Summary
Starting a social enterprise
Starting a social enterprise is a little different to starting a regular business. You'll need to choose your business structure carefully and develop an impact model to outline your business's impact. Follow these steps to help you through the process.
What is a social enterprise?
A social enterprise is a business that operates to do one or all these things:
- solve a social problem
- improve a community
- support people with employment and training
- help the environment.
A social enterprise can be a small or large business in any industry. It can make a profit or operate as a not-for-profit. Some examples are:
- a cafe creating jobs for young people with barriers to employment
- a gym using profits to subsidise fitness programs for low-income groups
- a retailer selling toilet paper and donating 50% of their profit to charity.
Before you start
Check if you're ready to start a social enterprise
Starting a social enterprise can take more time and effort to set up than other business types.
Before you start, work out:
-
what the mission of your social enterprise is
-
the problem you are trying to solve and how you can solve it
-
why you are starting the enterprise
-
what funding you'll need.
If you're new to business, it's a good idea to check if you're ready to run a business
Develop a business plan
A business plan is essential for setting up a successful business. It can be an important tool when convincing funders or investors to support your project.
It will also help you to identify your legal business structure.
Use our free business plan templates to help you.
Get advice
Setting up a social enterprise can be more difficult than setting up a regular business. If you're not sure what to do, get help from a business adviser.
