In 2005, Partas, a social enterprise based in Tallaght, Dublin 24 (www.partas.ie) published a very informative Training and Support Programme for Enterprises in the Social Economy, as part of its WISElink project. In it they used research carried out in the European Union by the EMES European Network from 1996 to 1999 and funded by the Commission Research Directorate-General.

It describes the following nine-criteria as making up a social enterprise:

Economic and Entrepreneurial Nature of Initiatives:

1. A continuous activity producing goods and/or offering services

Unlike some "classical" non-profit organisations, which aim to further the interests of a specific group (advocacy or lobbying groups) or to redistribute money (foundations), social enterprises pursue in a continuous way the activity of producing goods and/or services. This productive activity is one of the main reasons behind the existence of the social enterprise.

2. A high degree of autonomy

Social Enterprises are voluntarily created by a group of people and are governed by them in the framework of an autonomous project. Even though social enterprises are often financed or co-financed by public authorities, they are managed - be it directly or indirectly - by public authorities or other organisations. This autonomy also shows their capacity to exercise "voice" (freely express their opinion) and "exit" (terminate) their activities.

3. A significant level of economic risk

The viability of a social enterprise, unlike that of public institutions, depends on the efforts of their members and workers to ensure the efficient running and financial balance of the organisation. The founders of such an enterprise thus assume the major part of the economic risk linked to the activity.

4. A minimum amount of paid work

Social enterprises can combine monetary and non-monetary resources, voluntary and paid workers. However, unlike voluntary organisations operating only with volunteers, social enterprises hire a minimum level of paid workers.

The social dimensions of the initiative:


5. An initiative launched by a group of citizens

Social enterprises are the result of collective dynamics involving people that share a certain need or aim. This collective dimension must in principle remain as essential dimension within organisations of this type.

6. A decision-making power not based on capital ownership

Unlike what is the case in "classical" private enterprises, where decision-making power is linked to the invested capital, social enterprises often apply the "one member, one vote" principle within their decision-making bodies. When this principle is not strictly applied, the voting power of the members (or shareholders in the case of enterprises having share capital) is strictly limited to a defined percentage of votes.

7. A participatory nature, which involves the persons affected by the activity

Social enterprises generally value the participation of users, workers and customers. More generally, they seek to involve the various stakeholders in the decision-making process and in the management of the enterprise, often with the idea of democracy at local level through economic activity in mind.

8. Limited profit distribution

Some social enterprises, such as traditional "non-profit" organisations, are characterised by a total non-distribution constraint, but others may distribute surpluses to a limited extent. In all cases, the social enterprise tends to forbid all profit-maximising behaviour.

9. An explicit aim to benefit the community

One of the principle aims of social enterprises is to serve the community at large (e.g. through salvaging and recycling the waste of a region) or a specific group of people within the community (e.g. through the occupational integration of handicapped people) while promoting a sense of social responsibility at local level.