Each social enterprise has its own character, but they all need to focus on similar key areas.
Regardless of what your specific social purpose is, you are providing goods and/or services to your target market.
The success or failure of your social business will depend on how effectively you run it. To maintain the high standard of your offering, it’s essential that you have strong management structures in place for each of the different areas of the business.
The other key aspect of maintaining the success of your social enterprise is having strong governance and regular reporting which keeps the business on track to achieving its social returns. Below, we’ve broken down the three main facets of running a social business:
Social enterprise management
You need social business functions such as human resources, marketing and quality systems to be working together smoothly. Good business management makes sure that you are delivering high quality products at affordable prices to the right market.
Policies and procedures for social enterprise
The legal entity which owns the business is responsible for its governance. Good business governance includes ensuring that legal reporting requirements are met, adopting an appropriate set of policies and consistently working to achieve the social mission of the business.
Accounting for social enterprises
A successful social business will also establish some form of social accounting and reporting which informs the way achievements and social outcomes are communicated to its stakeholders, funding partners and the public.