6 types of social enterprises

These are tax-exempt entities supported, at least in part, by earned income

Their main funding sources typically are grants from foundations and donations from the general public

These organizations start with social mission, much like a nonprofit, and then figure out a way to make it work outside the restrictions of a tax-exempt model — in other words, they’re a for-profit business.

They exist primarily to address a social issue (“mission-first” or “mission-centric”), with revenue-generating activities intertwined with change-making activities.

The social enterprise employment model, which uses the business to provide meaningful work and empowerment to a disadvantaged population

Democratic ownership by employees, including accountability and decision making within the company.
No possibility of sale, keeping the company permanently stewarded by the workforce for the benefit of society.
Unleashing 100% of profits for social good.

created primarily to address a social issue, it’s more common that this categorical distinction is based on the adoption of practices benefiting community, employees or environment (generally more aligned with the idea of doing business better).

Primary funding options here include traditional angel investments and venture capital, as well as program-related investments in some circumstances.

These companies direct some portion of their business toward charitable work and are almost always layered into the preceding and subsequent categories

Revenue-generating activities are generally wholly separate from change-making activities and, in many cases, the social component is an add-on to the company’s core business.

those that sell products designed to engage community and bring awareness to a social issue

primary activities don’t necessarily address the root cause of the social problem they’re bringing awareness to.