My economy professor always tell me that to answer a question, you must first define the question. So, what is a social enterprise?
Social enterprise is basically same as any other firms that make money by selling goods or services. However, the major difference between a commercial and social enterprise is that a social one will reinvest its profits back into the company instead of giving returns to investors.
I think even though United Nations is fully funded, there is still a need to create Arc or social enterprises because of the hardship to sustain enough donations. United Nations now receives donations from all around the world. However, what if no one donates all of a sudden?
Social enterprises will most likely never encounter this issue. Social entrepreneurs who run the company will provide professional advice and sustain profits. For instance, a social enterprise that provides inexpensive dental care can reinvest its profits back to the company and open a new center in another location. In this way, it will be able to maximize the usage of donations and also the efficiency of helping individuals.
Source:
