Social Entrepreneurship Quiz

Explanation
The correct answer is The Co-operative Group. The organization was founded in 1863 and currently has over 4.5 million members. It employs over 120,000 people and has a turnover of over £9bn. The services it offers include banking, insurance, retail, and travel.

Explanation
A social enterprise operates as a business because it aims to generate revenue and sustain itself financially, just like any other business. However, what sets it apart is that its primary goal is to create positive social or environmental impact rather than solely maximizing profits. Social enterprises often reinvest their profits back into their mission or community, and they use business strategies and models to address social or environmental issues effectively. By operating as a business, social enterprises can combine the power of entrepreneurship with a social mission to drive meaningful change.

Explanation
The statement is true because when a business generates surplus money, it has the option to reinvest it back into the business for expansion, research and development, or to improve operations. This reinvestment can help the business grow and become more profitable in the long run. Additionally, businesses may also choose to reinvest in the community by supporting local initiatives, charities, or infrastructure projects, which can have positive social and economic impacts.

Explanation
A social enterprise is not driven to maximize profits for shareholders. Unlike traditional businesses, social enterprises prioritize social or environmental goals over financial gains. They aim to create positive change in society by addressing social issues and reinvesting profits into their mission. While they may generate profits, their main focus is on achieving social impact rather than solely maximizing financial returns for shareholders. Therefore, the given statement is false.

Explanation
A social enterprise is not necessarily a charity because while both may have similar goals of benefiting society, they operate differently. A social enterprise is a business that uses commercial strategies to achieve social or environmental objectives, while a charity is a non-profit organization that aims to provide assistance and support to those in need. While some social enterprises may be structured as charities, not all social enterprises are charities as they can also be structured as for-profit organizations. Therefore, the statement that a social enterprise is a charity is false.

Explanation
Divine Chocolate and John Lewis are both examples of social enterprises/cooperatives. Divine Chocolate is a social enterprise because it is owned by cocoa farmers and aims to empower them by providing fair trade opportunities. John Lewis, on the other hand, is a cooperative as it is owned and operated by its employees who share in the profits and have a say in the company's decision-making process. Both organizations prioritize social and ethical values in their business models, making them social enterprises/cooperatives.

Explanation
Social enterprises, like any other business, are required to pay taxes. They may be eligible for certain tax exemptions or benefits, but they are still obligated to contribute their fair share. Paying taxes helps fund public services and infrastructure, ensuring the smooth functioning of society. Additionally, it promotes transparency and accountability, as social enterprises are expected to comply with tax regulations and fulfill their financial responsibilities. Therefore, the correct answer is "Yes."

Explanation
A social enterprise can have tradable shares because it is a business that aims to generate profit while also addressing social or environmental issues. By allowing shares to be traded, it provides an opportunity for investors to buy and sell ownership stakes in the enterprise, which can help raise capital and attract investors who are interested in both financial returns and social impact. This allows the social enterprise to access more funding and potentially grow and expand its operations.

Explanation
There are approximately 62,000 social enterprises in the UK. This means that there are a significant number of organizations that aim to address social or environmental issues while also generating revenue. These enterprises can range from small local initiatives to larger national or international organizations. The presence of such a large number of social enterprises indicates a growing interest in using business as a force for positive change in the UK.

Explanation
The correct answer is £24 billion. This means that the approximate combined turnover of social enterprises in the UK is £24 billion.