What is a Social Business?

A social enterprise sells products or services like any other business, but with a key difference: instead of distributing profits to private owners or shareholders, a social enterprise reinvests them back into its mission to create social or environmental impact.

Social enterprises often have a clear purpose, addressing community needs or gaps to drive positive change.

Co-operative businesses are owned and operated by their members. Members can be anyone with an interest in the business from workers and customers to wider community members. They mostly operate with social values and principles at their core and work to meet the needs of its members, rather than maximising profits.

Co-ops run with the principles of democracy – giving members equal ownership over the business and its outcomes, regardless of their background. Any profits made by the business are usually redistributed to each member or re-invested into the business to drive growth

A Community Interest Company (CIC) functions like any other Limited business, except that all profits and proceeds are spent to benefit a community. A community in this context can either be the general UK population, or a definable sector of our population, with shared common characteristics. CICs are legally required to pass a Community Interest Test open_in_newand have an asset lock to ensure profits benefit the community.

CIC’s are a type of social enterprise and are designed to boost social equality, putting people before profits.

A CIO is a charity with its own legal identity, so it can enter contracts, employ staff, and own property in its own name. Unlike standard businesses, any surplus must be reinvested to support the charity’s mission. CIOs are ideal for charities that want the protection of limited liability without setting up a company.

The UK Government websiteopen_in_new,

· A breakdown of legal structures suitable for social businesses

· Guidance on registering a CIC

· More resources to help you plan your next step

Social Enterprise UKopen_in_new, the UK’s leading membership body for social enterprises has a range of resources, including:

· Downloadable start-up guides

· Insights into the challenges and opportunities of social entrepreneurship

· Information on joining their network for ongoing support

Co-Operatives UKopen_in_new, the UK’s leading authority on co-operatives, provide:

· Advice and support tailored to co-ops

· Step by step guides and tools to becoming or converting to a co-operative

· Funding and support

· Training and events

UnLtdopen_in_new, an organisation that funds and supports social enterprises in the UK, have a wide range of opportunities and helpful resources to get you started.

What is a Social Business

Discover how social enterprises like GLL put people before profit and see if the business model works for you.

Social business support

From tailored programmes and events to masterclasses and additional support, see how we can support your social business.

Start Up to scale up
If you’re in South London or West Kent, find out how GLL’s business Start Up Service can support you.

Running a social business with GLL

Practical advice for starting and developing your business with our support, and opportunities for future and existing partners.

How we collaborate with others

See how we work with other social businesses to inspire your next move.

GLL spaces

Our spaces, your mission. See how you can use our spaces for your social business.