This document discusses some potential challenges or "banana skins" for social enterprises. It notes that social enterprises must make a profit and avoid relying on grants or donations like a charity. It can also be difficult to deal with underperforming staff. The definitions around social enterprises are vague and there is a risk of market confusion. A case study highlights specific issues a social enterprise called Caremart Ltd faced with its legal structure, not meeting funding criteria due to definitional problems, and delays due to staff performance problems. The document concludes by emphasizing that knowing these potential challenges can help social enterprises avoid them.