What is a social enterprise?

Harriet Ernstsons-Evans • January 10, 2023

PEGS is very proud to be one of 100,000 social enterprises in the UK.


Despite their prevalence, it’s a type of business model which some people haven’t necessarily heard of before. They became more prominent (and a distinct type of business, some would say) in the 1970s, although they have been around in more informal terms for many hundreds of years.


In fact, it’s believed the very first social entrepreneur was a 14th century African ruler called Mansa Musa who used the funds he got through trading to fund community projects like building schools and libraries.


Social enterprises are unlike traditional businesses because their profits are invested back into the organisation. So, when it comes to PEGS, any income from our professional and training consultancy work goes towards our operating costs (paying staff, office costs etc) and then the remaining money goes to fund our parent services. This is why we don’t charge parents for access to drop-ins, workshops, one to ones or any other support that we offer them.


And the reason they’re called ‘social’ enterprises? Because their mission is to improve society or to impact change, which is exactly the reason why PEGS is one – we’re all about purpose, not profit!


It’s important to clarify that we are not a charity – again, it can be confusing because people see us championing a good cause and putting our income to good use to deliver services, and think it sounds like a charity!


But we are not registered with the Charity Commission, and are not bound by Charity Law. While these organisations tend to bring in money via fundraising, social enterprises also tend to sell products or services. Being a social enterprise tends to give a little more flexibility in that sense – which is why we are able to offer paid-for training and consultancy, alongside applying for specific grants, and still having the option of direct donations from our supporters.

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