Social enterprise – more potential than achieved or less impact than aspired to?

The Government has only recently identified some difficulties in using social enterprises to grow local economies and deliver public services more effectively and efficiently.

But the big problem is probably the realistic management of expectations at national and regional levels, as there are plenty examples of successful social enterprises, simply not enough delivering where policy most expects (or hopes?).

A recent report highlights the need for social enterprise to become mainstream by building awareness, overcoming confusions with the charity sector and building commercial credibility. Opportunities within the social enterprise sector are reviewed as it calls for more involvement of start up entrepreneurs. The report also makes recommendations on how to target entrepreneurs and attract new talent to the sector.

Many social enterprises are started by groups which would not have entrepreneurial features and have been constrained by public sector procurement and funding practices. The management challenges are even greater than for commercial start ups. Much more resources seem to have been allocated to creating support infrastructures than directly to funding social enterprises, and most third sector organisations still seek to operate as charities and with volunteers.

This will remain a confusing area of policy requiring some rationalisation..

Is Social Enterprise at a crossroads? COI Strategic Consultancy and Research Division, Cabinet Office, Office of the Third Sector, 2008