Ace the 2026 SQA National 5 Business Management Exam – Unleash Your Inner Business Guru!

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What is the primary aim of a social enterprise?

To generate maximum profits for shareholders

To assist in community development

The primary aim of a social enterprise is to assist in community development. Social enterprises are organizations that combine social and environmental objectives with commercial activities. They focus on creating positive social change while ensuring financial sustainability. This means that their profits are often reinvested back into the community or used to support a social mission rather than being distributed to shareholders, as is typical in traditional businesses.

Social enterprises often work towards addressing social issues such as poverty, education, and environmental sustainability. By prioritizing community development, they aim to improve the quality of life for individuals and groups within their target communities, making a tangible impact on societal challenges.

While generating profits, competing in the market, or lobbying for government support might be relevant aspects of some enterprises, they do not align with the core mission of a social enterprise, which is fundamentally about fostering community welfare and development.

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To compete in the free market

To lobby for government support

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