Social enterprises “perform better” than conventional companies
Third sector businesses dominating in Britain’s poorest areas
Social enterprises are more than twice as likely to have grown over the last year than conventional small companies, according to a new study.
The report, issued today by Social Enterprise UK, found that 58% of socially-conscious companies have grown over the past 12 months. For more mainstream small firms, the figure falls to 28%.
Furthermore, the authors found that more than half of Britain’s third sector companies predict further growth over the year to come; only 41% of conventional companies feel the same.
The report also revealed that third sector companies are dominant across Britain’s poorer communities. In fact, social ventures outnumber conventional companies by a ratio of three to one in the country’s most deprived areas.
Furthermore, it seems that start-up companies are thriving in the social enterprise sectors; more than 14% of Britain’s social enterprises are under two years old.
Peter Holbrook, Social Enterprise UK chief executive, said: “We’re seeing a new generation of social enterprises being created during these incredibly difficult economic times and in the communities where they’re desperately needed.”