The government's Spring Statement paints a bleak overview of the state of the economy. But here's something:
Social Enterprise UK (SEUK) thinks hope lies with their sector: “Social enterprises, co-operatives and community business are delivering real prosperity that people can feel on their high streets, in their neighbourhoods, and in their pockets.”
Like charities, social enterprises aim to create positive social impact, but they operate in fundamentally different ways. Rather than relying on donations and fundraising to support their work, they blend business with purpose.
They generate revenue by selling products or services, and the misconception that social enterprises are “just charities with extra steps” can tend to undermine their legitimacy as viable businesses.
And this is leading to an increasing trend of financial strain across the sector. SEUK’s State of Social Enterprise Survey (2023) found that the sector is “surviving not thriving” and that “almost half of social enterprises had trouble accessing enough suitable finance.”
There are plenty of solutions—and that starts with recognising that a bit of investment in the sector, not just financially, could bring outsized rewards.
Breaking the Stereotype: The Proof is in the Numbers
Social enterprises in the UK have demonstrated remarkable financial resilience and growth, and the figures only underscore their viability as serious business entities:
Collectively, approximately 131,000 social enterprises, of widely differing sizes, contribute around £78 billion to the UK economy, accounting for about 3.4% of GDP.
But even more telling is the following: In the last financial year, these enterprises generated over £1.2 billion in profits, with £1 billion reinvested into their social and environmental missions.
This kind of reinvestment not only amplifies their social impact but also illustrates that these are sustainable business models—models that should be attracting further investment and consumer trust.
So they’re not only doing right by society, they’re demonstrating economic resilience and are often exemplary employers, “creating jobs for around 2.3 million people, with 84% paying the real Living Wage.”
Changing the Conversation — and Supporting the Sector
If we’re honest—social enterprises don’t always get the respect they deserve. Too often, they’re seen as “nice but not serious,” when in reality, they’re building businesses, creating jobs, and tackling real-world problems. How to shift that perception?
First of all, let’s talk about the money: Social enterprises are profitable. Many reinvest their earnings into their mission, but that doesn’t mean they’re struggling. The more we highlight their financial success, the harder it is to dismiss them as just “do-gooders.”
Better, long-term financing options tailored to their unique needs would go a long way towards helping.
Tell more stories: People connect with stories, not statistics. The Dusty Knuckle Bakery, for example, started in a shipping container and now runs three sites with 118 employees while training at-risk young people for future careers.
“It supplies Ottolenghi eateries, Michelin-starred restaurants and hordes of hipsters who queue for its £4.50 sausage rolls.”
As the Dusty Knuckle website puts it: “The idea of our youth programme is very very simple. Young people who make bad choices do so because, for them, they are the best option at the time. At The Dusty Knuckle, we want to give them some better options.”
These are the stories that change minds.
Collaboration could be key: Traditional businesses (including big brands), investors, and policymakers need to see social enterprises as serious players. Purpose-driven networks could help create partnerships and cement their place in the business world.
Social enterprises aren’t just “doing good”—they have the potential to change the game. Maybe it’s time to change the story, too.