Social Enterprise

Question 1

What is Social Enterprise?

Answer 1

Organisations that trade and earn income from business but USE THE PROFITS TO HELP THEIR CAUSE (eg homelessness or training for young people).

Question 2

What are 3 key features of Social Enterprise?

Answer 2

OWNERSHIP is typically structured similar to the private sector (eg sole trader, partnership or private limited company).
CONTROLLED by the sole trader/partners/Board of Directors.
FINANCED by grants, private investment and donations.
Have SOCIAL AIMS which seek to improve society in some way.

Question 3

What are 2 advantages of Social Enterprise?

Answer 3

Social aims/cause can help attract customers to buy products/use service.
More likely to receive grants from the government due to their positive impact on society.
More likely to revive grants from the government due to their positive impact on society.
Easier on attract high quality employees who want to support the aims/cause.

Question 4

What are 2 disadvantages of Social Enterprise?

Answer 4

Due to heavy reliance on grants, levels of funding can be unpredictable.
Difficult to compete against profit-driven private sector businesses.