Download Introduction to Social Enterprise

Introduction to Social Enterprise Developments
Scotland has a long history of pioneering new forms of business that blend social and commercial goals.
These reflect a belief among the people of Scotland in a fairer, more equal society – organised for the
benefit of all – where business activity is used as a means to this end and not an end in itself. Our longterm goal, through social enterprise, is to ensure that economic activity in Scotland is always undertaken
to achieve social fairness, cultural fulfilment and protection of the environment.
Our ambitions are now becoming reality across Scotland. Social enterprises are making a major
contribution nationally and our movement is enjoying growing levels of political and economic support,
introducing a cultural shift to seek independence from grants.
How is Scotland doing in terms of social enterprise? Scotland is leading the way
internationally in terms of social enterprise support and development, sometimes referred to as “the
Scottish model” of doing business. There’s currently strong policy support from The Scottish Government
and Parliament and all political parties at Holyrood.
What is a Social Enterprise?
Social Enterprises are businesses/organisations, enterprising third sector organisations or aspiring social
enterprises, that are intentional about creating an income stream and moving away from grant
dependency. They address social needs, strengthen communities, improve people’s life chances,
enhance culture or protect the environment.
The Voluntary Code of Practice for Social Enterprises describes a community of organisations with the
following characteristics:
 They trade in a marketplace with the primary objective of social or environmental benefit
 Central to the Scottish understanding of social enterprise is adherence to an asset-locked
business structure. This guarantees that social enterprises do not distribute dividends and that
assets are protected against future sale.
 They aspire to financial independence through trading and to reduce their dependence on grant
income, which sets them apart from other charities and voluntary organisations.
 They operate independently of public authorities or private business.
See the Voluntary Code of Practice for Social Enterprise in Scotland.
What do they do?
Social enterprises are innovative, independent businesses that exist to deliver a specific social and/or
environmental mission. This could be employing homeless people, providing social housing, recycling
waste or something similar. They aim to make profit like any other business, but invest 100% of it in their
social purpose. They’re a more ethical and sustainable way of doing business. Social enterprises are not
charities that get most income from grants/donations and they’re not a business simply behaving ethically
or an arms-length company of a public body. The definition of social enterprise varies across the world
and even within the UK. A robust debate about definitions, within a constantly evolving business
landscape, is something to be welcomed.
How many Social Enterprises are there in Scotland?
Reg Office The Factory Skatepark,15 Balunie Drive, Dundee, DD4 8PS. Scottish Charity SC043943
Company Registration no. SC401913
Scotland’s first ever census was conducted in 2015 and it revealed the major impact of Scotland’s social
enterprises. The new research confirms Scotland as a world-leading nation in nurturing social enterprise and
recognises social enterprise as a fairer and more inclusive way of doing business:
 5,200 social enterprises in Scotland – there are 23,000 charities.
 Over 200 new social enterprises formed each year
 60% of social enterprises have a woman as their most senior employee
 68% of social enterprises pay at least the recognised Living Wage
 Provides over 112,400 jobs
 £1.15bn in combined traded income
 Net collective assets £3.86bn
 Gross Value Added (GVA) figure is approx. £1.7bn – more than the Food and Drink or Creative sector
www.socialenterprisescotland.org.uk/news/1276 for the full Census report.
What models of social enterprise exist?
All social enterprises aim to make profit, just like any other business. The only difference is that they
invest 100% of profit into a social and/or environmental mission. The more-than-profit approach is used
by many organisations, of every size, operating in every corner of Scotland and in many sectors of the
economy. A social enterprise is often just a Company Limited by Guarantee with an "asset lock" and social
mission. It could also be a registered charity, Scottish Charitable Incorporated Organisation (SCIO), Cooperative, Mutual, Social Firm, Community Interest Company (CIC), Development Trust, Credit Union or
Housing Association (Registered Social Landlord / RSL). However SE is not about a set legal structure but a
method of operation or ethos where the end goal is more important than the structures used to reach it.
A social enterprise can be a combination of these models. Together they make up Scotland's social
enterprise movement.
The Vision for Social Enterprise 2025
laid the foundations for building a social enterprise
nation over the next decade and sets out a blueprint for achieving this. It calls for early action on a
number of fronts:
 Building a movement that is more confident, more coherent, and more wide-reaching in
Scotland.
 Building capability through a combination of investment, business support and leadership
development.
 Building markets that are open to social enterprises and in which they can thrive.
 Building on potential by making the most of assets available to us – human and physical assets.
www.senscot.net/view_art.php?viewid=18578 for full vision report.
The Dundee Picture
Dundee has one of the strongest networks and a growing social enterprise sector. Areas where there are
opportunities for growth are:




Employment creation – whether through new starts or employability programmes
Tourism – The Waterfront offers opportunities in itself or through the spin off from visitors
Creative Industries – the city has become known for its strong sector
HSC Integration – There are many opportunities for the third sector and social enterprises, large and
small, to deliver anticipatory and preventative services.
Susan Smith
DSEN Chief Executive
www.dundeesen.org
Tel: 01382 504848
Reg Office The Factory Skatepark,15 Balunie Drive, Dundee, DD4 8PS. Scottish Charity SC043943
Company Registration no. SC401913