A social enterprise is an organisation that is driven by a social mission and which trades in goods or services for a social purpose. In addition to meeting financial targets, it usually needs to deliver on social or environmental goals, so it is often referred to as having more than one bottom line.
Two types of social enterprise exist, depending on the geographical perspective. A social enterprise could either generate a profit, which goes towards supporting related or unrelated social aims, such as a charity shop promoting fair trade, vocational training for disabled people, or environmental issues. Social enterprises in Britain comprise credit unions, trading arms of charities, employee-owned businesses, co-operatives and development trusts.
Alternatively, a social enterprise may accomplish its aims by employing people who are disadvantaged.
In the American context, social enterprises are considered successful if they break even, or even if they operate at a loss if their social mission is achieved.
Last year, the Hong Kong government launched the Enhancing Self-Reliance Through District Partnership Programme with HK$150million in funding to strengthen district-based poverty alleviation work and promote self-reliance among disadvantaged groups.
The programme included support for social enterprises and so far HK$38million has been granted to 41 such enterprises.