Social enterprises can be recession-busters
Results of the first ever ‘State of Social Enterprise' survey were released in November and they find optimism and growth in the sector, particularly when compared with other businesses.
The survey found that despite the recession, social enterprises are twice as confident of future growth as typical small to medium enterprises (SMEs), with 48% of social enterprises responding positively as opposed to just 24% of SMEs.
Additionally, since the economic downturn began, 56% have increased their turnover from the previous year whilst less than 20% have seen it go down. This is a considerably better performance than SMEs in the UK, where only 28% increased their turnover and 43% saw it go down.
Other findings included:
The poll also shows that people want more social enterprises in the UK. When asked what we need more of to ensure a sustainable economy for the future, 42% of respondents chose social enterprises, ahead of government institutions, charities funded by donations, and traditional business.
Only 13% of respondents said that they believe that social and environmental values of business are less important since the credit crunch began, whereas almost three quarters (71%) believe that they are as or more important than before the economic upheaval.
Social enterprises are businesses run for social and environmental purposes. There are 62,000 social enterprises in the UK contributing £24billion to the UK economy. ‘The State of Social Enterprise Survey 2009' was commissioned by the Social Enterprise Coalition with fieldwork carried out by CELLO mruk research. It was sponsored by Office of the Third Sector and supported by the Commission for Rural Communities, the Community Interest Company Regulator, the Scottish Social Enterprise Coalition and the Social Economy Network in Northern Ireland.