Social Firms are a distinct type of social enterprise. They are recognised internationally as market-led enterprises, working in a wide range of sectors with a specific social mission to create employment for people most disadvantaged in the labour market. This includes people who have disability, a history of mental health problems as well as others who face major barriers to employment, for example because they have a criminal record or a drug or alcohol dependency.

Social Firms use enterprise to achieve their social mission and are thus different from other, more traditional models of employment provision and support for disabled people, such as sheltered workshops. Social Firms' commitment to enterprise and the market-led focus of their operations underscores their sustainability and thus distinguishes them from some supported businesses.

A Social Firm is committed to:
• generating over 50% of its income through sales of goods/and or services, and
• ensuring that at least 25% of the people it employs are at a particular disadvantage in the labour market

An emerging Social Firm will be trading and working towards achieving these targets.

Social Firms offer people the opportunity to work in a supportive and inclusive working environment, free from stigma and discrimination. People are valued for their abilities and are supported and encouraged to participate - everyone's contribution is valued.

Social Firms are often described as being like a family business, partly because of the social investment in operating the business and partly because of the close supportive relationships between staff.