Social enterprises see significant growth despite austerity measures » SMEInsider

Social enterprises see significant growth despite austerity measures

The British social enterprise sector has grown rapidly over the last five years despite the austerity measures dominating the UK economy, an industry report has revealed.

According to the latest report taking data from the RBS SE100 Index, on the whole the UK’s social enterprises have thrived over the last parliamentary term.

The average growth in turnover of all of the members of the RBS SE100 in 2014 was 72 per cent. This marks a huge jump from the 45 per cent growth between 2010 and 2014.

The top 100 of these enterprises raised their turnover by an average of 774 per cent in 2014. These leading companies grew by an average of 360 per cent over the five-year period.

When compared with a number of other analyses of small business growth, social enterprises outstrip all, apart from the most innovative technology companies.

The RBS SE100 contributed a total of £22 billion to the UK’s GDP between 2010 and 2014.

The report also established that there has been a rise in micro social enterprises.

The 2014 figures show that the median turnover of SE100 members was £134,000, around half the size of the median turnover in 2010 which was £281,000, PioneersPost reported. The report notes that this change comes from an influx of small, newer, and majority community interest companies.

“This is the first time that long-term data has been collected on the UK social enterprise sector – and the figures should make all who have been working to build this new way of doing business feel proud,” SE100 founder Tim West said.

“Recent years have not been easy for any business – let alone those who dedicate their profits to a social purpose – but social ventures across the UK are continuing to spring up and grow.”