What is the difference between a charity and a social enterprise?

What is the difference between a charity and a social enterprise?

A charity primarily focuses on providing help and support to those in need, often funded by donations. A social enterprise, on the other hand, aims to generate revenue while addressing social issues, reinvesting profits back into the community.

Can you give me examples of each?

Sure! An example of a charity is the Red Cross, which provides disaster relief. A social enterprise example is TOMS Shoes, which donates a pair of shoes for every pair sold.

Which one is more effective in making a social impact?

It depends on the context. Charities can provide immediate relief, while social enterprises can create sustainable change by addressing root causes.

Are there any downsides to social enterprises?

Yes, social enterprises can face challenges like balancing profit and purpose, and they may struggle with funding compared to traditional charities.