What Defines Our Life

Social business enterprise refers to a company that does not focus on giving dividends or maximizes on profits. Its main objective is to meet a given social need. Any money that the company gets through its day to day activities or through funding is used to expand research findings and to provide solutions to the problem that the company seeks to address. Investors who put their money in such companies, as earlier mentioned, are not entitled to any dividends, but instead the returns on the investments are recouped and ploughed back into the company.

Some of the social needs that such companies address are healthcare for the less fortunate people in society, financial services for those who cannot afford, nutrition for the not-so-well fed individuals and also providing safe drinking water for people living in unhygienic and unsafe places. The sustainability of social business enterprises clearly indicates that the company is in business and doing well.

The key requirements for these companies have been captured in three main points. The first one being social responsibility. For a company to qualify as a social business enterprise, it must be prepared to meet a specific social goal, by identifying a need to be addresses and putting up a plan on how to meet the need. The second requirement states that the company must be based on a non-profit distribution. This means that investors must not take any dividends or share in any profits.

Thirdly, the company must have the poor people in mind. Infact, it could be owned by the poor. This ensures that the objectives of the company are tailored accordingly and they are specific to where the need bites most, as the owners express the need.

Peter Gitundu Creates Interesting And Thought Provoking Content On Small Business. Read More Of His Articles Here SOCIAL BUSINESS ENTERPRISES

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