Is social enterprise a charity? Social enterprises are
businesses that aim to tackle social or environmental problems, improve
communities or people’s livelihood. They trade like commercial businesses
however their surplus is reinvested into the business for community benefit. Social
enterprises are set-up to create positive change in the community they operate
in. Charities are non-profit businesses who aim to ‘aid’ communities and not ‘trade’.
Social enterprise is not a new paradigm, in fact, it has
existed for many years. The pioneers of social enterprise can be traced to
Rochdale in the 1840s where a worker’s co-operative was established to provide
high quality and affordable food in response to factory conditions that were
considered to be exploitative (Social Enterprise UK, 2014). The evolution began
in the 90s when different interest groups like enterprising charities,
co-operatives, community enterprises and social businesses united in the hope
of doing business for social change.
Social
enterprise WHY?
Why should anyone set-up a business for the purpose of not
making profit? Let’s just say someone or group of individuals have to take the
lead to tackle problems many communities face as the austerity measures
tightens. Although social enterprises are not immune to the economic downturn,
research has shown that they are largely concentrated in the most deprived
communities. Social Enterprise UK report (2013) revealed that, 38% of all
social enterprises work in the most deprived 20% of the communities in the UK,
58% reported growth in 2011 and 57% predicted growth in 2013. The more deprived
the community, the more likely a social enterprise will be established there.
Evidently social enterprises are on the rise, there is an estimated 70,000 operating
across different sectors and regions in the UK (Social Enterprise UK, 2013).
The rise offers an opportunity to strengthen communities by improving standard
of living, creating employment opportunities, supporting vulnerable people (including
children and young people), improve health and wellbeing, protecting the
environment, promoting education and literacy and addressing social exclusion.
Social enterprises have also helped to break down barriers in
many areas of employment. For instance, 38% of social enterprise leaders are
women and only 9% of social enterprises have male only leadership teams. 15% of
social enterprises are from Black, Asia, Minority Ethnic communities (BAME) and
28% of the leadership teams have BAME directors. Equally important, social
enterprises employ people who are at a disadvantaged- ex-offenders, disabled
people or long-term unemployed (Social Enterprise UK report, 2013).
Social
enterprise WHO?Who can set-up a social enterprise? Anyone with a clear social and/or environmental mission can set up a social enterprise. However, the mission must be clearly defined on how the business will operate to meet its aims- through trading, community inclusion and reinvesting profits back into the business.
There are a number of social enterprises who have made
significant changes through their services over the years- The Eden Project, The Big Issue, Jamie Oliver's restaurant Fifteen, Divine
Chocolate, a fair trade chocolate company co-owned by the cocoa farmers’
cooperative KuapaKokoo in Ghana and Timewise, which connects
professionals with flexible employment opportunities. Other emerging social
enterprises are Eighteen Forever, a fashion design company set-up to create
employment opportunities and promote diversity in fashion and Jekkah Clothing a
social enterprise fashion brand from The Gambia.
Social
enterprise HOW?
How can I set-up a social enterprise? First, you need to do
some research about your mission and funding available specifically to social
enterprises. You can contact Social Enterprise UK for advice or read through their
FAQs for useful information. There are a number of School for Social Enterprises
across the UK that would be of use to you, I advise you to contact them and
seek guidance.
Conclusion
Social enterprises tackle community problems through social
and/or environmental objectives. They are on the rise but not immune to the economic
headwinds. Unlike commercial enterprises, they are managed and led by people as
diverse as the communities they serve.
Social Enterprise UK (2013) The People's Business [online] http://www.socialenterprise.org.uk/
Author: Sally Kah
Email> eighteen@gmail.com
