The different options for student company type

Helping your companies to decide which model is best for them

Student companies chose to set up under one of two models either a:

  • YE student profit-making company or
  • YE student social enterprise based on a Community Interest Company (CIC)

The same experience and student benefits apply to each of these models. The student company will follow the same milestone map, use the same processes and will use or develop the same skills.

However, there are several important differences in setting up and running a student company as a social enterprise:

  • the student company must be set up for a specified social or environmental purpose
  • it needs to cover its costs and can distribute a limited dividend to shareholders, but must reinvest surplus profits in line with its stated purpose
  • its purpose must be clear and declared before shares are sold
  • it will still function as a branch of YE but it will have a different set of Memorandum and Articles of Association to adhere to.

Young Enterprise itself is a social enterprise (as well as a registered charity), and other well-known Social Enterprises examples include The Big Issue and The Eden Project.

Further guidance on the social enterprise model can be found on YE Online when it opens in September.