Key Principles of Social Enterprises: Has a clear goal as its core purpose

Introduction

Social entrepreneurship blends innovation and commerce to develop market-based solutions that address social, economic, and environmental challenges.
Social entrepreneurs are often focused on how their ideas can positively impact the world around them. These ideas are continually iterated upon to fit their local contexts and provide solutions in the form of a new product, service, technology, or approach to resolving ongoing challenges while still earning profit.
A business founded through social entrepreneurship is most often referred to as a social enterprise. Social enterprises exist primarily to provide solutions to social, economic, or environmental problems while still earning a profit and maintaining a sustainable financial business model. Not wholly concerned with revenue and maximizing profit, social enterprises are different from traditional enterprises in that their key focus is to positively affect their communities while reinvesting a portion of their profits into the social impact of their enterprise. Social enterprises are not to be confused with companies or foundations that only make philanthropic donations or organize volunteering and other community engagement initiatives.
Key Principles of Social Enterprises:
Has a clear goal as its core purpose
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To establish a goal, first consider what the problem is that the enterprise is setting out to solve and then ask who the social enterprise is aiming to help. Knowing who your target audience or customers are will be crucial when it comes to asking the next most important question: How will the social enterprise’s products or services solve the challenge at hand versus solutions already in place?


Generates most of its income through selling its products or services
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Social enterprises develop innovative and sustainable business models that respond to underserved needs, ensuring that products and services are affordable and accessible to those who need them most. It is not uncommon for early-stage enterprises to receive grant funding to help launch or scale their businesses but it is important to note that in order for an enterprise to succeed, it must have a self-sufficient financial model.