Social business sector worth £2.37bn to Wales
The social business sector is worth £2.37bn to the Welsh economy and supports nearly 41,000 jobs, according to new research from Social Business Wales.
Its Mapping the Social Business Sector in Wales report shows that 1,698 organisations are operating in the sector and include co-operatives, mutuals, social enterprises and employee-owned businesses across Wales.
The report is based on survey data from 810 organisations, representing 48% of the sector. As well as 40,800 jobs the sector also provides for up to 58,000 volunteers
The research also shows that social businesses are found in areas of social deprivation, supporting communities – offering jobs and training and often providing services that the public and private sectors would find difficult to provide.
Moreover, a large number are focused on improving a particular community or improving health and well-being.
Some 84% of social businesses attracted new customers or clients in the last 12 months, whilst 24% attracted investment to expand during the same period. And sector is confident for the future, with 69% of social businesses expecting turnover to increase over the next two to three year.
Social Business Wales is an £11m European Regional Development and Welsh Government funded project, which is part of the Business Wales family and delivered by the Wales Co-operative Centre.
Glenn Bowen, director of enterprise at the Wales Co-operative Centre, said: “There is clear evidence of a growing, increasingly confident and entrepreneurial social business sector in Wales that is built upon strengthening foundations. The report suggests that the sector has experienced real growth in the two years since the last in-depth research was carried out. It offers a snapshot of a sector that is dynamic and responsive and is constantly looking to evolve and offer new products and services.
“Social businesses are often formed as a result of issues identified at a grassroots level by a local community. They plug gaps in provision and, in some cases, grow through innovative delivery and defining services in direct response to their community’s needs. In the current environment, which sees uncertainty regarding the effects of Brexit and potential massive investment in large-scale infrastructure projects via City Deals, social businesses offer a “ground up” community-led approach to economic and community development.”
Economy Secretary Ken Skates said: “I very much welcome this report which reaffirms the huge and growing contribution that social businesses make to Welsh life. The sector is now worth an incredible £2.37bn to Wales and provides jobs and volunteering opportunities to around 100,000 people. Importantly it also provides crucial services in our communities, plugging gaps in private and public sector provision and helping to improve educational attainment, provide social care in people’s houses and reduce inequality, particularly in our most deprived communities.
“As a government we are committed to working closely with social businesses to help them to thrive and grow. This commitment will be central to delivery of our four cross cutting governmental strategies due to be published shortly and our new social enterprise framework which we plan to publish later this year.”