Setting up a social enterprise in the Netherlands

For many entrepreneurs, success is about more than just making money. Social entrepreneurs want to make a positive impact on society, the environment, or their community while running a financially healthy business.

Are you thinking about starting a social enterprise? Or perhaps you want to give your existing business a stronger social purpose? Here’s how to define your mission, choose the right legal structure, secure funding, and measure the impact you make.

What Is a Social Enterprise?

Does your business solve a social, societal, or environmental problem? And is that your company’s main purpose? Then you can call yourself a social entrepreneur.

Unlike traditional businesses, profit is not the primary goal of a social enterprise. Instead, earning money supports the mission and keeps the business financially independent.

What Makes a Social Entrepreneur Different?

Social entrepreneurship is often confused with sustainable or socially responsible business practices, but they are not exactly the same thing.

Jorien van Lookeren Campagne, policy officer at Social Enterprise NL, explains the difference:

“In social entrepreneurship, the social mission comes first. In sustainable or socially responsible businesses, profit is usually the main focus, with social goals added alongside it.”

Social enterprises can take many forms. For example:

• A restaurant that employs people with disabilities
• A furniture maker that creates new products from recycled materials
• A company focused on reducing food waste or improving access to education

As Van Lookeren Campagne puts it:

“Social entrepreneurs work towards social wellbeing, a healthier environment, and a more sustainable world.”

How to Start a Social Enterprise

If social entrepreneurship sounds like the right fit for you, there are a few important steps to take.

1. Define Your Mission and Approach

Most social enterprises begin with a problem the founder wants to solve.

Start by asking yourself:

• How big is the problem?
• What causes it?
• Who is affected?
• What does the target group really need?

Once you understand the issue, research existing solutions. Read articles and books, speak with experts, and look at businesses already working in this space.

Van Lookeren Campagne recommends learning from others:

“Look at entrepreneurs who are already addressing this issue. That helps you understand how your business can add value.”

From there, you can shape the approach your business will take.

A good example in The Hague is Happy Tosti. 100% of profits are reinvested in the business. The key aspect of their business model is the commitment they have made to ensure that at least 65% of all hours worked are carried out by employees with a disability.  To ensure their business model runs smoothly, they also employ people without disabilities. Each branch has a manager and our staff. They work with a partner who assists us with recruitment and selection

2. Choose the Right Legal Structure

Your legal structure plays an important role in how your social enterprise operates.

Many social enterprises choose a foundation structure (stuchting) because profits must be used to support the social mission. The board makes decisions and oversees how funds are spent.

However, other structures can also work well, including:

• A BV (private limited company)
• A cooperative

With a BV, shareholders have the final say. In a cooperative, members hold decision-making power. Both structures allow profits to be shared between the social mission and investors or members.

The BVm: A Social-Focused BV

The Dutch government is also developing the BVm, or social limited company, to support social enterprises.

According to Van Lookeren Campagne:

“A BVm makes it clear to customers and business partners that your social mission comes first.”

For example, this can help when applying for government tenders or partnerships.

The BVm is not a completely new legal form, but a variation of the BV. It is still under development, so it is not yet clear when entrepreneurs will officially be able to register one.

Sea Ranger Service combines both a foundation and several BVs. Founder Wietse van der Werf explains that this setup helps balance the social mission with commercial operations:

“The foundation protects the mission and works with government partners, while the BVs operate as businesses. That structure also appeals to investors.”

3. Arrange Financing

Like any business, a social enterprise needs funding to grow.

Fortunately, there are several financing options available, including:

• Social credit
• Grants and subsidies
• Crowdfunding
• Loans and impact investors

Financing tools and support programmes can help you find investors and funders that match your mission.

Support for Inclusive Hiring

If your business employs people with disabilities or those distanced from the labour market, you may qualify for government support schemes.

For example:

• You can receive help finding suitable employees
• Trial placements may be available
• Employees can work for two months while keeping their benefits
• A job coach can support both the employee and employer during the process

These programmes make it easier to create an inclusive workplace while reducing financial risk for your business.

4. Measure Your Impact

Once your business is running, it is important to track the difference you are making. The best way to do this is by measuring concrete results linked to your mission.

For example:

• If your restaurant employs people with disabilities, record how many hours they work
• If you create products from recycled materials, track how much waste you reuse
• If you pay farmers fairly, calculate the difference between your prices and market prices

These results can be included in your records, annual reports, and communication with customers or investors. Measuring your impact not only shows accountability, but also helps you improve and grow your mission over time.

Contact your local chamber of commerce for more practical information on how to register a social enterprise.