Social Enterprises are businesses that trade in the market in order to fulfil social aims. They bring people and communities together for economic development and social gain. They are important sources of entrepreneurship and jobs in areas where traditional 'investor driven' enterprise structures may not always be viable.
Social Enterprises have three common characteristics:
- Enterprise orientated - they are directly involved in the production of goods and provision of services to the market. They seek to be viable trading concerns, making a surplus from trading.
- Social aims - they have explicit social aims such as job creation, training and provision of local services. They have ethical values including a commitment to employing people in the local area from all backgrounds. They are accountable to their members and the wider community for their social, environmental and economic impact.
- Social ownership - most are based on voluntary participation, membership and commitment. Profits are distributed as profit sharing to the members (stakeholders) or used for the benefit of the community.
Social Enterprises are part of the growing 'social economy'. The social economy is a growing collection of organisations that exist between the traditional private sector and the public sector. It includes voluntary and community organisations, foundations and associations of many types. Social Enterprises are businesses that combine the entrepreneurial skills of the private sector with a strong social mission that is characteristic of the social economy as a whole.
Social Enterprises come in a variety of forms, which includes:
- Employee owned businesses: creating jobs and rescuing jobs as part of economic development strategies.
- Credit Unions: financial co-operatives which are owned and controlled by their members and provide facilities for saving and borrowing money as well as other financial services.
- Co-operatives: organised by and for their members to provide a shared service from which they all benefit.
- Development Trusts: key in community-based regeneration.
- Social Firms: provide employment and training to people with disabilities and other disadvantaged groups.
- Community businesses: trading organisations which are established to provide service and/or employment in a local community. Their focus is about building the community and the local economy and ultimately create self-supporting jobs for local people.
- Charities' Trading Arms: some charities establish trading arms in pursuit of their aims. These range from restaurants to book stores and more innovative ventures such as fair trade initiatives.
- Voluntary and community organisations/associations: important providers in health care, care for the elderly and children and social services.
The social economy is important because it:
- contributes to efficient competition in the markets
- offers the potential for job creation and new forms of entrepreneurship and employment
- is largely founded on membership activities
- meets new needs
- favours citizen participation and voluntary work
- enhances community integration
If you would like further information on getting involved with social enterprises you may find the following links useful:
Southampton Area Co-operative Development Agency
www.co-op-assist.co.uk/sacda
Practitioners in co-operative and community economic development
Co-operative Assistance Network Ltd (CAN)
www.co-op-assist.co.uk
Specialist trainers and consultants to local community and co-operative initiatives
Co-operative Information Superhighway
www.coop.org
Official site of the International Co-operative Alliance
Community Action Network (CAN)
www.can-online.org.uk
A mutual learning and support network for social entrepreneurs
Social Firms UK
www.socialfirms.co.uk
Aims to create employment opportunities for disabled people through the development and support of social firms
Association of British Credit Unions Ltd (ABCUL)
www.abcul.org
ABCUL is the main trade association for credit unions and provides training, support and information services for members.
Black Training and Enterprise Group (BTEG)
www.bteg.co.uk
National organisation working to improve opportunities in black communities
Development Trusts Association
www.dta.org.uk
National body of development trusts providing information, support and advice.
Employee Ownership Options
www.employee-ownership.org.uk
Information on how employee ownership can bring benefits to employees, business owners and trade unions
Inland Revenue (Share Schemes)
www.ir.gov.uk/shareschemes
Information on profit sharing schemes
Job Ownership
www.jobownership.co.uk
Research, lobbying and advice on employee ownership
Proshare
www.proshare.org
Promotes wider share ownership and financial education.
Social Venture Network
www.svn.org
Non profit network committed to building sustainable business
UK Social Investment Forum
www.uksif.org
Promotes and encourages socially responsible investment in the UK
