About Social Enterprise
Social Enterprises are businesses driven by a social or environmental purpose. There are 62,000 of them in the UK, contributing over £24bn to the economy, employing approximately 800,000 people (2005-2007 data from the Annual Survey of Small Business UK).
As with all businesses, they compete to deliver goods and services. The difference is that social purpose is at the very heart of what they do, and the profits they make are reinvested towards achieving that purpose. Well known examples of social enterprises include The Big Issue, Jamie Oliver's restaurant Fifteen, and the fair-trade chocolate company Divine Chocolate.
The government defines social enterprises as "businesses with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners."
Social enterprises operate in almost every industry in the UK, from health and social care to renewable energy, from retail to recycling,from employment to sport, from housing to education. Whatever they do, they do it differently from typical business, because they are driven by a social and/or environmental mission, and they are focused on the community they serve. In a recent survey into social enterprise, 45% of respondents said that 'putting something back into the community' was their reason for setting up a social enterprise.
1. What are social enterprises?
Social enterprises are businesses trading for social and environmental purposes. Many commercial businesses would consider themselves to have social objectives, but social enterprises are distinctive because their social and/or environmental purpose is absolutely central to what they do - their profits are reinvested to sustain and further their mission for positive change.
2. What are some examples of social enterprises?
The Big Issue, the Eden Project and Jamie Oliver's restaurant Fifteen are examples of social enterprises.
So areaward-winners Divine Chocolate,a fair trade chocolate company co-owned by the cocoa farmers cooperative Kuapa Kokoo in Ghana and Women like Us, which connects women with flexible employment.
Social enterprises cover a huge range of industries - Cafedirect is the UK's largest Fairtrade hot drinks company; The Elvis & Kresse Organisation (EaKo) takes industrial waste materials, turns them into stylish luggage and hand bags and donates 50% of the profits to the Fire Fighters Charity; Hill Holt Wood educates at-risk youth in an ancient woodland; Central Surrey Health is a pioneering social enterprise in the health care world that is run by the nursing and therapy teams it employs; Green-works takes office furniture that would have been sent to the landfill and offers it at a large discount to charities and other organisations.
3. What is the Social Enterprise Coalition?
The Social Enterprise Coalition is the UK's national body for social enterprise. Established in 2002, the Coalition represents a wide range of social enterprises, umbrella bodies and networks, with a combined membership reaching more than 10,000 social enterprises.
As the voice for the movement, the Coalition provides a powerful platform for showcasing the benefits of social enterprise while supporting and representing the work of its varied members, influencing national policy and promoting best practice.
4. What is the history of social enterprise?
The pioneers of social enterprise can be traced as far back to the1840s, at least, in Rochdale, where a workers' co-operative was set up to provide highquality affordable food in response to factory conditions that were considered to be exploitative.
In the UK, a resurgence of social enterprise started in the late 1990s with the coming together of different traditions, including co-operatives, community enterprises, enterprising voluntary organisations and other forms of social business.
5. What data is there on the size and popularity of the social enterprise movement?
Government data (the Annual Survey of Small Businesses UK 2005-2007) estimates that there are approximately 62,000 social enterprises in the UK contributing at least £24bn to the economy. Social enterprises are estimated to employ 800,000 people.
The State of Social Enterprise Survey, released November 2009 found that despite the recession, social enterprises are twice as confident of future growth as typical small to medium enterprises (SMEs), with 48% of social enterprises responding positively as opposed to just 24% of SMEs.
Additionally, since the economic downturn began, 56% have increased their turnover from the previous year whilst less than 20% have seen it go down. This is a considerably better performance than SMEs in the UK, where only 28% increased their turnover and 43% saw it go down.
The survey also found that social enterprises challenge the glass ceiling: 26% of social enterprises could be described as ‘women-led' - almost twice as many compared to small businesses (26% compared to 14%). Furthermore, 41.1% of all board members are women, compared to just 11.7% of board members in FTSE 100 companies and 4.9% in AIM-listed companies.
Other research released by Delta Economics in July 2008 found that:
That same survey polled 2,000 people and asked them what kind of company they would like to work for. A clear majority, 30%, picked social enterprise, with only 16% of respondents saying they would like to work for a traditional business, 13% choosing a government institution and 13% a traditional charity.
Why social enterprise?
© Social Enterprise Coalition
As with all businesses, they compete to deliver goods and services. The difference is that social purpose is at the very heart of what they do, and the profits they make are reinvested towards achieving that purpose. Well known examples of social enterprises include The Big Issue, Jamie Oliver's restaurant Fifteen, and the fair-trade chocolate company Divine Chocolate.
The government defines social enterprises as "businesses with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners."
Social enterprises operate in almost every industry in the UK, from health and social care to renewable energy, from retail to recycling,from employment to sport, from housing to education. Whatever they do, they do it differently from typical business, because they are driven by a social and/or environmental mission, and they are focused on the community they serve. In a recent survey into social enterprise, 45% of respondents said that 'putting something back into the community' was their reason for setting up a social enterprise.
1. What are social enterprises?
Social enterprises are businesses trading for social and environmental purposes. Many commercial businesses would consider themselves to have social objectives, but social enterprises are distinctive because their social and/or environmental purpose is absolutely central to what they do - their profits are reinvested to sustain and further their mission for positive change.
2. What are some examples of social enterprises?
The Big Issue, the Eden Project and Jamie Oliver's restaurant Fifteen are examples of social enterprises.
So areaward-winners Divine Chocolate,a fair trade chocolate company co-owned by the cocoa farmers cooperative Kuapa Kokoo in Ghana and Women like Us, which connects women with flexible employment.
Social enterprises cover a huge range of industries - Cafedirect is the UK's largest Fairtrade hot drinks company; The Elvis & Kresse Organisation (EaKo) takes industrial waste materials, turns them into stylish luggage and hand bags and donates 50% of the profits to the Fire Fighters Charity; Hill Holt Wood educates at-risk youth in an ancient woodland; Central Surrey Health is a pioneering social enterprise in the health care world that is run by the nursing and therapy teams it employs; Green-works takes office furniture that would have been sent to the landfill and offers it at a large discount to charities and other organisations.
3. What is the Social Enterprise Coalition?
The Social Enterprise Coalition is the UK's national body for social enterprise. Established in 2002, the Coalition represents a wide range of social enterprises, umbrella bodies and networks, with a combined membership reaching more than 10,000 social enterprises.
As the voice for the movement, the Coalition provides a powerful platform for showcasing the benefits of social enterprise while supporting and representing the work of its varied members, influencing national policy and promoting best practice.
4. What is the history of social enterprise?
The pioneers of social enterprise can be traced as far back to the1840s, at least, in Rochdale, where a workers' co-operative was set up to provide highquality affordable food in response to factory conditions that were considered to be exploitative.
In the UK, a resurgence of social enterprise started in the late 1990s with the coming together of different traditions, including co-operatives, community enterprises, enterprising voluntary organisations and other forms of social business.
5. What data is there on the size and popularity of the social enterprise movement?
Government data (the Annual Survey of Small Businesses UK 2005-2007) estimates that there are approximately 62,000 social enterprises in the UK contributing at least £24bn to the economy. Social enterprises are estimated to employ 800,000 people.
The State of Social Enterprise Survey, released November 2009 found that despite the recession, social enterprises are twice as confident of future growth as typical small to medium enterprises (SMEs), with 48% of social enterprises responding positively as opposed to just 24% of SMEs.
Additionally, since the economic downturn began, 56% have increased their turnover from the previous year whilst less than 20% have seen it go down. This is a considerably better performance than SMEs in the UK, where only 28% increased their turnover and 43% saw it go down.
The survey also found that social enterprises challenge the glass ceiling: 26% of social enterprises could be described as ‘women-led' - almost twice as many compared to small businesses (26% compared to 14%). Furthermore, 41.1% of all board members are women, compared to just 11.7% of board members in FTSE 100 companies and 4.9% in AIM-listed companies.
Other research released by Delta Economics in July 2008 found that:
- Almost 1.3 million people consider themselves to be social entrepreneurs, representing a significant part of the UK's labour force.
- 35% of all entrepreneurs who have been involved in start-up activity for less than three months in the UK are social entrepreneurs.
That same survey polled 2,000 people and asked them what kind of company they would like to work for. A clear majority, 30%, picked social enterprise, with only 16% of respondents saying they would like to work for a traditional business, 13% choosing a government institution and 13% a traditional charity.
Why social enterprise?
- You want to change the world
- You're not just in it for the money
- You do things differently
© Social Enterprise Coalition
