A social enterprise is a business that exists to solve a social problem using business approaches. Social value is created when a community benefits from the activity.
Social enterprises are different to not-for-profits (NFP) or charities, as they sell goods and services for revenue rather than using donations and grants. However social enterprises exist together with NFPs in the social-purpose ecosystem trying to solve complex social problems.
There are a range of different types of businesses like Umbo who work for a social good, however, to be classified a social enterprise, the business must do three things:
- Have a defined primary social, cultural or environmental purpose consistent with a public of community benefit and
- Derive a substantial portion of their income from trade, and
- Invest efforts and resources into their purpose such that public/community benefit outweighs private benefit
(Source: Social Traders, https://www.socialtraders.com.au/news/what-is-a-social-enterprise)
By delivering allied health services online, Umbo holds its social purpose at the core of its work – reducing inequality in access to health services to support communities to thrive.
Umbo is classified as the type of social enterprise which reduces access barriers for communities needing a product or service due to market failure.
Additionally to increase our impact, Umbo is committed to re-investing 50% of it’s profit back into the business to achieve our social purpose. By doing this we intend to increase our reach, support families in need and help communities thrive.
Keen to know more about why Umbo is set up as a social enterprise? Check out our Blog Post: 5 reasons why Umbo is a social enterprise