1. Enterprise Orientation - they are directly involved in producing goods or providing services to a
market.
2. Social Aims - they have explicit social and/or environmental aims such as job creation, training or
the provision of local services. Their ethical values may include a commitment to building skills in
local communities. Their profits are principally reinvested to achieve their social objectives.
3. Social Ownership - Many social enterprises are also characterised by their social ownership. They
are autonomous organisations whose governance and ownership structures are normally based on
participation by stakeholder groups (eg employees, users, clients, local community groups and social
investors) or by trustees or directors who control the enterprise on behalf of a wider group of
stakeholders. They are accountable to their stakeholders and the wider community for their social,
environmental and economic impact. Profits can be distributed as profit sharing to stakeholders or
used for the benefit of the community