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

Greater than 1,000,000 companies within the UK could possibly be supported to formally transition to social enterprises, based mostly on their present engagement with social points, in keeping with 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 will not be at the moment 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 be taught extra about how they may profit from transitioning to a brand new mannequin.

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

Social enterprises additionally frequently 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 function, prioritising the advantages to individuals and planet and use the vast majority of any revenue to additional their mission. Social enterprises contribute to lowering financial inequality, bettering social justice and to environmental sustainability.

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

Peter Holbrook, CEO at SEUK, stated: “While we acknowledge the improbable work of present social enterprises in benefiting our financial system and society, our analysis identifies that a large variety of different companies will not be 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 might match a much bigger retail enterprise or a belief mannequin may work properly for a enterprise operating a heritage asset.

“Subsequently, we encourage companies to seek 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 good higher distinction to the world as a social enterprise.”

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