The text below is the definition of social enterprise used in this project. The definition is drawn from the key characteristics of a social enterprise that were identified by a group of social entrepreneurs in a workshop at the University of Brighton held in 2006.

While other definitions exist, it is useful to recognise that a solid consensus has yet to emerge around a definition of social enterprise. Social Enterprises can have many different organisational forms and work in many areas, with varying dependence on grant income.

Examples of social enterprises include the Eden Project in Cornwall, Brighton’s Wood Recycling Project, the Big Issue Magazine and Jamie Oliver’s Fifteen restaurants.

The characteristics below help to paint a picture of an ‘ideal’ social enterprise. They can act as benchmarks against which a social enterprise can measure its positive impact in relation to people, planet and profit – and are also the qualities which attract and inspire wider social enterprise activity from other sectors.

You can join a Conversation about these characteristics at the bottom of this page

An authentic social enterprise has a clear social purpose.

Social enterprises are mainly set up to meet a social or environmental need. The social purpose may be to support a specific community or group of people. Social values and beneficiaries need to be clearly stated and shared by stakeholders both internally and externally.

A viable social enterprise draws income from trading

Most social enterprises draw income from a variety of sources. However, a continuous level of trading is a shared characteristic of all social enterprises. Trading income may include selling goods in a shop, producing goods in a factory, providing paid-for services, or securing funds from contracts with the public sector.

A smart social enterprise gets free and in-kind support from stakeholders

Many social enterprises survive because they are able to develop creative and often non-financial partnerships with private and public sector organisations. This might involve using volunteers, getting free equipment donated by supporters, and getting free or heavily discounted professional services from local supporters.

A dynamic social enterprise is enterprise orientated

A successful social enterprise requires determination and creativity to achieve a social objective in an innovative way. This might mean finding ways to involve staff, volunteers and supporters in developing new ways of raising revenue to meet the organisation’s social purpose.

A transparent social enterprise re-invests its profits to meet its social objectives

Social enterprises are ‘asset locked’ so that profits can not be distributed to private individuals or shareholders. There are several legal forms that support this, but at a basic level, the social enterprise will need to have a constitution that demonstrates how profits are going to be used in support of the social aims and values. This underwrites the credibility of the social purpose.

An accountable social enterprise works locally first, so that its impacts can be measured within its own community

“Seeing is believing” is an adage that has particular potency in the context of social enterprises. Many of the best social enterprises have their staff, social beneficiaries and customers in the same geographical area. This makes it easier for more people from a greater range of organisations and stakeholder groups to participate in running a social enterprise.

We have developed the following questions to encourage debate and to enable the broader community to help us decide the priorities for this strategy. Please join or start a conversation below

•What comments or thoughts do you have regarding these six characteristics?

•How helpful are these characteristics in understanding Social Enterprise business models?

•How might these definitions support your work as a developing social enterprise or an organisation supporting social enterprise?

How to Post Your Contribution 1. To post your thoughts and ideas to these questions, simply click on 'Start a new thread' below. This thread is your response to our ideas, but can turn into a conversation of its own, as other visitors can reply to it. 2. You can also look at the threads of other visitors [all listed below], reply to them if you wish and click 'yes' or 'no' to let us know if you have found other threads valuable. 3. When you have finished adding your comments please continue to explore the site. You can return to this conversation at any time in the future and make additions by using the Navigation list in the top left of this window, or returning to the Overview page.