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86-609: A community interest company ( CIC , pronounced "see-eye-see", or colloquially, "kick") is a form of social enterprise in the United Kingdom intended "for people wishing to establish businesses which trade with a social purpose..., or to carry on other activities for the benefit of the community". CICs were introduced by the UK government in 2005 under Part 2 of the Companies (Audit, Investigations and Community Enterprise) Act 2004 . They enjoy

172-501: A charity organisation . They can also take more conventional structures. Social enterprises are dynamic, requiring adaptation to ensure they meet the needs of communities and individuals in an ever-changing world. Their shared common thread is that they all operate to achieve a balanced financial, social and environmental set of objectives. Worker- and employee-owned trading enterprises, co-operatives, and collectives. These vary from very large enterprises such as John Lewis Partnership in

258-672: A CIC is requested, the CIC regulator considers whether the application meets the criteria to become a CIC. If satisfied, the regulator advises the Registrar in Companies House who, provided that all the documents are in order, will issue a certificate of incorporation as a CIC. CICs must file a "community interest company report" (form CIC34) as part of their annual submission to Companies House. This includes confirmation of directors' remuneration and some explanation of their social impact or evidence of

344-475: A business, a partnership for profit or non-profit , and may take the form (depending on in which country the entity exists and the legal forms available) of a co-operative , mutual organisation , a disregarded entity (a form of business classification for income tax purposes in the United States), a social business , a benefit corporation , a community interest company , a company limited by guarantee or

430-563: A form other than charity. This may be because: A charity can convert to a CIC with the consent of the Charity Commission . In so doing, it will lose its charitable status, including tax advantages. A charity may own a CIC as a subsidiary, in which case (exceptionally) there are no restrictions on distributions to the shareholder. CICs are limited companies , either limited by shares or limited by guarantee. Thus Registered Societies and unincorporated associations cannot be CICs. When

516-415: A long history around the world, though under different names and with different characteristics. The first description of a social enterprise as a democratically owned and run trading organisation that is financially independent, has social objectives and operates in an environmentally responsible way, was put forward by Freer Spreckley in the UK in 1978 and later written as a publication in 1981. One of

602-558: A national voice for the sector, the Alliance of Social Enterprise Networks Australia (ASENA). ASENA has provided a federal channel for advocacy, collaboration and resource sharing for the emergent community of networks. ASENA brings together representatives from the social enterprise networks in Australia: Social enterprise networks create a unique place to connect and grow the community of practitioners and enablers that are meeting at

688-753: 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 enterprises in the nonprofit form can earn income for their goods or services; they are typically regarded as non-profits that use business strategies to generate revenue to support their charitable missions. In recent years, many non-profits have chosen to take on social enterprise models as it has become increasingly difficult to obtain financing from outside sources. The social enterprise model offers non-profit organisations an alternative to relying on charitable donations. This may allow them to increase their funding and sustainability and assist them in

774-407: A one-person company. A company's liability may be limited by shares, in which case the liability of the company's members is limited to the amount of the shares held by them, or it may be limited by guarantee, in which case the liability is limited to a predetermined amount the company's members have agreed to contribute if the company is dissolved with outstanding liabilities. A private limited company

860-411: A person wishing to register a limited company must file Articles of Incorporation with either their provincial government or the federal government. At the time of incorporation, a company must elect to use "Limited" (Ltd.), "Incorporated" (Inc.) or "Corporation" (Corp.) as part of their name. In India, there are three types of limited company: a public limited company, a private limited company, and

946-543: A profit motive. A fourth definition asserts that a social enterprise consists of a community of dedicated individuals that are continuously thinking about social impact and, as a result, employ business and management techniques to approach social causes. Social enterprises are not only a structural element of a non-profit. A large portion of social enterprises are non-profits; however, there are also for-profit social enterprises. Social enterprises are often regarded—erroneously—as nonprofit organisations, although many do take on

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1032-401: A profit to sustain their activities. They uniquely combine financial goals with a mission for social impact. Their models can be expanded or replicated to other communities to generate more impact. A social enterprise can be more sustainable than a nonprofit organisation that may solely rely on grant money, donations or government policies alone. A social enterprises can be structured as

1118-408: A result, they have to resort to other (non-financial) techniques to recruit employees. Many managers utilise the social component of the social enterprise's dual mission and purpose for this. Like social enterprise, social entrepreneurship has a variety of existing definitions. Currently, there is not a widely accepted standard definition for the term, and descriptions vary in level of detail. There

1204-460: 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. Social enterprise has emerged as a businesslike contrast to traditional nonprofit organisations. Social enterprise is going to continue its evolution away from forms that focus on broad frame-breaking and innovation to a narrower focus on market-based solutions and businesslike solutions to measure

1290-469: A social purpose in a financially sustainable way. Social enterprises can provide income generation opportunities that meet the basic needs of people who live in poverty. They are sustainable, and earned income from sales is reinvested in their mission. They do not depend on philanthropy and can sustain themselves over the long term. Attempting a comprehensive definition, social enterprises are market-oriented entities that aim to create social value while making

1376-532: A sole proprietorship. Registering as Private Limited Company will be more secure, and have added benefits. Therefore, you and your company will act as two independent parties; ensuring that your business assets and liabilities will be separate. All companies are registered under the Companies Act, No. 7 of 2007. , through the Registrar of Companies, which operates its office in Colombo . The registration of companies in

1462-613: A specific purpose and trade commercially. All operate to reinvest profits in the community. They have large memberships that are customers or supporters of the organisation's key purpose. There are village cooperatives in India and Pakistan that were established as far back as 1904. There are many NGOs and charities that operate commercial consulting and training enterprises or subsidiary trading enterprises, such as Oxfam International. The profits are used to provide salaries for people who provide free services to specific groups of people or to further

1548-458: Is ipso facto not a charity, even if in all other respects it meets the requirements of charitable status. They are more lightly regulated than charities, which can be advantageous. On the other hand they do not have the benefit of charitable status, such as a favourable tax treatment: CICs are liable to corporation tax like any other company. Those who may want to set up a CIC are expected to be philanthropic entrepreneurs who want to do good in

1634-523: Is a company that does not have share capital, but is guaranteed by its members , who agree to pay a fixed amount in the event of the company's liquidation. Charitable organisations are often incorporated using this form of limited liability. Another example is the Financial Conduct Authority . In Australia, only an unlisted public company can be limited by guarantee. Has shareholders with limited liability and its shares may not be offered to

1720-440: Is a huge amount of variation in forms and activities. Corporate social responsibility (CSR) is a practise that businesses can use to be conscious of the social and environmental impacts of their activities. There are a variety of CSR markers, such as accountability and internal and external elements. Social enterprises place a lot of emphasis on external social responsibility as a result of their social objectives, so social impact

1806-537: Is a limited company incorporated under the Companies Act 2013 (or one of its predecessor acts), with a minimum paid-up share capital (if any) of ₹ 1 lakh (US$ 1,200), with an article that restricts the transfer of its shares; it may have between two and two hundred members, and its name ends with "Private Limited" (abbreviated Pvt Ltd). A public limited company must have a paid-up share capital of at least ₹ 5 lakh (US$ 6,000), and at least seven members; its name ends "Limited" (abbreviated Ltd). A one-person company (OPC)

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1892-536: Is a private company with similar proprietorship and privileges to a private limited company, but with fewer requirements; this type of company may have only one director and member. Before 2015, the business organisations that wanted to take up a company as the preferred form of business organisation had to fulfill the requirement of minimum paid-up share capital of not less than 5 lakhs in case of public company and 1 lakh in case of private companies by way of Section 2(71) and 2(68) respectively. However, after in

1978-411: Is a significant contributor to the economy - from local manufacturing and agriculture, to hospitality and professional services - they are not only local enterprises serving local needs, nearly one-third trade internationally. Unlike traditional commercial businesses, Victorian social enterprises are intentionally labour-intensive, with the proportion of their labour force equating to approximately twice

2064-473: Is also (since 2017) Chief Executive and Registrar for England and Wales at Companies House . Social enterprise Social enterprises have business , environmental and social goals. As a result, their social goals are embedded in their objective, which differentiates them from other organisations and companies . A social enterprise's main purpose is to promote, encourage, and make social change . Social enterprises are businesses created to further

2150-427: Is an emphasis on change agents for social entrepreneurship, in contrast to the organisational focus of social enterprises. Social entrepreneurship usually takes place in the non-profit sector, with a focus on creating and implementing new solutions. Social impact and social enterprise are not the same. Social impact may refer to the overall effects of a business, but a business that has social impact may or may not be

2236-467: Is built into the organisation. However, there has been debate on whether or not social enterprises place enough emphasis on internal CSR. Internal CSR includes human resources and capital management, health and safety standards, adaptation to innovation and change, and the quality of management within the organisation. Since a large majority of social enterprises do not have sufficient funding, they are unable to pay competitive wages to their employees, and as

2322-473: The Companies Act 2006 , Northern Ireland's previously distinct company law was repealed and the new companies code instituted by that Act was extended to Northern Ireland. In the United States , corporations have limited liability, and the expression corporation is preferred to limited company . A " limited liability company " (LLC) is a different entity. However, some states permit corporations to have

2408-582: The Proprietary Limited company (Pty Ltd). An Australian company with only Limited or Ltd after its name is a public company , such as a company listed on the ASX . Australia does not have a direct equivalent to the plc. A shareholder in a limited company, in the event of its becoming insolvent (equivalent to insolvency in the United Kingdom) would be liable to contribute the amount remaining unpaid on

2494-626: The United Kingdom is done through Companies House , which operates offices in London , Cardiff , Edinburgh and Belfast . Publicly traded limited company have names ending in 'Plc.' Prior to 1 October 2009, the registration of companies in Northern Ireland was the responsibility of the Department of Enterprise, Trade and Investment (a department of the devolved government). With the enactment of

2580-453: The benefit corporation (B-Corp). L3C's main objective is to achieve socially beneficial goals. They are able to go about achieving these goals by employing the financial and flexible advantages of a limited liability company. States that have authorised the use of the L3C model have established three requirements: to operate for charitable or educational purposes, not the production of income, and not

2666-419: The liability of members or subscribers of the company is limited to what they have invested or guaranteed to the company. Limited companies may be limited by shares or by guarantee . In a company limited by shares, the liability of members is limited to the unpaid value of shares. In a company limited by guarantee, the liability of owners is limited to such amount as the owners may undertake to contribute to

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2752-478: 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

2838-640: The triple bottom line were: Furthermore, it was intended as part of the original concept that social enterprises should plan, measure and report on financial performance, social-wealth creation, and environmental responsibility by the use of a social accounting and audit system. The organisational and legal principles embedded in social enterprises are believed to have come from non-profit organisations. Originally, non-profit organisations relied on governmental and public support, but more recently they have started to rely on profits from their own social change operations. The Social Enterprise Alliance (SEA) defines

2924-703: The 1850s in Germany and spread internationally. Cooperative banks have likewise been around since the 1870s, owned as a subsidiary of a membership co-operative. In recent times, microcredit organisations have sprung up in many developing countries to great effect. Local currency exchanges and social value exchanges are also being established. Many community organisations are registered social enterprises: community enterprises, housing co-operatives, community interest companies with asset locks, community centres, pubs and shops, associations, housing associations, and football clubs. These are membership organisations that usually exist for

3010-590: The Co-operative Research Unit (CRU) at the Open University have also published research into social enterprise. The Skoll World Forum, organised jointly by Oxford and Duke universities, brings together researchers and practitioners from across the globe. The term 'social enterprise' has a mixed and contested heritage due to its philanthropic roots in the United States and cooperative roots in

3096-555: The Form IN01 and memorandum and articles of association together with a Form CIC36 signed by all their directors, explaining their community credentials, to the Registrar of Companies for England and Wales, or the Registrar for Scotland, with a fee of £35. Since 11 March 2019, CICs can be registered online for a reduced fee of £27. Existing companies can convert to a CIC by passing resolutions which make changes to their name and their memorandum and articles of association and by delivering to

3182-740: The German GmbH , Dutch and Belgian bv , Portuguese Lda., British Ltd , Japanese G.K. , Polish sp. z o.o. , Russian ООО, Ukrainian ТОВ (TOV), the Czech s.r.o. , the French s.à r.l. , the Italian s.r.l. , Romanian s.r.l. , Hungarian kft. , Bulgarian ДОО (DOO), Slovenian d.o.o., and Slovak s.r.o. , in India Pvt Ltd for private company and Ltd for public company, in Singapore Pte Ltd for private company. This

3268-546: The Grameen Bank, believes that a social enterprise should be modelled exclusively to achieve a social goal. Another view is that social enterprises should not be motivated by profit motives, but rather that profit motives should be secondary to the primary social goal. A second definition provided by The Social Enterprise Alliance (SEA) defines a social enterprise as an organisation that uses business methods to execute its social or environmental mission. According to this definition,

3354-676: The Public Management Foundation. This proposal was based on research funded by the Gulbenkian Foundation , Gordon Roddick, and the Office for Public Management, and was influenced by the example of the American public benefit corporation . Stephen Lloyd of Bates Wells Braithwaite is also credited with having conceived of the idea of the "Community Interest Company" and led much of the work on establishment of that legal company form in

3440-556: The Registrar of Companies copies of these documents, together with a fee of £35, and a form CIC37 (which is similar to a CIC36, but asks for confirmation that the company is not a charity or that permission has been obtained from the Charity Commission to convert from a charity to a CIC). The Registrar will conduct the normal checks for registration and pass the papers to the Regulator of Community Interest Companies, to determine whether

3526-720: The UK and the Mondragon Corporation in Spain to medium-sized enterprises owned by their staff with traditional management hierarchies and pay differentials to quite small worker cooperatives with only a few directors and employees who work in less hierarchical ways and practice wage parity. Within the trading enterprises, there are employee-owned enterprises and membership-owned enterprises. Savings and loan organisations such as credit unions , microcredit organisations, cooperative banks , and revolving loan funds are membership-owned social enterprises. Credit unions were first established in

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3612-404: The UK. CICs are diverse. They include social and community enterprises, social firms, mutual organizations such as co-operatives , and large-scale organizations operating locally, regionally, nationally, or internationally. In order for a company to be registered as a CIC, the Regulator must be satisfied that that "a reasonable person might consider that its activities are being carried on for

3698-570: The United Kingdom, European Union, and Asia. In the US, the term is associated with 'doing charity by doing trade', rather than 'doing charity while doing trade'. In other countries, there is a much stronger emphasis on community organising , democratic control of capital, and mutual principles than on philanthropy. In recent years, there has been a rise in the concept of social purpose businesses, which pursue social responsibility directly or raise funds for charitable purposes. Muhammad Yunus, founder of

3784-486: The Victorian Government has commissioned further research and digital platforms to support the collection and sharing of social enterprise research and knowledge. The Social Entrepreneur Evidence Space (SEES) is an open research platform for Australia's social enterprise community. Social enterprise practitioners have formed professional networks in each State and Territory of Australia. In 2020, they joined to form

3870-723: The amount of money they contributed to the company. All Nigerian companies are governed by the Companies and Allied Matters Act (CAMA) 1990 and regulated by the Corporate Affairs Commission (CAC). In South Africa , the term "Proprietary Limited", abbreviated "(Pty) Ltd", is used to refer to a private limited company. All South African companies are regulated by the CIPC (Companies and Intellectual Property Commission). In Sri Lanka , businesses can be registered as Private Limited Company "(Pvt) Ltd", Public Limited Company "PLC" or under

3956-421: The assets of the company, in the event of being wound up. The former may be further divided in public companies ( public limited companies ) and private companies ( private limited companies ). Who may become a member of a private limited company is restricted by law and by the company's rules. In contrast, anyone may buy shares in a public limited company. Limited companies can be found in most countries, although

4042-424: The benefit of the community", or at least a section of the community. This community interest test is met primarily by including a suitable objects clause in the articles of association. In order to meet this test, CICs cannot: The articles of a CIC must also provide that its assets cannot be used except for the benefit of the community. This is known as the asset lock. The "asset lock" refers to provisions in

4128-413: The collaborative ingenuity of social enterprise networks. While the social enterprise networks are at differing stages of emergence, ASENA is providing a channel for cooperation, network-building practice, intelligence and resource sharing that is enabling all parts of the national community to benefit from others. Broadly, the networks have five functions: Limited company In a limited company ,

4214-543: The company satisfies the community interest test. The 2004 act created the officer known as the Regulator of Community Interest Companies, who is appointed for a term of up to five years by the relevant Secretary of State – from 2016 to 2023 the Secretary of State for Business, Energy and Industrial Strategy , since 2023 the Secretary of State for Business and Trade . Louise Smyth was appointed as Regulator in September 2020; she

4300-497: The company's articles that ensure the assets of the company are, at least mainly, applied for the benefit of the community. The precise terms are specified in legislation. Assets not applied directly for the benefit of the community may only be exchanged for full value or transferred to another "asset-locked body". The only exceptions are distributions to the company's members for the purpose of returning paid-up capital, or paying dividends and interest (which are subject to caps). A CIC

4386-465: The culture and lore of Australia's first peoples, which have been practised for over 60,000 years. Similarly, social enterprise practises were common in the establishment of Australia's immigrant populations. Australia's suburban landscape is marked by clubs and associations that operate hospitality, learning, or community-oriented enterprises together with inclusive and culturally strengthening employment practises. The forms social enterprises can take and

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4472-522: The detailed rules governing them vary widely. It is also common for a distinction to be made between the publicly tradable companies of the plc type (for example, the German Aktiengesellschaft (AG), Dutch and Belgian nv , British PLC , Czech a.s. , Italian S.p.A. , Hungarian nyrt. and the Spanish, French, Polish, Greek and Romanian S.A. ), and the " private " types of companies (such as

4558-495: The development of the social entrepreneurship field through project initiatives and publications. As of 2018 the field of social enterprise studies has not yet developed firm philosophical foundations, but its advocates and its academic community are much more engaged with critical pedagogies (e.g. Paulo Freire ) and critical traditions in research (e.g. critical theory / institutional theory / Marxism ) in comparison to private-sector business education. Teaching related to

4644-418: The economy. By using business methods to achieve public good, it is believed that CICs have a distinct and valuable role to play in helping create a strong, sustainable and socially inclusive economy. Limited companies that do not have charitable status find it difficult to ensure that their assets are dedicated to public benefit. Before the CIC regime was introduced there was no simple, clear way of locking

4730-554: The emerging fields of social innovation , actor-network theory , and complexity theory to explain its processes. Social enterprise (unlike private enterprise) is not taught exclusively in a business school context, as it is increasingly connected to the health sector and to public service delivery. However, Oxford University's Said Business School does host the Skoll World Forum , a global event focused on social entrepreneurs . The first international social enterprise journal

4816-456: The enterprise more financially valuable. These are organisations that might be more properly said to be operating corporate responsibility policies . Social enterprises differ in that their commitment to impact is central to the mission of the business. Some may not aim to offer any benefit to their investors, except where they believe that doing so will ultimately further their capacity to realise their social and environmental goals, although there

4902-471: The firm's goals. Some social enterprises have taken on same-sector and cross-sector partnerships, while others continue to operate independently. Tensions are separated into four distinct categories: performing, organizing, belonging, and learning. While the terminology of 'social enterprise' is new in Australia, the contemporary values, principles, and practises of social enterprise are strongly aligned with

4988-483: The first examples of a social enterprise, in the form of a social cooperative, can be traced back to the Victorian era. Like social cooperatives, social enterprises are believed to have emerged as a result of state and market failure . However, market failure is emphasized in the UK, while state failure is emphasized in the United States. Muhammad Yunus ( Grameen Bank founder and 2006 Nobel Peace Prize laureate) used

5074-446: The flexibility and certainty of the company form, but with statutory provisions to ensure they are working for the benefit of the community. The Regulator of Community Interest Companies provides oversight, which is intended to be "light touch". CICs have proved popular, with some 10,000 registered in the first ten years of the status being available. CICs tackle a wide range of social and environmental issues and operate in all parts of

5160-419: The following as reasons for this transition: Social enterprises are viewed to have been created as a result of the evolution of non-profits. This formation process resulted in a type of hybrid organisation that does not have concrete organisational boundaries. Various scholars (e.g. Eikenberry & Kluver, Liu & Ko, and Mullins et al.) have argued that this may have come about due to the marketization of

5246-456: The formation of the EMES network of social economy researchers who subsequently spread the language to the UK and the rest of Europe through influential English language publications. When social enterprise first emerged, much of the scholarly literature focused on defining the key characteristics and definitions of social enterprise. Currently, there is more literature and research on the emergence of

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5332-467: The fulfilment of a political or legislative agenda. A benefit corporation , or B-Corp, is a corporation that operates to achieve or create a "general public benefit". The first academic paper to propose worker co-operatives involved in health and rehabilitation work as a form social enterprise was published in 1993. The scale and integration of co-operative development in the 'red belt' of Italy (some 7,000 worker, and 8,000 social co-operatives) inspired

5418-451: The general public. Shareholders of private companies limited by shares are always bound to offer the shares to their fellow shareholders prior to selling them to a third party. A public limited company can be publicly traded on a stock exchange ; this is similar to the U.S. Corporation (Corp.) and the German Aktiengesellschaft (AG). The private company equivalent in Australia is

5504-651: The individuals and communities social enterprises aim to benefit. This Finding Australia's Social Enterprise Sector (FASES) project produced its final report in June 2010. The project was led by Professor Jo Barraket, an Australian social enterprise academic. One of the key features of this Australian research is its intention to define social enterprise in a way that was informed by and made sense to those working in or with social enterprises. The research design therefore included workshops to explore and test what social enterprise managers, researchers, and relevant policymakers meant by

5590-551: The industries they operate in are so many and varied that it has always been a challenge to define, find, and count social enterprises. In 2009, Social Traders partnered with the Australian Centre for Philanthropy and Nonprofit Studies (ACPNS) at Queensland University of Technology to define social enterprise and, for the first time in Australia , to identify and map the social enterprise sector: its scope, its variety of forms, its reasons for trading, its financial dimensions, and

5676-448: The innovation that differentiates the social enterprise from the traditional non-profit actor. In 2012, Social Enterprise UK ran the 'Not In Our Name' campaign against Salesforce.com , a global software and CRM company that had begun using the term 'social enterprise' to describe its products and had applied for 'social enterprise' trademarks in the EU, US, Australia, and Jamaica. The campaign

5762-654: The name of your future business to check if it was not already registered, then the accountant contacts the offices responsible for giving you the CNPJ (the national code for company identification), which are the commercial joint of the state and the IRS. After that the Ltda. or Lda. (rarely used) suffixes can be placed after the companies name or with Cia. (abbreviation for companhia , company in Portuguese): [company name] & Cia. Ltda. In Canada,

5848-426: The networks provide inspiration, demonstrate business innovation through commercially viable social or environmentally sustainable operations, and creative ways for motivating or developing staff or diversifying CSR strategies. For philanthropy, social enterprise is not well understood or recognised. The networks provide opportunities to discover social innovation, and to generate lasting system-level impact by harnessing

5934-404: The nexus between business and charity. For example, SENVIC's Annual Review 2020-2021 notes that of its 700 members, there are 250 associate members from government, business and philanthropy. For government, the network creates opportunities to diversify social procurement spending or to explore social innovation and transform policy approaches to tackle intractable or wicked problems. For business,

6020-422: The non-profit sector, which resulted in many non-profit firms placing more focus on generating income. Other scholars have used institutional theory to conclude that non-profits have adopted social enterprise models, because such models have become legitimized and widely accepted. Some organizations have evolved into social enterprises, while some were established as social enterprises. Social enterprise has

6106-414: The proportion of Gross State Product they produce. 20% of Victoria's social enterprise workforce is people with disability (i.e. 12,000 jobs) and 7% of jobs are held by people previously experiencing long-term unemployment. Swinburne University estimates that there are over 20,000 social enterprises nationwide. Based on its Victorian analysis, it can be extrapolated that: Following the 'Map for Impact,

6192-454: The pursuit of their social mission. However, two potential issues emerge: 1) distraction from the social goal in pursuit of contradictory business activities; and 2) inadequate skills, resources, and capabilities for the adoption of the social enterprise model. 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

6278-493: The recent Companies Amendment Act 2015 , this requirement is scrapped, and a company can go ahead with its incorporation without fulfilling this criterion. In Nigeria , there are two types of limited companies namely: a company limited by guarantee and a company limited by shares . The company limited by shares is further divided into two namely a Private limited company (Ltd.) and a Public limited company (Plc.) In Nigeria shareholders of limited companies are only liable for

6364-452: The shares (usually zero, as most shares are issued fully paid). "Paid" here relates to the amount paid to the company for the shares on first issue, and should not be confused with amounts paid by one shareholder to another to transfer ownership of shares between them. A shareholder is thus afforded limited liability. In Brazil , a limited company is registered as any other type of company. To register it, you must pay an accountant to research

6450-498: The social benefit that they have provided over the last financial year. A CIC is expected, though not absolutely required, to specify an "asset-locked body" in its articles of association, to which any surplus assets will be transferred when the company is wound up . If such a body is not specified, the Regulator's approval must be obtained before any distribution can be made. Formation and registration are similar to those of any limited company. New organizations can register by filing

6536-433: The social enterprise sector as well as the internal management of social enterprise organisations. Due to the dual-purpose missions of social enterprises, organisations cannot directly employ the typical management strategies of established business models. Recent academic literature has argued against prior positively held views of social enterprises success in striking a balance between the two tensions and instead argued that

6622-450: The social enterprise's social mission is to help the disadvantaged, which is executed by directly providing goods or services (not money). Additionally, earned revenue must be the main source of income for the organisation or venture. A third definition is purely based on how the organisation is legally structured or formed as a legal entity. In this context, a social enterprise is a legal entity that, through its entity choice, chooses to forgo

6708-507: The social impact of programmes. Socially responsible investing (SRI) seeks to maximize both financial gain and social impact. Social Enterprises often use for-profit business strategies to fund social change. The methods by which these Social enterprises create sustainable revenue streams differ from social business to social business, but all share the goal of abandoning the need for government or donor support. Gregory Dees and Beth Anderson discuss this difference in funding strategies as

6794-427: The social mission is being compromised in favour of financial stability. Prioritising social good over financial stability contradicts rational firm management, which typically prioritises financial and profit-seeking goals. As a result, different management issues arise that range from stakeholders (and management) agreeing on the firm's goals but disagreeing on an action plan to management and stakeholders disagreeing on

6880-633: The social or environmental aims of the organisation. The idea of a social enterprise as a distinct concept first developed in the late 1950s. In 1980 Bill Drayton, further popularised the concept by the foundation of Ashoka, one of the first successful global social enterprise movements. In the 1970s in the UK the concept became used as an alternative commercial organisational model to private businesses , co-operatives and public enterprise . The concept, at that time, had five main principles divided into three values and two paradigm shifts. The two paradigm shifts were: The three principles, now referred to as

6966-536: The support of such a company to a public benefit purpose, other than applying for charitable status. The community interest company emerged from many sources, often citing the absence in the UK of a company form for not-for-profit social enterprises similar to those in other countries. A first significant proposal for a new company form in the UK was advanced in 2001 in "The case for the Public Interest Company", by Paul Corrigan, Jane Steele and Greg Parston of

7052-552: The term "social enterprise" in his 2009 book Banker to the Poor , and in other essays. Muhammad Yunus used the term referring to microfinance . His work in the area of extending micro-credit especially to women in societies where they are economically repressed, led him to receive the Nobel Peace Prize in 2006. In the US, Harvard , Stanford and Princeton universities built on the work of Ashoka , and each made contributions to

7138-452: The term 'social enterprise', and remove any references to 'social enterprise' in its marketing materials in the future. Organizations that do not take the distinct form of either a private, public, or non-profit organization are classified as hybrid organizations. For legal and tax purposes, hybrid forms are classified as for-profit entities. The two main types of hybrid organisations are the L3C, or low-profit limited liability company , and

7224-619: The term 'social enterprise'. This was the resulting definition: Social enterprises are organisations that are: In 2017, the Centre for Social Impact at Swinburne University undertook a comprehensive mapping project of social enterprise in Victoria. The 'Map for Impact' Report identified 3,500 social enterprises in Victoria alone, employing over 60,000 people or 1.8% of the state's workforce. Victoria's social enterprises contribute over $ 5.2 billion in gross output to Victoria's economy. Social enterprise

7310-675: Was established in 2005 by Social Enterprise London (with support from the London Development Association). The Social Enterprise Journal has been followed by the Journal of Social Entrepreneurship , and coverage of issues pertaining to the social economy and social enterprise is also covered by the Journal of Co-operative Studies and the Annals of Co-operative and Public Economics . The European Social Enterprise Research Network (EMES) and

7396-651: Was supported by similar organisations in the US (the Social Enterprise Alliance), Canada, South Africa, and Australia. An open letter was sent to the CEO and Chairman of Salesforce.com asking Salesforce.com to stop using the term 'social enterprise'. It was signed by people and organisations around the world, including Muhammad Yunus ( Grameen Bank founder and Nobel Peace Prize laureate), Richard G. Wilkinson , and Kate Pickett (co-authors of The Spirit Level ). Salesforce said it would withdraw applications to trademark

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