Creating Meaningful Impact On Our Society
The social enterprise sector is booming and plays an increasingly important role within the enterprise ecosystem, writes
Ireland has a thriving enterprise culture so perhaps it’s not surprising that the social enterprise sector is booming too. Social enterprise is generally defined as an enterprise with the objective of achieving a social, societal or environmental impact, rather than maximising profit for its owners or shareholders. It pursues its objectives by trading on an ongoing basis through the provision of goods and/ or services, and by reinvesting surplus income into achieving social objectives.
In addition, social enterprises contribute to providing solutions that combine social, economic, and environmental aims, thus enhancing sustainable development. This contribution combines private and public resources and staff with volunteer labour and provides opportunities to vulnerable populations and geographically disadvantaged places.
Government is keen to foster social enterprises, not least because they reach into parts of the country where for-profit businesses are thin on the ground. Minister Heather Humphreys and the Department of Rural and Community Development (DRCD) are currently developing a
National Social Enterprise Policy,
which they aim to unveil later this year.
As part of the policy formulation, DRCD conducted a baseline data collection exercise to count up the social enterprises around the country. The department’s tally was 4,335 organisations that provide some form of employment for c.84,000 people. A further 74,800 volunteers work with social enterprises, including c.30,000 board members, and it is estimated
that the combined annual income of social enterprise is c.€2.3bn.
The social enterprise sector in Ireland is mainly formed by enterprises with modest income, and 30% report an annual income below €50,000. While the median annual income for a social enterprise is €180,000, this figure increases to €254,000 in urban areas compared with €80,000 in rural areas.
One in six social enterprises located in urban areas has annual turnover greater than €1m compared with only 4% in rural areas. DRCD cautions that the lack of publicly available financial information on social enterprises makes it challenging to accurately assess their financial situation.
Launching the data collection report,
minister Humphreys commented: “This report illustrates the diversity of the social enterprises, the opportunities and challenges related to employment and volunteering, the contribution to the economy and the small size but increasing relevance and growing potential of this dynamic sector. Now that we have this baseline data, showing a snapshot of the social enterprise sector in Ireland, we will be able to build on it.”
Social enterprises take a variety of different forms, including:
Work Integration Social Enterprises, which support disadvantaged people to prepare for and participate in the labour market.
Enterprise Development social
enterprises which support the creation of other enterprises, e.g. through the provision of office space and facilities.
■ Environmental social enterprises that focus on environmental sustainability, including circular economy social enterprises.
■ Social enterprises contracted with the public sector to deliver public services in disadvantaged areas and communities.
■ ‘Deficient Demand’ social enterprises which seek to meet a demand for goods and services within a community where there is insufficient demand for the operation of a regular market due to inherent economic and social disadvantage or low density of population.
According to the baseline research, childcare represents the main sector of activity for urban and rural social enterprises. Social enterprises developing activities related to community infrastructure and local development represent 23% of rural social enterprises compared to 2% in their urban counterparts. Enterprises related to health, youth services and social care represent 17% of urban social enterprises while only 9% of those located in rural areas.
The social enterprise workforce, mostly part-time, is mainly women (69%), and 60% of social enterprises with paid staff employ people through Activation Labour Market Programmes, especially in rural areas (65%). However, the baseline report also shows that while women represent the majority of the social enterprises’ workforce, boards are mainly occupied by men, especially those aged 50 years or more. “This disproportionate number of men and older people on boards represent a challenge for the social enterprise sector,” is the DRCD view.
One useful insight into what social enterprise actually do is funding awards from bodies such as Rethink Ireland, which operates the Social Enterprise Development Fund. This fund is financed by private donations, matched by public monies from the Dormant Accounts Fund, as well as contributions from IPB Insurance and local authorities.
The SED fund recently made €30,000 awards to eight social enterprises, made up of a €22,500 grant and access to a non-financial support package worth €7,500. The awardees are:
ACM Community Development Society,
which operates in Castleconnell, Co. Limerick, and runs community events and festivals and enables active retirement groups, card playing, village singers, music classes, a community restaurant, stitching groups etc.
Accelerating Change Together (ACT) is a group of architects, urbanists and policy specialists dedicated to accelerating the Green Transition.
Anam Music Therapy in Galway provides music therapy services in schools, day care and respite centres, residential care and community units, hospitals and in people’s homes.
Education for Sustainability
strives to equip young people with education on the climate crisis, through climate literacy workshops. Kinship care occurs when relatives and close friends step up to care for children when their parents are unable to do so. Hosted by Treoir, Kinship Care Ireland supports kinship families through the provision of practical information, peer support and by raising
awareness of the benefits and challenges of kinship care.
Living Life Counselling has provided volunteer led, mental health supports to those from socially and economically disadvantaged backgrounds. Lough Ree Access For All provides accessible boat trips, recreation and key supports to people with disabilities from all over the country. Passengers access the boats independently by way of a ‘roll-on-roll-off ’ design, akin to a small car ferry where the bow lowers to allow easy access.
Self Organised Architecture (SOA) promotes community led housing, and assists with negotiations with developers, financial institutions, and government agencies.
The Department of Rural and Community Development’s baseline data collection report concluded that social enterprises are an important part of the enterprise ecosystem in Ireland, creating jobs and generating meaningful social and environmental impact. The diversity of the sector shows the vibrancy and relevance of social enterprises in tackling complex challenges that Irish society and the economy face.
However, this diversity also presents challenges, in particular the development of a common identity for the sector.