Social enterprises: what are they?

Social Enterprise NL uses the definition used by the European Commission for “social enterprise. The Social and Economic Council (SER) also uses it. The definition says nothing about a specific legal form. Nor do social enterprises in the Netherlands have their own legal form. Social Enterprise NL believes this should be introduced.

European definition of 'social enterprise'

  • Undertakes first and foremost from a social mission (impact first).
  • Makes an impact as an independent business providing a service or product.
  • Has a revenue model.
  • Sees profit as a means, not an end.
  • Is transparent and fair to everyone.
  • Is social in the way the business is conducted.
  • Bases governance and policy on equal influence of all stakeholders.

Social Enterprise Code

If you want to start a social enterprise and make it a success, a correct definition is not enough. How do you translate that definition into policy and operations? What should these look like? This is detailed in the Social Enterprise Code.

Legal position of social enterprises

Social enterprises do not yet have a separate legal position in the Netherlands. Most are a BV. Others are a foundation, vof or cooperative. Some are both a BV and a foundation. We believe there should be a separate, appropriate legal form for social enterprises. A form that reflects their principles. And it gives governments and other business partners clarity that it really is a social enterprise.

Difference between charities, social enterprises and ordinary businesses

Pictured the difference between charities, social enterprises and mainstream businesses; from “impact only” to “impact first” to “finance first (only available in Dutch for now):