A social enterprise can be described as a business that has social objectives whose trading surpluses are reinvested in the community rather than to shareholders or investors. Although there is no universally accepted definition of a social enterprise, its key distinguishing characteristics are:

• It achieves the social purposes by, at least in part, engaging in trade in the marketplace
• It does not distribute profits to individuals
• It holds assets and wealth in trust for community benefit
• It democratically involves its members in the governance of the organisation
• It is an independent organisation accountable to its own members and to the wider community.
• It seeks to be a viable trading concern making an operating surplus
• It is entrepreneurial in attitude

The principals of social enterprise have become well known through names such as Cafédirect, Jamie Oliver’s Fifteen and the Co-operative group, but social enterprises thrive throughout the UK as smaller concerns – including farmers markets, recycling businesses, childcare projects, community cafes and arts centres.

Social enterprises face the dual challenge of meeting social aims AND developing a successful business.

This overview introduces the concept of social enterprise and explores some of the key issues involved in developing one.