Social Business Enterprise / Commuity Interest Company

What is social enterprise?

The social or environmental purpose is central to what social enterprise is all about - rather than a focus on shareholder value. They do aim to make a profit - but this will largely be used to further their social and environmental goals. Many commercial businesses would consider themselves to have social objectives, but social enterprises are distinctive as this is their primary goal. Social enterprise is a business model which offers the prospect of a greater equity of economic power and a more sustainable society - by combining market efficiency with social and environmental justice.

Organisations of many different legal structures can be classed as social enterprises; including charities and companies limited by guarantee. Social business enterprise is not a separate legal structure by itself.
A good site is the social enterprise coalition, where definitions are explored;
http://www.socialenterprise.org.uk

As the coalition state , there are more than 55,000 social enterprises in the UK with a combined turnover of £27bn. Social enterprises account for 5% of all businesses with employees, and contribute £8.4billion per year to the UK economy.
They have also produced ‘Healthy Business - A guide to social enterprise in health and social care' which makes a good read at

http://www.socialenterprise.org.uk

The Department of Health also has a social enterprise investment fund that aims to invest £73M between April 2007- April 2010, this aims to stimulate and encourage the development of a vibrant social enterprise sector in the delivery of health and social care services via providing start-up funding and longer term investment to emerging and existing social enterprises in the health and social care sector with a view to their sustainability. For full details of the scheme see;

http://www.dh.gov.uk/en/Managingyourorganisation/Commissioning/Socialenterprise/DH_073426  
 

Thinking of setting up a social enterprise?

http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1077475650  

Community Interest Companies (CICs) - What are they?

http://www.cicregulator.gov.uk/guidance/CIC%20Briefing%20pack.pdf  

CICs are separate legal identities that have been formed to ‘fit' Social Business Enterprise. The key principle of a CIC is that the key business activities you intend to undertake will be carried out for the benefit of the community or a section of it. Companies House will run a check to make sure that your company really does meet the aims of having a social purpose - this will be your Community Interest Statement. CICs shouldn't be confused with charities. CICs do not have charitable status. This means they do not get the tax benefits of a charity, but in return they do not have the strict reporting requirements of a charity.
The regulator of CICs has produced a briefing pack designed to help people through the process, this can be downloaded from;

After doing the initial reading and research , perhaps the best practical guidance on the process involved can be found from business link at ;