SOCIAL ENTERPRISE GENERATES £18BN TURNOVER FOR THE UK
(16 July 2005)

Social Enterprises generate some £18billion in annual turnover and employ over 775,000 people groundbreaking new findings published by the DTI show. Social Enterprises are businesses driven by social or environmental goals rather than the need to maximise private profit. The Survey provides a snapshot of this diverse and important business sector, and how it contributes to society and the environment. Almost a quarter (23%) are in London, but they operate in every region of the UK and they represent around 1% of the UK's businesses.

Alun Michael, Small Business Service Minister said: "Social enterprises provide a huge boost to many areas of the UK, including many of our most deprived communities. We are committed to encouraging growth in this important sector and aim to help improve the way it does business. The results of this survey will be used to develop future policy in this area.

"There is an increasing role for the social enterprise sector which is strongly reinforced by this report. Its firm evidence will help us take the agenda forward. The research confirms what I have long known - that these businesses are successful trading businesses delivering socially beneficial outcomes."

Other main findings of the survey are:

• The vast majority of employment and turnover in social enterprises is generated through their own trading activity; 905 of those surveyed generated at least 50% of their income through trading;
• Although around half of social enterprises receive grants, donations and subsidies (which account for 12% of income) and over 82% of turnover is from trading income;
• Of 33% of social enterprises derive their income from Health and Social Care; other important sources of trading income are social and personal services, real estate and renting, and adult education.
• Over 50% of social enterprises are located in the 40% most deprived areas and play a role in urban regeneration. Most social enterprises exist to help particular groups of people either through employment of providing goods and services;
• The most common groups helped are those with disabilities, young people the elderly and those on low incomes. Nearly a quarter had environmental objectives.
• The types of businesses surveyed were all 'companies limited by guarantee' or 'industrial and provident societies' as earlier research suggested that this type of business would capture the majority of social enterprises. This means that that the headline figures are an underestimate of the size and scope of the sector.
• With their social motivation, they represent an alternative business model for delivering services and spotting market opportunities, which can have significant benefits for the community.

The survey set out to understand the sectors where these businesses are active, where they operate, who they benefit and how they generate income.

Jonathan Bland, Chief Executive of the Social Enterprise Coalition, said: "This important new data indicates that social enterprise is operating on a much larger scale than previously thought. It reinforces our view that social enterprise should be given much greater recognition and support by government at all levels."