Business Plus

Creating Meaningful Impact On Our Society

The social enterprise sector is booming and plays an increasing­ly important role within the enterprise ecosystem, writes

- Vincent Rastfeld

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.

 ?? MARC O’SULLIVAN ?? Alistair Aitken of Books at One was a recipient from Rethink Ireland’s Social Enterprise Developmen­t fund in 2022. Also pictured are Deirdre Mortell, CEO at Rethink Ireland, IPB Insurance CEO John Kearns, and Marilyn Catapat-Counihan from KASI
MARC O’SULLIVAN Alistair Aitken of Books at One was a recipient from Rethink Ireland’s Social Enterprise Developmen­t fund in 2022. Also pictured are Deirdre Mortell, CEO at Rethink Ireland, IPB Insurance CEO John Kearns, and Marilyn Catapat-Counihan from KASI
 ?? ?? MICHAEL O’SULLIVAN/OSM PHOTO
Rethink Ireland CEO Deirdre Mortell (centre) with Step-Up Fund recipients (l-r) Declan Sweeney, St Gabriel’s Orthotics; Alex Stewart, Galway Community Circus; Maeve Murphy, Benchspace; and Anne Maher, The Urban Co-op
MICHAEL O’SULLIVAN/OSM PHOTO Rethink Ireland CEO Deirdre Mortell (centre) with Step-Up Fund recipients (l-r) Declan Sweeney, St Gabriel’s Orthotics; Alex Stewart, Galway Community Circus; Maeve Murphy, Benchspace; and Anne Maher, The Urban Co-op

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