What defines a social enterprise?

A social enterprise is defined as an organization that is established with the primary goal of achieving social, environmental, or cultural objectives rather than simply focusing on maximizing profit for shareholders. This type of organization balances the pursuit of financial sustainability with its mission to create positive social impact. For instance, a social enterprise might provide job training for underprivileged individuals while also operating a business that generates revenue.

In contrast, the other options indicate organizations with different priorities. An organization that focuses on maximizing shareholder profit does so at the expense of broader social objectives. A business aimed solely at commercial objectives prioritizes financial outcomes without integrating social missions. A government initiative for public welfare typically operates within public sector parameters and may not operate on the principles of a business model like that of a social enterprise. Thus, the essence of a social enterprise lies in its commitment to combining business practices with a mission to benefit society and the environment.