Social Enterprise
A social enterprise is a business that trades to achieve social or environmental goals, using profits to help others.
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Play with the controls to see the idea in action.
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A social enterprise is a business that trades to achieve social or environmental goals, using profits to help others.
- Profits are reinvested
- Examples include fair trade cafes
- Combine business skills with a mission
🧠 Quick quiz
Three questions. Score 2 or more to complete the topic.
What is Social Enterprise?
Within Economics & Civics, which covers money, markets, business, government, law and citizenship: how societies are organised and run, this topic explains Social Enterprise. Economics and civics topics explain how money, markets, laws and government affect people, so each topic here pairs a clear definition with a model.
Check that you can explain Social Enterprise in your own words and give one example from everyday life. If you can do that, you have understood the core idea.
Understanding Social Enterprise helps you read the news critically and weigh up policies, choices and arguments about society.
Social Enterprise in detail
A social enterprise is a business that trades to achieve social or environmental goals, reinvesting most of its profits into its mission rather than paying shareholders. Examples include The Big Issue, which helps homeless people earn an income, Divine Chocolate, which is part-owned by farmers, and community cafés or energy co-operatives.
They differ from charities, since they earn money through selling goods and services instead of relying on donations, and from conventional companies, since profit is a means to an end. They provide jobs, tackle problems and give local communities a stake. Challenges include balancing the mission with financial sustainability.
How the interactive helps you understand Social Enterprise
Click a card to flip it and reveal the answer, then move on to the next one.
Before you change anything, predict the result. Then change one value at a time and check whether your prediction was right. This is a quick way to build a correct mental model of Social Enterprise.
Real-life uses and examples
- Use Social Enterprise to weigh up the pros and costs of a policy or decision.
- Explain Social Enterprise to a classmate using a choice you make yourself, such as spending pocket money.
- Give a balanced answer about Social Enterprise by considering more than one point of view.
Common mistakes to avoid
- Confusing a short-term effect with a long-term one.
- Giving an opinion without evidence or a clear economic or civic reason.
- Learning the definition without testing it. Use the quiz and the interactive to check that you can apply the idea.
Frequently asked questions about Social Enterprise
What is Social Enterprise?
A social enterprise is a business that trades to achieve social or environmental goals, using profits to help others.
What are the most important points about Social Enterprise?
The main points are: Profits are reinvested; Examples include fair trade cafes; Combine business skills with a mission.
Why is Social Enterprise useful?
Understanding Social Enterprise helps you read the news critically and weigh up policies, choices and arguments about society.
How can I practise Social Enterprise?
Open the interactive at the top of this page and change the controls one at a time. Predict the result before each change, then take the three-question quiz. A score of two or more marks the topic as complete on this device.
Which topics are related to Social Enterprise?
Related topics in Economics & Civics include Stocks and Shares, Population and the Economy, Economic Indicators.