Greater than one million companies within the UK could possibly be supported to formally transition to social enterprises, primarily based on their present engagement with social points, in keeping with new analysis.

Social Enterprise UK’s (SEUK) newly-launched ‘Transitions’ report reveals that as many as a fifth of SMEs within the UK aspire to make a constructive social affect – however should not at the moment working formally as social enterprises. This implies greater than one million organisations have the scope to transition to social enterprise standing, and contribute extra to the economic system and society in doing so.

Because of its findings, SEUK is encouraging companies within the UK to contemplate their standing and study extra about how they might profit from transitioning to a brand new mannequin.

Working as a social enterprise permits a enterprise to lock in its social and environmental objective, guarantee earnings profit that objective, and luxuriate in wide-ranging advantages for employees, prospects and purchasers by reaching new markets and creating new services and products.

Social enterprises additionally often get pleasure from enhanced reputations, buyer loyalty and worker engagement, while having wider entry to funders and financers motivated by social affect.

Social enterprises are companies which commerce for a social or environmental objective, prioritising the advantages to folks and planet and use the vast majority of any revenue to additional their mission. Social enterprises contribute to lowering financial inequality, bettering social justice and to environmental sustainability.

There are at the moment greater than 100,000 social enterprises within the UK, contributing £60 billion to the economic system and using round two million folks.

Peter Holbrook, CEO at SEUK, mentioned: “While we acknowledge the implausible work of present social enterprises in benefiting our economic system and society, our analysis identifies that a large variety of different companies should not maximising the alternatives out there to them from social enterprise fashions and options.

“No social enterprise is similar, both, so there are a selection of choices for firms wishing to transition – for instance, a small tech agency could also be greatest suited to a co-operative mannequin, worker possession could match a much bigger retail enterprise or a belief mannequin might work properly for a enterprise working a heritage asset.

“Due to this fact, we encourage companies to search out out extra and perceive if transitioning to a brand new mannequin is viable for them, to allow them to attain their potential and make a fair better distinction to the world as a social enterprise.”