Social enterprises report a useful contribution

20 June 2013

A report titled Legal Structures for Social Enterprise produced by the Department of Internal Affairs provides useful insight into social enterprises and their needs.

Currently social enterprises are most commonly set up as charitable trust boards or incorporated societies and as their trading activity grows they may establish separate company structures. Increasingly social enterprises are being structured as limited liability companies with “social good” objectives.

“The Department is pleased to release this report. I am aware that social enterprise networks are looking to build in strength and that some countries have adopted specific legal structures tailored for social enterprises. The report concludes that current legal structures in New Zealand are providing sufficient flexibility to meet social enterprise needs and that a new structure is not the priority concern for social enterprises at this time,” says Raj Krishnan, Director Policy for Internal Affairs.

He says the report identifies key challenges around capability building, investment readiness and accessing early stage capital. “Social enterprises can potentially play a significant role in social innovation and economic development. Collaborative discussion between government agencies and social enterprise networks will identify ways that this sector can grow in strength.

“We believe the release of this report will encourage useful dialogue on this issue,” says Raj Krishnan.

The report can be accessed at: www.dia.govt.nz/cvs