Evaluate social enterprise as a form of business organisation.

?
  • Created by: jerd
  • Created on: 11-05-23 13:46

Evaluate social enterprise as a form of business organisation.

Advantages

  • profits for change - main aim is to reinvest profits from trading or donate them to generate positive social change
  • donations for change - support communities to tackle social problems + help improve people's life chances
  • revenues for change - revenue streams provide money to fund training, employment opportunities + help the environment.

Disadvantages

  • dependency on funds - amount of funds available is dependant on amount of funds raised
  • greater risk - if enterprise makes financial loss from trading, no funds available for distribution

Evaluation

Can be public or private sector.  Any business can call themselves a social enterprise but the Social Enterprise Mark Certification is the only guarantee that a business truly operates as one. Social enterprises should; have a clear social or environmental mission set out in their governing docs. , generate majority of income through trade, reinvest majority of profits, be autonomous of state, be majority controlled in interests of social mission, be accountable + transparent, social enterprises need to be at least as good as competing businesses. 

Comments

No comments have yet been made