Social Enterprises are pretty important businesses. There are over 100,000 social enterprises contributing £60 billion to the economy and employing two million people.In this weeks episode of ‘I Hate Numbers’ we look deeper into the what, how and form of a social enterprise.What is a social enterprise?Firstly, let's look at a working definition of a social enterprise.A clear social and or environmental mission.It has a way to generate most of their income through trade.An ethos of reinvesting most of that profit back into business.Don’t confuse a social enterprise with a charity as a charity is not necessarily a social enterprise and a social enterprise is not a charity.Primary purposeThe primary purpose of a social enterprise is making profits as part of its social mission and purpose. Those profits can be made by selling products or services.Social Enterprises are BusinessSince social enterprises are fundamentally businesses. It is critical and important that business disciplines are applied to how those social enterprises are run. How they grow. How they sustain themselves.Legal form and structureWe've talked about legal structures before so it's worth checking out our previous podcasts. If you're contemplating setting up a social enterprise, then the key question at the very start is the different form or the legal structure that you should adopt.There are choices, the most popular beingCommunity Interest Company (CIC)Sole traderCo-operativeCompany limited by guaranteeCommunity Interest CompanyFirst introduced in 2005 due to a growing interest to offer support to social enterprises. It is owned by the local community and operated to benefit those people who reside in that community.Within the CIC world, there are two forms.Private company, limited by sharesLimited by guarantee with membersThere's three key questions to answer. These look at your motivation and purpose for behind why you want that CIC.What your CIC will be doingDealing with surplusesWho will your CIC to help and how?Differences between social enterprise and a charityA social enterprise isn't always a charity, and vice versa. The main differences are to do withCorporation taxRate reliefDonationsPurposesListen in to find out moreConclusionSocial Enterprises are businesses. They play an important part in the business and community landscape. Contact us to find out more.What NextGrab a coffee. Make yourself comfortable. Sit back and listen.I love doing this podcast and sharing my love of Numbers with you. Check out the link to subscribe and do not miss an episode.In This EpisodeUnderstanding what a social enterprise isChoosing your legal structure for your social enterpriseWhy a social enterprise is not necessarily a charityDeveloping your own Numbers confidence and decisionsTake more control of your numbers to help make you money, survive and thriveLinks

Ask this episode

“What did the council decide on item 42?” — answered with the speaker and the moment.

Transcript

Related