Social Enterprise
Would the world be a better place with more female owned companies?
According to research women are much more likely than men to want to start a business with a social objective. Surveys show that nearly 50% of women want to use their ‘big’ idea to help people less fortunate than themselves, compared to less than a third of men. Use the information below to find out more about starting and growing your own social enterprise and read about the experiences of inspirational women who have already started up.
Inspirational stories
Useful links
Facts and Figures: Black, Asian and Minority Ethnic (BAME) Female Social Entrepreneurship
Glossary
Case studies
Rubana Ahmad - Ethika Boutique
Saeeda Ahmed -Trescom Research and Consultancy Limited
Sade Sangowawa - Inspirational Art Ltd
Jenny Pupius - Action for Business (Bradford) Ltd
Helen Walker - Water Power Enterprises (h2oPE)
Useful links
Association of British Credit Unions www.abcul.org
Ashoka www.ashoka.org/
Association of Community Based Business Advice www.acbba.org.uk
Bates Wells and Braithwaite http://www.bateswells.co.uk/
Baker Brown Associates www.bakerbrown.co.uk
The Baring Foundation http://www.baringfoundation.org.uk
Blackburne House www.blackburnehouse.co.uk
Bridges Ventures www.bridgesventures.com
Business in the Community www.bitc.org.uk
Business Link www.businesslink.gov.uk
Community Action Network www.can-online.org.uk
Community Development Finance Association www.cdfa.org.uk
Charity Bank www.charitybank.org
Community Enterprise Ltd (East & Central Scotland) www.communityenterprise.co.uk
Community Enterprise Wales www.communityenterprisewales.com
Community Interest Companies www.cicregulator.gov.uk
Cooperatives UK www.cooperatives-uk.coop
The Developments Trusts Association www.dta.org.uk
Esmee Fairbairn Foundation http://www.esmeefairbairn.org.uk/
Fatima Women's Network www.fatima-network.com
Good Company www.good-company.info
The Guild www.the-guild.co.uk
Incredit www.incredit.org.uk
I-genius http://www.i-genius.org/
Local Investment Fund http://www.lif.org.uk/
National Council for Voluntary Organisation www.ncvo-vol.org.uk
North East Social Enterprise Partnership www.nesep.co.uk
National Federation of Enterprise Agencies www.nfea.com
Office of the Third Sector www.cabinetoffice.gov.uk/third_sector/
The Prince's Trust www.princes-trust.org.uk
RISE (South-West of England) www.rise-sw.co.uk
School for Social Entrepreneurs www.theacademy-ssea.org
Social Enterprise Coalition www.socialenterprise.org.uk/
Social Enterprise London www.sel.org.uk/
Social Enterprise in East of England www.socialenterprise-east.org.uk
Social Enterprise Network (Merseyside) www.sen.org.uk
Social Enterprise Magazine www.socialenterprisemag.co.uk
Stiding out http://www.stridingout.co.uk/
Voice East Midlands www.voice-em.org.uk
Facts and Figures: Black, Asian and Minority Ethnic (BAME) Female Social Entrepreneurship
1. Positive indicators for BAME women and entrepreneurship:
BAME women are more likely to be involved in mainstream entrepreneurial activity than their white counterparts:
- Total Entrepreneurial Activity (TEA) for women from ‘mixed backgrounds’ is two and a half times higher than amongst white females, 10.2% and 3.6% respectively. For Bangladeshi women it is 10.9%, ‘Other Asians’ 10.3% and Black Caribbeans 10.5%. (Global Entrepreneurship Monitor, London Business School Jan 2004)
BAME people are more likely to be involved in social entrepreneurial activity than their white counterparts:
- Black Africans and Black Caribbeans are, respectively, three times and two times more likely than white people to be social entrepreneurs. (Global Entrepreneurship Monitor, London Business School Jan 2005)
Women are proportionality more likely to be involved in social entrepreneurship activity than in mainstream entrepreneurship
- The gap between male and female entrepreneurship is substantially narrower for social entrepreneurship than it is for mainstream businesses. Indeed in seven regions of the UK (East Midlands, London, North East, Scotland, South East, West Midlands, Yorkshire and Humber) levels of female social entrepreneurship start-up activity are higher than male. (Social Entrepreneurship Monitor, London Business School and The Work Foundation 2004)
- The statistic that is missing is the proportion of BAME women involved in social entrepreneurship activity. However the evidence we have shows that because social entrepreneurship may be a means of engaging groups which are under-represented in the labour market, it is a sector which appeals to and attracts women and BAME groups.
2. The position of ethnic minority women in the labour market.
- Ethnic minorities overall have a lower employment rate than the rest of the population (59.7% against 74.7% overall – a 15% gap.
- For Bangladeshi and Pakistani women it is particularly low - 24% and 24.2% respectively.
- The majority of women from Pakistani and Bangladeshi groups are economically inactive (69.9% and 71.9% respectively). The overall employment rate for women is 70.3%.
- African Caribbean women have relatively high employment rates – the gap between African Caribbean women and African Caribbean men is smaller than that in other ethnic groups.
- African Caribbean women are still under-represented in management and tend to be disproportionately employed in certain sectors, particularly health and social work, where 28% of working women from this group are employed.
- Women aged 16-24 from all three groups are over twice as likely to be unemployed than their white counterparts.
3. Ethnic Minorities and Areas of Deprivation
- 70% of Bangladeshi pupils and almost 60% of Pakistani pupils live in the 20% most deprived postcodes (as defined by the Index of Multiple Deprivation) compared to less then 20% of White British pupils.
- 70% of Bangladeshi and 60% of Pakistani pupils live in the 20% most deprived postcode areas. 40% of Pakistani and 45% of Bangladeshi live in the 10% most deprived areas. In comparison less then 20% of White British pupils live in the 20% most deprived postcode areas and 10% in the 10% most deprived areas.
- Social enterprises are likely to be situated in areas of high multiple deprivation:
- 29% are located in the 20% most deprived wards
- a further 22% in the 20-40% most deprived wards.
- 49% are in the 60% least deprived wards
Glossary
Accountability – being answerable to the enterprise’s members, funders, statutory bodies, regulators, community, general public, etc.
Bridging loan – a loan taken for a short period to deal with a temporary cash flow problem, or pending the receipt of funds (e.g. sale proceeds, retrospective grant payment).
Capital - money used in a business to generate income. Can be in the form of loans/overdrafts, grants or equity (investment in business).
Capital Moratorium - also knows as a repayment holiday - a period where repayment of the capital is deferred, usually at the start of the loan. Repayments are generally 'interest only' during this period.
Cashflow projections – a forecast of all the money coming into and being paid out by an organisation, month by month, over a period of time.
Charity – a body of persons or a trust which exists to help those in need or provide educational, scientific, religious and artistic assistance to members of the public.
Community Development Financial Institution (CDFI) – a financial service provider (possibly a community based bank, community loan fund or a community development venture fund) which has a mission to achieve social objectives.
Company Limited by Guarantee – a company in which, instead of buying shares, each member signs a guarantee to provide a pre-determined amount, which may be as low as £1, if needed when the company is wound-up. Social enterprises, charities, development trusts, social firms and community businesses frequently use this form of incorporation.
Co-operative – an enterprise that is owned and controlled by the customers who use the service. The economic benefits of a co-operative are given back to the members, reinvested in the co-op or used to provide member services
Financial systems - a set of procedures which formalise the rules for the management and control of an organisation’s finances.
Fixed assets - assets held by an organisation for the long-term for use in achieving its objectives, and running the organisation e.g. buildings; equipment; furniture and fittings; computer and office equipment; motor vehicles.
Fixed overheads - running costs that do not change with activity levels. These are incurred even if there are no projects or activity e.g. rent, rates, heat and light, accountancy fees, governance costs.
Micro-enterprise – a very small business, usually defined as having fewer than 10 staff, but sometimes fewer than 5 staff (89% of all UK businesses have fewer than 5 employees).
Non-profit, Not-for-profit, More-than-profit – terms commonly used to describe organisations which do not distribute profits, although they seek to make an operating surplus.
Social audits – social and ethical accounting and auditing are all methods of measuring and reporting to stakeholders on an organisation’s social and ethical performance.
Social entrepreneur – an entrepreneur has imagination to identify new opportunities and determination to bring them to fruition. A social entrepreneur does so for public good rather than private profit.
Stakeholder – Somebody or something with direct interest: a person or group with a direct interest, involvement or investment in something.
Term loan – a loan that has to be repaid over a set time period, usually in regular instalments.
Trustee - Person or institution that oversees and manages a trust.
Working capital - the amount of cash in the bank necessary to ensure that salaries and bills can be paid as they fall due.