Social enterprise

Social enterprises are businesses with primarily social or health objectives whose surpluses are principally reinvested in the furtherance of those objectives, in the business, or in the community. They are not driven by the need to maximise profit for shareholders and owners.

They are part of a movement of organisations that tackle a wide range of social and environmental issues and operate in all parts of the economy that use business solutions to achieve public good. The best known example of a social enterprise is perhaps 'The Big Issue'.

Social enterprises have a distinct and valuable role to play in helping create a strong, sustainable and socially inclusive economy, and it is acknowledged by the DTI that successful social enterprises can play an important role in helping to:

• Drive up productivity and competitiveness;
• contribute to socially inclusive wealth creation;
• enable individuals and communities to work towards regenerating their local neighbourhoods;
• show new ways to deliver public services; and
• help to develop an inclusive society and active citizenship.