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The voice of Scotland’s vibrant voluntary sector

Published by Scottish Council for Voluntary Organisations

TFN is published by the Scottish Council for Voluntary Organisations, Mansfield Traquair Centre, 15 Mansfield Place, Edinburgh, EH3 6BB. The Scottish Council for Voluntary Organisations (SCVO) is a Scottish Charitable Incorporated Organisation. Registration number SC003558.

Social enterprise sector is booming

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​The true worth of social enterprises to Edinburgh's economy and social fabric is revealed.

A major study has been conducted into the impact social enterprises have on the economic life of Scotland’s capital.

The number of not-for-profit companies in Edinburgh is now over 200, and as the number continues to grow, so does the sector’s importance.

Edinburgh Social Enterprise Network (ESEN) commissioned a report titled Celebrate the Good Stuff to gauge just how successful social firms are.

It reveals that the turnover of the sector has trebled from £44 million to £120m in two years, with 94% of the sector’s income generated from direct trading, up from 75% in 2013.

There are also 8000 people in the city involved in social enterprises as staff, volunteers or trainees.

Social enterprise has become the model for entrepreneurs who want to effect real change in the society and community

Emma Galloway, chair of ESEN, said: “We have seen social enterprise become the model of choice for entrepreneurs who want to effect real change in the society and community. As a result of the work of the city’s social enterprises and ESEN, the Business Gateway and the City of Edinburgh Council Economic Development team, more and more people in Edinburgh are both finding out about social enterprise and making the choice to get involved.

“New social entrepreneurs are coming from a variety of sources – universities, schools and colleges through to former sole traders wanting to operate their business with an ethical purpose at its very heart.”

A particular success was the “Buy the Good Stuff” marketing campaign promoting social enterprises to consumers.

Other initiatives which have driven growth included Social in the Square, Scotland’s first social enterprise festival as well as campaigns to raise awareness of social enterprise among businesses, including the running of social enterprise markets at the Royal Bank of Scotland’s headquarters and social enterprises being invited to speak at the Business Gateway’s monthly Growth Club events.

Susan Harkins, Business Gateway manager, said: “The study shows the huge range of social enterprises in Edinburgh selling at least 40 different product types and services and many selling outwith the city and overseas as well.

“One of the vital elements to success has been the shift from public sector support to selling to consumers direct - as the social enterprise market has matured.”

Marco Biagi MSP, minister for community empowerment, said: “Social enterprises play an important role in supporting communities and delivering quality services, so it’s fantastic to celebrate their success and see them grow and evolve.

“Social enterprises help to improve people’s lives, they can reform public services and give people the chance to be involved in the design and delivery of the services and decisions that affect them.

“The Scottish Government has invested heavily in developing and supporting the sector and we look forward to considering what more we can do to boost social enterprises in the future, as its work is crucial to creating a fairer and more inclusive Scotland.”