"Social enterprise is a business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profits for shareholders and owners".

Social enterprises are dynamic businesses with a social purpose. They have social aims, trade in competitive markets and reinvest their profits for community benefit.

The sector is diverse and includes cooperatives, credit unions, housing associations, community development trusts, social firms and community businesses. Social enterprises also operate across a wide range of industries including growth sectors such as recycling, renewable energy and social care.

There is no single legal form used by social enterprises. Some incorporate as companies and may or may not also take charitable status, while others form as Industrial and Provident Societies. In 2005 a new legal form came in to being - the first for more than 100 years. The Community Interest Company is a bespoke company form designed for social enterprises with a built-in asset lock.

DTI research in 2005 indicated there are at least 1,100 social enterprises in Scotland, employing 30,000 people and adding £1.25bn to the national economy. More recent local and national studies suggest the true figure could be more than 3,000.

Use these pages to find out more about specific types of social enterprise and to read case studies of successful social enterprises in Scotland. For more information download the Scottish Social Enterprise Coalition guide "A different reason for doing business".