Five reasons we need social enterprise more than ever to move beyond fascist rioting

There are many factors underlying the violence across the UK following the shocking murder of three children in Southport last week. Ugly scenes of racist violence and dangerous rhetoric online, perpetrated by figures including members of our Parliament, reinforce the vital role of social enterprise in our communities.

That we are shocked, saddened and even frightened goes without saying. Our thoughts are with all our colleagues, members, partners and their families affected. The question is how can we stop it, rebuild our communities, and show those caught up in destructive hatred that a better way is possible?

The numbers of people actively speaking out for peace, for inclusion, for community, show what we all know: fascist noise is an unwelcome splash in an ocean of caring, hard-working, inclusive and wonderfully diverse humanity. Social enterprise will continue to surf that wave.

We call on the UK Government and political leaders of all parties to always take a stand against racism and Islamophobia. This hate must not be tolerated or normalised, to ensure that all those from racialised communities feel safe and that those fleeing danger are welcomed.

When the immediate violence subsides, social enterprises will be there in force to rebuild. This blog outlines five examples of how social enterprises are part of the solution, and how to support them to be as helpful as they can be.

1. Social enterprises are embedded in communities and deliver for them

Social enterprises run community assets that bring people together and support their needs, from pubs and cafes, to sports venues and shops. They support disadvantaged and vulnerable people to access support and services, they run programmes in schools and beyond to grow children’s education. They sell products that allow them to cross-subsidise or fund the work of others. From reducing period poverty to supporting single parents, care leavers, ex-veterans, and young people out of work, social enterprises have deep networks and trust in the communities where they operate. They bring people together and help move lives forward. While fascism stokes division and conflict and offers nothing but false promises, social enterprises build unity and embrace diversity to deliver shared prosperity for everyone.

Gareth Hart and Mel Tucker, directors of our member Iridescent Ideas CIC and co-leaders of Plymouth Social Enterprise Place, said: “We watched with deep dismay, sadness and anger as our beautiful city of Plymouth joined other cities and places across the UK experiencing racism and violence on our streets. We have seen many representatives from the local social enterprise community posting messages of solidarity online and several attending the counter protests in the city. There are many social enterprises in Plymouth such as Plymouth Hope, Diversity Business Incubator, Nudge Community Builders and WonderZoo who campaign and work to promote inclusion and unity. We hope that future investment programmes support these types of activities. Looking after people and community is at the very heart of what social enterprises do. Hate will not conquer hate. As a group we show that we are stronger together.”

2. Social enterprises are solutions-focused and innovative

68% of social enterprises brought new products and services to market in 2023. Social enterprises spot need, plug gaps and figure out ways where no one else has succeeded. Social enterprises seek problems to solve; rather than running away, they crowd in. They work with people across the criminal justice system, rehabilitating and preventing. They support refugees and asylum seekers, recognising that these are people who’ve suffered but have much to offer. They support veterans, knowing that it’s hard to transition from military service to civilian life. Where others see problems, social enterprises find opportunities and generate returns.

Oldham Social Enterprise Place is no stranger to racial tensions and has a history of supporting refugees and disenfranchised groups. Organisations such as Upturn, a multi-award-winning social enterprise that supports disadvantaged communities through employment and business support and community engagement programmes, play a key role in community cohesion. Anwar Ali, co-founder of our member Upturn and lead for Oldham Social Enterprise Place, said: “Infrastructure organisations, such as Social Enterprise UK and the social enterprise places network, provide essential support, enabling social enterprises locally to address social challenges effectively. By fostering inclusivity and resilience, social enterprises help heal and strengthen communities.”

3. Social enterprises enhance public service provision

Social enterprises have held up our crumbling public services for years by reinvesting profits, joining up services and needs, and piloting innovation. Going forward, they will be crucial to running and improving vital services in communities across the country.

From children’s homes to social care, affordable energy and housing, to inclusive public transport – making sure that social enterprises can deliver for local authorities and central government is key. Social enterprises should be recognised and championed for their role in delivering the services we rely on. Government should improve their commissioning and procurement processes, so that more social enterprises are brought into public supply chains, and that government spending is being used effectively to improve public services, while maximising the social benefits that these businesses generate.

4. Social enterprises contribute to inclusive economic growth

Social enterprises reflect the diversity of our society.  They are more likely to be led by women and people from ethnic minority backgrounds, more likely to hire people from the communities they serve, and more likely to operate in areas that face higher levels of economic deprivation and disadvantage. Many social enterprises actively recruit those furthest from the labour market, providing training as well as flexible and well-paid work that is central to minimising poverty and disillusion for marginalised groups.

By investing their profits back into their communities, social enterprises drive economic growth and renewal. This is the foundation for a more inclusive society, with wealth being built to enhance the lives and prospects of every community. Jennifer Van der Merwe, Director at Kindred LCR and part of the Liverpool City Region Social Enterprise Place, said: “Cohesive communities are vital for a good economy, where everyone is supported to thrive. We recognise and celebrate the work of all the socially-trading organisations serving our communities in Liverpool and Merseyside towards community cohesion, and we will continue to encourage and support inclusion and cohesion in the communities in which we work together.”

5. Social enterprises have done it before

After the 2008/9 financial crisis, during the Covid-19 pandemic, throughout the energy price and cost of living crisis – social enterprises have proved resilient, and demonstrated their commitment not to shareholders or profit but to people and places in need. They pivoted their models to provide vital support, they cut costs through efficiency and innovation not redundancy, and they reached out to the people most at risk. Businesses with values and ambitions aligned to the interests of society are essential to navigate through these difficult times. Social enterprises not only offer tangible solutions to the challenges we collectively face but are an antidote to the division, fear and hatred of the far-right.

Terry Murphy, CEO of our member Sheffield Social Enterprise Network and chair of Sheffield Social Enterprise Place, said: “As a united front, the leaders of Sheffield’s VCFSE sectors stand in solidarity with those nearby in Rotherham and others across the country who have suffered from this senseless violence. Our communities have shown remarkable resilience and unity in the face of these attacks. Looking ahead, the Sheffield Social Enterprise Network is unwavering in our commitment to strengthening our collaboration. Recognising that these events are symptoms of a broader systemic problem, we believe that nurturing hope can provide the motivation for change – while promoting collaborative systems change can address the structural barriers that sustain polarisation, valuing the diversity of perspectives and experiences that each of us brings.”

If we can provide any support to your social enterprise at the moment, please let us know. Please also share with us your work within affected communities and information we can help take to policymakers by contacting membership@socialenterprise.org.uk.