The term social enterprise was initiated by Freer Spreckley 1978 then described in detail in the book “Social Audit – Management tools for cooperative activities” published in 1981; under which social enterprises are considered:
“Enterprises are owned by those who work in it and / or live in a certain locality, is operating for the purposes of social and commercial registered and operate cooperatively” (Spreckley 1981). Traditional business models are “capital-employed workers” and the biggest focus is profit above all and above all the benefits of including the enterprise or the labor force. Social enterprises as “employees employed capital”, pass the “exploitation” of the capital, with an emphasis on the benefits of social, environmental and financial.
Social Enterprise is trading for mutual benefit not soly own sake
Social Enterprise is a multi-dimensional approach, multidisciplinary and all sizes.
Social Enterprise is a dynamic approach to Sustainable Development
Social enterprises, along with the development of the Industrial Revolution 4.0, offering a new perspective, as a model / new approaches and effective for Sustainable Development in the beginning of 21st century, other than the “static” view from the 1970s
Central position of social enterprises in the market economy
Social enterprise is a new approach. Different from ordinary businesses (businesses only with commercial business net, profit as the goal) and charity (less in creating economic benefits, depending on funding, sponsorship, or subsidies ), social enterprise is the business organization using profit as a tool to solve the problems and needs of the society and the environment.
Social Enterprises therefore have an important position in the market econom, especially the possibility in the linking profit making initiative with the goal of serving the community, creating the social values.
Criteria of Social enterprises in Vietnam
Article 10 of the Enterprise Law in 2014: social enterprise must meet the following criteria:
- Established under the provisions of the Enterprise Law;
- Operational objectives to address social issues, the environment for the benefit the community;
- Use at least 51% of the annual profits of the business to reinvest in order to achieve the registered social, environmental objectives.
The specific provisions of social enterprises: Enterprise Law (Article 10); Decree 96/2015 / ND-CP and Circular No. 04/2016 / TT-BKH.