Promoting socially and environmentally sustainable social enterprise

Socially and Environmentally Sustainable Private Enterprise

What is social enterprise? A social enterprise is an organisation that applies commercial strategies to maximise improvements in human and environmental well-being, rather than maximising profits for external shareholders. Social enterprises can be structured as for-profit or non-profit, and may take the form of a not-for-profit-distribution private company, co-operative, mutual organisation or a charity.

Many commercial enterprises would consider themselves to have social objectives, but commitment to these objectives is motivated by the perception that such commitment will ultimately make the enterprise more financially valuable. Social enterprises differ in that they do not aim to offer a fully commercial return to their investors, except where they believe that doing so will ultimately further their capacity to realise their social and environmental goals.

What is social impact investment? Social impact investment is investment made by individuals who wish to see their capital advance social and environmental goals and achieve a pre-specified financial return. It generally focuses on the achievement of social and environmental goals at the expense of financial returns. In some cases there is a sub-commercial return on capital invested and in some cases there is no financial return with the benefits of the investment from the point of view of the investor being solely progressed by achieving the social and environmental goals.

Social impact investment in private enterprises is investment by individuals who wish to see a commercial return on capital invested bu also to have the assurance that capital is invested in a socially and environmentally responsible and sustainable way.

What is inclusive economic growth? Inclusive economic growth is growth of the economy in ways that the benefits are widely shared, generally resulting from investment in sectors where employment and employment income grows strongly, notably in such sectors as agriculture/agribusiness, construction, logistics, industry and value-adding processes and services.