In a world where profit often overshadows purpose, social enterprises are rewriting the rules of business. These mission-driven enterprises exist not just to generate income but to create lasting social and environmental impact.
If you’ve ever felt the urge to tackle a real-world issue and build a sustainable venture around it, starting a social enterprise might be your calling.
Here are 7 things to consider as you start your small journey towards big impact:
1. Identify the Problem You Want to Solve
Every successful social enterprise begins with a clearly defined problem. Ask yourself:
- What injustice or gap bothers you most? There are so many things to consider, but start with one.
- Who is affected and how?
- What systems or barriers are causing it?
Start by talking to people directly impacted. Learn their needs, stories, and aspirations. Empathy is the foundation of innovation.
2. Craft a Mission with Measurable Impact
Unlike a traditional business, your mission isn’t just to grow—it’s to change something for the better. Make it:
- Specific (who, and how, does it help?)
- Measurable (so you can track impact)
- Time-bound (to focus your strategy)
Your mission should act as a compass, guiding every decision. It’s at the heart of you your business model.
3. Design a Business Model That Sustains
A social enterprise needs revenue, just like any other business. But instead of distributing profits to shareholders, it reinvests them to further the mission. Consider:
- What product or service will you offer?
- Who pays—and who benefits?
- How will you remain financially viable?
4. Choose the Right Legal Structure
Any business can choose to reinvest its profit into a good cause. However, if you intend to seek funding or donations to help finance your idea, there are different options. Legal structure affects funding, taxation, and your operational flexibility. Choose one that aligns with your mission and growth plan.
GOV.UK has more guidance on setting up a social enterprise.
5. Pilot, Learn, Iterate
Start small. Test your idea with a pilot program or minimum viable product (MVP). Collect feedback, measure impact, and adjust. Piloting lets you:
- Validate your assumptions
- Build credibility with partners and funders
- Reduce risk before scaling
6. Build Partnerships and Community
Social impact doesn’t happen in a vacuum. Partner with:
- Local organisations and community leaders
- Government agencies or support providers
- Corporate sponsors or impact investors
A strong network amplifies your reach and resilience.
7. Measure What Matters
You can’t manage what you don’t measure. Set clear Key Performance Indicators (KPIs) for both financial and social performance.
Join our Starting Your Social Enterprise Journey two-part webinar to start building your Social Enterprise business model. In the sessions, we cover legal structures, measuring your impact, and planning your mission.
Conclusion:
Starting a social enterprise demands the head of a businessperson and the heart of an activist. But with a clear mission, a sustainable model, and a community behind you, your idea can become a catalyst for real, lasting change.
Thinking of starting a social enterprise in Bath & North East Somerset or South Gloucestershire?
Get support through our fully funded Business Start-up Programme.
We run dedicated “Starting Your Social Enterprise Journey” workshops throughout the year, along with other start-up sessions to help you plan, fund, and launch your social enterprise with confidence.
