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Question 1

social entrepreneurs

Answer 1

a business with primary social/environmental objectives, whose surpluses are principally reinvested for that purpose in the business or community rather than mainly being paid to shareholders and owners

Question 2

What kinds of enterprises are considered social?

Answer 2

Those for who the social or societal objective of the common good is the reason for the commercial activity, often in the form of a high level of social innovation

Those whose profits are mainly reinvested to achieve this social objective

Those where the method of organisation or the ownership system reflects the enterprise’s mission, using democratic or participatory principles or focusing on social justice

Question 3

Legal forms

Answer 3

no single form, many are cooperatives
- an autonomous association of persons united to meet common economic, social, and cultural goals
- they achieve their objectives through a jointly-owned and democratically-controlled enterprise

Question 4

defining characteristics of cooperatives

Answer 4

an open and voluntary association

a democratic structure with each member having one vote

an equitable and fair distribution of economic results according to the volume of operations made through the cooperative

cooperatives are enterprises that serve the needs of their members who contribute to their capital.

Question 5

advantages of social enterprises/social entrepreneurs

Answer 5

1 - purpose of creating value for the society and also generate income

2 - the solutions they offer are supposed to be innovative, unique, people and environment friendly

3 - cost effectiveness

4 - find it easier to raise capital

5 - incentives and schemes from the government

6 - easier market rates marketing and promotion

7 - easier to attract attention of the people and media

8 - degree of publicity often depends on the degree of uniqueness of the solution

9 - easier to garner support from likeminded individuals since there is a social side to the enterprise.

10 - easier to get people onboard at lower salaries than compared to other industry.

Question 6

External Factors determining social enterprises

Answer 6

1 - Taxation, legal

2 - Regulatory environment

3 - Public budgets, changing governments - Difficult to plan strategically

4 - Insecurities

5 - Lack of visibility

Question 7

Internal Factors determining social enterprises

Answer 7

1 - Lack of entrepreneurial abilities

2 - Lack of management capabilities

3 - Lack of volunteers

4 - Lack of finances