Definition of social enterprise

The term "social enterprise" gained popularity in the late 20th century, originating from the need for a new way to describe organizations that combined social or environmental objectives with business practices. In essence, a social enterprise is a venture that seeks to address social or environmental issues through its commercial activities, rather than solely focusing on financial profit. The term "social enterprise" can be traced back to the United States in the 1970s, where it was used to describe non-profit organizations that operated businesses as a means to support their social missions. In the UK, the concept of "social entrepreneurship" was pioneered in the 1980s by economist and entrepreneur Geoff Mulgan, as a response to the growing criticism of the welfare state and the need for innovative solutions to societal challenges. In the 1990s, the Social Audit Network, a UK-based organization, coined the term "social enterprise" to describe a range of businesses with social and environmental objectives. The concept gained wider recognition during the early 2000s, as governments and private sector organizations began to recognize the economic and social benefits of social enterprise, such as job creation, community development, and innovation. Today, social enterprise is a commonly used term worldwide, with definitions and criteria varying by context and legal framework. Common characteristics of social enterprises include legal structure that allows them to reinvest their profits to achieve their social or environmental objectives, an emphasis on creating social or environmental value, and a clearly defined social or environmental purpose.