Why is My Business, United Sewing and Design, a Social Enterprise?

Social enterprises can support families.
Social enterprises can support families. Photo by kazuend on Unsplash

A common definition of a “social enterprise”(SE) could be, “a profit earning business that has, as its primary goal, creating the maximum positive impact possible in society and/or the environment.

As you can see, from this definition, SE’s are profit making unlike not-for-profits. And, unlike a typical business, their primary goal is not to produce maximum profits for owners and shareholders as in a typical for-profit business, but to create positive change in society and the environment. If you’ve read the “About” page on our website, or my profile on LinkedIn, then you know that United Sewing and Design is an SE.

First, a caveat with my explanation. My business is an LLC and so, is not registered as an SE according to the State of Connecticut. The reason that I chose not to participate in that designation, also known as a “B Corp,” is because in CT, to start a B Corp., you are required to register as an “S,” or “stock corporation,” to sell stock, have shareholders (obviously) and a board of directors. This earns significantly more in fees for the state. Additionally, it also requires a layer of reporting to the public about the social or environmental good created by the SE. My contention is that a business can be labelled by its activities as an SE and participate voluntarily in the public reporting without paying burdensome fees. We’ll see how that works out.

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