New analysis from Social Enterprise UK, commissioned by Access – The Foundation for Social Investment and Big Society Capital, has found that social enterprises in the West Midlands have continued to grow strongly despite the pandemic. Diving into data gathered in 2021 through the biannual State of Social Enterprise survey by Social Enterprise UK, this latest research has found social enterprises in the West Midlands responding strongly to the pandemic and continuing their work to make our society a better place to live.
Social enterprises are independent businesses which have a social and/or environmental mission and trade to deliver that mission, reinvesting at least fifty per cent of their profits to do so. Headline findings from this research in the West Midlands are:
· Resilient - 60% of social enterprises in the West Midlands made a profit in the past 12 months, despite COVID – this is higher than social enterprises across the UK where only 49% made a profit. Overall 75% of social enterprises either made a profit or broke even during the pandemic. Nearly half (48%) of social enterprises in the West Midlands have seen their turnover increase during the pandemic.
· Environmentally conscious – A quarter (25%) of social enterprises in the West Midlands have put a commitment to tackling climate change into their constitution/articles of association to show their commitment to achieving Net Zero.
· Women-led – 60% of social enterprises in the West Midlands are led by women, compared to 47% for social enterprises as a whole and 16% for all SMEs.
· Creating jobs and opportunities – 58% of social enterprises in the West Midlands plan to have more staff in 12 months time than they do currently. 59% expect to grow their turnover in the next 12 months.
Speaking about the findings from the West Midlands, Emily Darko, Director of Research at Social Enterprise UK said: “There are over 100,000 social enterprises in the UK, employing 2m people but every part of the sector has its own opportunities and challenges. In the West Midlands we can see a flourishing sector which has shown the power of social enterprise to use trade and entrepreneurship to make our communities better places to live.”
“This research shows that social enterprises are here to stay. I hope that this research will encourage more businesses to buy more from social enterprises and that Councils and the Combined Authority will do more to maximise the potential of local social enterprises.”
Melanie Mills, Senior Director, Social Sector Engagement, Big Society Capital said: “Levelling up can only be achieved if we are able to truly understand what is happening in our place. The Social Enterprise UK State of the sector survey provides so much useful and thought provoking data and this is why we are delighted alongside the Access Foundation for Social Investment to support the publication of regional reports.”
“Whether it’s about better understanding why the cost of capital is seen as a greater barrier to accessing capital in the West Midlands to responding to the nascent wave of social enterprise in the East of England. I hope these reports will support social enterprises, charities and community businesses alongside public bodies including Mayor’s, Local Enterprise Partnerships and Combined Authorities and more to understand how best to support the growth of social business and the social impact they create for our most disadvantaged and diverse communities to bring about truly inclusive growth.”
