Social Enterprise

A social enterprise is a business with primarily

social objectives whose surpluses are
principally reinvested for that purpose in the
business or in the community, rather than
being driven by the need to maximize profit
for shareholders and owners
 Need of Social Enterprises
To meet a need in the community
Advance or achieve a specific social mission
Contribute to the financial sustainability of a
non-profit organization
 Types of Social Enterprises
Community Enterprises
Social Firms
Co-operatives
Credit Unions
Community Development Finance Institutions
Development Trusts
Public sector spin-outs
Trading arms of charities
Fair Trade organisations
 Characteristics of Social Enterprises
A social enterprise is a business
Each social enterprise has clear social or
environmental aims
Like any business, it aims to make a profit, but
it seeks to reinvest those profits principally in
the business or in the community to enable it
to deliver on its social objectives.
Social enterprises are structured, owned and
governed by a range of stakeholders
 Benefits of Social Enterprises
Provides an opportunity for local people to gain
employment
Brings about a positive change to people and
communities
Social benefits provides facilities to disadvantaged
people
Profits/surpluses are ploughed back into the
organisation.
People have more ownership
Provides a formal recognised structure for your
enterprise.
Gives the flexibility and freedom of being able to trade
commercially whilst still fulfilling social aims.
 Social Entrepreneurship
Social entrepreneurs drive social innovation and
transformation in various fields including education,
health, environment and enterprise development.
Achieves large scale, systemic and sustainable social
change through a new invention,
Focuses first and foremost on the social and/or
ecological value creation
Innovates by finding a new product, a new service, or a
new approach to a social problem
Continuously refines and adapts approach in response
to feedback
A practical but innovative stance to a social problem
 Types of Social Entrepreneurship
Organizational Models
Leveraged non-profit ventures
Hybrid non-profit ventures
Social business ventures
 Rural Entrepreneurship
It can be simply defined as the entrepreneurship emerging
in rural areas. In other word establishing industrial units in
the rural areas refers to
All the village industries have been grouped into seven
major categories as follows:
I. Mineral based Industry
II. Forest based Industry
III. Agro based Industry
IV. Polymer and Chemical based Industry
V. Engineering and non-conventional industry
VI. Textile Industry including Khadi
VII. Service Industry rural entrepreneurship.
 Need for Rural Entrepreneurship
Rural Industries being labour intensive have high
potential in employment generation.
By providing employment, these industries have
also high potential for income generation in the
rural areas
These industries encourage dispersal of economic
activities in the rural areas and thus, promote
balanced regional development
Development of Industries in the rural areas also
helps build up village republics
 Need for Rural Entrepreneurship
Rural Industries also help protect and promote
the art and creativity
Rural Industrialization fosters economic
development in rural areas.
rural industries being environment friendly
lead to development without destruction.
 Problems of Rural Entrepreneurship
Inadequate flow of credit
Use of obsolete technology, machinery and
equipment.
Poor Quality standards
Inadequate infrastructural facilities.
Low quality Labour
Non availability of raw materials
 Challenges and Opportunities - Role
of Government.
Training
Marketing Assistance
Promotional Schemes
Concession on Excise Duty .
Credit Facility to MSME
Policies and Schemes for Promotion of MSME
Implemented by State Governments