Social enterprises are embedded in our communities and on our high streets – from the Co-op to Divine chocolate through to The Big Issue magazine. They are businesses that trade to tackle social problems and issues and to improve communities. They make their money from selling goods and services, and reinvest profits back into the business or the local community to meet their aims. They include development trusts, community interest companies, social enterprise networks, trading charities, housing associations and credit unions and cooperatives.
The research found that the sector employs almost 121,000 people and expects to increase trading income by 40% over the next three years, with around 60% of organisations generating more than half of their income through their trading activities.
The growth in social enterprises then, is rapid. A sector survey in 2013 found a start-up rate in social enterprises three times that of the traditional SME sector, with around 70,000 social enterprises operating throughout the UK.
In Scotland, Glasgow has the most social enterprises, with a total of 539, followed by Edinburgh, with 417. In Scotland we can continue to expect these figures to rise, as charities are increasingly moving away from their traditional models of fundraising and becoming more businesslike to ensure their sustainability.
