Social Enterprise » Cornwall Rural Community Council

What is a Social Enterprise?

The social enterprise concept is one of combining business trade with social benefit.

Social enterprises are profit-making businesses set up to tackle a social or environmental need; they are ‘more than profit’ organisations.

Co-active Ltd – define a social enterprise as ‘Businesses that aim not only to make money, but also to have a positive effect on the communities they serve, the people with whom they work and their own employees. (Co-active Ltd)

Instead of being run in the interests of a private owner or shareholders social enterprises produce profits that are re-invested in a social aim, provide local employment and spend money in the local economy.

Social enterprises can employ and pay wages like a private sector business but it is the focus on the social or environmental aim that differs from the private sector.

Community Enterprise

Community enterprise may offer a more fundamentally sustainable basis for Cornish communities in the future.

Community-based social enterprises can be broadly defined as a business or organisation established and owned with community involvement that trades in goods or services and whose surpluses are put back into the local community.

Local communities are increasingly taking the lead in controlling the facilities, services and businesses that affect the quality of life in their own local area – a self help approach that is financially sustainable.

Community enterprises can fill a niche or need in their community such as providing a service where non-exists or stepping in where the private sector is unable to deliver.

How do community enterprises start?

Here are just a few:

Community plans – for example a group of parents wanting to set up a child care facility or a community working together to re-open its village shop

Building and land – the community develops a plan of action to regenerate a redundant building or disused land

From grants to trade – a voluntary organisation which evolves from grant dependence to deriving income generated through paid for services, contracts and other forms of trading.

Employee buyout – where a group of employees of an existing business buy-out the company, for example to run it as a cooperative.

Local authority services – where a local authority transfers a service (for example waste collection and recycling) to be run by an independent organisation.

Can existing community organisations become a community enterprise?

In short – yes.

With increased pressure on public spending and the continued decline in traditional grant funding, many community-based organisations are confronted by the challenge of survival at a time of stiff competition for grant support.
In light of these circumstances there is a growing appetite to explore ways of moving away from traditional grant dependence in favour of income generation and financial independence through social enterprise.

Examples of Social Enterprises and Community Enterprises

Sometimes it is easier to understand a concept through example and there are many different types of social enterprises in Cornwall delivering a range of services benefiting the Cornish community and its environment.