The term “social enterprises” refers to a wide range of institutions that lie between not-for-profit and for-profit organisations. They are driven by social missions. This article treats cooperatives as an effective model of social entrepreneurship for development in rural areas. It also examines the significance of cooperatives for the developmental process. Additionally, it compares the modes of operation of private firms and cooperatives. It also develops the criteria for measuring the economic performance of social enterprises and concludes that profitability should not be the sole criterion for judging the performance of cooperatives.
