Social Enterprise

Frequently Asked Questions

Answers to some frequently asked questions regarding both social enterprise and the Social Enterprise Unit are given below. If you are unable to find an answer to your question, please contact the Social Enterprise Unit directly. Alternatively, you may find it helpful to visit one of the other useful sources of information on social enterprise.

What does the Social Enterprise Unit do?

The Unit:

• acts as a focal point and co-ordinator for policy-making affecting social enterprise.
• promotes and champions social enterprise.
• takes action needed to address the barriers to the growth of social enterprises.
• identifies and spreads good practice.

Where can I find support for social enterprises and information on setting up a social enterprise?

Your local Business Link will be a good source of advice and support. Contact details for your local Business Link, are available via www.businesslink.org.uk or telephone 0845 600 9006. A selection of useful sources of information on business support for social enterprise is available.

Does the Unit provide grant funding?

The Social Enterprise Unit is a policy unit and does not have a budget to provide grants for social enterprise.  A selection of useful sources of information on finance for social enterprise is available.

Do you have to take on a specific legal form to qualify as a social enterprise? 

You do not need to have a specific legal form to be a social enterprise.  The Government’s social enterprise strategy makes it clear that social enterprises include companies limited by guarantee, industrial and provident societies and companies limited by shares.  DTI, on 26 March, launched a consultation document proposing a Community Interest Company, a new legal form designed for enterprises that want to use their profits and assets for the public good.  This followed a recommendation from the Strategy Unit report Private Action, Public Benefit. 

Why is the Government supportive of social enterprise?

Setting up the Social Enterprise Unit was one of the first things Patricia Hewitt MP initiated following her appointment as Secretary of State for Trade and Industry. The Government sees social enterprises as addressing a number of public policy goals, and as having an important role to play in service delivery – for example in areas of health and care and in education and training. Over 80 local leisure facilities across the UK are run by social enterprises. This is an indication of the success of social enterprises in the delivery of good quality, customer focused and good value services to local communities.

Social enterprises also have a key role to play in regeneration, and in the promotion of social inclusion. They bring goods and services into areas where others may not want, or be able to operate. Through doing this they help to encourage sustainable economic activity; and as they are often so close to their customers, they can really help to add to local wealth creation. They provide employment and training opportunities in supportive business environments for hard to reach groups that mainstream business cannot – or will not – employ, including people with mental illnesses or disabilities, the homeless, and the long-term unemployed. Social enterprises also provide opportunities to participate as customers and users of services that otherwise might not be available.

Why is the Social Enterprise Unit based in the Department of Trade and Industry?

Social enterprises are, at heart, businesses that offer economically sustainable business solutions to social problems, and the Government wants to ensure that they are treated as such. To be able to thrive and grow, they need to be as innovative and entrepreneurial as, if not more than, their mainstream competitors. As well as creating economic value through their own activities, they also help to create new markets, goods and services – all of which have a positive effect on mainstream business.