Differences Between a “Normal” Business and a Social Enterprise.

There are several differences between a normal business and a social enterprise:

1. Mission and Goals: The primary difference between a normal business and a social enterprise is their mission and goals. A normal business aims to generate profits and maximise shareholder value while a social enterprise prioritises creating a positive social or environmental impact alongside financial sustainability.

2. Profit Distribution: In a normal business, profits are typically distributed to shareholders or reinvested into the company. In contrast, social enterprises prioritise reinvesting their profits back into their social or environmental goals.

3. Ownership and Control: In a normal business, ownership and control generally rest with the shareholders or executives. In a social enterprise, ownership and control may be held by a community, a coalition of stakeholders, or other social organisations.

4. Measurement of Success: The success of a normal business is typically measured by financial performance indicators such as revenue, profit margins, and market share. In contrast, social enterprises measure success through social and environmental impact indicators, such as the number of lives impacted, the reduction of carbon footprint, or the level of economic and social empowerment achieved.

5. Ethical and Environmental Practices: Social enterprises often prioritise ethical and environmentally sustainable practices while conducting business. This may include the use of organic materials, fair trade practices, waste reduction initiatives, and ethical supply chains.

In summary, while normal businesses prioritise shareholder value and financial sustainability, social enterprises focus on social and environmental impacts alongside financial sustainability by reinvesting profits back into their goals. Ironically, social enterprises may have stronger business models due to their concentration on sustainable solutions and creating positive change which may result in better financial outcomes.