A new strategy and action plan intended to grow and develop social enterprise has been launched.
The strategy Better business - a strategy and action plan for social enterprise in Scotland has been drawn up by Communities Scotland.
It highlights the contribution a social enterprise business model can contribute to economic growth and business development while at the same time meeting social objectives.
Social enterrprises aim to deliver services focused on the needs of people, on the regeneration and empowerment of people in deprived communities.
Communities Minister Rhona Brankin also announced £1.5 million in resources for an action plan to promote four strategic objectives.
These are:
- raising the profile and demonstrating the value of social enterprise
- opening up markets to social enterprise
- increasing the range of finance available to social enterprises
- developing the trading capacity of social enterprises through better business support
At the leading social enterprise, McSence, in Mayfield near Edinburgh, Ms Brankin said:
"Social enterprise has a vital role to play in helping the Executive with some of its main commitments for Scotland - growing the economy, delivering excellent public services and supporting stronger communities together with developing a vibrant third sector.
"Because social enterprises use the business model to deliver their social aims they can bring real benefits to Scotland's health and community care, education and transport, and deliver excellent services to deprived communities in urban and rural Scotland.
"The time has come for social enterprise to take a much more central role in our society and the strategy launched today will be a key driver in helping to do this."
Ian Mitchell, regeneration director of Communities Scotland, added:
"The strategy follows a wide consultation with nearly 80 responses. It is the result of close partnership working between the Executive, Communities Scotland, Scottish Enterprise and Highland and Islands Enterprise, working with representatives from the social enterprise sector including from social enterprises themselves.
"We expect the combined efforts of the group, with the backing of the strategy, to act as a launch pad to make social enterprise a core consideration for those people responsible for buying goods and services in both the public and private sectors.
"The social enterprise sector deserves recognition and development support, but has the potential to expand on its own merit."
The support of £1.5 million over the next year for social enterprises will include:
- guides and events demonstrating best practice in public procurement and good practice in tendering
- support for efforts to increase the range of finance available to social enterprises, including £75,000 to provide financial management training for managers and board members
- providing £400,000 in 2007/08 for business support. Mature social enterprises already receive this from local enterprise companies but this support will fill a gap for some and help them realise their potential. Bursaries will also be made available for people to study at the Social Enterprise Academy and provide other learning opportunities
- support work to help social enterprises raise their profile, including over £170,000 to develop a marketing strategy and to raise the profile with the next generation of entrepreneurs through enterprise education in schools
Social enterprises are "businesses with primarily social objectives whose surpluses are principally re-invested for that purpose in the business or the community rather than driven by the need to maximise profits for shareholders or owners".
There are around 3,000 social enterprises in Scotland at different stages of development, from small start-up enterprises to well-established businesses with multi-million pound turnovers. The turnover of these businesses has been calculated at £1 billion a year. The sector employs around 21,000 with an additional 18,500 volunteers.