What characterizes a social enterprise?

A social enterprise is characterized as a business that aims to fulfill a social need while also generating profit to sustain its operations. This approach allows the enterprise to address specific societal issues—such as poverty alleviation, education, environmental sustainability, or health disparities—while employing business strategies to be financially viable. The unique aspect of a social enterprise is its dual commitment to achieving social objectives and maintaining financial sustainability, allowing the organization to create both social and economic value.

By focusing on fulfilling social needs, social enterprises innovate and provide solutions that contribute positively to society, often engaging community members or stakeholders in the process. This commitment distinguishes social enterprises from traditional nonprofit organizations, which primarily rely on donations and grants, or typical for-profit businesses that prioritize profit over social impact.