Greater than 1,000,000 companies within the UK could possibly be supported to formally transition to social enterprises, primarily based on their present engagement with social points, in accordance with new analysis.

Social Enterprise UK’s (SEUK) newly-launched ‘Transitions’ report reveals that as many as a fifth of SMEs within the UK aspire to make a optimistic social impression – however are usually not at present working formally as social enterprises. This implies greater than 1,000,000 organisations have the scope to transition to social enterprise standing, and contribute extra to the financial system and society in doing so.

Because of its findings, SEUK is encouraging companies within the UK to contemplate their standing and study extra about how they may profit from transitioning to a brand new mannequin.

Working as a social enterprise permits a enterprise to lock in its social and environmental function, guarantee earnings profit that function, and revel in wide-ranging advantages for employees, prospects and purchasers by reaching new markets and growing new services and products.

Social enterprises additionally repeatedly take pleasure in enhanced reputations, buyer loyalty and worker engagement, while having wider entry to funders and financers motivated by social impression.

Social enterprises are companies which commerce for a social or environmental function, prioritising the advantages to individuals and planet and use the vast majority of any revenue to additional their mission. Social enterprises contribute to decreasing financial inequality, enhancing social justice and to environmental sustainability.

There are at present greater than 100,000 social enterprises within the UK, contributing £60 billion to the financial system and using round two million individuals.

Peter Holbrook, CEO at SEUK, stated: “While we acknowledge the implausible work of present social enterprises in benefiting our financial system and society, our analysis identifies that an enormous variety of different companies are usually not maximising the alternatives obtainable to them from social enterprise fashions and options.

“No social enterprise is identical, both, so there are a number of choices for corporations wishing to transition – for instance, a small tech agency could also be greatest suited to a co-operative mannequin, worker possession might match an even bigger retail enterprise or a belief mannequin might work nicely for a enterprise operating a heritage asset.

“Subsequently, we encourage companies to seek out out extra and perceive if transitioning to a brand new mannequin is viable for them, to allow them to attain their potential and make a fair higher distinction to the world as a social enterprise.”