An overhaul in how social enterprises are funded could create an employment boom in poorer parts of the UK, according to a wide-ranging new report into the world of social investment which also accused the sector of “a serious problem of inclusion and equity” when it comes to issues of race.
Government support for more social enterprises — businesses which reinvest profits into their social or environmental mission — could transform parts of the UK economy over the next 10 years, including regions and communities which have often been left behind, according to the commission on social investment.
“Acting on these recommendations can create tens of thousands of jobs in our most deprived communities, whilst delivering £3billion for our economy,” said Chris Murray, commissioner of the commission on social investment. “It’s a massive win-win and a practical example of how we can level up the UK.”
“I hope that government, social enterprises, social investors and all stakeholders will come together to refocus the social investment market and implement these recommendations,” said Lord Adebowale, chair of the commission.
The report, titled Reclaiming the Future, called on government to support a new range of investment funds and schemes totalling almost £800 million over the next 10 years for social enterprises to access.
This would create 180,000 jobs, including “36,000 jobs in our most deprived communities”, add £3bn to the UK economy, raise £1.2bn in tax revenue, and inject over £600m investment into the poorest parts of the UK.