The primary goal of ERDA’s Centre for Establishment of Social Enterprises (CESE) is to create a variety of social ventures aimed at achieving two key objectives: firstly, to generate more employment opportunities, and secondly, to achieve financial self-reliance, reducing the need for external donations.

A social enterprise, or social business, is a type of business with specific social objectives as its primary purpose. Unlike traditional businesses, social enterprises aim to maximize both profits and societal benefits, using profits primarily to fund social programs.

Key Features:

1. Social Objectives: The primary goal of a social enterprise is to achieve social objectives, such as addressing community needs or environmental issues, alongside business operations.

2. Profit Maximization: While social enterprises seek to be financially sustainable, maximizing profits is not their primary goal. The focus is on balancing financial success with social impact.

3. Revenue Generation: Unlike charities, social enterprises generate revenue through the sale of goods and services. These revenues are reinvested into the social causes they support.

4. Employment Practices: Preference is often given to hiring individuals from at-risk or marginalized communities, supporting social inclusion and economic empowerment.

5. Funding: Funding is mainly obtained through the sale of products and services, with some additional support potentially coming from grants. This approach contrasts with traditional charities that rely heavily on external donations.

The concept of social enterprises emerged in the U.K. in the late 1970s as an alternative to traditional commercial enterprises. Social enterprises operate at the intersection of the private and volunteer sectors, striving to balance financial viability with social and environmental goals. They might focus on initiatives like providing housing for low-income families or offering job training programs. Sustainable revenue is crucial for the longevity of a social enterprise. Although profit maximization is not the central aim, generating and reinvesting revenue is essential for sustaining operations and achieving social impact. Unlike traditional charities, social enterprises prioritize using profits to advance their social missions rather than distributing them to shareholders.