Starting something new is exciting, but it can also be overwhelming. If you’ve got an idea that could make a difference in your community or tackle a social issue you care about, you might be wondering: Should I start a business? A charity? Or something else entirely?
For many, the answer is to become a social enterprise. And with good reason as Scotland is not only home to over 6000 social enterprises, but it has one of the most robust policy frameworks in the world for this kind of business. It also has a world leading support ecosystem – including Just Enterprise!
The result is that by starting a social enterprise in Scotland, you are in a great place to successfully start and grow a business that combines a strong social mission with a sustainable trading model.
This guide will walk you through what a social enterprise is (and isn’t), how it compares to other organisational models, and how to decide whether it’s the right fit for your idea. It will also introduce the types of support available through the Just Enterprise programme.
What is a social enterprise?
Put simply, a social enterprise is a values-led business. Like any other business, it generates income by selling products or services. But unlike a traditional private business, it exists to achieve positive social or environmental outcomes – and reinvests most of its profits to further that goal.
As outlined earlier, in Scotland, social enterprises are an established part of the economy, where they operate in sectors as diverse as health and social care, housing, creative industries, education, youth work, environment, and community development.
Key features of a social enterprise:
- Clear social or environmental mission – Your purpose goes beyond profit to address a specific issue or need
- Trading-based income model – You sell products or services to generate most of your income
- Asset lock or reinvestment mechanism – Profits are reinvested in your mission rather than distributed to owners
- Accountable governance – You have structures to show how decisions are made and impact is achieved
- Autonomy from public sector control – You operate independently, even if you receive public funding
How does social enterprise compare to other models?
Choosing the right model depends on your goals, how you intend to generate income, and who will benefit from and control the organisation. Here is a basic overview of the key differences between operating as a social enterprise and the better-known models of private business or traditional charity.
| Feature | Private Business | Charity | Social Enterprise |
| Primary goal | Profit for owners | Public benefit | Social or environmental impact |
| Profit distribution | Kept/ Distributed |
Reinvested | Reinvested in mission |
| Trading income | Yes | Sometimes | Yes |
| Grants/donations | Rarely | Common | Sometimes |
| Governance | Directors/ Owners |
Trustees | Directors/ Trustees |
| Legal forms | Sole trader Ltd company |
SCIO Association |
CIC Ltd by Guarantee SCIO |
| Regulators | Companies House | OSCR | Companies House OSCR |
The choice between these models isn’t always clear-cut and it is a good idea to get specialist advice before making your final decision.
Many organisations combine elements – for example, a charity might develop trading income, or a social enterprise might apply for grants.
The key is finding the structure that best supports your specific goals and circumstances. We can help you navigate the options.
Is social enterprise right for your idea?
Not every idea needs to become a social enterprise. Consider the following questions:
- What’s your core purpose? Are you trying to solve a social or environmental issue? Is your primary aim to make money or make a difference?
- How will you fund your work? Will you sell a product or service? Are people willing and able to pay? Do you plan to apply for grants or raise donations?
- Who will benefit – and who will have control? Are you working for a community, or with them? Will surplus income be reinvested or extracted? How will decisions be made, and by whom?
Ultimately, if your idea involves trading in order to create positive change, and you want the flexibility to reinvest profits while maintaining social focus, then social enterprise could be the right fit.
But, it’s also important to note that this could change as you develop your idea. Some organisations start out as charities and evolve into social enterprises. Similarly, some social enterprises change shape and form over time.
What does a social enterprise look like in practice?
Here are just a few examples of early-stage social enterprises supported by Just Enterprise:
- Capoeira 4 Scotland formalised their youth movement classes as a CIC after recognising how the Afro-Brazilian art form could address social inequalities. They now offer free and discounted classes to people on low incomes, refugees, and asylum seekers, combining physical movement with cultural education to build community connections.
- Braw Tea operates a café that provides on-the-job training and personal development opportunities to disadvantaged women in their community.
- Creatovators grew from a grassroots initiative to a structured social enterprise provider supporting autistic people and families.
How Just Enterprise can help you
Just Enterprise is Scotland’s national support programme for social enterprises, with over a decade of experience helping thousands of organisations start, develop and grow.
Our fully-funded start-up support is designed around your needs and circumstances, beginning with a one-to-one conversation to understand your idea and where you want to take it.
Our specialist social enterprise business advisers cover the whole of Scotland and provide tailored guidance to help you:
- Understand legal structures and choose the right model for your situation
- Explore different business models and revenue streams
- Develop a clear plan for measuring and communicating social impact
- Build essential governance and financial management skills
- Connect with others in the sector and relevant support networks
The support is flexible – some people need intensive one-to-one guidance, while others benefit more from our workshops and online training. What matters is finding the approach that works for you.
Outcomes from our start-up clients show the difference this support makes:
- 93% improved their understanding of legal models and structures
- 88% rated the support they received as good or excellent
- 59% expect trading to become their main source of income
- 68% have developed or plan to develop an environmental policy
Ready to take the next step?
If you’re unsure how to move forward with your idea – or even whether a social enterprise is the right path for you – we can help.
One-to-one Support
Register for fully-funded support from a social start-up specialist:
Free Training:
We offer a popular programme of helpful workshops covering a range of essential topics between September and June each year.
Be sure to also sign up to our newsletter to receive updates about upcoming dates and topics.
Once you have created a Just Enterprise account, you can also request access to our on-demand ‘Steps to Start-Up’ e-learning course: