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An estimated fifth of UK businesses want to make a ‘social difference’, according to new figures. They account for a turnover of nearly £100billion (£152bn, €110bn) and vastly outstrip government ‘social enterprise’ estimates.
A report by the economic research consultancy Delta says about 230,000 UK companies have ‘primary triggers’ based around social objectives, and half of these plough back their surpluses and do not pay dividends to shareholders.
The government defines a ‘business with a social purpose’ as one that reinvests surpluses for that purpose and does not pay dividends or more than half its surpluses to shareholders. Using this definition, the government estimates social enterprises numbered about 60,000 in 2007, contributing more than £8.4bn to the economy.
‘Hidden social enterprises’, however, proliferate in the UK economy, though they are not recognised as such. Many are registered as for-profit, or do not have any form of asset lock, and are therefore not considered part of the social enterprise sector.
Of the 2000 entrepreneurs surveyed by Delta, 38 per cent said their ‘primary goal’ was to create jobs, nine per cent said it was to have a positive environmental impact, and almost half said they wanted to have a positive social impact generally.
Rebecca Harding, Delta’s managing director, said: ‘The social enterprise movement needs to reach out to these people and make sure they are part of the overall social enterprise world. One thing we found is that they do not identify themselves as social entrepreneurs, even if they meet the definition.’
She said the research showed the potential to raise the sector’s profile. ‘Social enterprise is a lot more mainstream than people realise,’ she said. ‘It’s not just something carried out on the fringes.’
A report by the economic research consultancy Delta says about 230,000 UK companies have ‘primary triggers’ based around social objectives, and half of these plough back their surpluses and do not pay dividends to shareholders.
The government defines a ‘business with a social purpose’ as one that reinvests surpluses for that purpose and does not pay dividends or more than half its surpluses to shareholders. Using this definition, the government estimates social enterprises numbered about 60,000 in 2007, contributing more than £8.4bn to the economy.
‘Hidden social enterprises’, however, proliferate in the UK economy, though they are not recognised as such. Many are registered as for-profit, or do not have any form of asset lock, and are therefore not considered part of the social enterprise sector.
Of the 2000 entrepreneurs surveyed by Delta, 38 per cent said their ‘primary goal’ was to create jobs, nine per cent said it was to have a positive environmental impact, and almost half said they wanted to have a positive social impact generally.
Rebecca Harding, Delta’s managing director, said: ‘The social enterprise movement needs to reach out to these people and make sure they are part of the overall social enterprise world. One thing we found is that they do not identify themselves as social entrepreneurs, even if they meet the definition.’
She said the research showed the potential to raise the sector’s profile. ‘Social enterprise is a lot more mainstream than people realise,’ she said. ‘It’s not just something carried out on the fringes.’
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