Definition: A social business is a non-loss, non-dividend company which addresses a social goal.
Unlike charity, the investor also receives their initial investment back. So, social business is an alternative and complement to charities or non-profit organisations and provides a sustainable solution to a social problem.
Because it is a business, the social business dollar has multiple lives (the profits of the company are reinvested for expansion and improvement) in comparison to a charity where the dollar is used once and the charity is then forced to seek further funding to continue its operations.
See next entry for an example!
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