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In this article we attempt to make sense of recent policy directions and controversies relating to the ‘social enterprise’ and ‘health’ interface. In doing so, we outline the unrecognised potential of social enterprise for generating health and well-being improvement, and the subsequent challenges for government, the sector itself, and for the research community. Although we focus primarily upon the UK policy landscape, the key message – that social enterprise could represent an innovative and sustainable public health intervention – is a useful contribution to the ongoing international debate on how best to address the challenge of persistent and widening health inequalities.