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Social Enterprise

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The term ‘social enterprise’ refers to a means of operating – a business model – rather than an actual legal structure. Third Sector organisations that chose this model for trading are often referred to as social enterprises, specifically when over 50% of their income is generated from trading.

Operating as a social enterprise is an option for groups or organisations who can evidence strong social or environmental aims. It can be applied to any group or organisation which:-

• runs or operates a trading activity with social aims relating to improving the economy, environment and culture of a community
• generates its own income through enterprise and the ownership of assets 
• re-invests any profits or trading surplus back into running the organisation or benefiting the community
• works in partnership with other organisations (private, public and third sector)

Social enterprises can take many forms and the best legal structure for a social enterprise depends on the aim of the social enterprise.   Many social enterprise are set up as a company limited by guarantee, a community interest company or an industrial and provident society and many are registered as charities.

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Last Updated 17/10/2011 10:55

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