Finding investors for social enterprises

Investment plant growing

In today’s society there is a growing awareness that there are many needs within the community, whether on a local or global level.

Social enterprises are cropping up by the day to help alleviate some of the concerns the world now faces but unfortunately, many of these businesses are not true ‘social enterprises.’

In order to be labelled as a social enterprise, the focus cannot be placed on maximising profits. The intent of a social enterprise is to make this a better world to live in, whether by feeding the hungry, reducing carbon emissions or providing job training for the unemployed. The main goal is to improve the environment and/or the human condition.

Bearing in mind that the thrust of a social enterprise is not to maximise profits, there is always some confusion as to what kind of organisation can be considered a true social enterprise. Actually, this type of enterprise can be:

  • Not-for-profit (non-profit)
  • For-profit
  • Mutual organisation
  • Co-operative
  • Trading charity

So, you can see that almost any type of business can be a social enterprise, and it is in the mission statement or business plan that the determining factors will be brought to light.

 Almost any type of business can be a social enterprise, and it is in the mission statement or business plan that the determining factors will be brough to light

For freelancers and businesses that believe they are social enterprises, finding investors may be difficult because of their underlying commitment to autonomy and to not be managed by public or private companies. This is because of their intent to benefit the community as opposed to shareholders.

Nonetheless, profits can be made and enjoyed as long as they are secondary to doing a service for the community. Finding investors along these lines can be a bit tricky and one which an expert accountancy like nixonwilliams can help you sort through. The types of investments which can be made in your company are of vital importance if a social enterprise is to retain its status as such.

Take heart in the fact that millions of individuals globally are aware of the need to step up for humanity and mother earth. Finding investors is not impossible, but there must be a plan whereby the community benefits first and shareholders second. Accountancies are the perfect teams to help you realise your goals and stay within the confines of tax laws and your commitment to social enterprise.

Bio: Nixon Williams is a specialist accountancy team for Online Contractor accountant, freelancers and businesses of all sizes and types throughout the UK. It is their goal to help businesses stay within the boundary of tax laws whilst increasing profitability.

 

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