a board that is democratic with representation from service-users, funding bodies, local
authorities and the like. The complexities of trading are likely to drive a requirement
for a more stewardship driven form of governance that relies less on representing
diverse interests and more on a board that is capable of managing assets for greater
return. Unlike private sector stewardship though, the surplus generated is not designed
to increase shareholder wealth but is to be used to maximise social benefit. The focus
on asset management contrasts with the democratic governance model that attempts to
achieve greater social impact through a focus by the board on fundraising through
their contacts or application writing skills (Mathiasen, 1998). As the emphasis of the
board’s activity is different in social enterprise, it therefore follows that it is likely that
the composition of the board will be different. This gives rise to a second proposition: