Social enterprises

Question 1

What is a social enterprise?

Answer 1

A social enterprise is an organisation that works to help the community so therefore doesn’t want to work for a profit (not-for-profit)

Question 2

What happens to the profit made?

Answer 2

The profit is reinvested back into the business.

Question 3

Name 3 examples:

Answer 3

• the Big Isue
• Jamie Oliver’s restaurant ‘fifteen’
• the Eden Project

Question 4

What are 4 features of a social enterprise?

Answer 4

• self-sustaining (uses own capital to set up)
• not-for-profit
• not easy to set up
• they have a social or environmental mission

Question 5

What are the 4 legal structures for a social enterprise?

Answer 5

• community interest company
• industrial and provident society
• companies limited by guarantee or shares
• group structures with charitable status

Question 6

What are the advantages of a social enterprise?

Answer 6

• it creates job for people where there are areas of high unemployment
• it helps the community
• they can receive a grant from the Government
• it brings a positive change to people and communities
• it brings social benefits

Question 7

What are the disadvantages of a social enterprise?

Answer 7

• it has high training costs
• it has to compete in commercial to market and face the same challenges an risks common to all businesses
• it requires having the necessary resources and skills to move towards becoming a social enterprise
• a social enterprise has certain controls and restrictions
• it isn’t easy to set up

Question 8

What is a co-operative?

Answer 8

Co-operative businesses are owned and run by and for their members, whether they are customers, employees or residents

Question 9

What happens to co-operatives profits?

Answer 9

Their staff receive wages, but the company’s profits must be either reinvested in the business or donated to a co-operative or charitable cause.