Social Enterprise UK have published the biennial ‘State of the Sector’ report, based on a survey of nearly 2,000 social enterprises.
In what’s been a challenging economic climate for all businesses, 48% of social enterprises reported an increase in turnover over the last 12 months. Whilst a significant fall from 2023 levels (65%), this is still 12% higher than other forms of business. Profitability is also down, with just 40% making a profit.
Despite challenging trading conditions, social enterprises remain optimistic when it comes to future growth plans, with 69% developing a new product or service and 68% seeking to form new public or private sector partnerships. Supporting vulnerable people and improving mental health and wellbeing are the most common objectives of social enterprises.
The report also highlighted some key barriers to the sector realising its potential, from difficulties accessing finance to worries about higher costs of operating due to taxes. To read the report, click here.