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More diversity at leadership level could mean more money for the economy. Our latest report found that social enterprises are playing their part – particularly those led by women.  Whatever your views on the diversity of Britain's workforce, there's a good reason to consider the findings from our last State of Social Enterprise report: it's been estimated that better gender and ethnic diversity in executive teams would be good for the economy.  For example, the business charity Business in the Community has worked out that race equality could boost the UK economy by £24 billion per year, which works out at an incredible £481 million a week. For anyone interested in economic growth like this, our deep dive into diversity amongst social enterprises should make for interesting reading.   Beyond the bottom line, more diversity can help stimulate a culture that draws on the experiences, perspectives and knowledge of different groups. Embracing different views and nurturing talent, while combatting biases and prejudices that can hold a business back, can contribute to a better business culture and enhance performance. When we interviewed more than 700 social entrepreneurs, their answers around the diversity of their businesses were incredibly revealing.  Social enterprises lead the way when it comes to representation on staff and leadership teams. More social enterprises are led by women and people from ethnic minority backgrounds than is the case for the wider business community. More than half of social enterprises are run by women (59%) and they’re making more than double the money of their male counterparts; average reported profits among women-led social enterprises are £160,000 compared to £70,000 by those led by men. For comparison, in the wider business community, just 18% of SMEs are run by women.   Another result that leaped out from the report is that one in every 20 businesses run by someone from an ethnic minority background in the UK is a social enterprise. Social enterprise leadership is closer to representing the national ethnicity makeup of the UK than the rest of the business world. The UK’s last census (in 2021) found that 18% of the population is from an ethnic minority background and our research found that 13% of social enterprise leaders identify as being so. In the wider business community, just 6% of leaders are from an ethnic minority background.  Social enterprises strive to address different social challenges and lead the way when it comes to representation on staff and leadership teams. Further, a substantial proportion actively tackle issues of gender and racial discrimination as their core social mission.  While there are several reasons to be optimistic about the contribution social enterprises make to a more diverse and representative workforce, challenges remain. As with all businesses led by women and people from minoritised groups, there remain concerns that certain social enterprises can face persistent barriers that hold their business back. The Adebowale Commission on Social Investment, for example, found that Black-led social enterprises faced a disproportionate struggle to access and secure financial support from social investment firms.  Black female-led social enterprises are significantly less likely to raise finance sought than the average, and female-led social enterprises are less confident that their organisations have the required skills to secure finance and investment.  It is critical that we improve our understanding of the challenges experienced by different groups within the social enterprise community. Through improving diversity and representation across social enterprise, economic gains can be made, and the ability of social enterprises to recognise and meet the needs of the communities they serve can be strengthened.   This report explores data collected by the Social Enterprise Knowledge Centre – in particular the State of Social Enterprise, the largest UK survey of social enterprises. It maps the demographic profile of social enterprises and explores differences in performance and experiences for women-led and ethnic minority-led businesses.  We’d really love your help with the next State of Social Enterprise, which we’ll be compiling this year. In February we’ll be launching our biannual survey, which is open to all social enterprises. It will give us more valuable data to help showcase the difference social enterprises are making. If you’d like us to send you the survey, let us know here.  

Katharine Sutton is Chief Executive of Aspire Community Works, a social enterprise provider of public services whose #BetterForUs campaign advocates a wellbeing approach to the economy. The vast amounts of public funds allocated through procurement can shape community well-being, support fair employment and strengthen local economies – yet all too often, this potentially transformative spending is reduced to a technical purchasing process. At best, the cheapest price is prioritised over the quality of public services, but at worst it can mean large-scale corruption and the collapse of get-rich-quick companies such as Carillion. A new mission-led government, a new Procurement Act (due to take effect in February 2025) and new National Procurement Policy Statements (in England and Wales) provide opportunity for bold reform to ensure the system is people-led rather than profit-led. This blog explores various practical ways in which public procurement can be made to work for the public, not against it. Make fair wages and good working conditions the standard Every public contract should include a commitment to paying the Real Living Wage. Workers deserve fair compensation that enables them to support themselves and their families. Setting fair wages as a standard can reduce poverty, lessening reliance on health and welfare services. Fair pay fosters health, stability and productivity, creating a more resilient and engaged society. All public contracts should also promote decent working conditions through the inclusion of Good Work standards certified by independent bodies. This will ensure workers have security, dignity and opportunities to develop, ultimately supporting the well-being of employees and wider communities. This is particularly important in sectors with low pay and high turnover to improve staff satisfaction and retention,  in turn generating higher quality services that the race to the bottom simply cannot sustain. Support local economies with targeted investment At least 1% of public procurement budgets should be allocated to organisations committed to supporting people facing barriers and disadvantage in the labour market. Directing procurement funds towards these “Good Works” organisations could help stimulate alternate local economies, create sustainable employment for individuals who might otherwise be excluded from the workforce, and tackle existing labour shortages. Aspire estimates that such an investment could generate over £3.9 billion for local economies, strengthening communities and fostering inclusion. Align procurement with wider values and goals Public procurement can and should be aligned with the UN’s Sustainable Development Goals (SDGs), leveraging each contract as an opportunity to support sustainable development and addressing issues such as inequality, inclusive growth and climate change. We consider these to be the golden thread linking procurement to community, domestic, international and corporate goals. While social value is an increasingly common part of procurement, we recommend a shift towards public value - linked to the SDGs - with the purpose of maximising public benefit. Social value often becomes a checklist, narrowly focused on short-term results, whereas public value encompasses a commitment to addressing long-term issues like inequality and resilience as well as mission-led public policy. Reframing procurement with a public value approach would enable public funds to support sustainable, community-centred, people-led goals. Such a shift would require contractors to align their objectives with government priorities, creating a more cohesive and impactful procurement strategy both at a national and local level. Put the public back in public procurement We must move beyond just listening to really actively involving local communities in the commissioning and procurement process, using the voice of lived experience to co-create services that are relevant and resonate with the people who will be relying on them. Investing in people-led procurement is a crucial part of investing for our future. Inclusive growth may be a buzzword for those who have wealth – but for those of us without, it is a necessity. As businesses and investors look for models of sustainable growth, the principles of social procurement align with a growing demand for economic resilience and accountability. This is an opportunity for the UK to lead, not just in fiscal responsibility but in responsible, impact-driven investment of public funds. At a time when economic value and social value need not be mutually exclusive, public procurement could become a cornerstone of the UK’s economic renewal. Over the next couple of months, our new government has the opportunity to direct public procurement to work for the public benefit and not against it. Will it seize the opportunity? We can only hope so.

Our chair Lord Victor Adebowale founded the Commission on Social Investment, which published a landmark report on how it could better enable the growth of social enterprises. Three years since this independent group found a major unfulfilled opportunity and called for change, the Commission’s recommendations have been reviewed to identify what has changed and what has not - taking into context economic factors such as rising inflation and interest rates, the cost of living crisis and changes in government. Stress points in the original report included the deprioritisation of social enterprises over the past decade and the inequitable serving of social investment across the UK. The structure of the social investment market itself was pinpointed as the root of these problems — particularly the lack of patient, concessionary capital, and lack of flexibility in the structure of key institutions. New analysis broken down into a ‘report card’ recognises some signs of progress but also highlights concerns in areas such as government strategy, key market institutions and access to funding products. Looking ahead, the report recommends more interactions with this new mission-led government, which has already shown an interest in the social impact sector. It also proposes a shifting of expectations from social investment stakeholders, as well as addressing the diversity gap in the social enterprise sector. Overall, this marks a renewed call for structural reform, scrutinising the social investment ecosystem created over the last decade and considering how it might be better unleashed for more transformative impact - across all communities in this country, but especially for those where the need is greatest. Peter Holbrook, Chief Executive of Social Enterprise UK, said: “Over the past decade, the social investment sector has made slow and disappointing progress in reaching its true potential to support social enterprises and charities in very turbulent times. Despite clear recommendations for transformative change, this report suggests not enough has been done to capitalise on the opportunity created through dormant assets, too often mirroring the status quo of investor-first finance. The lack of imagination, from both the previous government and institutions within the sector, has been frustrating. “For the ecosystem of social investment to stay relevant for its intended beneficiaries, its leaders must look at what they can do to further dismantle the ongoing barriers to access that too many experience.  Mission-led businesses have a new opportunity from our new mission-led government. The social investment sector has the potential to embrace a shift toward greater accountability and innovation, but it will take leadership, an appetite, and ultimately some risk. But now is the time to act with purpose and focus.”

The winners of the UK Social Enterprise Awards were announced at a gala reception at the Roundhouse in London on 4 December. Find out more about our winners, who showcase the strength, diversity and innovation of the social enterprise community. UK Social Enterprise of the Year Sponsored by Keegan & Pennykid The overall award for a social enterprise that has a clear vision, excellence in impact, and that has demonstrated and promoted social enterprise beyond the sector. The Workspace Group Workspace is a ‘profit for purpose’ social enterprise, founded in Draperstownm a small village in Mid Ulster, in 1985, by 170 members from the local community. The organisation emerged as a direct response to local decline, deprivation, and rising unemployment. The initial business model aimed to generate rental income from business units, which was then used to fund the provision of free business advice to support local entrepreneurs to start businesses and create jobs in the area. Workspace has grown significantly since 1985 and, in addition to providing incubator units, has diversified its operations to include several commercial businesses. These generate surpluses, which are gifted back to the parent company, Workspace Draperstown Ltd, to enable it to carry out its social mission. @TheWorkspaceGro HIGHLY COMMENDED: Isle of Gigha Heritage Trust One to Watch Sponsored by PwC The One to Watch Award is for a start-up social enterprise. Key to winning this award is an ability to clearly articulate their future vision and how they are going to achieve it. Half the Story Half the Story is a social enterprise biscuit business started in 2023. Its biscuits taste great – but as it says on each packet: ‘It’s not about the biscuit…it’s about the people who bake them’. Half the Story creates life changing employment for people with major barriers to work including homelessness. Wrapped in ecofriendly packaging its biscuits can already be found in retail outlets, on boardroom tables, at conference centres and hotels. These are biscuits that taste good and do good! @halfthestoryuk Prove It: Social Impact Award Sponsored by Linklaters For a social enterprise that can truly demonstrate and communicate their impact with their stakeholders. Breadwinners Breadwinners is a not-for-profit social enterprise that provides artisan organic bread and pastries while supporting refugees through employment and work experience programmes. By operating market stalls and a wholesale model, it gives refugees jobs and creates a community of customers, socially responsible partners, and producers that promotes the integration of newly arrived individuals into the UK. All while offering the best sourdoughs, natural levains, and organic pastries! @wearebreadwinners HIGHLY COMMENDED: The Skill Mill ‘Buy Social’ Market Builder Award Sponsored by Clear Voice For a social enterprise, public sector body or private sector organisation that has demonstrably made efforts within its own organisation and remit to create more opportunities to buy from social enterprises. Co-op Co-op is one of the world’s largest consumer co-operatives, owned its by millions of members. It’s the UK’s fifth biggest food retailer with more than 2,500 local convenience stores, the UK’s number one funeral services provider, a major general insurer and a growing legal services business. Alongside clear financial and operational objectives the Co-op is a recognised leader for its social goals and community led programmes. It exists to meet members’ needs and stand up for the things they believe in. @coopuk HIGHLY COMMENDED: McLaughlin & Harvey Social Investment Deal of the Year Sponsored by Better Society Capital For an organisation that has been part of a great investment deal in the last 12 months that has helped the social enterprise to grow or the movement as a whole to develop and flourish. British Land/Impact Hub London Impact Hub London secured a transformative deal with British Land who provided £3.5m of CAPEX and managed the Cat-A/B fit-out for a 10,650 sqft affordable workspace in Regent’s Place. Repayment for CatB and peppercorn rent with a profit share arrangement enabled what would otherwise have been unaffordable. Not only did this secure a world-class space for inclusive innovation in Camden, with free memberships for underserved residents, but built aligned interests and a true collaboration to enable community and global impact. @impacthublondon @britishlandplc HIGHLY COMMENDED: Impact Finance Consulting/ARK Resettlement Services Public Services Social Enterprise of the Year Sponsored by GLL For a social enterprise for whom the majority of their income comes from the public sector and which delivers public services (for central or local government, NHS, criminal justice or other statutory body). Simon Community Scotland Simon Community Scotland has focused on responding to the causes and consequences of homelessness. It is a community of staff, volunteers and people who are homeless that combine to reach, respond and resolve the challenges and circumstances people find themselves in. Its ambition is that everyone has a safe place to live and the support they need. In any given year, Simon Community Scotland supports over 7000 people with 300 staff, 140 volunteers and over 70 partners across Scotland working with people living on the street, temporary accommodation and in their own homes. @simoncommscot Consumer Facing Social Enterprise of the Year Sponsored by The Company Shop Group For a social enterprise that delivers a retail product or service to the general public. Tap Social Movement Oxford-based Tap Social Movement is an independent social enterprise, craft brewery, and hospitality organisation that provides training and employment opportunities for prisoners and prison leavers. It believes that everyone benefits when no one is excluded from the job market, and to date has created more than 85,000 of paid, meaningful employment for leavers. It runs four Oxfordshire community venues, including Proof Social Bakehouse, named by The Telegraph Food as one of the 13 best bakeries in Britain. @tapsocialmovement Education, Training & Jobs Social Enterprise of the Year Sponsored by BDO For a social enterprise in the education, training or employment sectors that can demonstrate excellence in vision and strategic direction, and clearly evidence their social, environmental and community impact. Change Please CIC Change Please is an innovative social enterprise revolutionising the approach to tackling homelessness through its holistic programs. By training individuals experiencing homelessness as baristas and providing them with essential support services, Change Please creates pathways to stable employment and housing. Its “Driving for Change” initiative repurposes buses to deliver comprehensive health, social and employment services across London. Partnering with organisations like Colgate and HSBC, Change Please supports thousands annually and champions social change through impactful scalable solutions. @changeplease HIGHLY COMMENDED: Cockpit Environmental Social Enterprise of the Year Sponsored by Landmarc For a social enterprise in the green and environmental sector with a clear evidenced environmental impact. Finance Earth Finance Earth is an employee-owned social enterprise with a mission to scale up funding into nature conservation, climate, and communities. Current investment to tackle the twin crises of climate change and biodiversity loss falls billions of pounds short of what is required. Finance Earth works with leading environmental charities, governments, and businesses to secure investment in projects that deliver real social and environmental impact. This year, it facilitated the UK’s biggest ever transfer of energy assets into community ownership. @finance.earth HIGHLY COMMENDED: Ethstat Ethical CIC Social Enterprise Building Diversity, Inclusion, Equity & Justice Award Sponsored by Nestlé Social justice is fundamental to the social enterprise movement. This category is open to all social enterprises who are addressing issues around diversity, inclusion and equity. City Health Care Partnership CIC Providing the highest quality health and care services, City Health Care Partnership CIC’s vision is to lead and inspire through excellence, compassion and expertise in all that it does. CHCP helps to keep people healthy, happy and out of hospital in Hull, the East Riding of Yorkshire and Merseyside. It generates social value through reinvestment in colleagues, communities and services, with a social return on investment of £55 for every £1 spent. @chcphull Social Enterprise Women’s Champion of the Year Sponsored by Bunzl For a woman working in the senior leadership team of a social enterprise who represents excellence in her field of work. Maggie Gordon-Walker – Mothers Uncovered (Livestock charity)  Maggie directs Mothers Uncovered but she’s never not on the job. She’s constantly generating ideas to reach out to mothers, and ways they can make money in these times of austerity. Social obstacles to a woman succeeding in the business and voluntary sector are well known – hence the importance of Maggie’s focus on the lived experience of mothers, especially their mental health. The context in which she is working is tough but Maggie remains undaunted, vibrant and vital. @mothers_uncovered HIGHLY COMMENDED: Paula Jennings – Stepping Stones International Impact Award Sponsored by Zurich Insurance Group For a social enterprise working internationally, and which are having a big impact in their field. This award is open to UK-based organisations only with existing international operations. IDEMS International CIC IDEMS builds open technology and digital public goods for social impact, delivering services in partnership with local organisations to build equity in the place of exclusion. An international team working globally, it has developed not only cultural competences to identify analytic methods from new perspectives, but also a collaborative approach to delivery that can be as transformative as what is actually delivered. This approach, and the values on which it is based, are codified in its organisational principles. HIGHLY COMMENDED: Stand4Socks Community-Based Social Enterprise of the Year Sponsored by the Esmée Fairbairn Foundation This award is for a social enterprise that trades for the benefit of their community, making a real local impact. Peninsula Dental Social Enterprise CIC PDSE is committed to improving oral health in the Southwest through the provision of treatment, education and engagement with communities. Its unique model brings together dental education, high quality patient care and community outreach to deliver demonstrable social impact. The clinics were established to tackle oral health inequalities in underserved areas and to address the lack of availability of dental care, treating patients who may not otherwise have access to a dentist. Social Enterprise Innovation of the Year Sponsored by Barclays Business Banking A new award is recognising a social enterprise that has brought something truly innovative to market in the past year. Change Please CIC Change Please is an innovative social enterprise revolutionising the approach to tackling homelessness through its holistic programs. By training individuals experiencing homelessness as baristas and providing them with essential support services, Change Please creates pathways to stable employment and housing. Its “Driving for Change” initiative repurposes buses to deliver comprehensive health, social and employment services across London. Partnering with organisations like Colgate and HSBC, Change Please supports thousands annually and champions social change through impactful scalable solutions. @changeplease Tech for Good: Technology Social Enterprise of the Year Sponsored by Mitie For a social enterprise that uses technology to achieve social impact. Hope 4 The Community CIC Hope For The Community CIC is a Coventry based social enterprise empowering people living with long term conditions and carers to take control of their health and wellbeing. Its Hope Programme courses enhance participants’ knowledge, skills, and confidence, enabling them to actively participate in their care, leading to improved quality of life and reduced healthcare burden. Organisations across the public, voluntary and private sectors license a range of evidence based peer-led self-management programmes delivered in-person and online across the UK. @hope4tc HIGHLY COMMENDED: WYK Digital Awards Sponsors

An update on our collective policy campaigning from Cwmpas, Social Enterprise Northern Ireland, Social Enterprise Scotland and Social Enterprise UK  Although the new UK Government’s first Budget marked positive shifts like investment in public services, many social enterprises have concerns about how it could affect their business, which we’re currently working to urgently address.  Social enterprises are committed to paying a living wage and providing good jobs, often for those furthest from the labour market and in the most deprived areas – but many will struggle with additional costs from increased wages and employer National Insurance Contributions, particularly those reliant on public sector contracts. It’s not yet clear if some providers will be exempt from additional costs, or reimbursed in some way, or neither.   Different departments have given contradictory messages, so we’re seeking clarity on details of the plans and their potential impact; Scotland’s First Minister has also committed to pressing the UK Government on this. To deliver manifesto commitments around community services and prevention, government must recognise the essential role of social enterprises in their delivery across the country. We’re liaising urgently with politicians and policymakers in all four nations to ensure they understand these issues and work towards a fair resolution.   We’re also engaging partners and wider stakeholders impacted by the changes to maximise our collective impact, as this could have serious consequences for social enterprises who provide vital services every day. There are calls to protect GPs and social care providers, but we know this issue goes further – from healthcare to hospices, school meals to children’s homes, leisure facilities to community transport, all over the country.   To help shield the many vital social enterprises reliant on public sector contracts from these potentially crippling costs, please add your voice to our petition.  We hope the Chancellor will use her additional spending power to create the conditions where mission-led businesses like social enterprises can thrive, which will ultimately build a stronger and fairer economy – but we won’t just wait and see. We exist to be a strong voice for social enterprise, so we’ll make sure that central and devolved governments understand our needs on this budgetary issue and beyond. 

Today (21 November) we mark Social Enterprise Day - a time to raise awareness and understanding of our global movement - with new research that shows the impact of business putting people and planet first. Unlike traditional businesses, social enterprises reinvest profits in vital missions, from bringing communities together and creating employment opportunities to tackling environmental issues and stimulating local economies. New analysis on our Social Enterprise Knowledge Centre provides regional breakdowns of our sector across the country - overall painting a vibrant picture of the many and varied social enterprises from Cornwall to Cumbria, driving positive change despite complex economic challenges. We’re proud to shine a spotlight on the great work of our movement. Read the new research

As our new government maps out its “mission-based” approach, the Cabinet Office is looking at how public procurement could support this – and as part of our work to build markets for social enterprise, we’re seizing this opportunity to show political leaders the added value unlocked when we work in partnership. Procurement is one of the government’s most powerful economic tools, with public sector bodies spending over £400bn to deliver vital public services and critical infrastructure in the last year alone. Unfortunately, the current system is failing to achieve its full potential, as evidenced by our Social Value 2032 research. With a more effective strategy, these funds could help shape markets to improve business behaviours and social outcomes. We hope this new government consultation is the start of a journey to making public sector procurement more collaborative and innovative, so that it delivers greater value – and we know social enterprise can help accelerate progress here. Our business model naturally aligns to a mission-driven approach, putting people and planet before profit. However, system change is needed to really unleash the procurement power of social enterprise suppliers. Having given insight and advice directly to government as part of the consultation, we also wanted to publicly share the highlights of our response, as we continue to push for more engagement and understanding. A key point is making legislation work better. Our research found £56bn in added value has been lost since the Social Value Act came in, so this must be strengthened alongside updates to the National Procurement Policy Statement. It’s promising that guidance on the upcoming Procurement Act expresses a specific intention to benefit social enterprises, and we’ll share our sector insight with policymakers to ensure they understand our needs and expectations. Going further, commissioners must recognise the intrinsic value of organisations in their supply chain. Rather than narrow measurement processes that relegate social value to a tick-box exercise, commissioners should consider how suppliers in their supply chain might advance wider strategic goals. Ultimately, commissioners need the responsibility and guidance to play the role of market stewards; procurement spending should be recognised as investment, with commissioners obliged to consider how such funds can be used to deliver more for the communities they serve. This should also mean actively limiting opportunities for profit in certain areas. When vulnerable individuals are dependent on specific services like social care, there should be no opportunity to make profit at the expense of investing and providing the highest quality service. The government’s new plans to prevent profiteering in children's homes are a very welcome step in the right direction – but there are concerns about whether profit-driven businesses would make voluntary changes, and questions about how mandatory legislation would work in practice. Where possible, commissioners should look to reserve more contracts for suppliers that have adopted business models where surplus funds are used to invest in services, rather than enriching shareholders. Overall, more transparency is needed across the procurement system. Commissioners need to understand what colleagues across the public sector are doing and pursue best practice in line with their own goals. Similarly, they need to understand how suppliers are using their funds, so they can get an accurate sense of the costs needed to deliver vital services. Procurement can enhance public wellbeing and deliver shared prosperity – but it must be approached in a way that prioritises collaboration and transparency, with greater appreciation of what different organisations may bring to the table. This will allow commissioners to better embed suppliers whose practices, values and interests are aligned with the people and places they serve. Ultimately, this will not only improve services and outcomes but cultivate a more inclusive and dynamic economy. If you want to share your experiences of public sector procurement, and/or get involved with our Social Value 2032 work, contact policy@socialenterprise.uk.

Today’s Budget marked a decisive shift to higher levels of public investment - welcome after more than a decade of austerity. This is particularly on capital spend, but social spending investment is also vital. So how can this additional spending can deliver a fairer, more sustainable and inclusive economy? Resource spending in health and social care is crucial. There have been numerous occasions in recent years when social enterprises delivering core NHS community services have been (and are still) unfairly excluded from government policies, programmes and funding. If the new government is serious about its manifesto commitments to prevention and community services, then it must recognise the essential role social enterprises already play in their delivery across the country every day. Many social enterprises will be concerned with some of today’s announcements. The rise in employer National Insurance Contributions (NICs) will particularly impact social enterprises that create jobs, often for those furthest from the labour market. While Employment Allowance has been increased, which will reduce pressures on smaller businesses, this still raises questions over whether this is the fairest way to distribute the increased tax burden. Social enterprises that provide vital public services may be particularly impacted by the Budget. The minimum wage will rise alongside NICs. While social enterprises are committed to paying a living wage and offering better working conditions, those reliant on public sector funding may struggle with these additional costs if they do not receive a fair funding settlement from the public sector bodies they work with. However, there are clear signs this is a Budget that recognises aspects of the contribution of social enterprises and other mission-led business models. Pledges to reform the taxation of Employee Ownership Trusts and deliver a strategy for growing the co-operative economy demonstrate that there will be more support for diverse, mission-led business models going forward. Social Enterprise UK will continue to work with members and partners to ensure the Government understands the needs and aspirations of social enterprise. We do need investment - but we also need businesses that create high-quality employment, invest in their communities, and offer innovative ownership models that share wealth. We hope that the Chancellor will use her additional spending power to create the conditions in which social enterprises, as businesses committed to more than just profit, can thrive.