CONCEPT

The term “social enterprise” was first introduced by Freer Karşıyaka Escort Spreckley in 1978, and later elaborated in the book “Social Audit – A Management Tool for Co-operative Working”, published in 1981. According to Spreckley, a social enterprise is defined as:

“An enterprise owned by those who work in it and/or reside in a given local community, which is operated for the purpose of community benefit and/or social objectives, and is managed cooperatively.” (Spreckley, 1981)

In the traditional business model, capital employs labor, and profit is the paramount objective, often above the interests of the business or the labor force itself. In contrast, a social enterprise is a model in which labor owns capital, overcoming the “exploitation” of capital, and focuses on social, environmental, and financial benefits.

General characteristics

Social enterprise is business for the common good, not for private gain

Social enterprise is a multi-dimensional approach, Karşıyaka Escort
multi-sector and all-scale.

Social Enterprise is a Dynamic Approach to Sustainable Development

Social Enterprises, along with the development of the 4th Industrial Revolution, provide a new perspective, as a new and effective model/approach for Sustainable Development in the early 21st century, different from the traditional “static” view from the 1970s.

The “central” position of social enterprises in the market economy

A social enterprise is a new approach. Unlike traditional businesses (which focus purely on commercial activities and view profit as the sole objective) or charities (which generate little economic value and rely mainly on donations, sponsorships, or subsidies), social enterprises are business organizations that use profit as a tool to address social and environmental problems and needs.

As such, social enterprises hold an important position among business models in a market economy (even though they may exist in various organizational and legal forms). They are especially valued for their unique potential to combine profit-driven innovation with a mission to serve the community and drive social innovation.

Criteria for Social Enterprises in Vietnam

According to Article 10 of the 2014 Law on Enterprises, a social enterprise must meet the following criteria:

  • Be legally registered as an enterprise under the provisions of the Law on Enterprises;

  • Have an operational objective aimed at solving social or environmental issues for the benefit of the community;

  • Use at least 51% of its annual profits to reinvest in the registered social and environmental objectives.

  • Specific regulations regarding social enterprises can be found in: Law on Enterprises (Article 10); Decree No. 96/2015/NĐ-CP; Circular No. 04/2016/TT-BKHĐT