A social enterprise is one in which the activities undertaken are aimed at contributing in one way or another to society, generating in turnprofitabilitythrough business success. The latter refers to the fact that social companies seek to obtain benefits with their activity, moving away from non-profit companies.
Characteristics of the social enterprise
Social enterprises try to establish a common goal to pursue in society. Based on it, business strategies are established to undertake its task, trying to respect this common objective. However, they have some of the following most common characteristics:
- As we have indicated, the fundamental principle is to benefit the community through a specific purpose.
- They have a certain participatory character in which society (or a group of it) is encouraged to help to achieve these ends.
- They must guarantee equal opportunities avoiding any discrimination (race, sex, age, orientation, culture, etc ...).
- The company must reduce its economic dependence and become self-financing (not depending on credit institutions to finance its projects or tasks).
- Profits will not be the main objective of the company.
- Provide the necessary resources to train users with technological, economic and social innovation.
As we have seen, almost all the characteristics that define the companies of a social nature depend on the activities they do for the benefit of all. They try to cover the basic needs of people with common objectives in the planning of their business strategies.
For example, a cosmetics company may be in favor of the environment, and for this it decides to make its products without using plastics, not testing on animals, using natural products and recycling the little plastic they use; and still be profitable.