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Social Enterprise Key Terms and Explanations

What is Social Enterprise Banner

A social enterprise is just like any other business, but instead of profits going to individuals, they are reinvested to create social or environmental impact.

Some charities have a social enterprise arm to generate income (such as charity shops) but not all social enterprises are charities. They are businesses trading to support people, communities, and causes.

Social enterprises can take many forms including venues, restaurants, retail, care, construction, health, therapy, and more — all with a positive impact at their core.

🌍 What They Do

Social enterprises trade like businesses while tackling social issues, supporting communities, and improving the environment.

💷 How They Work

Income is generated through selling products or services and profits are reinvested back into the organisation’s mission.

🏘️ Community Impact

Every social enterprise creates impact for a community, cause, or group of people through the work they do.

📘 Social Enterprise Resources

We’ve created a range of downloadable guides and graphics on topics related to social enterprise, community wealth building, governance, sustainability, social media and more.

What is Social Enterprise?

What is Social Enterprise?


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Community Wealth Building

Community Wealth Building


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Circular Economy

Circular Economy


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Instagram & TikTok Tips

Instagram & TikTok Tips


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Recruiting Trustees

Recruiting Trustees


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Gift for Good

Gift for Good


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Social Media for Charities

Social Media for Charities


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The Social Enterprise Code

The Social Enterprise Code


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Social Enterprise Glossary Banner

🧠 Social Enterprise Jargon Buster

Thank you to CVS Falkirk and Careers4Change for creating these useful resources.

We’ve selected some of the most relevant terms for social enterprise and Edinburgh below.

💡 Key Terms

Blended Finance Using a mix of grants, loans, and private investment to fund social enterprises.
Capacity Building Helping local organisations improve or scale up their abilities.
Community Benefit Society A legal structure designed to benefit the wider community rather than individual members.
CIC (Community Interest Company) — a legal structure for businesses with social purpose.
Circular Economy A system focused on reducing waste by reusing, repairing, and recycling materials.
Community Wealth Building An economic approach focused on keeping wealth and resources within local communities.
Corporate Social Responsibility (CSR) Responsible business practices relating to environmental, ethical, and social impact.
Development Trust Community-led organisations focused on regeneration and local benefit.
Impact Investment Investment intended to create social or environmental impact alongside financial return.
Impact Measurement Measuring the positive changes organisations create for communities or individuals.
Living Wage A voluntary wage rate based on the actual cost of living.
OSCR The Office of the Scottish Charity Regulator.
SCIO Scottish Charitable Incorporated Organisation.
Social Enterprise Code The voluntary code outlining what defines a social enterprise in Scotland, read the code here.
Social Procurement Purchasing processes that include social value criteria.
Social Return on Investment (SROI) A metric measuring social, environmental, and economic value.
Wellbeing Economy An economy focused on improving quality of life rather than only economic growth.
Zero Waste An approach focused on reducing waste and supporting environmental sustainability.