Social enterprise by the FreshTeam

www.participationworks.org.uk 1

This guide aims to explain to any and all young people exactly what a social enterprise is. It includes information on legal structure, shining examples, organisations offering support, and the money available to social enterprises. Altogether, this guide should be all you need to learn the basics about social enterprise.

The global social enterprise movement is becoming bigger by the week, with more people across the country talking about it than ever before. Whether you’re just starting senior school, finishing A-levels or a leading business person already, social enterprise is becoming an important part of today’s communities and economy.

Social enterprise has risen on the government’s agenda for many reasons; one example is due to financial cuts across the country. In order to gain business and funding, more organisations have to make a bigger difference with less money. That might simply mean selling more items at a cheaper price, or it may mean having a greater impact in the community with a smaller budget. This is just one example of where social enterprise has an advantage over other business models. Social enterprises invest some of the profit from a contract into communities; the councils and government organisations recognise this extra value therefore providing social enterprises the advantage.

Lots of big brands in business were originally as set up with the social enterprise model. There are lots of products available in

your high street that are from social enterprises such as a bar of Divine Chocolate or a copy of The Big Issue.

With charities struggling to bring in donations, and the public demanding more for their money, it makes sense that so many organisations are looking at a social enterprise model and wondering if it’s the way forward

for them.

How to Understand Social Enterprise for Young People


DefinitionThere is no strict definition of what a

social enterprise is, but a few important

organisations have made their own attempts

at explaining what they are.

British Government –

“A business with primarily social objectives. They principally reinvest their surpluses in their business or community for these purposes. Unlike commercial businesses, they are not driven by the need to produce a profit for shareholders and owners”

This simply means a business that uses its

profits to make the world a better place.

And unlike a typical business, a social

enterprise doesn’t just aim to make money

for the owners.

Wikipedia –

“A social enterprise is an organisation that applies business strategies to achieving philanthropic goals.”

This simply means social enterprises use

business to promote the wellbeing of others.

Social Enterprise UK –

“A social enterprise is a business that trades to tackle social problems, improve communities, people’s life chances or the environment.”

A social enterprise is not a charity, and it’s

not a typical type of business that’s simply

there to make money. However, it does bring

strategies from both of these. Some charities

sell wristbands to help raise money, and some

businesses give money away to charities and

community groups as part of their Corporate

Social Responsibility or C.S.R. - when a

business gives back to the community, but

their main aim is still to make profit. A social

enterprise is an organisation that aims to help

people or the planet, and reach these goals

through business.

EstablishedBelieve it or not, social enterprises were

around centuries ago. Even in 1844 when co-

operatives (businesses owned by the people

who work for them) were started, there were

entrepreneurs in the UK, and around the

world aiming to help their communities. Social

enterprise has come a long way since the 19th

century and, according to Social Enterprise UK

is one of the fastest growing movements in

the country.

The actual phrase “social enterprise” has

been around for about 60 years but it’s only

since the 1990s that people have started to

recognise it. Around this time, many new

organisations were setting up with a social

enterprise model. One of the most famous

social entrepreneurs was Lord Michael Young;

his ideas paved the way for social enterprise

and resulted in him creating The Open

University, Consumers’ Association, Which?

and the School for Social Entrepreneurs. The

Young Foundation was also set up, supporting

entrepreneurship to help communities in need.

In the UK

The UK is one of the world leaders for social

enterprise, and holds large scale conferences

for social entrepreneurs from all corners of

the world. It’s estimated there are 62,000

social enterprises in the UK. Overall, these

contribute more than £24 billion into the

British economy, employing a workforce of

nearly one million people. (Sourced from

2www.participationworks.org.uk


www.idea.gov.uk)

Whatever industry, field or market you can

think of, there’s most likely to be a social

enterprise in there somewhere. From restaurants

to retail, schools to sandwiches, healthcare to

holidays, entrepreneurs have taken their

business skills and used them to improve their

communities in a wide variety of ways.

The British government has released policies

and plans to support the growing social

enterprise movement within the country.

These include a new legal structure for

social enterprises, funding and support for

social entrepreneurs, and the backing of

organisations aiming to inspire young people

to take on the problems in their community

using business ideas.

In July of 2010, a new bill was suggested

called the Public Services Bill, sometimes

referred to as the Social Value Bill. Basically it

explains that councils have to consider the

social value of buying public services, like

emptying waste bins in the city or the cleaning

of streets. For example, if a city council is trying

to find a company to collect all of the rubbish

bins from the public for 12 months, the

council has to think about which company

offers the best value, and in that figure include

the social value. The added value could be that

one business provides lots of apprenticeships

for young people, or that 70% of the profit

made by the company may go to community

projects, or even that a company is completely

carbon neutral. All of these factors and many

more, will become ever more important as

businesses compete for contracts and councils

choose the businesses offering the best value

for their money.

StructureSocial enterprises are incredibly varied in their

business approach, and the same goes for

their structures. With organisations starting

from small community organisations going all

the way up to huge international businesses,

it’s only right that there are different structures

for different social enterprises.

Many legal forms exist for social enterprises

and it’s very important that an entrepreneur

chooses the correct one for his or her idea.

The best structure for a business may depend

upon the aims of the organisation, the people

it will be working with or the industry it’s

based in.

A common structure for social enterprises is

a registered charity with a company attached

for trading. As charities can be exempt

from certain taxes, and able to apply for

lots of funding, there are lots of benefits

in registering as a charity. Alongside the

registered charity, the “trading arm”, or

business owned by the charity, is able to sell

its products or services and donate the profits

to the charity. This forms an ideal partnership

for many social enterprises, and can often

bring the best advantages from both charities

and businesses to work together. A social

enterprise can then utilise benefits from both

structures and gain the best advantage when

selling their product.

Another form for social enterprises is the

Community Interest Company or C.I.C. This

is a legal structure, introduced in 2005, with

special features to support businesses that

have a community benefit. It’s basically a

limited company with a few extras added on.

To become a C.I.C., a test has to be passed

that proves the business has a positive social

impact, and isn’t just there to make the




owners rich. If a business gains the title of a

C.I.C., it has to follow certain rules and one of

these is asset-lock. This simply means that the

items and profits the company gains, can’t be

completely given to owners or shareholders,

and have to be invested back into the

business or community. C.I.C.s can’t be used

for political activities.

Companies limited by guarantee or shares,

these are often structures chosen by social

entrepreneurs. They’re the structure taken

on by most businesses and are very flexible,

meaning they’re able to trade in different

ways and spend their profits easily. The

documents that decide the company’s

goals may have social aims written into

them, however these are not checked by a

government organisation. Companies House

is the organisation that an entrepreneur

registers with to set up a company limited

by guarantee or shares, and provides lots of

information about how to set up.

Industrial and provident societies –

these organisations are usually used for

cooperatives, where the business is run

democratically. This means that the members

of the organisation all vote on how things

are run and which decisions are made. These

businesses are regulated by the Financial

Services Authority.

Charities

A social enterprise uses business to help

people or the planet. A charity is defined as

an organisation established for charitable

purposes only, and must be of public benefit.

There are 13 purposes that a charity must

fulfill at least one of, to become a registered

charity in England and Wales, and they

include:

1. Stopping poverty

2. Improving education

3. Improving religion

4. Improving health or saving lives

5. Helping community development

6. Supporting arts, culture, heritage

or science

7. Supporting amateur sport

8. Supporting human rights, peace

and equality

9. Helping the environment

10. Helping those in need

11. Helping animals

12. Helping the armed forces or

emergency services

13. Other similar charitable purposes

Compared to a social enterprise, a charity

could be considered less sustainable, because

it relies on donations and funding to operate.

A social enterprise can apply for funding and

receive donations. However it’s expected that

a social enterprise makes at least half of its

income from doing business. This means that

should funding come to an end, the social

enterprise will still have an income through its

own trading.

Also, organisations attempting to become a

registered charity can often have a lot more

paperwork and “baggage” in order to run,



compared to a company limited by guarantee.

This can deter social entrepreneurs from

choosing this structure; however there are

areas where charities have greater benefits,

such as in tax and surpluses.

Business

Social enterprises are a type of business,

but simply businesses with values and social

impact. Realistically, a social enterprise should

have a social or environmental mission at

the heart of the organisation. With so many

social enterprises setting up, many businesses

are facing tough competition. The public is

becoming even more aware of what a social

enterprise is and know that when they buy

a product from a social enterprise, society

benefits. This is true within business too,

private businesses are currently realising the

benefits of buying from a social enterprise,

and can often consider this when they spend

their money.

Businesses are set up to make profit, and

this is often referred to as the bottom line.

Sometimes a company may aim on growing

and investing; but over the long term a

business will plan to make lots of money.

However, things aren’t as simple for social

enterprises because they have to consider

the triple bottom line. This not only means

thinking about the profit the business has

made, but also the value for the people it has

benefitted, and the impact it has had upon

the environment.

www.getsustainable.net

Putting a number on the value of helping

people and the planet can be tough. For

example, if a social enterprise helps six

unemployed people into a job, how can

you place a price on it? Well, one way is to

think about how much the government may

save on paying their Job Seeker’s Allowance.

Another may be to think about the income

tax that person will then pay, and how much

their wages support other local businesses.

Just as important is the health of that person;

if they’re feeling better about themselves they

may need less visits to their doctor, saving the

NHS money. All of these factors and many

more add up to what is called the S.R.O.I.,

the social return on investment. For further

information visit:

www.thesroinetwork.org

www.redf.org

Social Enterprise Mark

There are many quality and standard marks

that exist across lots of different areas in

business. From construction to catering, and

everywhere else, there is likely to be a mark to

be achieved by meeting certain standards. For

example, there are “Positive about disabled

people”, “Investors in People” and the “Eco-

Schools Award” to name just a few.

In 2010, the Social Enterprise Mark was

launched to help social enterprises be proud

of their commitments. And also to allow

people to make more informed decisions

about the value of something they’re buying

from a business, compared to a social

enterprise. An example of this may be when a

charity is looking to hire someone to help with

their fundraising. The charity would know that

if a social enterprise applied for the contract,

part of the payment to them will be invested

to help the community. This adds value to

what the social enterprise is offering to sell

and can improve their chances of winning

the contract because the charity notices their

commitment to social change.

Another aim of the mark is to create a

network of social enterprises that connect to



each other and the public, to strengthen the

social enterprise movement.

To be able to use the mark, a social enterprise

must meet strict rules and also pay a fee. The

size of the fee depends upon how big your

organisation may be and starts at £350 if the

annual income of the business is less than

£150,000. This rises to a fee of £4,500 if the

organisation’s income is £30 million or above.

There are six questions a business must be

able to answer yes to, in order to gain the

Social Enterprise Mark, and these are:

1. Are there social or environmental aims?

2. Does the business have its own group

of leaders and a report that explains

the organisation’s rules, aims and

values?

3. Are 50% of the business’ profits

spent on community benefit?

4. Does 50% of the money the business

receives come from selling?

5. Can the business prove it’s making a

difference and achieving goals?

6. If the business ended, would the

money and equipment left be given

to benefit people or the planet?

ASDAN, Yoga CIC and Recycle-IT are just a

few of the businesses that have passed the

standards for the mark. They display the mark,

as a symbol to their customers and partners,

of their commitment to people or the planet.

MoneySetting up a social enterprise, or any type of

business, will require some money to start. It

might be to buy a computer and projector,

if the business is going to do workshops

and presentations. It might be to buy sports

equipment, if the business will be running

football coaching sessions. Whatever it is, it’s

important to look at the money available to

help set up a social enterprise, and what type

of money is being offered.

Grants – These don’t have to be paid back

and are kind of like a donation, but they

will usually be given with requirements. For

example, an organisation might have to

explain what they will spend the money on,

and then stick to that list by a certain date.

Grants can vary in size from anything as small

as £20 (or smaller) up to millions of pounds.

There are also lots of different sources for

grants, all for different purposes. A grant

can be to help an organisation set up, and

this may be a £2000 business start up grant

from government. Another type may be a

£10,000 grant from the Big Lottery Fund, to

run a drama project in an area without many

facilities and things to do for young people.

Hopefully this shows how grants can be big or

small, from government, charities or a business,

and can be given for lots of different reasons.

If applying for a grant, it’s important to know

which one is the best for you and what you’ll

need to do once you’ve spent the money. You

may simply need to send receipts to prove

how you spent a grant, but it may also be a

requirement to submit a report, photographs

and maybe even complete a presentation in

front of the funders.

Loans – These do have to be paid back and

usually with interest added on top. How much

interest needs to be paid will depend on where


the loan is from. The social enterprise loan fund

give out loans to charities and social enterprises

that might struggle to get a loan from the bank

or other sources. They do charge interest on

their loans, however the money they make is

reinvested into helping more social enterprises

and charities the following year. Banks do offer

loans but are often more interested in knowing

how they’ll get their money back with interest.

Before receiving money from anyone, a social

enterprise, or any organisation needing

money, will usually have to have some things

to show they’re legal and working safely with

their financial accounts. A governing

document, sometimes called a constitution or

memorandum, is simply a document that

explains how the organisation is going to

work. It sets out the aims of the organisation,

who’s in charge of what, and what may happen

if that organisation comes to an end. Other

requirements for funding may include the

correct insurance and policies explaining how

the organisation will support volunteers, or

work safely with children and vulnerable adults.

A separate bank account is usually needed too.

Lots of banks offer a free bank account to small

businesses and community organisations, it’s

worth looking around for the best offers

available. Finally, some funders will ask that the

money being provided is going to an account

that’s managed by 2 people, or more, that are

unrelated and don’t live together. This is to prevent

the money be used illegally, or simply vanishing.

The Social Investment Business, CAF

Venturesome (Charities Aid Foundation) and

Big Issue Invest are just a few organisations

that provide a real variety of financial support

for organisations. Some offer different types

of loans, some offer grants and often mixes of

the two. If investment is granted, it can usually

come along with business support to maximize

the effectiveness of the investment.

Examples Getting a social enterprise off the ground and

working successfully is hard work, and it is clear

that this way of working takes a large degree of

independent-mindedness and entrepreneurial

zeal – so social enterprises aren’t for

everybody. Social enterprises come in many

shapes and sizes, and there are thousands of

successful ones across the UK many of which

are very well known. Here are a few examples

of business ideas making a real difference in

the communities they work in.


Fifteen A restaurant brand set up by Jamie Oliver in 2002. Fifteen is a fleet of restaurants set up

across the world with businesses in London, Cornwall, Amsterdam and Melbourne. A very

simple concept to employ young people on an apprenticeship programme, giving them a

chance to learn new skills and gain an experience of working in the competitive restaurant

industry. The profits from the business are given to the apprentice programme and help to

change the lives of young people from all walks of life.

Fifteen London was rated as one of the top 100 restaurants in the UK, and globally the

Fifteen group have supported 220 graduates of the apprentice scheme, 50% of which

had drug or alcohol issues in the past. Also, only 2% of the apprentices that graduated

were unable to find a job. This means that 215 of the 220 who completed the apprentice

programme, have graduated and gained a job as a result. www.fifteen.net



Big Issue Set up in 1991, this magazine aimed to give homeless people a chance to earn an income,

and use the content of the magazine for campaigning. Weekly, The Big Issue sells around

135,000 copies in the UK alone and the profits made go to The Big Issue Foundation.

The Big Issue Foundation is a registered charity providing support to people who sell the

magazine and other homeless people. They link these people to help and advice, and try to

solve the reasons that have caused their homelessness.

The Big Issue works on a structure of selling the magazine to sellers for £1, who then

sell it to the public for £2, keeping £1 for themselves. The organisation is very proud of

their values, and that they offer people a hand up to improve themselves, not simply a

handout. In 2008 they won the Ernst & Young Social Entrepreneur of the Year Award and

are mentioned regularly as an excellent example of social enterprise, not only in the UK but

other countries too.

www.bigissue.com

Divine Chocolate In early 1990s, a group of cocoa farmers came together to form a cooperative (a business

owned by the people who work for it) and gain some control of how their cocoa was sold.

This was to try and gain a better, and fairer price for their cocoa. The group was called the

Kuapa Kokoo and in 1997, they voted to set up their own chocolate company. By teaming

up with The Body Shop, Christian Aid, Twin Trading and Comic Relief, they launched Divine

Chocolate. This meant the farmers of Ghana weren’t simply getting a good price for their

cocoa, but a share of the profits their cocoa beans were making.

Despite the massive amounts of competition from other chocolate makers, Divine has

grown to an £8 million business and has over 35 products available all over the country, as

well as abroad too. 45% of the business is owned by the cocoa farmers meaning that they

earn extra money. They are also empowered with the ability to shape, run and grow their

company for the benefit of their communities in West Africa.

In 2008, Divine won The Observer Ethical Award and has continued to win several awards

since. They’re currently on the shelves of many supermarkets and continue to make a real

difference to the cocoa farmers of the Kuapa Kokoo workers’ cooperative.

www.divinechocolate.com



Young Advisors Set up in 2006, Young Advisors is a national charity set up to develop teams of young

people across England who strengthen the ways organisations engage with young people,

and improve the services offered to them. There are almost 50 Young Advisors teams

across the country, totaling over 800 young people. The majority of these young people

are employed by their scheme and work as professionals in their areas to help adults with

important decisions that effect the youth, and often many more people, in that area.

Young Advisors are an example of social enterprise, making positive changes across

England. They have a young person as the chair-person of the national charity, making

sure young people are involved and directing the work they do. Not only does the business

side help other organisations to connect and empower their young people, the Young

Advisors schemes employ and train local young people. They get paid, experience a real and

professional job, and maybe gain the key to a whole new career path.

www.youngadvisors.org.uk

The organisations mentioned so far have been founded by people with experience in

business or their industry. Young people have also set up and run social enterprises, many

of which compete on a professional level with businesses that have been around for years.

With the range of support and guidance available for all young people, getting a head start

in business, and particularly social enterprise, has never been easier. The following social

enterprises are examples of young people who’ve taken their idea and turned it into a reality.

Food Cycle Established in 2008 by Kelvin Cheung, Food Cycle is a very simple but powerful concept.

The organisation takes the food surplus of retailers (the extra stuff they can’t sell), passes

it to volunteers who prepare it for members of the community who don’t have access to

healthy food. The volunteers gain new skills and experiences, members of the community

gain access to healthy food, and Food Cycle sell produce to the public in their community cafes.

Since setting up, Food Cycle have saved nearly 8,000kg of surplus food, and converted it

into almost 14,000 nutritious meals. Through this process, over 7,000 hours of volunteering

has taken place. In total, this amounts to a real community impact and brilliant social

enterprise that shows no signs of slowing down.

www.foodcycle.org.uk



FreshTeam A social enterprise set up in early 2010 to empower young people. FreshTeam gains

contracts with professional organisations that are looking to enhance young people’s skills

and abilities, typically around business and enterprise, and support organisations that are

looking to work with young people. The team then use the profits from this to deliver

community action projects, fully developed by young people in the area who will benefit.

This ensures the money is spent on solving problems that matter to younger members of

the community. The organisation is lead by young people, employs only young people and

works for the benefit of young people.

This social enterprise was set up by a young person, and has overcome challenges to frequently

compete with professional businesses to successfully win contracts. This shows that young people

can succeed in enterprise and still have a great impact on the communities they work within.

www.freshteam.org



SupportThere’s lots of support available to social

enterprises, and the entrepreneurs who

run them. Whether it’s being set up,

attempting to grow or even going global,

many organisations exist to support the

social enterprise movement. These vary from

government funded bodies, to charities, and

often successful social entrepreneurs trying

to help other people in their businesses. The

‘Social Enterprise Ambassadors Programme’

for example is a group of some of the

country’s leading social entrepreneurs who

come together and voluntarily give their time

to support others and raise awareness of the

social enterprise movement.

www.socialenterpriseambassadors.org.uk

The School for Social Entrepreneurs (SSE) exists

to help people enhance and use their creative

and entrepreneurial talents. The SSE is

established in many major cities, such as

Liverpool and London, as well as across the

world and is a great example of a social

enterprise franchise. A franchise is a business

that sells their logos and business model to

franchisees. (Lots of fast food restaurants

operate through this model too.) They

welcome a range of people and support them

in a variety of ways. Some students are fresh

out of school and haven’t even decided on a

name for their organisation, while some

students have had their social enterprise for

years and want to grow their organisation, or

themselves as a social entrepreneur. Students

receive training and advice but also visit

various social enterprises, witnessing different

projects, people and businesses. The SSE

brings a very hands-on approach to learning

about social enterprise, and supports students

even once they’ve graduated as fellows.

www.sse.org.uk

Support for social enterprises can vary by

area, but there will always be someone who

can help. A fantastic way of finding out

what’s available is to simply search online for

“social enterprise” and the name of an area.

Organisations will pop up and even if they’re

unable to support people with their social

enterprises, they may well be able to redirect

and signpost towards sources of help locally.

How to set upThere are different ways to set up a social

enterprise, and lots of different types of

support and guidance available too. A useful

way to organise setting up is with the GROW

model. GROW stands for Goal, Reality,

Obstacles and Way forward. It will help

any young person with an idea for a social

enterprise to take that idea and be on their

way into making it a reality. Following the

GROW model is a brief explanation of what

most young people will need to do in the first

steps of their social enterprise.

G - GoalDecide exactly what your overall goal is. It

might be to make your city a safer place to live,

or to break down barriers between different

communities. This is a very important step, as

everything you do from here will be related to

achieving the goal you decide upon. Whatever

it is that you’re trying to achieve, it should be

something you’re passionate about and really

believe in. Try writing it down and sticking it

on the wall for a few days, you’ll soon realise

whether this is the goal to direct your social

enterprise or if it needs a bit of tweaking.

For help on deciding your goal, the best

advice will come from people who have

similar interests and motivations as yourself.



If you’re a bit stuck and don’t know anyone

who could offer a bit of support on setting

your goals, try to find an organisation that has

similar values to what you’re trying to achieve,

get in touch to see if they’ll offer a bit of help.

If you’re still unable to find the support you

need, try contacting one of the organisations

at the end of this guide who offer advice to

lots of different social enterprises, such as

the School for Social Entrepreneurs or Young

Enterprise UK.

R – Reality Now that you’ve decided your overall goal,

it’s time to see how you’re going to reach

that goal in your current situation. With a

social enterprise, you need to think about

how you’re going to generate your own

income from trading, and maybe consider

other sources of money. Think about what

knowledge you have, and where you could

learn a bit more. What resources are available

that you could use to help you on your

journey? Are there people who can offer

you help, websites with information or local

organisations offering funding? Whatever

is available; if it helps you on your social

enterprise journey, take advantage of it.

Draw up a timeline for the next 12 months

and at points along the timeline, write down

mini-goals you hope to have achieved by

that date. These may include setting up a

bank account, completing your first funding

bid or having a website created and put

online. This will help you to plan ahead,

for example if you’re going to visit schools

and run workshops about the environment

with pupils, you can then note down that 2

months before you visit the schools you may

need to obtain a CRB check, purchase some

insurance or design some advertisements.

Looking at your goal and putting it into

reality is an important step, this is the start of

bringing all of your skills together. It’s useful

to be realistic, set achievable mini-goals for

what needs to be done, but still keep a list of

things that need to be completed longer term.

Sometimes you might have quite a lot on your

to-do list, try to prioritise and if you get stuck,

never be afraid to ask for help. The end of

this guide includes links to Start Ups which

contain very useful information online about

getting started with your organisation, and

Business Link can also offer some support to

keep you on track in achieving your goals.

O – ObstaclesSetting up any type of organisation you’re

bound to find some obstacles along the way.

Some problems can be easy to solve with a

quick search online, and some may need a lot

of thought such as applying for some funding.

At times you might have quite a few obstacles

to overcome, however whatever problem

comes up, the chances are that somebody

else will have faced something similar. Try

asking around your network and don’t be

embarrassed, people will often do their best

to help. Some typical obstacles that a person

can find when setting up a social enterprise

is trying to find some money to start up with,

or knowing how much to charge for their

products or services.

When obstacles arise, maintain a positive

attitude as solving them may be easier than

you think. There will be times when you won’t

understand a problem, such as creating your

environmental policy or which insurance to

purchase, and there are always sources of advice

and support such as the UnLtd who give out

awards of not just grants but staff support to

help you on your way with social enterprise.

The Prince’s Trust offer different support



packages too, both of these organisations’

links are given at the end of the guide.

W – Way forwardWith your environmental or social goal decided

upon, an action timeline drawn and a to-do

list ready, you can now take your first steps with

your social enterprise idea. New opportunities

can arise so remain open-minded and continue

to develop a network of contacts. Completing

tasks set may produce great results, for

example you may secure funding from all 3

grants you apply for. If this happens, take a bit

of time to look at why you were successful

and how you can maintain that skill in the

future, or be able to pass it onto members of

your team. Something may go wrong but

with a positive approach and the right support

from your contacts you’ll be able to overcome

it and learn from it; make a little note of why

or how that problem arose to try and avoid it

in future, as well as how you solved it.

Finally, it’s easy to move forward once you

recognise how to achieve your goals, but feel

free to alter or adapt some plans if you need

to. Keep in touch with the people who

support you best. Keep an eye on what you’ve

achieved so far and plan ahead as best you

can. With an enthusiastic approach and clear

goals set, you’ll be on your way to setting up

a great social enterprise.

Key points for young people setting up a social enterprise:

1. Set your overall goal and be 100% sure

it’s exactly what you’re passionate about.

2. Gain support from mentors or

professionals, ideally people who

understand your motivation and what

you’re trying to achieve.

3. Look at which legal structure is best

for your social enterprise, and look

into how you apply to register. Also

look at setting up a bank account,

search around for the best offers and

get an account to suit what your social

enterprise needs.

4. Plan your next 12 months with mini

goals to keep you on track.

5. Create a list of things you’ll need to

get going. If you need equipment,

look at what money is available to you.

If you need help services, ask for

recommendations and don’t be shy to

ask for discounts or freebies. After all,

you are a young person setting up a

social enterprise!

6. Think about the long term. Social

enterprises rely on making money from

trading as well as in grants, so consider

how your social enterprise is going to

become more sustainable by generating

as much of its own income as possible.

7. Always remember your core objectives,

the goal you set out to achieve at the

start. The actions you take with your

social enterprise, needs to be working

towards this goal and remain at the

very heart of your organisation.



SummarySocial enterprise is making a clear impact on

our society; it is currently growing rapidly in

both the UK and across the world. Even with

fluctuations in our economy, social enterprise

continues to make a massive difference to the

lives of people across the country. There’s even

been a campaign to raise awareness of social

enterprise, the Society Profits campaign by

Social Enterprise UK.

Social enterprise has key elements of a typical

business, in that it needs to sell something

and make money from it. Social enterprise

has similarities with charities too, in that they

need to set goals for positive change and

work towards them. Bringing both of these

together is no easy achievement; in fact social

entrepreneurs aren’t typically people who sit

back and just let things work themselves out.

Social entrepreneurs look at their problems

and come up with a variety of solutions. They

combine a business mind with a real passion

for social change, having a valued impact on

the communities they serve.

Due to the variety of skills involved in starting

up or running a social enterprise, there are

accreditations and awards available, which

tie into the learning process and can benefit

the individuals involved across other potential

career paths.

Help is available for new and existing social

enterprises, and the offer of support should

be taken advantage of. In fact, any budding

social entrepreneur will probably be reading

this and be thinking about their own business

ideas and how they could change the world.

Organisations to look at

There’s more information about social

enterprise available, and plenty of

organisations offering support and

guidance. Below are just a few of the many

organisations who work with entrepreneurs.

Social Enterprise UK is the national body for

social enterprise, together with their members

they are the voice for social enterprise

in the UK. Social Enterprise UK conducts

research, provides information and tools,

shares knowledge, builds networks, raises

awareness and campaigns to create a business

environment where social enterprises can thrive.

www.socialenterprise.org.uk

Social Enterprise Ambassadors are leaders

of successful social enterprises, who share

their stories, experience, and expertise to

help to raise awareness among key audiences

and help social enterprise spread and grow

throughout the country.

www.socialenterpriseambassadors.org.uk

The School for Social Entrepreneurs (SSE)

exists to provide training and opportunities

to enable people to use their creative and

entrepreneurial abilities more fully for social

benefit. SSE supports individuals to set up

new charities, social enterprises and social

businesses across the UK.

www.sse.org.uk

Business Link is government’s online

resource for businesses. It contains essential

information, support and services for you and

your business – whether you work for a large

organisation or are on your way to starting up.

www.businesslink.gov.uk



The Social Enterprise Mark Company is a

Community Interest Company (CIC) Limited by

shares. It is a certification authority for social

enterprises - social enterprises have to prove

they are genuine against a set of qualification

criteria, which is overseen by an independent

Certification Panel to ensure fairness and

consistency.

www.socialenterprisemark.org.uk

Social Enterprise Live is a platform for

stories and opinions, for debating the big

issues, for shared learning, news and innovation.

www.socialenterpriselive.com

UnLtd is a charity which provides a complete

package of funding and support, to help

social entrepreneurs make their ideas a reality.

www.unltd.org.uk

Young Enterprise is the UK’s largest business

and enterprise education charity, helping

young people learn about business and the

world of work in the classroom under the

guidance of volunteers.

www.young-enterprise.org.uk

Start Ups helps to locate information on

setting up a social enterprise including legal

issues, funding, ethical business practices and

examples of existing social enterprises as well

as expert advice on how you can become a

social entrepreneur.

www.startups.co.uk/social-enterprise

The Social Enterprise Loan Fund provides

loans to charities and social enterprises that

are unable to secure sufficient funding from

mainstream sources. They aim to help

organisations that have a social impact, especially

those working in disadvantaged communities.

www.tself.org.uk

The Prince’s Trust provide practical and

financial support to the young people who

need it most. They help develop key skills,

confidence and motivation, enabling young

people to move into work, education or

training.

www.princes-trust.org.uk

The Young Foundation works across the UK

and internationally – carrying out research,

influencing policy, creating new organisations

and supporting others to do the same.

www.youngfoundation.org

The Charity Commission registers and

regulates charities in England and Wales,

so it’s our job to make sure all charities meet

all their legal requirements and to work with

charity trustees to put things right if they

go wrong.

www.charitycommission.gov.uk

The Community Interest Company

Regulator is a partner of the Department for

Business, Innovation and Skills and is the

regulating body who approve the registration

of a company as a CIC. The Regulator also has

a continuing monitoring and enforcement role.

www.cicregulator.gov.uk

Companies House registers all limited

companies in England, Wales, Northern

Ireland and Scotland. The main functions of

Companies House are to:

• incorporate and dissolve limited

companies;

• examine and store company

information delivered under

the Companies Act and related

legislation; and

• make this information available to

the public.

www.companieshouse.gov.uk



The Financial Services Authority (FSA) is

the regulator of the financial services industry

in the UK. It is an independent body funded

entirely by the firms they regulate. However,

it is accountable to the Treasury and, through

them, Parliament.

www.fsa.gov.uk

[Figures, links, and organisations mentioned

are all correct as at December 2011].

Participation Works 8 Wakley St, London, EC1V 7QE www.participationworks.org.uk Enquiry line: 020 7833 6815 Email: [email protected]

Acknowledgements Authors: Matt Smith

Researcher: Radhika Howarth

Peer Reviewers: Beth Parker, Ana Brankovic – NCVYSJulie Hathaway, Louisa Jennings – KIDSEmrys Green – ConsultantMandy Douglas - NCB

Case Studies: FifteenBig IssueDivine ChocolateYoung AdvisorsFood CycleFreshTeam

Published as part of the Catalyst consortium, a NCVYS coordinated partnership; Catalyst is a consortium of four organisations working with the Department for Education (DfE) as the strategic partner for young people, as part of the Department’s wider transition programme for the sector. Catalyst will work to deliver three key objectives over a two year period. It will strengthen the youth sector market, equip the sector to work in partnership with Government and coordinate a skills development strategy for the youth sector’s workforce.

Government & Nonprofit

Social enterprise by the FreshTeam