Social enterprise

Social enterprises are businesses with primarily social objectives where profit is reinvested, rather than them being driven by the need to maximise profit for shareholders or owners. In social enterprises their social purpose is central to what they do.

Context

An increasing number of homelessness-related organisations are operating social enterprises, or social businesses and have a range of goals and ways of operating. It is important that organisations are clear about their aims and objectives; it may be one or a combination of the following:

• Some organisations use social enterprise as a way of providing training and employment opportunities for homeless and other socially excluded people. These increase first time employment opportunities for those who may be further away from the labour market.
• Some organisations use social enterprise to raise funds for other areas of their work. These social enterprises are sometimes freestanding businesses or offshoots of homelessness agencies.
• With some social enterprises, the focus is on the service that the business delivers to a community.

The 2008 Rough Sleeping Strategy, sets out its commitment to social enterprise as a means of tackling worklessness.

Solutions

Spark is a pioneering development and investment programme designed to build and inspire organisations to tackle homelessness through social enterprise.

The Spark website has advice on the 10 steps you should take to build a successful social enterprise.

The Ethical Enterprise and Employment (3xE) Network brings together organisations using social enterprise and supported employment models, and organisations working with unemployed people who are homeless. It does this through its website and through regional and national events and membershp is free.

Business Action on Homelessness (BAOH) offers guidance on engaging the private sector.

Further Information

The Social Enterprise Coalition is the UK's national body for social enterprise, representing a wide range of social enterprises and other related organisations.

For more information on Social Enterprise, go to Homeless Links’ Education, Training and Employment Handbook.

Social Enterprise Visits is an organisation whose aim is to promote better business through shared learning and the exchange of ideas and experience. This is achieved via a series of scheduled one-day visits to social enterprises, customised visits and other events.