Royal seal of approval for Impact Hub Yorkshire

Academic research shows how power dynamics between social investors and social enterprises can shift in the face of major economic and social shocks, such as COVID. Dr Julia Morley from the London School of Economics explains the key findings of her recent paper Talking Across Purposes. Social investing has become a transformative force, directing private capital towards social enterprises to achieve financial returns and social good. In the UK alone, the sector saw investments totalling £830 million in 2021, highlighting its significant growth and impact. However, the diverse backgrounds of stakeholders, including investors, social enterprises, and policymakers, often lead to communication challenges, particularly regarding the terminology used within the sector. Language and misunderstandings: The ambiguous nature of key terms is at the core of many misunderstandings in social investing. For instance, the definition of "social impact" can vary widely among stakeholders. For some, it might mean quantifiable outcomes like employment rates, while for others, it refers to more nebulous benefits, such as improvements in well-being. While initially beneficial in allowing varied parties to find common ground, this ambiguity can also lead to significant challenges as projects develop. Can ambiguity be useful? Ambiguity does have its advantages. It enables a broad range of stakeholders to engage with the idea of social impact without being bogged down by rigid definitions. This can foster collaboration across different sectors and viewpoints, facilitating initial agreements and partnerships that might not otherwise be possible. The Downside: Over time, however, the benefits of this ambiguity diminish. Different interpretations of the same terms can lead to misunderstandings and misalignments between investors and social enterprises. These miscommunications can create friction and inefficiencies, hindering the sector's overall effectiveness. Push for Precision: In response to these challenges, there has been a move towards standardisation and clarity in the language used in social investing. Investors, often holding greater power in these discussions, have led the push for defining terms and setting standards. This has included the creation of glossaries and training programs aimed at aligning the sector's language with investor expectations. Shifting Power Dynamics: The COVID-19 pandemic shifted power dynamics within the social investment sector. The crisis underscored the importance of knowledge of the operational realities of delivering services to beneficiaries and shifted the balance of authority over knowledge to social enterprises. During this period of instability and change, their local knowledge of beneficiaries’ needs and frontline operational issues gave their views more weight relative to the traditional financial expertise that investors had previously leveraged. This shift in the balance of power was short-lived, however. As the status quo returned, so did the perceived relevance and value of investors’ financial expertise in social investing. Conclusion: The experiences during the pandemic have provided valuable insights into the importance of language in social investing and how significant disruptions can shift the authority of knowledge, alter power dynamics, and shape how the meanings of terms – and hence practices within the sector - evolve. As the sector continues to grow, both investors and social enterprises must remain aware of these dynamics to foster an inclusive and effective social investing environment. Key Takeaways: While initially helpful, the ambiguity in social investing terminology can lead to challenges as misunderstandings become apparent. Standardisation efforts are crucial but do not reflect all stakeholders’ interests equally. Significant destabilising events, like the pandemic, can reshape power structures, offering lessons on how to manage and negotiate terms in social investing more equitably. The full paper which this piece summarises can be found here.  This article is part of SEUK’s Social Enterprise Knowledge Centre University Network – to find out more please contact research@socialenterprise.org.uk

The London Early Years Foundation (LEYF) has been honoured with a King’s Award for Enterprise in Sustainable Development, recognising its groundbreaking approach to Early Years Education and Care through the lens of social enterprise and sustainability. LEYF is one of only 197 organisations nationally to be recognised with the prestigious King’s Award for Enterprise. Announced on Tuesday 6th May, the accolade celebrates LEYF’s long-standing commitment to delivering high-quality, affordable Early Years Education and Care that prioritises access, inclusion, community and environmental impact. At the core of LEYF’s approach is the belief that education for young children can be a powerful force for building a more equitable, inclusive, and environmentally responsible society. Sustainability is fully embedded into every aspect of nursery life – from social enterprise business, our seasonal menus and using green energy across the sites, to designing a pedagogy that gives children a voice and nurtures their love for nature and their role as future changemakers. LEYF teachers are actively empowered to become sustainability informed and lead sustainability initiatives, making every team member a champion for long-term impact. This whole-system approach is driven by the London Institute of Early Years, LEYF’s dedicated research and training hub, and its: Action for Sustainability in Education, Community of Practice a vibrant network focused on embedding the three pillars of sustainability – economic, social, and environmental sustainability into daily practice. As pioneers in the sector, LEYF created the UK’s first Early Years Sustainability Strategy, aligned with the UN’s Sustainable Development Goals. It was also the first childcare organisation to achieve ISO 14001 certification and ongoing carbon footprint measurement and reduction through Planet Mark. With sustainability threaded through its governance, leadership, operations, and pedagogy, LEYF is actively working towards achieving net-zero by 2030. Its sector-first Level 4 Qualification in Sustainability in Early Years has already empowered 68 professionals, with many more set to follow. Founded in 1903, LEYF is the UK’s largest charitable social enterprise in Early Years education, employing over 1,000 staff and running a network of 43 nurseries across 13 London boroughs. Serving more than 4,000 children each year, LEYF combines business excellence with a powerful social purpose – reinvesting profits to support children from disadvantaged backgrounds and embedding sustainability into every aspect of its work. Dr June O’Sullivan OBE, CEO of LEYF, said: "We are thrilled to receive the King’s Award for Enterprise in Sustainable Development. This is a powerful endorsement of our belief that Early Years Education and Care must be a force for social justice and environmental good. At LEYF, sustainability runs through everything we do – from how we run our nurseries, to how we teach and support our children, families and staff. From evidence-based pedagogy to sustainable practice, and from apprenticeships to leadership pathways, everything we do is about creating real, lasting impact. We hope this recognition inspires others across the sector to embed sustainable thinking from the ground up.” Nick Corlett, Sustainability Manager at London Early Years Foundation (LEYF) says:  "At LEYF, sustainability isn’t an afterthought – it’s at the heart of everything we do and shapes our pedagogy and practice, fuels our values, and guides our daily decisions. Powered by the London Institute of Early Years, LEYF’s pioneering research and training hub, and strengthened through our Action for Sustainability in Education community of practice, we embed the three pillars of sustainability: economic, social, and environmental into everyday activity across all of our nurseries. "We are therefore honoured to receive the King’s Award and proud that our deep-rooted commitment to sustainability has been recognised at this level. This achievement is a testament to the dedication, energy, and teamwork of everyone across LEYF. We hope it sparks a wider ambition to reimagine Early Years Education and Care, where sustainability is a force for social good, builds community resilience, and a fairer future for every child." The King’s Awards for Enterprise, previously known as The Queen’s Awards for Enterprise, were renamed in 2023 to reflect His Majesty the King’s desire to continue the legacy of HM Queen Elizabeth II by recognising outstanding UK businesses. Now in its 59th year, the Award remains the most prestigious business accolade in the country, with successful organisations able to use the esteemed King’s Awards Emblem for the next five years. About LEYF The London Early Years Foundation (LEYF) is the UK’s largest charitable social enterprise for Early Years Education and Care (EYEC) operating 43 nurseries across 13 London boroughs. For over 120 years, LEYF has successfully combined business excellence with social purpose to deliver high-quality, affordable early education to over 4,000 children each year with a focus on children from disadvantaged backgrounds. 75% of LEYF nurseries are situated in areas identified as having high levels of deprivation. 46% of LEYF nurseries are rated Outstanding by Ofsted, far exceeding the national average of 14%. The LEYF Pedagogy focuses on a placing the child at the centre of all business and pedagogical decisions so it can drive a consistent pedagogical approach, lead an ambitious curriculum underpinned by harmonious relationships and community engagement which together enhance the cultural capital of the children, families and staff and build resilient, curious and confident global citizens. LEYF’s business model is built on strategic oversight, operational efficiency, researched -based practice and strong purpose-led leadership. By blending business rigour with social ambition, LEYF offers a consistent, scalable model for delivering excellence in Early Years – one that is financially sound, socially responsible, and always child-focused. leyf.org.uk Photo Credit - LEYF Marsham Street Nursery and Pre-School - Francoise Facella

Articles and publications covering evidence on social enterprise in the UK and globally. If you’d like your publication to feature, please contact jess.lomax@socialenterprise.org.uk Social enterprise growth by design: using design to incubate and accelerate social enterprises - 2024 Authors/publication: Kwon, H., Choi, Y. and Hazenberg, R. Social Enterprise Journal Aims to understand the impact of design on social enterprise ecosystems and on improving outcomes for social entrepreneurs. The Purpose Dividend - 2023 Authors/publication: Demos Explores how shifting towards a purpose-led economy with better business at its centre would boost GDP, generate more capital investment, and increase wages for the lowest paid in society. Understanding the Contribution of Social Enterprise to the Social Care Sector: An Exploratory Study - 2023 Authors/publication: Dr Kelly Hall, Dr Philip Kinghorn, Dr Chloe Alexander, Kelly Hayward, Dr Janelle Kerlin, Meng Ye Explores the role of social enterprises in the social care sector, and how they compare to for-profit and not-for-profit providers. Do Social Enterprises Fulfil their Social Promise? Quality of Social Care CICs and Other Legal Forms - 2023 Authors/publication: Janelle Kerlin, Meng Ye, Kelly Hall Examines why social care social enterprises consistently outperform for-profit social care providers on all social care quality measures. Public service mutuals: Transforming how services are delivered through social enterprise and democratic governance - 2022 Authors/publication: Vickers, I., Lyon, F., Sepulveda Ramirez, L. and Brennan, G Demonstrates the effectiveness of the mutual model and how it has been adapted in diverse contexts to deliver public and community services. Financing Social Enterprise in the UK: Responding to New Challenges in Competitive Markets Authors/publication: Mswaka, W., Aluko, O., Hussein, S., Armindo dos Santos de Sousa, T. and Cai, H Scrutinises the operations of social entrepreneurs in resource-constrained environments, highlighting how opportunity spotting and innovation in financing strategies are central to effectively financing social enterprise. The Ecosystem of UK Social Entrepreneurship: A Meta-Analysis of Contemporary Studies Authors/publication: Gareth R. T. White, Robert Allen, Anthony Samuel, Dan Taylor, Robert Thomas, Paul Jones Examines social enterprises as both an alternative and addition to traditional enterprise ecosystems, and identifies constraints on the development and success of social enterprise ecosystems in areas of economic deprivation. Gender Empowerment in Social Enterprises in the UK Authors/publication: Maria Granados, Lilian Miles, Anastasia Alexeeva A gender empowerment guide for use by social enterprises, to empower the women they employ. Social Enterprise Places: A Place-Based Initiative Facilitating Syntactic, Semantic, and Pragmatic Constructions of Legitimacy - 2021 Authors/publication: Anthony Samuel , Gareth R.T. White, Kenneth Peattie, Robert Thomas, Aston University Examines how the Social Enterprise Place programme has legitimised social enterprises by enabling the identification of common social goals and the mobilisation of resources towards their resolution. Social Enterprise in the UK: Models and Trajectories - 2021 Authors/publication: Mike Aiken, Roger Spear, Fergus Lyon, Simon Teasdale, Richard Hazenberg, Mike Bull, Anna Kopec Massey Examines the landscape of social enterprises operating in the UK, including their models, fields of operation, and trajectories. Social Enterprise and Social Entrepreneurship: Developing the Evidence Base Using the UK Small Business Survey - 2020 Authors/publication: Catherine Robinson This review considers the developments amongst social enterprises in the UK. Using the Small Business Survey, it compares those small firms in the UK that declare themselves to be social enterprises with traditional for-profit firms.  The Contribution of the Social Enterprise Sector to the UK Economy - 2019 Authors/publication: Kah, S. European Journal of Business and Management Presents the development, scale, and scope of social enterprises, and examines their social, economic, and environmental contributions to the UK. Social Enterprises and their Ecosystems in Europe - 2019 Authors/publication: Stumbitz, B., Vickers, I. and Lyon, F Explores the growth of the social enterprise sector, and how public policy has supported the growth of social enterprise ecosystems in Europe. The Emergence of Social Innovation within the Social Economy: The Case of Social Enterprises in England -2019 Authors/publication: Irurita, M Examines how social entrepreneurs develop innovative ideas to solve important societal problems. The Evaluation of CSR and Social Value Practices Among UK Commercial and Social Enterprises - 2018 Authors/publication: Paul Agu Igwe, Afam Icha-Ituma, Nnamdi O. Madichie Evaluates the scope of CSR initiatives among corporations and social enterprises, finding that social enterprises embed social value initiatives during the enterprise creation stage. Progressive Business Models: Creating Sustainable and Pro-Social Enterprise - 2018 Authors/publication: O'Higgins, Eleanor and Zsolnai, László, eds An analysis of progressive businesses operating across the world. The Age of the Social Entrepreneur - 2017 Authors/publication: Mhairi Tordoff, Demos Argues that although it is early days, social enterprises are a dynamic and ambitious section of our economy that contribute billions to the economy and employs millions of people. Social Enterprises, Social Inclusion, and Positive Social Change - 2017 Authors/publication: Ute Stephan, Aston University Demonstrates how social enterprise can be a force for social inclusion and social change. The Place of Social Enterprise in UK Contemporary Policy - 2016 Authors/publication: Ian Buchanan Examines the role of the third sector in addressing perceived failures in state welfare provision. Social Enterprise as Hybrid Organisations: A Review and Research Agenda - 2014 Author/publication: Bob Doherty Assesses the influence of the dual mission (financial sustainability and social purpose) on social enterprise management. Measuring social impact in social enterprise: the state of thought and practice in the UK - 2013 Author/publication: Jim Clifford Kate Markey and Natasha Malpani Explores the common threads between impact measurement tools and approaches, and how measurement varies to meet differing commissioning areas for social enterprises working in public service markets.