Reports

The April Social Enterprise Barometer report showed that projected growth figures are up on last quarter for social enterprises. Projected turnover and profit figures are also positive, with 40% of social enterprises surveyed anticipating turnover will grow and 77% expecting to break even or make a profit this financial year. The report also showed the importance to social enterprises of supporting staff through the economic downturn.

This report explores how the potential for existing businesses to become social enterprises might be expanded. It studies the motivations, barriers and enablers behind growing numbers of traditional businesses transitioning to social enterprise models using case studies to give real-life examples of instances where this has happened. The report also contains recommendations on how to support more organisations become social enterprises.

This discussion paper explores the importance for social value over the next ten years. Written by social value expert Jeremy Nicholls, Assurance Framework Lead for SDG Impact Standards at the United Nations Development Programme and Ambassador to the Capitals Coalition, the paper aims to conceive a future for social value which builds on the achievements of the Social Value Act but also seeks to reconnect thevarious approaches to accounting for value. This paper is published as part of the Social Value 2032 Programme. It is the individual work of Jeremy Nicholls and does not necessarily reflect the views of Social Enterprise UK, the Social Value 2032 partners or any organisation referenced in this paper.

The Social Enterprise Barometer paper is published quarterly and provides a snapshot of social enterprise performance as well as how specific economic and political developments are affecting social enterprises. The February Social Enterprise Barometer report published on 9 February 2023 shows that the next quarter is critical for many social enterprises with more than one in ten social enterprises across the UK expecting reduced turnover or to close due to the tough economic climate.

This report, supported by the Alex Ferry Foundation, looks in more detail at social enterprises and the quality of work they provide. It explores how social enterprises approach issues such as employee engagement, paying the real Living Wage, flexible working and employee ownership.

The Autumn Social Enterprise Barometer showed that thousands of social enterprises may not survive the winter amid rising energy and operating costs and concerns over accessing contracts and funding, Across all indicators of social enterprise business health, the report shows signs of significant strain over the last quarter. Cashflow and reserves positions have worsened, turnover and growth expectations are down, and staff numbers have declined. Rising costs in general, especially rising energy prices, are of particular concern, combined with uncertainty about energy price caps post-April 2023. 22% of social enterprises said they need help with energy bill payments, that’s almost 30,000 businesses UK-wide.

Launched in 2016, the Buy Social Corporate Challenge was set up to encourage corporates to use their everyday procurement spend to create positive social and environmental impact. Starting with seven founding partners the programme has grown to include 30 large businesses ranging from pharmaceuticals to finance. The Year 6 Report looks back at the impact of this programme which has now seen £255 million collectively spent with social enterprise suppliers by Buy Social Corporate Challenge Partners.

Social enterprise performance in July 2022 looked relatively positive, having recovered from a dip in January and in spite of challenges of creeping operating cost increases and supply chain constraints. However, the anticipated hike in energy costs and the likelihood of recession put this progress in jeopardy. Whereas other businesses might increase prices or cut staff to offset rising prices, we are seeing, as we did during COVID, that social enterprises are picking up the slack in ways which remain commercially viable, at least in the short term. Yet there are clear signs of strain – financially, but also in terms of leadership and staff capacity and wellbeing.