have a clear social or environmental mission set out in its governing documents and be controlled in the interest of that mission
What is a social enterprise?
Social enterprises are businesses which trade for a social or environmental purpose. There are more than 131,000 social enterprises in the UK, with a collective turnover of £78 billion and employing around 2.3 million people.
Social enterprises demonstrate a better way to do business, one that prioritises benefit to people and planet and uses the majority of any profit to further their mission. Social enterprises contribute to reducing economic inequality, improving social justice and to environmental sustainability.
What do social enterprises do?
Social enterprises are businesses. Like any other business, they seek to make a profit and succeed commercially. But how they operate, who they employ, how they use their profits and where they work is transforming lives and communities across the UK and around the world.
Social enterprises work in every sector of the UK economy, creating and trading consumer products and services, providing local community resources, running creative agencies, arts organisations, recycling projects, cafes and restaurants, cleaning services and waste management companies.
Social enterprises also provide high quality public services, and as many as a third of community healthcare providers are social enterprises.
To be a social enterprise a business must:
Social Enterprise FAQs
Is a social enterprise a charity?
Social enterprises are not automatically charities, though some charities may operate as social enterprises. A social enterprise is a business model that reinvests profits to achieve a social or environmental mission, while a charity relies on donations and grants.
Social enterprises can have various legal structures, including being a registered charity, a Community Interest Company (CIC), or a different type of limited company.
How do we setup a social enterprise?
To establish a social enterprise in the UK, you need to choose a legal structure, define your social mission, and ensure it aligns with the principles of a social enterprise.
Common legal structures include Community Interest Companies (CICs), charitable companies, and cooperatives. The process involves registering with relevant bodies like Companies House and, if applicable, the Charity Commission.
Where does the money come from?
Social enterprises primarily generate income through trading, selling goods or services, similar to traditional businesses. They also may receive grants from various sources, and some social enterprises might also pursue social investment opportunities.
What is an asset transfer?
An asset transfer is when a public body (like a council) transfers ownership or management of a building or land to a community organisation—often to support social or community benefit.