SOCIAL ENTERPRISE
Tough times are said to bring out the best in people, which could explain why, in spite of a tough economic climate, the social enterprise sector is thriving.
Social enterprises, or ‘socents’, are businesses whose key objective is to enhance local communities, help the environment, tackle social problems, and essentially improve peoples’ lives, and in spite of the economic challenges, are led by people who are determined to do good and give something back.
Social Enterprise UK estimates there are around 62,000 socents in the UK – notably TV chef Jamie Oliver and his socent restaurant Fifteen - whose owners are twice as confident about future growth than those of SMEs) and are achieving it.
Awareness of the sector has been growing, aided by the government’s recent announcement of Big Society Capital, a £600 million fund for investment in social schemes and initiatives which will help to boost profits.
Yes, socents do make profits, but instead of going to shareholders, they are reinvested in the business or the community it serves. So if it’s not financial gain, what drives people to run a social enterprise?
Mike Beardshall, director of business consultancy Epsilica and a staunch supporter of the social enterprise movement, believes it is simply the fact
that at heart, the majority of
people are committed to a strong society.
48 entrepreneurcountry
He says: “This manifests in many ways, for some it is realised through charitable giving, for others it’s creating a business with values that align to social benefit and for some it manifests into a social enterprise structure, an organisational structure which is tightly coupled with the local community, profit, employment and purpose all aligned for a common, social purpose.”
Founded in 2010, Essential Social Enterprises is actually a group of social enterprises that delivers a range of community projects and initiatives throughout the UK.
Co founder Jill Wood says: “Our original idea was to offer childcare for children and young people with special needs; however, we quickly evolved into offering other specialised services, including holiday clubs, overnight and respite care. We are now extending our activities through community projects such as the youth hubs and community allotments.
“We went down the social enterprise route as we wanted the services to be run for the community, specifically, for people who need to access services that are right for them. Everyone benefits as we in turn reinvest our profits back into the community that is using our service. Seeing the difference that we are making in those communities is the reason why we do it, and why a social enterprise has
been the best business model for us.”
Philanthropy the
a major part in the rise of
plays social
enterprise concept, not just because people believe in supporting good causes, but because of a growing realisation across all sectors of business that the future lies in a balance between doing good and making profits.
One of the biggest problems for the sector is a lack of real understanding of what a socent is, and where it sits in the overall scheme of things, says Rosemary Wilkins, director of Hub and Spoke Harlow, which repairs, services and recycles bikes, generating income to support the community aspect of the business.
She says: “I think there is also a degree of misconception within the public and business world that socents are not ‘proper’ businesses, but that is something only socents themselves can change by networking and doing business with private and for profit sectors.”
They face the same challenges as any other business; funding, premises, and staff all have to be sourced, and services have to be marketed.
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