A social enterprise is an organization that applies commercial strategies to maximize improvements in financial, social and environmental well-being. This may include maximizing social impact alongside profits for co-owners.
99-541: HCT Group was a social enterprise providing transport services and community services in several areas of the United Kingdom. It was founded in 1982 as Hackney Community Transport in the London Borough of Hackney , to provide transport services for local voluntary organisations, charities, and community groups. HCT Group was registered as a company limited by guarantee (and therefore had no shareholders ). The company
198-713: A Big Society Bank and a Big Society Network to fund projects, and introducing a National Citizen Service . The Lord Wei , one of the founders of the Teach First charity, was appointed by Cameron to advise the government on the Big Society programme. He carried out the role until May 2011 when Shaun Bailey and Charlotte Leslie were moved into the Cabinet Office to work on the project. Four initial "vanguard areas" were selected: In March 2010, The Daily Telegraph wrote: "We demand vision from our would-be leaders, and here
297-437: A nonprofit organisation that may solely rely on grant money, donations or government policies alone. A social enterprises can be structured as a business, a partnership for profit or non-profit , and may take the form (depending on in which country the entity exists and the legal forms available) of a co-operative , mutual organisation , a disregarded entity (a form of business classification for income tax purposes in
396-582: A balanced financial, social and environmental set of objectives. Worker- and employee-owned trading enterprises, co-operatives, and collectives. These vary from very large enterprises such as John Lewis Partnership in the UK and the Mondragon Corporation in Spain to medium-sized enterprises owned by their staff with traditional management hierarchies and pay differentials to quite small worker cooperatives with only
495-505: A community transport provider "...spends its surpluses on transport services in the community which are not commissioned from public bodies" but that "commissioning from the sector can however carry risks...organisations can lack capability and professionalism and be over reliant on individuals leading to instability." HCT Group was no more immune to labour relations problems than any other bus operator. The Socialist Worker described HCT as "no friend of workers" and its workers as "some of
594-405: A few directors and employees who work in less hierarchical ways and practice wage parity. Within the trading enterprises, there are employee-owned enterprises and membership-owned enterprises. Savings and loan organisations such as credit unions , microcredit organisations, cooperative banks , and revolving loan funds are membership-owned social enterprises. Credit unions were first established in
693-400: A lack of leadership. At the same time, a Centre for Social Justice report suggested that the policy was having least effect in the poorest in the country where it would be most useful. Cameron responded that the public sector had already failed to prevent the poorest parts of the country becoming so, and that there were examples of the Big Society having been effective in poor areas. During
792-729: A local community transport service and to set up training for long-term unemployed people in Hull. This was withdrawn in 2014, with Stagecoach taking over the service. In the same month, the company raised £5 million via a social loan. In 2017 and 2018, the group completed a series of acquisitions, purchasing Social Access, Bristol; Manchester Community Transport ; CT4TC, a Derbyshire community transport operator since renamed Derbyshire Community Transport; Powells, South Yorkshire; and Impact Group, West London. Dai Powell, who had been chief executive since 1993, announced in April 2020 that he would retire from
891-415: A long history around the world, though under different names and with different characteristics. The first description of a social enterprise as a democratically owned and run trading organisation that is financially independent, has social objectives and operates in an environmentally responsible way, was put forward by Freer Spreckley in the UK in 1978 and later written as a publication in 1981. One of
990-558: A national voice for the sector, the Alliance of Social Enterprise Networks Australia (ASENA). ASENA has provided a federal channel for advocacy, collaboration and resource sharing for the emergent community of networks. ASENA brings together representatives from the social enterprise networks in Australia: Social enterprise networks create a unique place to connect and grow the community of practitioners and enablers that are meeting at
1089-753: A nonprofit legal form and are treated in academic literature on the subject as a branch or sub-set of nonprofit activity (especially when contrasted with Social Businesses). Social enterprises in the nonprofit form can earn income for their goods or services; they are typically regarded as non-profits that use business strategies to generate revenue to support their charitable missions. In recent years, many non-profits have chosen to take on social enterprise models as it has become increasingly difficult to obtain financing from outside sources. The social enterprise model offers non-profit organisations an alternative to relying on charitable donations. This may allow them to increase their funding and sustainability and assist them in
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#17330860141391188-543: A profit motive. A fourth definition asserts that a social enterprise consists of a community of dedicated individuals that are continuously thinking about social impact and, as a result, employ business and management techniques to approach social causes. Social enterprises are not only a structural element of a non-profit. A large portion of social enterprises are non-profits; however, there are also for-profit social enterprises. Social enterprises are often regarded—erroneously—as nonprofit organisations, although many do take on
1287-495: A result, their social goals are embedded in their objective, which differentiates them from other organisations and companies . A social enterprise's main purpose is to promote, encourage, and make social change . Social enterprises are businesses created to further a social purpose in a financially sustainable way. Social enterprises can provide income generation opportunities that meet the basic needs of people who live in poverty. They are sustainable, and earned income from sales
1386-408: A result, they have to resort to other (non-financial) techniques to recruit employees. Many managers utilise the social component of the social enterprise's dual mission and purpose for this. Like social enterprise, social entrepreneurship has a variety of existing definitions. Currently, there is not a widely accepted standard definition for the term, and descriptions vary in level of detail. There
1485-460: A social enterprise. Social enterprises have socially bound mission statements and operate with the goal of solving a social problem as a part of their mission. Social enterprise has emerged as a businesslike contrast to traditional nonprofit organisations. Social enterprise is going to continue its evolution away from forms that focus on broad frame-breaking and innovation to a narrower focus on market-based solutions and businesslike solutions to measure
1584-613: A specific purpose and trade commercially. All operate to reinvest profits in the community. They have large memberships that are customers or supporters of the organisation's key purpose. There are village cooperatives in India and Pakistan that were established as far back as 1904. There are many NGOs and charities that operate commercial consulting and training enterprises or subsidiary trading enterprises, such as Oxfam International. The profits are used to provide salaries for people who provide free services to specific groups of people or to further
1683-455: A week later on 2 September. When the business closed, operation of the m1 transferred to First, along with the 21 vehicles branded for the route. HCT Group also operated a number of smaller community and mainstream bus services across the UK. Before the company fell into administration, HCT Group operated: HCT Group provided education services supported by the Learning and Skills Council and
1782-440: Is a huge amount of variation in forms and activities. Corporate social responsibility (CSR) is a practise that businesses can use to be conscious of the social and environmental impacts of their activities. There are a variety of CSR markers, such as accountability and internal and external elements. Social enterprises place a lot of emphasis on external social responsibility as a result of their social objectives, so social impact
1881-411: Is a significant contributor to the economy - from local manufacturing and agriculture, to hospitality and professional services - they are not only local enterprises serving local needs, nearly one-third trade internationally. Unlike traditional commercial businesses, Victorian social enterprises are intentionally labour-intensive, with the proportion of their labour force equating to approximately twice
1980-427: Is an emphasis on change agents for social entrepreneurship, in contrast to the organisational focus of social enterprises. Social entrepreneurship usually takes place in the non-profit sector, with a focus on creating and implementing new solutions. Social impact and social enterprise are not the same. Social impact may refer to the overall effects of a business, but a business that has social impact may or may not be
2079-467: Is built into the organisation. However, there has been debate on whether or not social enterprises place enough emphasis on internal CSR. Internal CSR includes human resources and capital management, health and safety standards, adaptation to innovation and change, and the quality of management within the organisation. Since a large majority of social enterprises do not have sufficient funding, they are unable to pay competitive wages to their employees, and as
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#17330860141392178-417: Is made possible by running the commercial activity well." The Financial Times reported in 2010 that turnover had "grown by about 25 per cent a year for the past eight years and is expected to top £20m in the year to March 31, 2010, when profits will be around £1m." HCT's rapid growth is achieved by merging with smaller community transport organisations. HCT Group CEO Dai Powell, in an article explaining
2277-407: Is one who offers a big one, of a society rebuilt from the ground up". In April 2010 The Times described the Big Society as "an impressive attempt to reframe the role of government and unleash entrepreneurial spirit". Later in the same year, The Spectator said that "Cameron hoped to lessen financial shortfalls by raiding dormant bank accounts. It's a brilliant idea in theory". Cameron defended
2376-461: Is protected (either through charitable status or through being CICs ), which sends a clear message to the public that the organisation is a social enterprise . HCT Group says it aims to "demonstrate and promote the social enterprise business model as a highly effective and socially responsible mechanism", and that it maintains environmental , health and safety , and social policies , and regularly measures its performance against these. Profit
2475-498: Is reinvested in their mission. They do not depend on philanthropy and can sustain themselves over the long term. Attempting a comprehensive definition, social enterprises are market-oriented entities that aim to create social value while making a profit to sustain their activities. They uniquely combine financial goals with a mission for social impact. Their models can be expanded or replicated to other communities to generate more impact. A social enterprise can be more sustainable than
2574-450: Is that [Cameron's] ideal society is Somalia where the state barely exists". Cameron's response was that the Big Society ideology pre-dated the implementation of cuts to public services, that the reduction in the size of the state had become inevitable, and that Big Society projects are worthwhile whatever the state of the economy. The Daily Telegraph ' s Ed West predicted in 2010 that "The Big Society can never take off", placing
2673-728: The COVID-19 pandemic and rising fuel and labour costs. All bus services in West and South Yorkshire operated by CT Plus would be transferred to the regional traffic commissioner for tendering to other bus operators. HCT Group operated local bus services in the Bristol area under the name of Bristol Community Transport, as well as (from January 2019) the m1 metrobus service under contract to First West of England . BCT ceased operating their dial-a-ride and community transport operations on 26 August 2022 due to rising costs, with their local bus services following
2772-582: The London Development Agency . The courses include bus driver training, particularly for women , social care , and management . HCT Group's corporate strategy was to generate profits from providing commercial transport services, then to use these profits to provide community transport services for people unable to use mainstream transport. The two modes, public transport and special need transport, are fully integrated under their model: "the investment in responsive community transport services
2871-565: The NHS . HCT Group acquired Rotherham -based independent operator Powells Bus and Coach in July 2018, integrating the company, which ran services across South Yorkshire , as a separate part of CT Plus (Yorkshire). On 4 August 2022, the HCT Group announced that CT Plus (Yorkshire) and its Powells Bus operation would cease trading on 5 August, following a period of sustained losses due to the economic effects of
2970-453: The benefit corporation (B-Corp). L3C's main objective is to achieve socially beneficial goals. They are able to go about achieving these goals by employing the financial and flexible advantages of a limited liability company. States that have authorised the use of the L3C model have established three requirements: to operate for charitable or educational purposes, not the production of income, and not
3069-478: The social economy draws explicitly from the works of Robert Owen , Proudhon , and Karl Marx , with works by Bourdieu and Putnam informing the debate over social capital and its relationship to the competitive advantage of mutuals . This intellectual foundation, however, does not extend as strongly into the field of social entrepreneurship, where there is more influence from writings on liberalism and entrepreneurship by Joseph Schumpeter in conjunction with
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3168-640: The triple bottom line were: Furthermore, it was intended as part of the original concept that social enterprises should plan, measure and report on financial performance, social-wealth creation, and environmental responsibility by the use of a social accounting and audit system. The organisational and legal principles embedded in social enterprises are believed to have come from non-profit organisations. Originally, non-profit organisations relied on governmental and public support, but more recently they have started to rely on profits from their own social change operations. The Social Enterprise Alliance (SEA) defines
3267-427: The 'Big Society ' ", and that "Most of the political problems Mr Cameron faces, from cutting crime to reducing obesity, can only be met if residents and citizens play their part". However, Rogers went on to state that "the state has so far invested very little in teaching the skills that could help people make a contribution", highlighting what he perceived to be a fundamental flaw in the programme. Cameron responded that
3366-703: The 1850s in Germany and spread internationally. Cooperative banks have likewise been around since the 1870s, owned as a subsidiary of a membership co-operative. In recent times, microcredit organisations have sprung up in many developing countries to great effect. Local currency exchanges and social value exchanges are also being established. Many community organisations are registered social enterprises: community enterprises, housing co-operatives, community interest companies with asset locks, community centres, pubs and shops, associations, housing associations, and football clubs. These are membership organisations that usually exist for
3465-595: The AccessBus service in Leeds and in 2008, merged with Leeds Alternative Travel. In March 2009, HCT Group published its first Impact Report. By 2010, HCT had grown by over a hundredfold since 1993 – from a turnover of £202k to a turnover of £23.3 million in 2009/10. In February 2010, CT Plus Yorkshire took over the Hull 701 Priory Park & Ride route, with the aim of investing any surplus from its park-and-ride operation to expand
3564-760: The Big Society is a "cloak for the small state". Of the political weeklies, the New Statesman said "Cameron's hope that the Big Society will replace Big Government is reminiscent of the old Marxist belief that the state will ' wither away ' as a result of victorious socialism. We all know how that turned out. Cameron has a long way to go to convince us that his vision is any less utopian". Also referring to Marx, political cartoonist Steve Bell in The Guardian on 21 January 2011 and The Guardian Weekly newspaper on 28 January 2011 adapted Marx's slogan " From each according to his ability, to each according to his need " for
3663-577: The Big Society: "From each according to their vulnerability, to each according to their greed" . Lorie Charlesworth, an academic from the Institute of Advanced Legal Studies , compared the system to the Old Poor Law , and suggested that "any voluntary system for the relief of poverty is purely mythical". Anna Coote, head of Social Policy at the independent think-tank NEF , wrote in July 2010 that "If
3762-624: The CT Plus brand in London was dropped with operations brought under the HCT Group banner; the brand continued to be used in Yorkshire until August 2022. In the same month, HCT ceased operating Plus Bus route 812 and entered into negotiation with Stagecoach London to sell its 160-vehicle operation, following a period of ongoing financial difficulties for HCT Group. Ash Grove bus garage in Cambridge Heath
3861-590: The Co-operative Research Unit (CRU) at the Open University have also published research into social enterprise. The Skoll World Forum, organised jointly by Oxford and Duke universities, brings together researchers and practitioners from across the globe. The term 'social enterprise' has a mixed and contested heritage due to its philanthropic roots in the United States and cooperative roots in
3960-546: The Grameen Bank, believes that a social enterprise should be modelled exclusively to achieve a social goal. Another view is that social enterprises should not be motivated by profit motives, but rather that profit motives should be secondary to the primary social goal. A second definition provided by The Social Enterprise Alliance (SEA) defines a social enterprise as an organisation that uses business methods to execute its social or environmental mission. According to this definition,
4059-570: The United Kingdom, European Union, and Asia. In the US, the term is associated with 'doing charity by doing trade', rather than 'doing charity while doing trade'. In other countries, there is a much stronger emphasis on community organising , democratic control of capital, and mutual principles than on philanthropy. In recent years, there has been a rise in the concept of social purpose businesses, which pursue social responsibility directly or raise funds for charitable purposes. Muhammad Yunus, founder of
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4158-467: The United States), a social business , a benefit corporation , a community interest company , a company limited by guarantee or a charity organisation . They can also take more conventional structures. Social enterprises are dynamic, requiring adaptation to ensure they meet the needs of communities and individuals in an ever-changing world. Their shared common thread is that they all operate to achieve
4257-486: The Victorian Government has commissioned further research and digital platforms to support the collection and sharing of social enterprise research and knowledge. The Social Entrepreneur Evidence Space (SEES) is an open research platform for Australia's social enterprise community. Social enterprise practitioners have formed professional networks in each State and Territory of Australia. In 2020, they joined to form
4356-508: The advantage of keeping our social mission absolutely central to our approach." Powell contrasted this approach to that of many third sector organisations "where risk is to be mitigated at worst and eliminated at best. This is simply hopeless for rapid growth." He describes the process as "...so much more rewarding than spending your days "maximising shareholder value ", whatever that means." Social enterprise Social enterprises have business , environmental and social goals. As
4455-568: The blame on the socialist ideology held by some of the British public. Also writing for The Daily Telegraph , Mary Riddell said "the sink or swim society is upon us, and woe betide the poor, the frail, the old, the sick and the dependent" whilst Gerald Warner felt that "of all the Blairesque chimeras pursued by David Cameron, none has more the resonance of a political epitaph than 'Big Society'". Sir Stephen Bubb , Chief Executive of ACEVO , welcomed
4554-430: The capacity of voluntary groups to implement Big Society projects. Bernard Collier expressed concern that the policy's lack of localism was "favouring big charities" and ignoring the "potential contribution of local voluntary and community organisations". In 2014, former Cameron aide Danny Kruger said that although the relevant legislation had been put in place, the policy had been downgraded from its original role due to
4653-405: The collaborative ingenuity of social enterprise networks. While the social enterprise networks are at differing stages of emergence, ASENA is providing a channel for cooperation, network-building practice, intelligence and resource sharing that is enabling all parts of the national community to benefit from others. Broadly, the networks have five functions: Big Society The Big Society
4752-807: The collapse of the company in September 2022. CT Plus (Yorkshire) operated from depots in Brighouse , Wakefield and Leeds , with a fleet of around 110 vehicles. The services in West Yorkshire consisted mostly of West Yorkshire Metro tendered services: AccessBus, a demand responsive transport service providing local transport for those unable to use regular transport, and school buses, including some ' My bus ' yellow school bus contracts. A few public routes were operated, around Wakefield, Huddersfield, Pontefract , and South Elmsall . In addition, some private contracts were operated, including two shuttle services for
4851-655: The course of the 2010–15 government , the Big Society declined as an instrument of government policy. Cameron did not use the term in public after 2013 and the phrase ceased to be used in government statements. The collapse of the Big Society Network in 2014 and criticism of the Prime Minister's relationship with it were followed by a critical final Big Society Audit published by Civil Exchange in January 2015. The audit highlighted cuts in charity grants and restrictions on
4950-465: The culture and lore of Australia's first peoples, which have been practised for over 60,000 years. Similarly, social enterprise practises were common in the establishment of Australia's immigrant populations. Australia's suburban landscape is marked by clubs and associations that operate hospitality, learning, or community-oriented enterprises together with inclusive and culturally strengthening employment practises. The forms social enterprises can take and
5049-473: The delivery of public services by not-for-profit organisations (the third sector ). British prime minister David Cameron has stated that he wants more social enterprises running public services as part of his " Big Society ". Charitable legal website Get Legal described HCT's corporate structure as allowing HCT Group to "separate the risks associated with its business in different limited liability vehicles ." The social mission of each of those vehicles
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#17330860141395148-495: The development of the social entrepreneurship field through project initiatives and publications. As of 2018 the field of social enterprise studies has not yet developed firm philosophical foundations, but its advocates and its academic community are much more engaged with critical pedagogies (e.g. Paulo Freire ) and critical traditions in research (e.g. critical theory / institutional theory / Marxism ) in comparison to private-sector business education. Teaching related to
5247-554: The emerging fields of social innovation , actor-network theory , and complexity theory to explain its processes. Social enterprise (unlike private enterprise) is not taught exclusively in a business school context, as it is increasingly connected to the health sector and to public service delivery. However, Oxford University's Said Business School does host the Skoll World Forum , a global event focused on social entrepreneurs . The first international social enterprise journal
5346-456: The enterprise more financially valuable. These are organisations that might be more properly said to be operating corporate responsibility policies . Social enterprises differ in that their commitment to impact is central to the mission of the business. Some may not aim to offer any benefit to their investors, except where they believe that doing so will ultimately further their capacity to realise their social and environmental goals, although there
5445-471: The firm's goals. Some social enterprises have taken on same-sector and cross-sector partnerships, while others continue to operate independently. Tensions are separated into four distinct categories: performing, organizing, belonging, and learning. While the terminology of 'social enterprise' is new in Australia, the contemporary values, principles, and practises of social enterprise are strongly aligned with
5544-483: The first examples of a social enterprise, in the form of a social cooperative, can be traced back to the Victorian era. Like social cooperatives, social enterprises are believed to have emerged as a result of state and market failure . However, market failure is emphasized in the UK, while state failure is emphasized in the United States. Muhammad Yunus ( Grameen Bank founder and 2006 Nobel Peace Prize laureate) used
5643-419: The following as reasons for this transition: Social enterprises are viewed to have been created as a result of the evolution of non-profits. This formation process resulted in a type of hybrid organisation that does not have concrete organisational boundaries. Various scholars (e.g. Eikenberry & Kluver, Liu & Ko, and Mullins et al.) have argued that this may have come about due to the marketization of
5742-456: The formation of the EMES network of social economy researchers who subsequently spread the language to the UK and the rest of Europe through influential English language publications. When social enterprise first emerged, much of the scholarly literature focused on defining the key characteristics and definitions of social enterprise. Currently, there is more literature and research on the emergence of
5841-467: The fulfilment of a political or legislative agenda. A benefit corporation , or B-Corp, is a corporation that operates to achieve or create a "general public benefit". The first academic paper to propose worker co-operatives involved in health and rehabilitation work as a form social enterprise was published in 1993. The scale and integration of co-operative development in the 'red belt' of Italy (some 7,000 worker, and 8,000 social co-operatives) inspired
5940-425: The group's strategy, said the business aims to double in size every five or so years for the foreseeable future, seeing scale as "...crucial. The better we do commercially, the more we can do for the communities we serve as a social enterprise", and that the strategy is "maximising the good that we do... to be as bold as a commercial firm, but to the benefit of our communities, not to the owners of capital . It also has
6039-512: The idea of the Big Society but claimed that Cameron was "undermining" it. His concerns were about cuts in government money going to charities coming "too far and too fast". He later said the project had become a "wreck". Steven Kettell of the University of Warwick has written of the intrinsic "problems surrounding the government's call to put religious groups at the centre of the Big Society agenda". In April 2012, criticisms were raised concerning
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#17330860141396138-651: The individuals and communities social enterprises aim to benefit. This Finding Australia's Social Enterprise Sector (FASES) project produced its final report in June 2010. The project was led by Professor Jo Barraket, an Australian social enterprise academic. One of the key features of this Australian research is its intention to define social enterprise in a way that was informed by and made sense to those working in or with social enterprises. The research design therefore included workshops to explore and test what social enterprise managers, researchers, and relevant policymakers meant by
6237-602: The industries they operate in are so many and varied that it has always been a challenge to define, find, and count social enterprises. In 2009, Social Traders partnered with the Australian Centre for Philanthropy and Nonprofit Studies (ACPNS) at Queensland University of Technology to define social enterprise and, for the first time in Australia , to identify and map the social enterprise sector: its scope, its variety of forms, its reasons for trading, its financial dimensions, and
6336-448: The innovation that differentiates the social enterprise from the traditional non-profit actor. In 2012, Social Enterprise UK ran the 'Not In Our Name' campaign against Salesforce.com , a global software and CRM company that had begun using the term 'social enterprise' to describe its products and had applied for 'social enterprise' trademarks in the EU, US, Australia, and Jamaica. The campaign
6435-846: The legislative programme of the Conservative–Liberal Democrat coalition agreement . The relevant policy areas were devolved in Northern Ireland, in Scotland and in Wales, to, respectively, the Northern Ireland Executive , the Scottish Government and the Welsh Government . British PM David Cameron, and subsequent British Governments, declined to publicly use the term "Big Society" after 2013. The Big Society Network
6534-429: The lowest paid drivers in London". HCT Group prefers social enterprises and co-ops as business partners and suppliers; when they raised £500k impact investment from The Phone Co-Op in 2014, their CEO explained with investors as well as suppliers they want to "buy social". In 2018, HCT Group secured £17.8 million in funding to tackle social isolation, with the help of the investment bank ClearlySo. CT Plus
6633-426: The networks provide inspiration, demonstrate business innovation through commercially viable social or environmentally sustainable operations, and creative ways for motivating or developing staff or diversifying CSR strategies. For philanthropy, social enterprise is not well understood or recognised. The networks provide opportunities to discover social innovation, and to generate lasting system-level impact by harnessing
6732-404: The nexus between business and charity. For example, SENVIC's Annual Review 2020-2021 notes that of its 700 members, there are 250 associate members from government, business and philanthropy. For government, the network creates opportunities to diversify social procurement spending or to explore social innovation and transform policy approaches to tackle intractable or wicked problems. For business,
6831-422: The non-profit sector, which resulted in many non-profit firms placing more focus on generating income. Other scholars have used institutional theory to conclude that non-profits have adopted social enterprise models, because such models have become legitimized and widely accepted. Some organizations have evolved into social enterprises, while some were established as social enterprises. Social enterprise has
6930-526: The policy against criticism by other commentators. Two days after the initiative's launch in Liverpool, an article in Liverpool Daily Post argued that community organisations in the city such as Bradbury Fields show that Cameron's ideas are already in action and are nothing new, and that groups of community-based volunteers have for many years provided "a better service than would be achieved through
7029-449: The policy's lack of novelty does not detract from its usefulness and that it should be judged on its results. The implementation of the policy coincided with large-scale cuts in public expenditure programs which were implemented to address macroeconomic concerns. In 2010 Cameron indicated that such cuts were temporary and to be enacted purely from economic necessity. However, in 2013 he said that he had no intention of resuming spending once
7128-468: The post and be replaced by Lynn McClelland. Following the COVID-19 pandemic , as well as a rise in costs for bus operators, HCT Group began to suffer from financial difficulties. On 29 September 2022, after disposing of its commercial bus operations in Yorkshire, Bristol, London and the Channel Islands, HCT Group ceased trading and formally entered administration . The British government has promoted
7227-414: The proportion of Gross State Product they produce. 20% of Victoria's social enterprise workforce is people with disability (i.e. 12,000 jobs) and 7% of jobs are held by people previously experiencing long-term unemployment. Swinburne University estimates that there are over 20,000 social enterprises nationwide. Based on its Victorian analysis, it can be extrapolated that: Following the 'Map for Impact,
7326-627: The public sector". Simon Parker, Director of the New Local Government Network , argued that although "there is little in the coalition government's agenda that is entirely novel, what is new is the scale of change required." Ben Rogers, in an opinion piece published in the Financial Times , suggested that "the most interesting thing about [Cameron's] speech [to the Conservative Party Conference] were its sections on
7425-454: The pursuit of their social mission. However, two potential issues emerge: 1) distraction from the social goal in pursuit of contradictory business activities; and 2) inadequate skills, resources, and capabilities for the adoption of the social enterprise model. Many commercial enterprises would consider themselves to have social objectives, but commitment to these objectives is motivated by the perception that such commitment will ultimately make
7524-406: The right to challenge government policy through the courts as undermining Big Society ideals. It noted that charities have had a decreasing role as government contractors due to policies which favoured the private sector and it pointed out that the centralisation of the British political system has not significantly decreased, with no noticeable upsurge in volunteering and social action concentrated in
7623-447: The shortage of Big Society policies across Government, such as the lack of employee-owned mutuals and social enterprises in public sector reforms as well as the introduction of a cap on tax relief for charitable giving in the 2012 Budget. A report published in May 2012 suggested that the £3.3 billion cuts in government funding to the voluntary sector between 2012 and 2015 had greatly reduced
7722-433: The social enterprise sector as well as the internal management of social enterprise organisations. Due to the dual-purpose missions of social enterprises, organisations cannot directly employ the typical management strategies of established business models. Recent academic literature has argued against prior positively held views of social enterprises success in striking a balance between the two tensions and instead argued that
7821-450: The social enterprise's social mission is to help the disadvantaged, which is executed by directly providing goods or services (not money). Additionally, earned revenue must be the main source of income for the organisation or venture. A third definition is purely based on how the organisation is legally structured or formed as a legal entity. In this context, a social enterprise is a legal entity that, through its entity choice, chooses to forgo
7920-507: The social impact of programmes. Socially responsible investing (SRI) seeks to maximize both financial gain and social impact. Social Enterprises often use for-profit business strategies to fund social change. The methods by which these Social enterprises create sustainable revenue streams differ from social business to social business, but all share the goal of abandoning the need for government or donor support. Gregory Dees and Beth Anderson discuss this difference in funding strategies as
8019-427: The social mission is being compromised in favour of financial stability. Prioritising social good over financial stability contradicts rational firm management, which typically prioritises financial and profit-seeking goals. As a result, different management issues arise that range from stakeholders (and management) agreeing on the firm's goals but disagreeing on an action plan to management and stakeholders disagreeing on
8118-633: The social or environmental aims of the organisation. The idea of a social enterprise as a distinct concept first developed in the late 1950s. In 1980 Bill Drayton, further popularised the concept by the foundation of Ashoka, one of the first successful global social enterprise movements. In the 1970s in the UK the concept became used as an alternative commercial organisational model to private businesses , co-operatives and public enterprise . The concept, at that time, had five main principles divided into three values and two paradigm shifts. The two paradigm shifts were: The three principles, now referred to as
8217-448: The specification. "HCT sees the provision of high-quality public services as a goal in itself...and actively seeks user input into the design and delivery of all its services." The CEO claims "we don't provide poor services for poor people – the quality has to be there.” HCT recruits volunteers to train people with learning difficulties and physical disabilities to use public transport independently. West Yorkshire Metro noted that
8316-472: The state is pruned so drastically ... the effect will be a more troubled and diminished society, not a bigger one". In November 2010 a report by NEF suggested that "There are strong, sensible ideas at the heart of the 'Big Society' vision... [but] for all its potential, the 'Big Society' raises a lot of questions, which become more urgent and worrying in the light of public spending cuts". TUC general secretary Brendan Barber concluded that "the logic of this
8415-513: The structural deficit had been eliminated, since his aim was to create a "leaner, more efficient state". This led critics to conclude that the Big Society was intended primarily as a mechanism for reducing the size of the state. Labour's leader Ed Miliband said that the Conservatives were "cynically attempting to dignify its cuts agenda, by dressing up the withdrawal of support with the language of reinvigorating civic society" and suggested that
8514-552: The term "social enterprise" in his 2009 book Banker to the Poor , and in other essays. Muhammad Yunus used the term referring to microfinance . His work in the area of extending micro-credit especially to women in societies where they are economically repressed, led him to receive the Nobel Peace Prize in 2006. In the US, Harvard , Stanford and Princeton universities built on the work of Ashoka , and each made contributions to
8613-452: The term 'social enterprise', and remove any references to 'social enterprise' in its marketing materials in the future. Organizations that do not take the distinct form of either a private, public, or non-profit organization are classified as hybrid organizations. For legal and tax purposes, hybrid forms are classified as for-profit entities. The two main types of hybrid organisations are the L3C, or low-profit limited liability company , and
8712-619: The term 'social enterprise'. This was the resulting definition: Social enterprises are organisations that are: In 2017, the Centre for Social Impact at Swinburne University undertook a comprehensive mapping project of social enterprise in Victoria. The 'Map for Impact' Report identified 3,500 social enterprises in Victoria alone, employing over 60,000 people or 1.8% of the state's workforce. Victoria's social enterprises contribute over $ 5.2 billion in gross output to Victoria's economy. Social enterprise
8811-724: The volunteer workforce. HCT Group received loans from London Rebuilding Society to finance its entry to the bus industry. In 2004, HCT was contracted by EduAction to deliver 500 local special needs children to school and back each day for London Borough of Waltham Forest from a new depot in Leyton . In March 2006, HCT expanded outside London to run eight yellow My bus school transport routes in and around Wakefield for West Yorkshire Metro . A further seven runs were added in September and three more in September 2007. In July 2006, HCT merged with Lambeth & Southwark Community Transport. Later that year on 1 October 2006, HCT began to operate
8910-511: The wealthiest places. The Cabinet Office responded that the Civil Exchange report did not fairly reflect "the significant progress made". In response to a parliamentary question claiming that the Big Society had failed, the Government said that "cynics" were "entirely wrong" and that "some of the changes we have introduced are irreversible". Shortly before the 2015 election, Cameron proposed
9009-477: Was HCT Groups' first London garage, and was shared with Arriva London . This garage operated 10 routes, including route 26 and route 394 . In November 2016, HCT Group opened a second garage in Walthamstow . Before the company administration, Walthamstow Avenue operated routes 20, 385, 397, W11, W12, W16, W19 and 616. The Transport for London fleet consisted of 85 buses in 2014, and had grown to 159 buses before
9108-400: Was a sociopolitical concept of the first 15 years of the 21st century, developed by the populist Steve Hilton , that sought to integrate free market economics with a conservative paternalist conception of the social contract that was influenced by the 1990s civic conservatism of David Willetts . The Big Society influenced the 2010 UK Conservative Party general election manifesto and
9207-490: Was also a registered charity . By 2014, HCT Group had a fleet of 500 vehicles, turnover of £43.7 million, and employed over 700. The company expanded into several areas of England and the Channel Islands through a series of acquisitions in 2017 and 2018, but after financial difficulties following the COVID-19 pandemic , the HCT Group ceased trading and entered administration in September 2022 after disposing of all its commercial bus services. Hackney Community Transport
9306-500: Was dissolved in 2014 and the unfavourable conclusive Big Society audit, by Civil Exchange , was published in January 2015. Following the election of a Conservative–Liberal Democrat coalition government at the 2010 general election , the new Conservative Prime Minister David Cameron launched the initiative in July with a speech at Liverpool Hope University accompanied by screenwriter and television producer Phil Redmond . The stated priorities were: The plans included setting up
9405-446: Was established in 1982 when 30 community groups in the London Borough of Hackney formed a pool of six vehicles with a grant from Hackney Borough Council to provide low-cost van and minibus hire for local community groups, and a door-to-door alternative to public transport for people with disabilities . The company's services were staffed by volunteers , but over the next decade a small group of paid staff built up to assist
9504-675: Was established in 2005 by Social Enterprise London (with support from the London Development Association). The Social Enterprise Journal has been followed by the Journal of Social Entrepreneurship , and coverage of issues pertaining to the social economy and social enterprise is also covered by the Journal of Co-operative Studies and the Annals of Co-operative and Public Economics . The European Social Enterprise Research Network (EMES) and
9603-437: Was founded as a wholly owned trading arm of HCT in 2001, and became a community interest company in 2007. The company competed for contracts in the marketplace, and its profits were used by HCT to support community transport or other objectives such as training for the long-term unemployed. At first they operated a Transport for London contracted service, route 153 . Routes 388 and 394 were added in 2003. In August 2019,
9702-485: Was seen by company CEO Dai Powell as enabling its social goals: "You have to be an enterprise first, because if you don't make a profit, you can't fulfil that social mission." HCT's commercial services allowed it to invest 18 per cent of its annual profits into non-commercial community transport in 2007/08. Its mission was to increase this to 30 per cent in the subsequent five years. HCT Group only competes for contracts that have high levels of accessibility and quality in
9801-651: Was supported by similar organisations in the US (the Social Enterprise Alliance), Canada, South Africa, and Australia. An open letter was sent to the CEO and Chairman of Salesforce.com asking Salesforce.com to stop using the term 'social enterprise'. It was signed by people and organisations around the world, including Muhammad Yunus ( Grameen Bank founder and Nobel Peace Prize laureate), Richard G. Wilkinson , and Kate Pickett (co-authors of The Spirit Level ). Salesforce said it would withdraw applications to trademark
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