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The UK will continue into 2014 as a global leader in social enterprise

“As always, I forget what social enterprise actually means, but thank you, that 140-page document you sent really cleared that up” joked Sue Perkins as she opened last November’s Social Enterprise awards, writes Nicky Tatley, content editor at BusinessForSale.com.

Perhaps still considered a fuzzy, fledgling concept in global terms, and in the minds of the average citizen or comedienne, social enterprise is, however, enjoying real growth and development in the UK’s business world.

And in 2014, many leaders in this field are looking to help spread its wings.

In essence, a business that incorporates social enterprise into its operations is buying into the belief that using business practices and investment to enable growth and potential for communities and individuals is a lucrative two way street.

“Social change is good for business and business is good for social change” says Paul Klein, president of Impakt – which helps corporations become social purpose leaders.

If you have bought the Big Issue, enjoyed a bar of Divine chocolate, shopped at the Co-op, visited the Eden project or eaten at Jamie Oliver’s Fifteen restaurant, then you have invested in some of the UK’s most lauded social enterprises.

In this difficult economic climate, the realisation of social enterprise within communities is fostering a solid habit of enablement, rather than continuing the ways of its kindly grandfather – philanthropy.

“Increasingly global corporations are rethinking their approach to corporate responsibility, evolving toward a model in which traditional donations are supplemented by innovative programs and initiatives that tap into the core strengths of the business.” writes Peter Scher, head of corporate responsibility at JP Morgan Chase & Co.

It is true that the concept has been gradually filtering upwards into a worldwide consciousness from small start-ups and organisations who operate at a grass roots level, where the need in society is instantly recognizable.

Indeed, the UK’s overall winner of last year’s awards, Link Group, is providing invaluable service and employment in the housing sector, at a time when many are literally struggling to keep a roof over their head.

The organisation works with more than 10,000 people providing housing, regeneration and care services. It spans 26 of 32 Scottish local authorities, employs 400 people and has a turnover of over £34 million.

Other shortlisted companies demonstrated how operating from the platform of social enterprise can quickly and radically promote a departure from institutionalized practice or standard business infrastructures.

The City Healthcare Partnership, for example, is a predominantly staff-owned social enterprise, providing health and social care services to over half a million people in Hull and Knowsley, Merseyside.

It broke away from any involvement with the NHS in 2010 and now invests about 65 per cent of its profits back into its services.

“We are able to keep the public-sector pound within the areas where it’s needed – more than 85 per cent of procurement is done locally and we give a percentage of our profit and time to local voluntary sector organisations.” said CEO and ex-nurse, Andrew Burnell, for The Independent.

“The social return on an investment is £28 for every £1 invested – so it has a wider impact. Health isn’t just made up of being seen in a hospital. Health is also about where you live, what you do, and whether you have an education.”

Serial social entrepreneur, Rajeeb Dey is, at 27, one of the youngest leaders in this field and is determined to make a difference to some of society’s big issues, through his business plans.

When only 17, he launched Student Voice which formally represented the views of secondary school students and in 2011 he co-founded Start-up Britain – a campaign to promote entrepreneurship which was backed by the government.

More recently, he has founded Enternships – an online platform which enables young people to find work in start-ups and social enterprises. Working with over 5000 companies, it has found jobs for over 8000 young people.

And it seems that the UK is producing more and more highly successful social enterprises – last year’s winners included:

• Provide, which delivers health and social care services in the community throughout Essex.
• FRC Group, which works to provide great quality furniture for low-income households whilst creating training opportunities for the long-term unemployed.
• The Wates Group, who recently launched the construction industry’s first brokerage system with Social Enterprise UK and have set a target of spending £5 million with social enterprises by 2015.
• Big Issue Invest – the social investment arm of the Big Issue publication. It was honoured for its deal in partnership with Unity Trust Bank, which enabled Sandwell CCT to buy a high-quality 62 bed residential care home for elderly people with dementia.
• Glasgow Credit Union - the largest credit union in the UK with a membership of over 32,000, providing a genuine ethical alternative to high street banking.
• Blue Sky Development & Regeneration – remarkable because it only employs ex-offenders. Offering real jobs with solid companies, it aims to break the cycle of re-offending and challenge perceptions about ex-offenders.

Looking ahead to 2014, many social entrepreneurs in the UK have high hopes for the sector. Jasmine Kubski, international sustainability projects manager for Change Agents UK said for The Guardian: “I want to make 2014 the year to become a ‘change agent’ through social enterprise.

“My goal is to present social enterprise as an achievable and attractive option to our network of 10,000 young people, currently registered with Change Agents UK, who are actively looking for careers that create positive change for sustainability.”

And Simon Frost, chief executive for the Parity Trust added, “2013 has seen progress towards recognising the importance of social investment to the UK, and increasing awareness of social enterprise in our economy, but much remains to be done.

“My new year’s resolution for 2014 is that I hope other institutions involved in supporting the sector begin to fully recognise the importance of the need for a wider range of financial products and services.”

Indeed, it seems that British verve in this movement may well influence the business-world globally.

This month, The British Council brought together policy makers and shakers from Asia and Europe to discuss the way in which public policy might promote the growth of social enterprise.

Paula Woodman, Social enterprise programme director for the British Council is positive about what can be achieved around the world.

“Research suggests that globally there is no clear link between the number of people involved in social entrepreneurship and how developed that country is.

“And we have plenty of evidence from the likes of Grameen, Brac (international development organisations), and Fairtrade businesses – to show just how relevant social enterprise is to both developing and developed countries.”

Perhaps one of the longest standing pioneers in Social Enterprise is the UK’s own Big Issue magazine, which for the past 20 years has been giving homeless people dignity and the opportunity to earn an income by selling the publication on the streets where they sleep.

Its founder, Nigel Kershaw, whose new venture - The Big Issue Invest - is the first merchant bank dedicated to social entrepreneurship, summed up the leap that he made and that many more are making now: “When we made our first investment, there were just a few pioneers doing it. People thought we were nuts. They asked what on earth a homeless magazine was doing in the finance world. We’re really proud of what we have achieved. We invest anything from £50,000 to £1m.

“Lots of the entrepreneurs have been inspired to set one up because they have seen something in their lives they want to address, or something around them they want to mend.

“This isn’t about charitable giving. It’s about creating a business and making solutions sustainable.”

With more than 70,000 social enterprises operating in the UK to date, and many strengthening support bases including Social Enterprise UK (SEUK), The British Council and The Guardian’s online Social Enterprise Network, these businesses are continuing to change the very fabric of everyday commerce for the future, and ultimately for the better.

This was posted in Bdaily's Members' News section by BusinessesForSale .