For social enterprises, the social impact of their business activities is most important. The Business is designed to solve a societal or environmental problem while generating profits. These profits must be reinvested within a short time. The is no retention for e.g. Shareholders, Managing Partners.
Social enterprises can be tax-favored if they are achknoledged as charitable. Not only the company also private sponsors benefit from the tax advantages as these donations can be used in their personal tax returns.