Social Enterprise FAQ
1. What is a Social Enterprise?
Social enterprises are businesses that trade for social and environmental purposes. They operate in all markets competing against private firms selling goods and services to local authorities, central government, private businesses and individual consumers. Social Enterprises exist to make a profit just like any private sector business. However instead of paying dividends to share holders or inflated salaries to owners and managers any profits or surpluses they make are reinvested into social and environmental purposes; for example providing employment opportunities to the long term unemployed. Without making a profit social enterprises cannot meet their social and environmental objectives; they must trade, to be sustainable.
2. Can you give me any examples I may have heard of?
The Big Issue, the Eden Project in Cornwall, Loch Fyne and the Homeless World Cup are examples of social enterprises. The Wise Group, a Glasgow based organisation with 25 year experience in getting the long term unemployed back into work is also a social enterprise as are Credit unions as they provide low cost loans to many vulnerable individuals, often a more favourable rate than they would receive from a high street bank. To access the Coalition Social Enterprise Directory, to give you more examples of social enterprises in Scotland click here.
3. What is Social Enterprise Scotland?
Social Enterprise Scotland is the national collective voice for social enterprise in Scotland, bringing together social enterprise and its supporters into a strong force for change. We work to: build the organisation as a well-managed, membership-led organisation, representing the full range of social enterprise in Scotland; to raise the profile of social enterprise as a dynamic business model, championing the values and benefits of social enterprise to a broad range of stakeholders; to represent the needs and views of social enterprise to policy and decision-makers in Scotland.
We are an independent, membership-led organisation. Membership is open to all social enterprises, their networks and intermediaries and their supporters. Please contact us for more information.
4. Who is in Social Enterprise Scotland?
The organisation is continually growing and expanding, to access the most recent membership list visit the Directory of Social Enterprise.
5. What is the difference between a social enterprise and an ethical business?
The two are distinct business models. A social enterprise's main purpose is to fulfil its social and/or environmental goals. This is achieved by reinvesting the majority of the profits back into the business. An ethical business tries to achieve its financial goals while minimising any negative impact on society or the environment.
6. How big is the Social Enterprise Sector?
According to previous research conducted for the Scottish Government, the turnover for the Third Sector for Scotland was found to be £3.87bn. We estimated that social enterprise contributes two thirds of that figure with approximately 3000 businesses providing a combined turnover of around £2-2.5bn – including co-ops, housing associations, development trusts, social firms, and recycling businesses. In 2009, research found that across the UK there are 62,000 social enterprises contributing £8.4 billion to GDP. However, these figures need to be updated and we will soon be commissioning new research into the sector.
7. I’m interested in starting my own social enterprise, can you help?
Like any other business setting up a social enterprise will often require substantial advice and support. However there are a number of organisations who can offer support to those individuals who wish to become social entrepreneurs. Many of the organisations below are now part of Just Enterprise, the complete business support service for the third sector, and you should start there to access their services.
8. Is there any funding available for my social enterprise?
There are a number of funding streams available to social enterprises and social Entrepreneurs. For a list of the most recent go to the Scottish Government Third Sector page here.
9. What is Social Return on Investment(SROI)?
SROI is an approach to understanding and managing the impacts of a project, organisation or policy. It is based on stakeholders and puts financial value on the important impacts identified by stakeholders that do not have market values. For more information on the SROI project click here.
10. What are Community Benefit Clauses?
Community Benefits are contractual requirements which seek to deliver wider social benefit within a procurement contract. To form part of the criteria according to which contracts are awarded, Community Benefit clauses must be included within the contract i.e. where a contract may have traditionally been for construction, a training and recruitment element may be included as part of the specification for that contract. For more information click here.
11. Where can I find more information about Social Enterprise?
The following links provide a useful guide to social enterprise in Scotland
The Third Sector Division makes a direct impact on the growth of Scotland's economy, the wellbeing of its citizens and the improvement of its public services.
Public Social Partnerships (PSPs) are an innovative approach to public service delivery, involving enterprising third sector organisations.
Ready for business is a public social partnership (psp) pilot project designed to support social enterprises and procurement agencies to realise maximum value from procurement opportunities.
Firstport work to identify, advise, connect, encourage and seed fund new start social entrepreneurs.
Social Investment Scotland is focused on helping grow the size of the social economy business marketplace in Scotland
Social enterprises can now become associate members of Scotland Excel, the local authorities' procurement body.
The Supplier Development Programme (SDP) is a new service available to all trading third sector organisations and social enterprises across Scotland aiming to help businesses win contracts with Scottish Public Sector Organisations.
ONE in FOUR Magazine - http://www.oneinfourmag.org
Good Company Magazine - http://www.good-company.info
Social Enterprise Magazine - http://www.socialenterprisemag.co.uk/homepage.asp
