Let's break it down with something specific: Homelessness

I have a bad habit of writing in general terms, because social impact is very broad, so let's illustrate with homelessness.

For a social entrepreneurship to tackle homelessness, it means you have a business model. For example:

• A business which hires homeless and gives work experience and training.

• A business which sells something, like the Big Issue - that both provides income to sellers and supports local shelters

How is this different from a charity?

A charity generally relies on donations and grant funding for their philanthropic mission. For example:

• A church which runs a food pantry.

• A volunteer organization handing out blankets.

• A homeless shelter providing housing.

Further, all charities are non-profits, but a social enterprise can be either for-profit or non-profit.

Can a social enterprise be a charity?

Yes. The Salvation Army operates with both grant funding, and revenue from their thrift stores. They are a social enterprise in the sense that they have a business model (selling goods through their thrift stores), and they are a non-profit charity in the sense that they are registered 501(c)(3) which exists for a public benefit.

But a social enterprise doesn't need to be a charity. For example, Confier Realty is a for-profit company creating high-quality, affordable & sustainable housing for those in low income brackets, including those at risk of homelessness.