A MAJOR new report into how business is conducted in the UK today reveals the continued growth of the Social Enterprise movement.
Nearly one million people are now employed in the sector that aims to use the power of business and enterprise as a force for good, with over 70,000 businesses contributing more than £24billion to the UK economy.
The biennial State of Social Enterprise Survey also reveals how the concept of doing business differently is outperforming traditional SMEs in areas of diversity, start-up rates, innovation and pay.
The report – commissioned by Social Enterprise UK and supported by Santander UK – is the most rigorous and representative of its kind and gives an insight into how traditional companies are increasingly attracted to new ways of doing business.
Speaking as the report’s findings were made, Chair of Social Enterprise UK Lord Victor Adebowale: “Social enterprises show us what the future of business can look like.
“These are credible businesses, competing in the open market but set up in a way that addresses some of the biggest issues we face.
“From homelessness and substance abuse to mental health and social care – social enterprises are working on the front-line creating opportunities and reducing inequalities.
“They are showing traditional businesses how social impact and profit can go hand in hand.
If we’re to meet the challenges and uncertainties of the coming years, we should look to the social enterprise model for inspiration and guidance on how we can create an economy that works for everyone.”
Sue Douthwaite, Managing Director of Santander Business Banking said: “We are once again proud to support the State of Social Enterprise Report.
It shows the important contribution social enterprises are making to society and the increasingly vital role they play in building more resilient communities and a fairer economy.
“It’s never been more important to support and invest in these businesses which are creating jobs, opening up opportunities and building a more prosperous future for us all.”
- UK social enterprises are outperforming mainstream businesses in growth and innovation
- They are leading the way on diversity with 41% being led by women
- 25% of social enterprises are under 3 years old
How Social Enterprises Stack Up:
The findings reveal that social enterprises, businesses which trade to meet a social or environmental mission, are demonstrating how social purpose can meet profitability outperforming mainstream SMEs in growth, innovation and start-up rates.
- 47% grew their turnover in the last year compared with 34% of SMEs and 50% introduced a new product or service in the last twelve months. This figure has fallen to 33% amongst traditional SMEs.
- 25% of social enterprises are also under three years old, showing that more than ever businesses are being set up explicitly to meet social or environmental challenges.
Leading the Way on Diversity:
Through how they operate, where they work and who they employ social enterprises are showing how another way of doing business is possible, one that is inclusive by nature and set up to tackle inequalities.
- 41% of social enterprises are led by women with 51% having a majority female workforce (mainstream SMEs have 20% women leadership).
- 34% have BAME directors and 36% have a director with a disability – showing a sector more representative of society at large.
- More than two thirds are supporting people from disadvantaged groups (69%) and four in ten are employing them. Many are also driving growth at a local level with 79% of social enterprises recruiting over half their staff locally.
Leading the Way on Pay:
They are also paying fairly with 78% reporting paying the higher Living Wage as established by the Living Wage foundation.
- Average pay ratios for the sector stand at 2.7:1 compared to 129:1 at FTSE 100 companies.
Notes to Editors
For more information please contact the Social Enterprise UK Communications Team by emailing firstname.lastname@example.org or call 020 3589 4950 I 07910 222409
Case studies can be provided on request
The full report will be available at https://www.socialenterprise.org.uk/Pages/Category/state-of-social-enterprise-reports
About Social Enterprise UK
Together with our members we are the voice for social enterprise in the UK. We build markets, undertake research, provide information and tools, share knowledge, raise awareness and campaign to create a business environment where social enterprises thrive. Our members range from local grass-roots organisations to multi-million-pound businesses.