IN A topsy-turvy world it should come as no surprise that a profit is no longer the only goal for today’s entrepreneur. There are increasing numbers of new businesses that prize the good of society as much as they do money.
Social enterprises, which have a specific community or ecological goal at the heart of their operations, have been hailed by some as the business model for the 21st century.
Jonathan Bland, of the Social Enterprise Coalition which promotes such businesses, says: “We have much too thin an idea about business — that it is just there to make a profit. You can harness business models to help the community.”
More than 15,000 social enterprises are now up and running in the UK, employing around half a million people and contributing £18 billion to the economy each year, according to Department of Trade and Industry figures.
David Cameron underlined his commitment to social entrepreneurs this month, saying that they will form a crucial part of Tory policy to promote law and order. “Social enterprises . . . need a . . . government which sets them free to deal with those issues which help our community,” the Conservative Party leader said.
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Hill Holt Wood, a social enterprise in Lincolnshire, not only helps the local community but also is focused on preserving the 34-acre woodland in which it is set. It offers training for excluded schoolchildren, young offenders and disadvantaged young people in woodwork, forestry and landscaping as well as literacy, numeracy and IT skills.
Karen Lowthorp, project director at Hill Holt Wood, says: “Most things that we have here have been made by the learners. The office was made by students using recycled hay bales, and there are benches all around made by past pupils.”
Mrs Lowthorp and her husband, Nigel, spent £34,000 to buy the wood, but says it has more than paid for itself in terms of local goodwill. “We have contracts with the local education authority to provide an alternative curriculum for children aged under 16, and the Learning and Skills Council funds older learners.”
The company, which has 18 staff including teachers, recently clinched a contract to mow local footpaths. “This will give the learners great work experience, and encourage them to respect their local environment and discourage others from vandalising it,” she says.
The firm made £112,000 in profit in its first three years, which was re-invested in the business. Many social enterprises re-invest all their profits, but there is no rule that they must do this. Mr Bland says the guidelines have been kept quite broad. “Different models of social enterprise will be used in different areas. Some social enterprises may get support from investors who require a return, but they are not simply in business to provide that return. A good example is Cafédirect, which supplies Fairtrade coffee to supermarkets and caterers. They re-invest 8 per cent directly into growers’ organisations.”
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Anyone who thinks a social enterprise is a “soft” way to start a business will get a shock, says Mr Bland. “Social enterprises have to be clear that they are a business trading in the market, and the market is a cold place. If they don’t [make a profit] they will be out of business,” he explains.
Mrs Lowthorp stressed that long-term sustainability was a key goal. Many pupils from Hill Holt Wood have gone on to secure jobs as landscape gardeners, mechanics and even stonemasons. But some have found the draw of the enterprise irresistible. One ex-pupil is employed as a teacher, while Zoe Nash, 24, who was unemployed before she embarked on a six-month course at Hill Holt in 2002, works for the company in accounts. “I always knew I wanted to do some sort of administration work, but I had never thought of doing accounts, which I now really enjoy,” she reflects.
Gráinne Gilmore is Enterprise Correspondent for The Times
VOICE 06
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Public Agenda is the media partner for Voice 06, the UK conference for social enterprise. It’s the place to go to network with industry leaders and to keep abreast of developments and issues in the social enterprise sector.
Organised by the Social Enterprise Coalition, the national body for social enterprise, the event will showcase the diversity of this sector as it explores how innovative businesses are providing solutions to 21st-century challenges.
Voice 06 features an exhibition, plenary sessions and debates — including a panel debate with Parminder Bahra, the Editor of Public Agenda.
The conference and exhibition takes place tomorrow at the Manchester International Convention Centre. For further information visit www.socialenterprise.org.uk/conference, telephone 01454 200016 or e-mail info@voice06.com