What is Social Enterprise?

Social Enterprises are diverse and operate at many levels. They include local community enterprises, social firms, mutual organisations such as co-operatives and large-scale organisations operating nationally or internationally. What they have in common is a commitment to meeting both social and financial objectives. Examples of large national social enterprise include the Eden project in Cornwall and The Big Issue magazine.

While some enterprises start off as businesses, many are in transition from their beginnings as voluntary sector organisations dependent largely on grants and volunteers and working to increase traded income. Many originate at a local level in response to an identified community need such as furniture recycling to low income families or childcare.



There is no single legal model for social enterprise. They include companies limited by guarantee, industrial and provident societies and companies limited by shares. Some organisations are unincorporated and others are registered charities.

What ever the size, origin or nature of social enterprise, it will be pursuing one or more of the following activities:

Offering social or environmental goods and services (for example recycling or childcare) Trading to improve (or cross subsidise) social or environmental goods or services (for example, the trading arms of charities) and Using processes or ways of working that have a significant social benefit (for example, cooperatives, social firms and fair trade organisations)

The DTI's Strategy for Success (see section 3.1 of attached PDF report) identified that successful social enterprises embody the following characteristics:

Gaining independence and autonomy through trading Entrepreneurial, innovative risk taking behaviour Flexible and adaptable practices Customers and community focus Stakeholder engagement Democratic and participative management Delivering socially and/or environmentally as well as financially; and Financially viable, gaining their income from selling goods and services

Attached below is the PDF of the 62-page research report Switch on Social Enterprise - The state of social enterprise development in Shropshire. A research report on support and development needs prepared by consultants Rubus

Back to previous page

Back to top