Definition of Social Enterprise

The Definition of Social Enterprise 

The Enterprising Non-Profits Program uses the term "social enterprise" to refer to business ventures operated by non-profits, whether they are societies, charities, or co-operatives. These businesses sell goods or provide services in the market for the purpose of creating a blended return on investment, both financial and social. Their profits are returned to the business or to a social purpose, rather than maximizing profits to shareholders.

Others use a broader definition that includes privately owned ventures that have a very strong blended financial and socially responsible return on investment.

For non-profits and charities, operating an enterprise is nothing new. Museums and art galleries have operated gift shops as a way to generate revenue to support their exhibits and promote art. Service organizations such as the YMCA and YWCA have used fee-based programs to support their charitable activities. And many non-profit social service or relief agencies have operated thrift stores as a means of generating revenue for their activities and providing low-cost goods to their clients.

"Social Enterprise is another tool to help build strong non-profits and healthy communities."

Click here to learn about Reasons for Starting a Social Enterprise

Click here to learn about Social Enterprise Products, Services and Outcomes

The following is a video on social enterprise:

And click below to see a podcast explaining what social enterprise is:

Enp Podcast 1: What is Social Enterprise?