Forming a Social Enterprise


Contemporary society is one informed by globalisation and economic inequality. This has had a great impact on the number of companies formed in the charitable sector.  Although any type of business can have a social agenda, if you are considering forming a company that operates in the same profit-driven context as all other start-ups, yet intends to re-invest all profits into supporting a particular social aim or objective, you should consider forming a Social Enterprise. Choosing to form a company in this way has many advantages and disadvantages;


• You earn revenue doing something you enjoy.

• Your businesses growth, will positively impact your beneficiary.

• Market research suggests that customers are much more likely to purchase from a company with a clear social agenda.

• Recruiting and motivating staff could be potentially easier

• The government are keen to help Social Enterprises in the form of grants and bursaries. Finance can also be raised from private investors who share your objectives.


•  Maximising profit, while at the same time achieving the social objectives you set out, can be problematic. You made need to make compromises

• As profits made from a Social Enterprise are usually re-invested, personal salary is not a priority. Therefore, while it is possible to make an income it may not be sustainable.