Social Enterprise

Introduction:

Social Enterprises are businesses trading for social and environmental purposes, with objectives providing social benefits. 

Social Enterprises can generate income from their business activities but any surplus is reinvested for further social and environmental purposes. 

A social enterprise is a business model, not a legal form. Social Enterprises can take the form of a limited company (limited by guarantee or by shares), a community interest company (limited by guarantee or by shares) or a community benefit society (often called an Industrial and Provident Society). 

Increasingly many charities are adopting the Social Enterprise business model by setting up a trading arm which can be used to trade in a range of ways outside the charity’s primary purpose. The trading arm gifts any profits generated back to the charity, giving it a sustainable form of revenue. 

Why might voluntary and community organisations (VCOs) consider Social Enterprise activity?

The voluntary and community sector will come under increasing financial pressure as the competition grows for traditional grant funding. VCOs will even more than ever need to rely more heavily on the income that they can generate from their activities. 

Many VCOs will have acknowledged that their organisation, their staff or their beneficiaries have a wide range of skills, strengths and expertise which individuals or agencies may be willing to pay them for. 

Support for Social Enterprise in Shropshire:

Social Enterprise activity in Shropshire is growing and there are now many new and established enterprises generating profits from their work, from larger high profile enterprises such as South Shropshire Furniture Scheme or Fordhall Farm, to smaller enterprises such as community cafes, after-school projects, training and employment skills providers, and specialist health care services projects. 

The newly created Marches Local Enterprise Partnership has an outline aim to support a flourishing private sector and to encourage the development of micro-businesses (employing a small number of staff, typically in a ‘niche market’ business). It is acknowledged that social enterprises can play an important role in a flourishing local economy. 

Support services are available to help new enterprises. The following organisations have dedicated support for social enterprises:

The Community Council of Shropshire:  

Nicky Kent Social Enterprise Business Outreach Coach

 

 

Follow Nicky on Twitter! Find her at: @S_Enterprise for details on all the latest news, events and updates.

 

South Shropshire Furniture Scheme: 

Midwest Rural Enterprise 

Together, these organisations are supporting over 60 enterprises in Shropshire and refer clients between each other to ensure that the enterprise gets effective and appropriate support. 

These partners also work together to coordinate events and activities to promote and support enterprises. These have included the ‘Inspire’ conference in June 2010and a Social Enterprise Roadshow in November 2010 as well as training on ‘Winning Contracts’ and ‘Adapt to Survive’. A number of training courses aimed at helping social enterprises develop and grow will be available in the New Year, to individuals, groups, small and medium social enterprises signing up to the free Growing Social Enterprise in West Midlands initiative. A further training course, called ‘Survive and Thrive’ will be coordinated in the new year, aiming to provide an understanding of how the social enterprise business model can help organisations to thrive. Further details will be circulated to SVSTPC members in due course.

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