what is a social enterprise 
a social enterprise or social business is a business designed to achieve specific social objectives as its primary purpose social enterprises strive to maximize profits while also maximizing positive impacts on society and the environment the profits generated are primarily used to fund social programs social enterprises often focus on benefiting marginalized or economically disadvantaged groups by permanently improving their socioeconomic conditions 1understanding social enterprisesthe concept of a social enterprise was developed in the u k in the late 1970s as an alternative to traditional commercial enterprise 4 social enterprises exist at the intersection of the private and volunteer sectors balancing financial activities with social goals such as providing housing for low income families or offering job training funding comes primarily from selling goods and services to consumers with additional support through grants because profit maximization isn t the primary goal a social enterprise operates differently than a standard company however generating revenue is still essential for sustainability distinguishing them from traditional charities that rely solely on external funding sustainable revenue differentiates a social enterprise from a traditional charity that relies on outside funding to fulfill its social mission this goal doesn t mean social enterprises can t 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 5social enterprise vs social entrepreneurshipa social enterprise isn t to be confused with social entrepreneurship social enterprises are businesses formed to fulfill a business purpose and solve societal needs through commercial activities in contrast social entrepreneurs develop solutions to social and environmental problems using existing business techniques and strategies social entrepreneurs seek innovative ways to drive change whereas social enterprises fulfill a business purpose and solve societal needs through their commercial activities social entrepreneurship is a rapidly growing field that garners attention from various sectors including media public officials universities and prominent social organizations like ashoka and the schwab and skoll foundations 6 its appeal stems from the inspiring stories of individuals who have created solutions to various social and environmental problems similar to business entrepreneurs but with a focus on societal impact one prominent social entrepreneur is bill drayton founder and current chair of ashoka an organization dedicated to identifying and supporting social entrepreneurs worldwide 7examples of a social enterprisemany social enterprises successfully maximize improvements in social well being here are some notable examples these are just a few examples of how social enterprises can drive significant social and environmental impact while still operating a sustainable business special considerationssocial enterprise employees come from many backgrounds but priority is given to those from at risk communities this includes long term underemployed workers who have often been informally paid in the past social enterprise opportunities may seek to provide a living wage which is typically above the minimum wage in most cities some social enterprises may specifically seek to hire individuals from at risk groups as part of their mission 