In order to continue to meet the social needs they were set up to fulfil, social enterprises need to be able to generate enough revenue, make a profit so they can continue to function. If a profit is made then there is the opportunity for a financial as well as a social return to be made for the EuSEF investors.
This creates the potential for a conflict of interest between investors who would like to see a return on their money and the underlying social businesses which will need to reinvest their profits to ensure the business continues. The EuSEF rules deal with this problem by permitting profits ...