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Social Enterprises In The UK: Business As A Force For Good

Blog

Helping To Lift People Out Of Poverty Through Education And Learning Opportunities

Publication

South West and West Midlands Social Impact Report 2023

With over 131,000 social enterprises in the UK, employing around 2.3 million people and a collective turnover of £78 billion1, these mission-led businesses are a major economic and social force in the UK, bringing multiple benefits to local communities and people experiencing disadvantage, deprivation and barriers, including:

  • Meaningful employment opportunities
  • Access to education
  • Social inclusion
  • Health, care and wellbeing
  • Equality, diversity and inclusion
  • Improving the environment
  • Community resilience

Across the UK, social enterprises are tackling social problems, improving communities and benefitting the environment through the products they make and sell or the services they offer. However, unlike traditional businesses, social enterprises use their income-generating activities to support their social purposes, often operating in under-served communities, proving that it’s possible to run a financially sustainable business while putting people and planet first.

And according to Social Enterprise UK’s latest research2, social enterprises outperform traditional business when it comes to growth and innovation, reducing inequalities, creating jobs and building a more inclusive economy.

By reinvesting their profits, social enterprises can expand their impact, improve their services, and potentially provide more local employment opportunities. And by addressing some of the root causes of poverty and social issues such as unemployment, poor mental and physical health, inclusion and housing insecurity, social enterprises are helping to reduce some of the demands on NHS services, social care and the criminal justice system.

For example, Resonance’s Social Investment Tax Relief (SITR) Funds and Health & Wellbeing Challenge Fund (H&WCF) collectively invested nearly £10 million in over 70 social enterprises tackling these issues and more, enabling them to scale their growth and ambitions including:

  • The Skill Mill, West Midlands – training and employment opportunities for young ex-offenders
  • Imperial Sports Centre, Bristol – inclusive health and fitness classes and group sports for local disadvantaged and marginalised groups
  • Trevi, Plymouth – services for women in recovery and their children, such as rehab, health, housing and employment
  • Stand Against Violence – education and work-based training which equips people with the skills they need to handle and avoid potentially violent situations
  • Belong Learning, Gloucestershire and Devon – meaningful education for young people experiencing barriers to mainstream education
  • Spectrum Days, West Midlands – care and support services for people with severe and complex physical and learning disabilities

As social enterprises continue to prove their value both socially and economically, delivering positive social outcomes for the people and places they support, unlocking the capital needed to help them grow is essential. For social enterprises, access to flexible, affordable capital is often a significant barrier to growth—especially in areas of deprivation or sectors underserved by traditional finance.

One of the ways this is happening in the UK is through social impact-focused investment funds like the forthcoming Resonance Enterprise Investment (REI) fund.

Building on the success of Resonance’s SITR & H&WCF funds, this new fund enables capital to flow directly into high-impact social enterprises tackling socio-economic inequality, improving health and wellbeing, and supporting the transition to a lower-carbon economy.

The UK’s social enterprise sector is a vibrant, fast-growing part of the economy—delivering essential services, creating inclusive employment, and building community resilience. With structured, mission-aligned finance from initiatives like the Resonance Enterprise Investment fund, the sector is better positioned than ever to tackle systemic challenges and build a more equitable future.

Find out more about the Resonance Enterprise Investment fund here:

For social enterprises 

For institutional investors 

 

 

Sources

1 & 2 Social Enterprise UK https://www.socialenterprise.org.uk/all-about-social-enterprise/facts-and-figures/

Leila Sharland

Head of Growing Enterprises

Resonance Limited is a company registered in England and Wales no. 04418625

Resonance Impact Investment Limited, a subsidiary of Resonance Limited, is authorized and regulated by the Financial Conduct Authority (FCA). Firm number 588462.

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