10 FAQs about Social Enterprise (and our answers!)
So, you keep hearing about "Social Enterprises," but you're not 100% sure what they are. No worries—we’ve been cheering on hundreds of these purpose-driven businesses, and we’re here to answer your burning questions. Let’s dive in!
1. What is a Social Enterprise?
A Social Enterprise is a business that isn’t just about making money—it’s about making an impact too. The reason the business exists is to do good. It solves big problems like poverty, inequality, or pollution while also selling products or services. Think of it as a business with a heart and a mission!
2. How is a Social Enterprise different from a nonprofit?
Nonprofits can be Social Enterprises too! In business speak, “Social Enterprise” is a business model (way of doing business), “nonprofit” is a legal designation (how the business is formed). So one organization can be both at the same time.
BUT, Social Enterprises sell stuff and use the profits to fuel their mission. Nonprofits (that aren’t also Social Enterprises) rely on philanthropy like donations and grants to make a difference.
3. Who can start a Social Enterprise?
Honestly? ANYONE! If you’ve got an idea for tackling a problem and you’re not afraid to dream big, you’ve got what it takes. Social Enterprises can be run by college students, parents, single people, retirees—basically anyone with passion and grit.
4. Do Social Enterprises make money?
Absolutely! They’re real businesses, after all. The difference is that they don’t just pocket the profits—they use them to create jobs, fund programs, or support communities. It’s the best of both worlds: profit + impact!
5. Why do Social Enterprises matter?
Social Enterprises are game-changers (literally). They address issues that affect all of us—like hunger, climate change, and access to education. Supporting them means your dollar does more than buy stuff—it drives real change.
6. How do I know if a business is a Social Enterprise?
Great question!! Look for businesses that openly talk about their mission and impact. Many will tell you how your purchase supports their cause—like planting trees, funding job training, or donating meals. If they’re transparent, they’re probably the real deal. For longer standing brands, look on the packaging for the certified B Corp seal.
7. Can a Social Enterprise be a big company?
You bet! Some Social Enterprises are tiny startups, while others grow into global brands that become certified B Corporations. The key is their commitment to a cause. Whether it’s a local bakery hiring refugees or a massive company giving shoes to people in Africa, it’s all about why they got started (and that’s for impact!).
8. What are some examples of Social Enterprises?
TOMS shoes, Patagonia, Roosevelt Coffee, Hot Chicken Takeover, Freedom a La Cart, Aunt Flow, BESA, and any of these businesses. Social Enterprises come in all shapes and sizes—and they’re making waves everywhere!
9. How can I support Social Enterprises?
So many ways!! You can shop from them, tell your friends about them, or follow them on social media. Even just sharing their mission with a friend can make a huge difference! Supporting Social Enterprises means being part of something bigger and using your money for good.
10. How can SEA Change help me start a Social Enterprise?
At SEA Change, we’re like your cheerleaders (but with business advice)! We offer resources, tools, and a community of like-minded folks who’ve been where you are. Whether you’re just dreaming or ready to take the leap, we’ve got your back. Here are 3 ways to get started.
Feeling inspired?!
Whether you’re dreaming up your own idea or looking for businesses to support, SEA Change is here for you. Explore this business directory of Social Enterprises, and if you’re ready to jump in deeper, here are three ways you can get involved in the movement.