Social Enterprise
A social enterprise is defined as a business with social or environmental goals as its primary purpose. These goals are aimed to be achieved while maximizing economic profits and creating job positions, even though the latter cannot be the main objective, since this is what differentiates the social enterprise from the classic business companies.
The form of the social enterprise can vary, as its way of functioning can be applied to cooperatives, partnerships, business and so on. The objectives can vary as well, as long as they are within the social and environmental sphere.
Another important aspect about social enterprise is that it has ingrained the value of dignity. Regarding the employment, they offer positions to people from risk-communities, as people with disabilities or minorities facing discrimination. This contributes to granting them dignity, since it helps them be and feel as active members of society.
About the economic profits, as said before, earning them cannot be the main goal of the social enterprise, but it still plays a central role. Earning income differentiates the social enterprise from the traditional charities and NGO´s, since the obtained revenue is used to fund the social activities of the business, as well as to create job positions.
As an example of social enterprise, we have Miazo, a multi-site that operates in terms of an ethical, social and solidarity economy, promoting cultural change because of the facing of climate change. This business funds itself by owning a second hand store: they receive donations of different things that people don't use anymore and they sell them with a lower price to earn income in terms of being able to keep functioning. It is a good example of social enterprise, since we can appreciate how the main goal is to promote responsible consumption and a sustainable way of life; something that they achieve while getting profit to fund themselves.
Sources:
https://corporatefinanceinstitute.com/resources/esg/social-enterprise/
https://www.investopedia.com/terms/s/social-enterprise.asp
https://miazo.gr/poioi-eimaste-ti-kanoume/
Share
EN