.. Social Enterprise Ambassadors Programme What is the programme about? The Social Enterprise Action Plan was launched by the Chancellor in November 2006 and aims to help foster a culture of social enterprise and help the movement to achieve more by raising awareness among key groups and attracting new entrants. The social enterprise ambassadors' programme will be a key part of this. This programme aims to position social enterprise as an attractive career choice for people who wish to combine business with achieving social or environmental goals, particularly in emerging markets and among diverse communities. We will also work to influence key professionals whose attitudes and behaviour are material to the growth and development of the social enterprise movement by working through professional associations, institutes and others. Targets will include procurers, accountants, the finance community and social responsibility executives. Who are the ambassadors? The ambassadors will have set up, be running or working in other ways for a successful social enterprise and have powerful stories to tell about how this way of doing business changes people's lives.
Just as importantly, as a group they will be diverse and broadly representative of the social enterprise movement; people using social enterprise to making genuine waves in local communities. And we're not just looking for individuals who already have a public profile. |
What will the ambassadors do?
The ambassadors will attend events, give speeches and media interviews, write blogs, create podcasts and meet with key audiences. They will use their own stories to inspire others and persuade them of the potential and value of social enteprise.
What are social enterprises?
Social enterprises are profit making businesses set up to tackle a social or environmental need. Many commercial businesses would consider themselves to have social objectives, but social enterprises are distinctive because their social or environmental purpose is central to what they do.
Rather than maximising shareholder value their main aim is to generate profit to further their social and environmental goals.
Well known examples include The Big Issue, Cafedirect and Jamie Oliver's restaurant Fifteen.
If you generate the bulk of your income from trading (over 50%, or at least 25% for start-ups) and put over 50% of your profits towards social or environmental goals then your business or charity could be classed as a social enterprise.
The social enterprise movement is inclusive and extremely diverse, encompassing organisations such as development trusts, community enterprises, co-operatives, housing associations, Social Firms and leisure trusts, among others. These businesses are operating across an incredibly wide range of industries and sectors from health and social care, to renewable energy, recycling and fair trade.
There are many routes into social enterprise. Some social enterprises, like leisure trusts and social care providers, are created by externalising in-house local authority services. Others are set up from scratch by a social entrepreneur with a vision. Many social enterprises are charities and a number of successful social enterprises have also emerged from the voluntary and community sector. But what all social enterprises share, however they were created, is an enterprising, business-based approach to achieving social and environmental aims.
Why does social enterprise work?
Social enterprise is a business model which offers the prospect of a greater equity of economic power and a more sustainable society by combining market efficiency with social and environmental justice.
We believe social enterprise is the business model for the 21 st century.
Social enterprises rely on the teach a man to fish' concept. By taking a business approach to social and environmental problems social enterprises create sustainable solutions that are not reliant on the goodwill of funders or donors.
This mixture of a public service ethos with a commercial drive for efficiency is the model's greatest strength.
Another key factor in the social enterprise model and a big reason for the movement's success is the focus on the empowerment and engagement of stakeholders.
Social enterprises can make a significant contribution as agents of public service delivery, regeneration and economic development. They are able to harness the power of local communities catalysing regeneration and promoting active citizenship.
Development trusts for example have pioneered sustainable approaches to development, housing co-operatives have a proven track record in community empowerment and cost-effective property management, and in rural areas community owned shops and pubs are vital to locking in long-term prosperity. Those working within public services, meanwhile, are actively competing in sectors from recycling and waste management to leisure and housing; providing solutions to market failures.
By combining a public service ethos with a commercial focus on efficiency and good business practice social enterprises are able to deliver on the things that really matter, whilst remaining both independent and sustainable. They are not there to build shareholder value; rather to improve the experience for all people using the service.
Not only do social enterprises frequently have a close understanding of and commitment to their client groups but their customers, employees and other stakeholders are frequently involved in governance of the enterprise or engaged in the design and delivery of the services provided. And it is thanks to this particular structure that social enterprises can manage to succeed in areas where both public and private business models may fail.
How big is the social enterprise movement?
Recent government data suggests that there are more than 55,000 social enterprises in the UK with a combined turnover of £27bn. Social enterprises account for 5% of all businesses with employees and contribute £8.4billion per year to the UK economy.
What is the history of social enterprise?
The pioneers of social enterprise can be traced back to 1840s Rochdale, where a workers' co-operative was set up to provide high-quality but affordable food in response to factory conditions that were considered to be exploitative.
In the UK, a resurgence of social enterprise started in the late 1990s with the coming together of different traditions, including co-operatives, community enterprises, enterprising voluntary organisations and other forms of social business.
What legal forms can a social enterprise take?
Social enterprises can take a wide variety of legal forms. The most common are the limited liability company (either a company limited by shares or a company limited by guarantee), Industrial and Provident Society and Limited Liability Partnership. In 2005, the Community Interest Company form was set up specifically for social enterprises.
A Community Interest Company is a legal form designed specifically for social enterprise. They have the flexibility of a standard company structure, while serving a specified community of interest and having a perpetual lock on their assets, including some constraints on profit distribution. They cannot register for charitable status.
Can social enterprises also be charities?
A significant proportion of social enterprises have charitable status, which gives them a range of tax advantages. Others consider that the charity legal form would place undesirable constraints on their activities.
What is the difference between a social enterprise and ethical business
A social enterprise's main purpose of existing is to fulfil its social or environmental goals, which it achieves by reinvesting the majority (over 50%) of its profits.
Social enterprises have multiple bottom lines because they pursue social, economic and in many cases, environmental goals, rather than purely aiming to make a financial profit.
An ethical business tries to achieve its financial goals while minimising any negative impact on society or the environment.
Many businesses would consider themselves to have social objectives, but social enterprises are distinctive because their social or environmental purpose is central to what they do.
Though many ethical businesses may also run social enterprise type schemes as part of their CSR agenda, the two are distinct business models.
Social enterprises are also frequently characterised by their ownership structures; they can be owned by their employees, consumers and users, trustees, public bodies, the wider community or a combination of different stakeholder groups.
Why is it important for social enterprises to make a profit?
Social enterprises are businesses. They need to make a profit to compete in the market, ensure their continued survival and be able to invest in their social or environmental aims.
For many social enterprises, being sustainable in every sense of the word enables them to become more independent and reduce any dependency on public grants. It also ensures they can continue to help provide a solution for social or environmental problem.
How can the social and environmental impact of social enterprises be measured and why should it be?
Unlike traditional accounting methods, social accounting involves measuring social and environmental impacts. It can enable social enterprises to improve their performance, demonstrate their value to investors and give them an edge when tendering for contracts.
Various standards, tools and techniques for social accounting exist. For a quality and impact toolkit on social enterprise with more information on the options available, visit
Why is social enterprise a good career choice?
Social enterprise offers an extremely fulfilling career choice as you can both satisfy your own ambition to run or work for a successful company, while also doing your bit to help improve the world we live in. Do well by doing good.
Social enterprises pay competitive rates and are staffed by a range of different interesting people. Social enterprises tend to focus heavily on staff development and tend to be more flexible and innovative than commercial companies or public bodies.
How can I find out more? Your first port of call is the Social Enterprise Ambassadors website which is www.socialenterpriseambassadors.org . (live from Monday)
There you will find links to join the Coalition, newsletters to sign up for, events to register for and places to go for specific business advice. |
