Social Enterprises Explained

Social enterprises seek to achieve social, cultural, or environmental aims through the sale of goods or services. The net profits must be directed to social objectives. In its simplest form, social enterprise applies commercial strategies and creates revenue by selling a product or service with some market value.

In this case, Clan Mothers social enterprises have been created to support the Healing Village by producing own-sourced revenue. This revenue will make up a larger total portion of total revenue over time and will assist the Healing Village by increasing its financial independence from government funding.

Three common social enterprise models have been considered:

  • Subsidized social enterprises that rely on funding to support operational costs;
  • Self-sustained social enterprises that cover operational costs with sales revenue;
  • Profitable social enterprises that have income that exceeds the operating expenses, with profits being re-invested into the organization.