1. What is a social enterprise?
Firstly, a social enterprise is a business. So what is a business?
All social enterprises are businesses. What is a business?
Businesses are legal entities designed to provide products or services to consumers. Most are privately owned and exist to make money for their owners. Most businesses are small but the businesses whose names we are most familiar with are often large companies and corporations, usually with operations in many countries.
Businesses provide products and services that meet the needs of consumers. They may spend a great deal of money on marketing to make sure that people know that they need a product!
Ultimately, if consumers do not want their products and services then a company will go out of business.
A business is a legal entity that provides products or services to consumers.
Most are privately owned and exist to make money for their owners.
Businesses provide products and services that have to meet the needs of consumers.
Providing products or services that consumers want to buy is usually the starting point for most businesses. 1

2. So what is a social enterprise?
“A social enterprise is a business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community rather than being driven by the need to maximise profit for shareholders and owners.”
So what is a social enterprise?
The UK government definition is: “A social enterprise is a business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community rather than being driven by the need to maximise profit for shareholders and owners.”
So in a social enterprise, most of their profits are put towards a social or environmental mission. Their primary goal is not just to make a profit, though that is important.
Another way of putting it is that the people who set up the business have recognised that there is a problem that needs to be solved and that business methods can be part of the solution.
Source: UK DTI