By Stuart Vaughan – Social Enterprise Specialist, GM Business Growth Hub 

A simple enough question, but the answer can get complicated! “What is a social enterprise?” 
In short, a social enterprise is an organisation that uses any surplus it generates from trading for social purposes. 

These social purposes can be many and varied, and you’ll find social enterprises benefitting people and communities up and down the country, reaching into places that more traditional, profit based businesses are reluctant to go. 

Aligned to their social purpose a good social enterprise will have a viable business proposition which enables them to generate the necessary funds to support their mission, whether through upskilling beneficiaries to produce the goods and services being sold or by delivering additional programmes using the traded surpluses.

Social enterprises can be more flexible in their delivery and trading, giving them wider scope for innovation and income generation, giving them scope to trade business to business, business to consumer and to enter into contracts with local authorities or the NHS.

Social Enterprise in Greater Manchester  

These stats released from Greater Manchester Centre for Voluntary Organisation (GMCVO) on the recent Social Enterprise Day highlighted Greater Manchester’s activity  

➡️ 6,812 social enterprises creating around 127,600 jobs.  
➡️ they are generating £68 million in annual profit 
➡️ and reinvesting £57 million into achieving their social mission 

We’re proud to play our part as a social enterprise, celebrating 34 years of being a Social Enterprise, the work that GM Business Growth Hub and the Growth Company do is impacting Greater Manchester and beyond.  

Did you know about these other Greater Manchester social enterprises?

• Workers co-op – 8th Day, Home | 8th Day Co-op
• Registered Society - FC United Ltd, History | FC United of Manchester
• Community Benefit Society – Stretford Public Hall, About us - Stretford Public Hall
• Community Interest Company (CIC) - Six Degrees Social Enterprise CIC, Who We Are
   

Social Enterprise v Traditional Business Structure 

What sets a social enterprise apart from a traditional business is the commitment to their cause which is set out in their governing document, and the fact that they are held accountable for their social actions by governing bodies and other stakeholders. 

Any organisation can  ‘do good’ – a traditional, shareholder-owned for profit business can do business ‘in the right way’, make donations to good causes, have targets for equal recruitment etc, but a social enterprise will have these things locked in to their operations – everything they do will be geared towards achieving the social mission stated in their governing document rather than it being a ‘nice to have’ addition to their way of working. This locking in of social benefit will extend to the assets of the social enterprise. The property of a social enterprise will always be used for the benefit of community.

Next Steps: Top Tips for supporting Social Enterprises in Greater Manchester 

• As a business, involve social enterprise in your supply chain
• Buy services such as training or catering from local social enterprise
• Shop Social Enterprise – support local Social Enterprises for gift purchases throughout the year
• Volunteer time and/or expertise

Here in Greater Manchester, we have social enterprises that are co-operatives, community benefit societies, trading charities and community owned buildings. Variety is the spice of life so the saying goes, and long may this diversity persist, giving us a richness and complexity that benefits the marginalised in society without necessarily negatively impacting the public purse.

As one of the largest Social Enterprises in the country, we love supporting other people make their mission a reality. 

For more information click here.