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Paulo Freire) and critical traditions in research (e.g.critical theory / institutional theory / Marxism) in comparison to private sector business education.A social enterprise is an organization that applies commercial strategies to maximize improvements in human and environmental well-being—this may include maximizing social impact alongside profits for external shareholders.Social enterprises can be structured as a for-profit or non-profit, and may take the form (depending in which country the entity exists and the legal forms available) of a co-operative, mutual organization, a disregarded entity, a social business, a benefit corporation, a community interest company or a charity organization. What differentiates social enterprises is that their social mission is as core to their success as any potential profit.Social enterprises are often regarded – erroneously – as nonprofit organisations, although many do take on a nonprofit legal form and are treated in academic literature on the subject as a branch or sub-set of nonprofit activity (especially when contrasted with Social Businesses).Social enterprise can be characterized by open membership and goals widely considered to be in the community or public interest, although some social enterprises are more tightly held and can include proprietary organizations with private membership.Social impact may refer to the overall effects of a business, but a business that has social impact may or may not be a social enterprise.Social enterprises have socially bound mission statements and operate with the goal of solving a social problem as a part of their mission.
His work in this area led to him receiving the Nobel Peace Prize.
Teaching related to the social economy draws explicitly from the works of Robert Owen, Proudhon and Karl Marx with works by Bourdieu and Putnam informing the debate over social capital and its relationship to the competitive advantage of mutuals.
This intellectual foundation, however, does not extend as strongly into the field of social entrepreneurship where there is more influence from writings on liberalism and entrepreneurship by Joseph Schumpeter, in conjunction with the emerging fields of social innovation, actor–network theory and complexity theory to explain its processes.
Some may not aim to offer any benefit to their investors, except where they believe that doing so will ultimately further their capacity to realize their social and environmental goals, although there is a huge amount of variation in forms and activities.
Social impact and social enterprise are not the same.
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The first international journal was established in 2005 by Social Enterprise London (with support from the London Development Association).