The primary focus of the SE is to address a social need / problem. Products/services delivered have a “social connotation” (their production chain is designed so as to enable the integration of disadvantaged people to work; they respond to gaps in welfare service delivery, etc.).
ENTREPRENEURIAL / ECONOMIC DIMENSION
Provide services or goods in a stable manner to respond to unmet needs arising in society. Generate revenues and ensure Some level of cost recovery (minimum 10-15%); Commitment to financial sustainability. A trend towards paid staff (ideally all organizations should have paid staff; nevertheless, embryonic initiatives might not have any yet)
OWNERSHIP GOVERNANCE DIMENSION
Transparent and participatory. Participation of diverse stakeholders in the governing bodies of the organization. Compliance with a non-profit distribution constraint and/or asset lock: reinvestment of (portion of) profit to build capacity and improve impact