A million UK businesses missing out by not transitioning to social enterprises

Greater than 1,000,000 companies within the UK may very well be supported to formally transition to social enterprises, based mostly on their present engagement with social points, in response to new analysis.

Social Enterprise UK’s (SEUK) newly-launched ‘Transitions’ report reveals that as many as a fifth of SMEs within the UK aspire to make a constructive social affect – however aren’t presently working formally as social enterprises. This implies greater than 1,000,000 organisations have the scope to transition to social enterprise standing, and contribute extra to the financial system and society in doing so.

On account of its findings, SEUK is encouraging companies within the UK to think about their standing and study extra about how they might profit from transitioning to a brand new mannequin.

Working as a social enterprise permits a enterprise to lock in its social and environmental objective, guarantee income profit that objective, and revel in wide-ranging advantages for employees, clients and shoppers by reaching new markets and growing new services and products.

Social enterprises additionally commonly take pleasure in enhanced reputations, buyer loyalty and worker engagement, while having wider entry to funders and financers motivated by social affect.

Social enterprises are companies which commerce for a social or environmental objective, prioritising the advantages to folks and planet and use nearly all of any revenue to additional their mission. Social enterprises contribute to lowering financial inequality, bettering social justice and to environmental sustainability.

There are presently greater than 100,000 social enterprises within the UK, contributing £60 billion to the financial system and using round two million folks.

Peter Holbrook, CEO at SEUK, mentioned: “While we acknowledge the implausible work of present social enterprises in benefiting our financial system and society, our analysis identifies that a large variety of different companies aren’t maximising the alternatives obtainable to them from social enterprise fashions and options.

“No social enterprise is identical, both, so there are a selection of choices for firms wishing to transition – for instance, a small tech agency could also be finest suited to a co-operative mannequin, worker possession could match an even bigger retail enterprise or a belief mannequin may work effectively for a enterprise working a heritage asset.

“Due to this fact, we encourage companies to search out out extra and perceive if transitioning to a brand new mannequin is viable for them, to allow them to attain their potential and make a fair higher distinction to the world as a social enterprise.”

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