493 results for ‘social enterprise’

Artificial intelligence is no longer a distant concept. It is already being used by many social enterprises in the UK to save time, improve services, and stay resilient. But how prepared is the sector for AI? And what kind of help is needed to ensure that adoption supports, rather than threatens, mission-led work?  Over the past few months, we surveyed 92 UK social enterprises. Some were already using AI, others were beginning to explore the possibilities, and a few were not planning to adopt it at all. Our goal was to understand these different positions and help shape better support across the sector.  A snapshot of AI adoption  60% of respondents said they already use AI. The tools in use include content generation software, automation systems, and chatbots. The main goals behind adoption were to improve operational efficiency and reduce costs. Another 16% were preparing to adopt AI soon, while 24% said they had no current plans to use it.  Most AI adopters were micro or small enterprises, often working in education, healthcare, or business support. These organisations used AI for day-to-day operations that required speed, consistency, and scale.  The organisations preparing to adopt AI expressed strong interest in improving customer service and automating administrative tasks. However, they also raised concerns about unclear return on investment, ethical considerations, and a lack of implementation guidance. These barriers were not about values. They were about capacity and clarity.  Non-adopters reported few challenges directly related to AI. But this may reflect limited exposure rather than lower risk. Some said they were watching how others manage adoption before making their own decisions.  What challenges are emerging?  As organisations gain more experience with AI, they become more aware of practical and ethical barriers.  Among current users, 83% raised concerns about data privacy. Nearly 75% reported challenges integrating AI into existing systems. A large number also identified skills gaps within their teams. These are not hypothetical problems. They affect how effectively organisations can use new technology over time.  Future adopters, by contrast, were more likely to question whether the effort and cost of AI would deliver meaningful value. Their interest is real, but their concerns are about making the right choice, and not rushing into something unproven.  Non-adopters reported the fewest concerns. However, this should not be taken as a sign of readiness or resilience. It may simply reflect a lack of exposure to the realities of AI use. Many are still deciding whether this is something they need to prioritise.  Support must match need  Our findings revealed a strong link between where organisations are on their AI journey and what kind of support they require.  Nearly 80% of current users asked for more training. They are looking for help with strategy, technical skills, and data handling. Those planning to adopt AI wanted early-stage guidance, including case studies, onboarding materials, and ethical frameworks.  Non-adopters were least likely to request support. But this may be due to uncertainty rather than opposition.  The conclusion is clear. One-size-fits-all support will not work. A staged, modular approach is needed. Organisations at different stages need different forms of help.  What we plan to do next  We are using these pilot findings to inform a national research programme. The next stage will include case studies and interviews with social enterprises across the UK. We want to explore how organisations think about AI, how values shape their choices, and what helps build confidence.  We will then co-create resources with sector partners. These may include onboarding guides, training tools, or decision-making frameworks. We will test them through online experiments to find out what is effective, useful, and scalable.  This is not about promoting AI. It is about ensuring that if social enterprises want to use it, they have access to trustworthy and well-designed support.  Get involved  If you are working in a social enterprise and thinking about AI, whether you are already using it or just starting to consider it, we would love to hear from you.   We are currently looking for interviewees, workshop participants, and collaborators. Your insights will help shape a practical and inclusive approach to AI for the entire sector.  Please get in touch if you would like to be involved: gordon.liu@open.ac.uk This piece was co-authored by Alessio Antonini (Open University), Ali Ataullah (Open University), Francesca Calò (Open University), Joyce Ko (Brunel University), Gordon Liu (Open University), Micaela Mazzei (Glasgow Caledonian University), Fidele Mutwarasibo (Open University), Artur Steiner (Glasgow Caledonian University), and Simon Teasdale (Queen's University Belfast) This article is part of SEUK’s Social Enterprise Knowledge Centre University Network – to find out more please contact research@socialenterprise.org.uk

If the government was in any doubt about the challenges facing those starting social enterprises, a mixed group of stakeholders presented it with a vivid picture this week.   It was the most recent evidence delivered to the second roundtable of the All-Party Parliamentary Group (APPG) on the Social, Cooperative and Community as part of their ongoing inquiry into growing diverse business models.   The highs and lows of social enterprise  Give Your Best (pictured above) was a side hustle that grew into a business for founder Sol Escobar and was supported by ‘tech for good’ grants from organisations such as Innovate UK. Escobar told the inquiry she didn’t know what a social enterprise was as her initiative first began to flourish and described how vital the support ecosystem was.   “I did every single incubator and accelerator I could possibly find, because … I didn't know how to grow this organisation, and they really have just taken me from step to step and taught me how to run this organisation and scale it to become revenue-generating,” Escobar said.  Now 800 to 2000 items of donated clothing are chosen by people in clothing poverty every week through the social enterprise, helping to tackle the £140m worth of clothing that is thrown away annually.   Starting a social enterprise might be an option if you have certain advantages, but what if you don’t? The financial implications for those in this situation were made stark by Bayo Adelaja, founder and CEO of Do it Now Now, which annually supports approximately 150 Black leaders of organisations with business training and grant funding. "Most of the people in our community are earning under £18,000 a year and 27% of them didn't attend university, but they remain pillars of their society and are leaders and changemakers within their community," Adelaja said. "The income they're receiving each year is approximately £32,000 and around 40% of that comes from the salary sacrifice of the directors themselves. The vast majority of them are working full-time jobs and about 40% of them have never received grant funding.”  Adelaja asked the APPG to consider how the government could put in places systems and processes that empower people who don't have the access, schooling or business training of others, but are creating social enterprises in response to communities that need services delivered annually. In particular, she recommended that funding not be project-based, with multi-year funding schemes introduced instead.   “We’ve limped our way through”  Escobar had earlier credited School for Social Entrepreneurs (SSE) as being instrumental in her development as a business founder. Whilst acknowledging that the “nudge economics” of SSE’s match trading grants and bringing social entrepreneurs together in supportive cohorts to bolster confidence had both worked well, SSE CEO Alistair Wilson was less optimistic about the support ecosystem in general.  "It is interesting to reflect that second-tier support organisations in this country are hanging by a thread. We've limped our way through the last 15 years, and many organisations have gone bust. If the government wants to see this sector thrive, they've got to get behind it in a more serious way," Wilson told the inquiry.  He went on to say that he thought the UK had slipped from being world-leading in social enterprise to “being in tenth place, if you’re lucky” and that he hoped the government would consider how to get the UK’s leading status back. Wilson was backed by Louise Cannon, Director of Social Entrepreneur Support at UnLtd, who also asked that long-term ecosystem building be considered by the government.   Matt Smith, CEO of social investor Key Fund made the point that support organisations like SSE were crucial for equipping passionate social entrepreneurs with the skills and experience to run a business. Like Wilson, he expressed concern at the lack of support organisations that existed now compared to 15 years ago.   Smith also thought that more grant funding could level the playing field in areas of unequal opportunity such as those described earlier in the session by Adelaja. “There's a gap where grants should be playing the role that friends and family would in more affluent communities,” he said.  Fellow social investor Seb Elsworth, CEO of Access called for more mainstream providers to participate in social investment, particularly the state-owned British Business Bank, which manages loan guarantee schemes aimed at SMEs and targets a rate of return of 1.5% for its overall portfolio. “We know most social enterprises are looking for relatively small-scale, flexible, patient, unsecured lending. Providing that kind of finance is difficult to do on a purely commercial basis,” said Elsworth.  Two further evidence-gathering sessions will be conducted before the APPG delivers a report to the government later this year.