Social enterprises deliver measurable business advantages including stronger customer loyalty, higher employee retention, and improved brand reputation, while creating positive social and environmental impact. Here's what your business gains by adopting a social enterprise model.

What is a Social Enterprise?

A social enterprise is a business that pursues both commercial and social goals. Unlike traditional companies, it follows a sustainable strategy that creates positive impact for society, the environment, or both, while still generating profit for shareholders.

Contrary to popular belief, profit isn't at odds with purpose. In fact, profit is what sustains the social mission long-term. Business leaders worldwide are increasingly recognising that a sustainable business strategy doesn't just address community and global issues, it actively drives business success.

What Are the Business Benefits of Being a Social Enterprise?

There are five key advantages that social enterprises have over traditional businesses:

1. Stronger Customer and Client Relationships

Customers today actively choose brands that drive social and environmental change. They hold businesses accountable for the impact of their core operations and reward those that share their values with loyalty and repeat business.

This is equally true in B2B. Shared vision around social and environmental goals is becoming a deciding factor when businesses choose partners and suppliers. A social enterprise position gives you a genuine edge.

2. Greater Employee Motivation and Retention

Employees aren't just looking for a paycheck. They want to work for companies whose values match their own. Current and prospective employees actively seek out social enterprises, and once there, they don't just support the mission passively.

They want to be part of it. From contributing to community activities to participating in fundraising, purpose-driven employees are more engaged, more loyal, and significantly less likely to leave.

3. Increased Creativity

When a company leads with clear values and a social mission, employees feel encouraged to think beyond their job description. A social enterprise culture gives people the confidence and support to develop new and better ways of working, because they understand the bigger picture they're contributing to.

The result is a workforce that doesn't wait to be told what to improve. They're already thinking about it.

4. Increased Productivity

A motivated, purpose-driven workforce naturally becomes more productive. When employees care about outcomes beyond just their KPIs, business performance improves alongside social impact.

More creativity leads to better processes, better processes lead to better output, and better output leads to improved profits. A win-win for the business and the mission.

5. Stronger Brand Awareness and Reputation

Social enterprises earn organic visibility. In today's digital era, customers, employees, and stakeholders share stories about companies doing good across their own social channels and networks.

A clear social mission becomes one of your most powerful and authentic marketing tools. It's a brand story that competitors can't copy, because it has to be lived, not manufactured.

The Bottom Line: Is a Social Enterprise Model Worth It?

Investors, partners, customers, and employees increasingly choose companies that stand for something beyond their product or service. A social enterprise model isn't a cost to the business. It's a competitive advantage that compounds over time.

Sharesource: A Social Enterprise in Practice

Sharesource was founded in 2013 by Brendon Boyce, who saw firsthand how smart talent was being wasted simply because of geography. He built Sharesource to rethink the traditional outsourcing model, connecting talented STEM professionals in developing countries with innovative businesses worldwide.

"I believe in connecting talented people with meaningful work. My goal is to connect smart STEM professionals in developing countries with those disruptor businesses that are doing cool work." Brendon Boyce, Founder

Ten years on, Sharesource is proud to be a social enterprise that equalises employment opportunities, empowers future leaders, and positively impacts communities, while proving that doing good and doing well are not mutually exclusive.

Frequently Asked Questions About Social Enterprises

What is the main difference between a social enterprise and a regular business? A social enterprise has both a profit goal and a defined social or environmental mission. Rather than treating impact as a side activity, the mission is embedded in the business strategy and profit is used to sustain it.

Does being a social enterprise hurt profitability? No. Profit is central to a sustainable social enterprise because it funds the social mission. Many social enterprises outperform traditional businesses on retention, loyalty, and brand equity, all of which contribute to stronger long-term financial results.

What types of businesses can become social enterprises? Any business, regardless of industry or size, can adopt a social enterprise model. What matters is having a clearly defined social or environmental mission that is built into how the business operates, not bolted on as an afterthought.

Why do employees prefer working for social enterprises? Employees want meaningful work. Social enterprises offer purpose beyond daily tasks, involvement in community initiatives, and alignment between personal values and company culture, all of which drive higher engagement and lower turnover.

How does being a social enterprise help with brand reputation? Social enterprises generate authentic word-of-mouth because customers and employees genuinely believe in the mission. This leads to organic sharing, stronger community trust, and a brand identity that is difficult for competitors to replicate.

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