What is a Social Purpose Enterprise?

According to the Robert’s Enterprise Development Fund (REDF), a social purpose enterprise is: “A revenue-generating venture founded to create jobs or training opportunities for very low-income individuals, while simultaneously operating with reference to the financial bottom-line.” 1

The Non-profit Venture Network (NVN) in New York defines a social purpose business as “a business activity started by a non-profit organization that applies market-based solutions for the purposes of furthering the mission of the organization, generating income and addressing social needs.” 2

  1. Both definitions are drawn from The New Social Entrepreneurs: The Success, Challenge and Lessons of Non-Profit Enterprise Creation. (Roberts Foundation: September 1996).
  2. Seedco, op. cit., p. ii.