The Scottish Council for Voluntary Organisations defines the social economy as the economic dimension of the voluntary sector. This includes both social-benefit organisations that emulate business practices as well as the more ‘traditional’ forms that rely on grants and donations.
The voluntary sector is a major employer in Scotland , with a workforce of 107,000 paid staff. The sector employs 4.6% of Scotland ’s paid workforce, and 8-11% of Scotland ’s part-time and sessional workforce. Staff costs make up almost two-thirds of the sector’s expenditure. If these figures are translated to Midlothian there are approximately 1123 people working in the voluntary sector Midlothian (based on a workforce of 24,412, as quoted in Midlothian Council Socio-Demographic Profile 2003).
The Department for Trade and Industry has defined social enterprise as: 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 shareholders and owners. (DTI 2002).
Social enterprises come in a wide variety of shapes and sizes, and exist to achieve a tremendous range of social benefits. They generally have some form of community ownership, and many - though not all - have charitable status. Social enterprises differ from traditional charities and voluntary organisations in that they aim to generate the majority of their income through trading goods and services, rather than through grant funding.
As a broad category, social enterprise includes many types of organisations, including:
Other common forms of social enterprise include:
Examples of social enterprises in Midlothian:
There are many voluntary organisations that engage in small-scale trading activities but do not consider themselves social enterprises. These organisations may also benefit from the support of SEAM.
Better business – a strategy and action plan for social enterprise in Scotland
Strategy and action plan intended to grow and develop social enterprise in Scotland launched March 2007. The strategy highlights the important contribution a social enterprise business model can make to life in Scotland.
Social Enterprise in Anytown
Social Enterprise has a growing role to play in the British economy, not as a cranky subset of the private sector, but as part of a truly alternative economic system - a third way, distinct from both the private and public systems of ownership and management. John Pearce describes how social enterprise might come to dominate the economy of Anytown. He examines the key values which distinguish this from other systems and argues both for a recognised legal status for social enterprises and an independent development infrastructure managed by the sector itself. He demonstrates the social - and environmental - added-value they contribute to society, and outlines a five-stage process of social accounting.
Author John Pearce – ISBN 978-0903319973 – Publisher Calouste Gulbenkian Foundation