The meaning of “social enterprise” varies and has evolved over time, depending on the context in which this term is defined. In general, a social enterprise can be understood as an organization that uses a business management approach to generating revenues with a social purpose. 

A social enterprise can be organized as a charity or not-for-profit, which can be structured as trusts, unincorporated associations, or corporations, usually as non-share capital corporations. A social enterprise can also be organized as a for-profit corporation with a governance structure defined by its social purpose. British Columbia and Nova Scotia have a special legislative framework for social enterprises. The choice of structure will depend on many factors, including the purposes of the proposed organization, how the organization plans to raise funds, and the tax regime governing the organization. 

Social finance refers to investments intended to create a measurable social impact while at the same time generating financial returns. Other terms often used in this context are socially responsible investing, impact investing, and social investing. However, each term also refers to particularly different contexts.

Social finance encompasses the perspectives of the organization or persons raising capital for a social purpose as well as the perspectives of organization or persons, including government, providing social finance capital. A key element of any social finance arrangement is the manner in which the mandate to achieve the social purpose is adopted, implemented, and measured.