Community Interest Company registration growing more than other business forms, latest research shows
Our new research with the University of Worcester compares the registration and dissolution of Community Interest Companies over the last five years to other businesses, finding interesting differences.
Community Interest Companies (CICs) are a legal form for businesses whose activity benefits the community rather than being purely for private gain. Most CICs are social enterprises, so can be a useful way to look at wider sector behaviour.
We found that CICs were dissolved, on average, at a lower rate than other forms of registered businesses. CIC registration is growing significantly and proportionately more than other business models, but CICs tend to dissolve at a younger age.
Since being created as a legal form in 2005, CIC registration now stands at over 31,500 businesses – with a spike in new CICs during the Covid-19 pandemic, when many were created to help communities manage the impact of the virus. However, as the economy re-opened following the peak of the pandemic, dissolution rates rose and registration rates leveled off across the UK overall, despite variation in English regions and devolved nations
To discover more of our research visit our Social Enterprise Knowledge Centre