What is a Social Enterprise?
A business whose primary purpose is the common good.
Three characteristics distinguish a social enterprise from other types of nonprofits, from “socially responsible” businesses, and from government agencies:
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It directly addresses an intractable social need and serves the common good, either through its products and services or through the number of disadvantaged people it employs.
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Its commercial activity is a strong revenue driver, whether a significant earned income stream within a nonprofit’s mixed revenue portfolio, or a for profit enterprise.
- The common good is its primary purpose, literally “baked into” the organization’s DNA, and trumping all others.
Kevin Lynch, President & CEO, Social Enterprise Alliance
