Social enterprise facts

Social enterprise is a business driven by social and/or environmental purpose. They are trading organisations (their main income streams are revenues for goods and services provided, not grants or donations). Successful social enterprises generate surpluses or profits which are reinvested towards achieving their social mission. Their assets are often locked for community purpose (Source: Social Enterprise UK, 2011) 

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Government data estimates that there are approximately 62,000 social enterprises in the UK contributing at least £24bn to the economy. Social enterprises are estimated to employ 800,000 people. (Source: the Annual Survey of Small Businesses UK 2005-2007)

The State of Social Enterprise Survey (2011) found that:

• The median annual turnover of social enterprises has grown from £175,000 in the 2009 survey to £240,000 in the 2011 survey

• 58% of social enterprises grew last year compared with 28% of SMEs

• Smaller social enterprises are by far the most confident of growth, with 73% predicting an increase in turnover

• 70% of social enterprises earn 76% of their income through trade

• 82% of social enterprises reinvest profits back into the communities where they are earned to further their social or environmental goals

• Women in social enterprise leadership teams are challenging the glass ceiling, with 86% of leadership teams boasting at least one female director

• 39% of all social enterprises work in the 20% most deprived communities in the UK

  Read the full survey

• Almost 1.3 million people consider themselves to be social entrepreneurs, representing a significant part of the UK's labour force
• 35% of all entrepreneurs who have been involved in start-up activity for less than three months in the UK are social entrepreneurs

Other research found that:

• One in five social enterprises in the UK has an annual turnover of over £1 million (Source: DTI Annual Small Business Survey, 2005)
• Over 60% of the British public would prefer their local services to be run by a social enterprise - instead of the government, private profit businesses or traditional charity (Source: YouGov Poll released in 2007)
• The same survey polled 2,000 people and asked them what kind of company they would like to work for. A clear majority, 30%, picked social enterprise, with only 16% of respondents saying they would like to work for a traditional business, 13% choosing a government institution and 13% a traditional charity (Source: YouGov Poll released in 2007)
• According to a DTI Survey in 2005, health and social care services is the largest category of trading activity for social enterprises as it was the principal trading income source for 33% of respondents, followed by education at 15%. Social enterprises are also extremely active in the energy, transport and recycling markets. However a social enterprise can be successful in any market - from an employee-owned bicycle shop to an IT consultancy firm hiring people with Asperger's syndrome. (Source: DTI Survey, 2005)
• Around 10 million people in the UK are members of a co-operative, which is a form of social enterprise (Source: The Co-operative Group - Annual Report 2006)
• For the UK as a whole, women are more likely than men to be involved with a socially orientated start-up 5.8% of women compared to 4.9% of men. (Source: Global Entrepreneurship Monitor Focus on Social Entrepreneurs, GEM 2004)
• In four of the UK regions women are more likely than men to be setting up a socially orientated venture or activity - the East Midlands, London, the North East and the South East. (Source: Global Entrepreneurship Monitor, GEM 2004)
• Women are more likely than men to think that social, ethical and environmental considerations in business are important. (59% compared with 48%). (Source: A Survey of Social Enterprise Across the UK, DTi, 2005)
• The gender gap for social entrepreneurship activity is far narrower than for mainstream enterprise activity (Source: Stairways to growth: supporting the ascent of women owned businesses in the UK, Prowess/GEM 2006)