What is social enterprise?

What it means

Like other businesses, social enterprises make a profit. The difference is what they do with it: they reinvest it in their communities and the people they serve. Locking profits into the social aim like this is known as an asset lock.

At the start, many social entrepreneurs focus more on impact than on making money. Embracing the idea of being a business is an important step towards becoming a successful social enterprise.

Legal structures

There's no single legal definition or structure for a social enterprise. Many are registered charities or Scottish Charitable Incorporated Organisations (SCIOs). Others include:

• Community Interest Companies (CICs)
• Co-operatives and mutuals
• Development trusts
• Social firms
• Credit unions
• Housing associations

Is there a typical social entrepreneur?

No. Social entrepreneurs come from every place and background. Some start because of their own lived experience, wanting to change something that affected them personally. All you need is an idea that can benefit the community or environment you care about.

Social enterprise in Scotland

The Social Enterprise in Scotland Census counted 6,047 social enterprises, contributing £2.6 billion to the economy, and 85% paid their staff at least the Living Wage.

Still not sure?

Answer three questions in the next-step finder, or book a free 15-minute chat with your area's relationship manager.