STAND UP FOR SE
Trading responsibly, for a social purpose. Using the power of business to transform.
Social Enterprises are all around us; a recent report tells us that there are more than 68,000 in the UK alone, with a combined turnover of £27billion per year, busy delivering lasting social, economic and environmental change.
"A Social Enterprise is a business with primarily social objectives whose surpluses are reinvested for that purpose in the business or community, rather than being driven by the need to maximise profit for shareholders and owners"
Social Enterprises have been around for a long time. In 1844, suffering at the hands of exploitative factory owners and profiteering shopkeepers, 28 working men in Rochdale scraped together just £28 to open their own shop - so giving birth to the modern Co-op movement. Co-operative is now just one of many well known Social Enterprises which include Cafe Direct, Divine Chocolate, Belu Water and Jamie Oliver's "Fifteen" restaurant.
State of the Sector Report Published by SEUK
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.
Operating globally: The proportion of social enterprises that export or licence has grown to 14%. For over 1⁄3 of these, international trade accounts for between 11% and 50% of income
It’s all about business: 73% of social enterprises earn more than 75% of their income from trade.
Stronger than ever in public services: 27% of social enterprises have the public sector as their main source of income, an increase on 2013 and 2011. 59% of social enterprises do some business with the public sector.
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.
Job creators: 41% of social enterprises created jobs in the past 12 months compared to 22% of SMEs.
Not just any jobs: 59% of social enterprises employ at least one person who is disadvantaged in the labour market. For 16% of social enterprises, this group forms at least half of all employees.
Paying fair: The average pay ratio between social enterprise CEO pay and the lowest paid is just 3.6:1 – for FTSE 100 CEOs, this ratio stands at 150:1.
Not getting in on the Act: 49% of social enterprises operating in public sector markets say they’re yet to see it arrive in tender documents – there is much to do before the Social Value Act works as intended.
Appropriate funding and finance still key: 44% of social enterprises sought funding or finance in the last 12 months and 39% believe its lack of availability is a barrier to their sustainability. Just 5% of SMEs think access to finance is a barrier.
The natural home of the female entrepreneur: The trend of women leading social enterprises continues from 2013, with 40% of social enterprises now female-led.
As diverse as our communities: The leadership teams of social enterprise reflect the communities where they live and work: 12% of social enterprises are BAME led, 31% have BAME directors, 40% have a director with a disability.
Addressing the big social issues: Social enterprises seek to address a huge range of our most pressing social and environmental concerns. Individual social enterprises also try to address as many issues as they can – an average of 5.2 each – as they seek to maximise their social impact. They can prove it too – 76% of social enterprises now measure their social impact.
Job creators: A greater proportion of social enterprises are creating jobs than comparable SMEs, with 41% of social enterprises employing more people than 12 months ago. Not just any jobs: 59% of social enterprises employ at least one person who is disadvantaged in the labour market (e.g. long-term unemployed, ex-offenders, disabled people, etc.). This proportion increases to 66% in our most deprived communities. For 16% of social enterprises, this group forms at least half of all employees.