A social business is a non-loss, non-dividend company designed to address a social objective within the highly regulated marketplace of today. It is distinct from a non-profit because the business should seek to generate a modest profit but this will be used to expand the company's reach, improve the product or service or in other ways to subsidies the social mission.

Seven Principles

1	Business objective will be to overcome poverty, or one or more problems (such as education, health, technology access, and environment) which threaten people and society; not profit maximi zation
2	Financial and economic sustainability
3	Investors get back their investment amount only; no dividend is given beyond investment money
4	When investment amount is paid back, company profit stays with the company for expansion and improvement
5	Environmentally conscious
6	Workforce gets market wage with better working conditions
7	Do it with joy

Types of Social Business
Further there are two types of Social Business. A Type I social business focuses on providing a product and/or service with a specific social, ethical or environmental goal. A prominent example is Grameen Danone.

A Type II social business is a profit-oriented business that is owned by the poor or other underprivileged parts of the society, who can gain through receiving direct dividends or by indirect benefits. Grameen Bank, being owned by the poor, is the prime example of this type, although it would also classify as a Type I social business.

The difference between these two types can be stated simply – one is internally focused and the other is externally focused in its services.