What are the features of this form of business?

Social entrepreneurship implies sustainable economic engagement by means of selling  products or services, which can cover the expenses of business, including the earnings of the employees. The profit in social economy doesn’t solely serve to increase the capital of an individual ( business owner), but rather to be partially or fully invested in purposes such as employment of persons who have a hard time finding work, development of social and medical services, education, preservation of the environment, cultural activities in the community, and other, which align with the mission of the organization and the needs of the community

While in our country the criteria for defining and describing this way of doing business are not established, the European Committee has defined a few criteria (’’Social Business Initiative’’ 2011.) every legal entity must meet in order to do business on  principles of social economy:

  • must do business in the field of economy;
  • must have an explicit and primary social goal;
  • must have limitations in regard to managing profits or property;
  • must have inclusive governing, and
  • must be independent