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SEC calls upon political support for social enterprises in providing services

14 April 2010 - William Hobson

The UK's political parties have been called upon to recognise and expand the role of social enterprises in providing communities with services and financing social care jobs.

The Social Enterprise Coalition has published its own manifesto that urges the major political parties to commit to expanding the so-called "third sector" dramatically. Social enterprises are common in many areas of the UK; funded through a combination of service charges, charitable support and local authority grants, they provide a means for private enterprise and public services to come together, allowing areas to make the most of limited budgets.

Over the past few years, the 'third sector' has grown considerably. The Telegraph and Argus, a Bradford newspaper, reports in 2007 there were 62,000 social enterprises in the UK - contributing some £24bn to the economy and employing around 800,000 people in social care jobs and positions in the areas education, culture and environmental services.

The SEC's manifesto argues that given the economic downturn, there is a pressing need to look at different business models to bring about prosperity in local areas and provide economic stability and social and environmental services.

By the SEC's own definition, a social enterprise is "a business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for the shareholders and owners."

A recent survey by the SEC was sent to 1,200 organisations throughout the country. It found that more than half of those surveyed employed between six and ten permanent staff, contracting temporary workers to provide services as needed. Similarly, another half had a turnover of less than £100,000, revealing that these groups mainly operate on a smaller, more focused scale than other service providers.

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