Social Business

A social business is an enterprise with primarily social or environmental objectives whose surpluses are principally reinvested for that purpose either in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners.

Social businesses can take on a variety of forms, including:

unincorporated associations
trusts
limited liability companies
some industrial and provident societies such as community benefit societies
charities
Community Interest Companies
charitable incorporated organisations

It is what an enterprise does with its profits that determines whether it is a social business, rather than its specific legal structure.

Research for the Department of Trade and Industry in 2005 indicated that there were at least 1,100 social businesses in Scotland, employing 30,000 people and adding £1.25bn to the national economy.

COMING SOON: Buying from and selling to social businesses

This resource has been established to support social businesses and their supporters and has been developed in partnership with the specialist social and economic development consultancy, pza.