What is a social enterprise?
Social enterprises are businesses which a set up to change the world. Like traditional businesses they aim to make a profit but it's what they do with their profit that sets them apart - reinvesting or donating it to create positive social change. Social enterprises exist in nearly every sector from consumer goods to healthcare, community energy to creative agencies, restaurants to facilities management. Well known examples include The Big Issue, Divine Chocolate and the Eden Project but there are over 70,000 social enterprises throughout the country contributing €24 billion to the economy and employing nearly a million people.
They're creating jobs and opportunities for those most marginalised from the workforce, transforming the communities they work in and making the Sustainable Development Goals reality. It's business for good and when they profit, society profits.
Social enterprises are businesses that:
Have a clear social and/or environmental mission set out in their governing documents
Generate the majority of their income through trade
Reinvest the majority of their profits
Are autonomous of the state
Are majority controlled in the interests of the social mission
Are accountable and transparent
The State of Social Enterprise Report
The State of Social Enterprise Report is the most comprehensive research undertaken into the state of the sector. Here are some of the key findings:
A dynamic movement: Close to half (49%) of all social enterprises are five years old or less. 35% are three years old or less - more than three times the proportion of SME start-ups. In terms of new business formation in the UK, social enterprise is where the action is.
At the forefront of economic recovery: The proportion of social enterprises that grew their turnover over the past 12 months is 52%. A greater proportion of social enterprises are growing than mainstream SMEs (40%).
Making a profit, making a difference: 50% of social enterprises reported a profit, with 26% breaking even. Almost all use the majority of those profits to further their social or environmental goals.
Focused where most needed: 31% of social enterprises are working in the top 20% most deprived communities in the UK.
Innovation pioneers: The number of social enterprises introducing a new product or service in the last 12 months has increased to 59%. Among SMEs it has fallen to 38%.
An inclusive and diverse leadership: 40% of social enterprises are led by women; 31% have Black Asian Minority Ethnic directors; 40% have a director with a disability.
Different types of social enterprise
Entrepreneurial Nonprofit.
Non-nonprofit.
Socially Responsible Business.
Give One, Get One/Donate Portion of Proceeds Model.
Awareness Brand.
Everything Else.
The Big Issue is one of the oldest and biggest Social enterprises in the UK. All the profits made by the Big Issue Group are reinvested back into helping vendors with a 'hand up, not a hand out.' Big Issue Vendors are able to earn an income by selling Big Issue magazine. Our frontline team set vendors up with selling locations, provide sales support and arrange for cashless payment options. We support every vendor to run their own mini business, buying and selling the Big Issue magazine each week.
What are examples of social enterprises in the UK?
NAViGO – transforming mental health care.
Real Ideas Organisation – growing the social economy in the South West.
Butterfly Books – children's books tackling gender stereotypes.
The Big Issue Invest also works with other social enterprises such as Invisible cities. Invisible Cities works across Scotland to train people affected by homelessness to become walking tour guides in their own city. They also recruit professional tour guides as volunteers and offer homeless trainees 1-2-1 sessions on how to build a tour, the content to include, and general guiding tips.
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