What are social enterprises?
Social enterprises are voluntary and community organisations that use a business-like approach to deliver goods or services. They tend to have a wide range of interests, from community initiatives in rural areas to those providing employment opportunities and training for disabled people. Social enterprises trade in the market place in order to fulfil social aims, bringing people and communities together for economic development and social gain.
Overview
A social enterprise can be characterised by a number of factors. The organisation will be enterprise oriented in that they will be directly involved in goods production and/or the provision of services to a market. They will have explicit social aims and ethical values. They are accountable to their members and the wider community for their social, environmental and economic impact. Finally, social enterprises are autonomous organisations with a governance and ownership structure based on participation by stakeholder groups (users or clients, local community groups etc.) or by trustees. Profits are not distributed to individual shareholders as with many profit-making businesses, but as profit sharing to stakeholders or for the benefit of the community.
Social enterprises don't belong exclusively to either the private or public sector. They belong to what is known as the 'social economy' which includes not only social enterprises but also voluntary organisations, foundations, trade unions, religious bodies and housing associations. The 'social economy' is also sometimes referred to as the 'third sector'.
Social enterprises can include employee-owned businesses, credit unions, co-operatives, development trusts, social firms, community businesses and trading arms of charities.
Where can I get funding for my social enterprise?
Funding for social enterprises comes from a number of sources, including national government, local government, and a range of other sources. These include the following:
Councils for Voluntary Service (CVS)
Councils for Voluntary Service (CVS) are voluntary organisations run by local groups to support, promote and develop community action at a local level. CVS support their members by providing a range of services and acting as a voice for the local voluntary and community sector. They are usually funded by local authorities and other local statutory agencies, and may differ in name whilst many are called CVS, others may be called Voluntary Action or Voluntary Sector Councils.
Examples of support and services offered by CVS include facilities such as meeting rooms, photocopiers and ICT equipment or more involved services such as financial and employment advice. Support also includes newsletters, training and help with fundraising.
Community Foundations
There are around 60 community foundations in the UK. Community foundations are charitable trusts set up to promote and support local voluntary and community activity. Their two main roles are: managing funds and building endowments for donors; and making grants to charities, linking local donors with local needs.
Rural Community Councils
Rural Community Councils (RCCs) are charities set up to improve the quality of life of rural communities, particularly for disadvantaged people. They provide support and advice to rural communities and organisations, and aim to be an effective voice for the rural communities they serve.
RCCs can offer rural communities sources of local funding and advice on how to put together funding bids; support and advice for village hall committees; practical support to develop community capacity; support to help strengthen parish councils; and advice on good practice about other local community successes and activities.
Others
Further to the organisations mentioned above, others providing support and services to social enterprises in England include tourist boards, social investment groups and charitable bodies.