What do you think are the pre-requisites for social enterprise to be sustainable?

Social Enterprises, businesses that put the interests of people and the world ahead of shareholder gain, don’t have a clear and legal definition. In a simple term, social enterprises focus on reinvesting profits in social mission, which is driven by social or environmental objectives. In my opinion, the pre-requisite for social enterprises to be sustainable is to assure employees — the most important stakeholders of the company — they already obtain good work life.

From the past economists’ theories referred to undermining the shareholder’s profitability, that statement is not wrong in this business world utterly. We all knew that social enterprises are kind of businesses that focus on making social sustainable but to reach that goal we have to balance the benefits to all stakeholders and shareholders as well. Social enterprises are independent businesses, autonomous of state or government control, and should earn at least 50% of their income through trading which is from sales of products or services. Making employees’ systems tolerable in the company can be a competitive advantage.

In the last piece, it is good for social enterprises to invest its profit back to social and environment, however, embracing employees’ internal systems also gain the most advantageous benefits for stakeholders and shareholders too.