November 08, 2006

The social enterprise movement is gaining force. Here, Society Guardian profiles some of the UK’s most innovative social businesses. Tim West and Henry Palmer report.

When Simon Woodroffe, founder of the Yo! Sushi restaurant chain and former panel member of the BBC’s Dragons’ Den, took to the stage at the annual Social Enterprise Yorkshire and Humber awards, his message was clear. This was the age of social enterprise.

In his speech, words like “risk” and “constant innovation” ran side-by-side with talk of social change and justice. It was a message lapped up by his audience, who were largely charity professionals eager to build alternative business models that focused on social change as well as commercial profit.

According to the latest estimates from the government’s annual Small Business Survey, there are over 55,000 social enterprises in the UK, with a combined turnover of £27bn.

The government has also recognised social enterprise’s potential to find new ways of delivering public services and reinvigorating downtrodden communities. Speaking about the potential of social enterprise, third sector minister Ed Miliband says the third sector “rightly feels able to challenge public and private sectors”. And back in January, Conservative leader David Cameron sent most of his shadow cabinet on a social enterprise bus tour around London in January.

Many of the UK’s flagship social enterprises are also registered charities. Nick Aldridge, director of strategy at the Association of Charity Chief Executives (Acevo), says that many traditional charities are turning to social enterprise models and mindsets to become more sustainable, effective operations.

“While the charity sector’s income from philanthropy still trumps its earned income, the latter is growing while the former remains static,” Aldridge says. “The trends suggest that within a few decades, we could all be social enterprises.”

Here Society Guardian profiles some of the social enterprises that are helping redefine the relationship between charities and social action.

Afghan Action
Social enterprise Afghan Action is hoping to use one of Afghanistan’s oldest industries to help rebuild a nation ravaged by decades of conflict.

Set up as a trading subsidiary of the UK registered charity the Afghan Training Foundation, Afghan Action’s training centre and factory, based in the country’s capital Kabul, employs two master trainers and 15 trainers in carpet manufacture. It is currently training 150 individuals and is looking to increase this to 350 over its first three years.

Not only does the enterprise offer a viable alternative to opium production, but it also helps to revive an industry that has been in steady decline. The enterprise provides fair wages and provides free daily lunches, basic skills education and medical care for staff and trainees.

Chris Beales, founder and chairman of Afghan Action, says that while there seems to be no end of NGOs offer training and education projects in Afghanistan, many are training people in industries where there is no work at the end of it. “We started this project by asking what will actually sell,” he says. “By rebuilding this traditional industry, we can equip young people with the skills they require to support themselves and their families.”

With carpets selling from £200 per square metre, Beales is confident the ethical dimension of these products will hit a chord among Britain’s increasingly discerning consumers.
www.afghanaction.com

Read this article on the Guardian Web Site