprise has the right model of ownership