As governments face increasingly complex challenges – from economic inequality to climate change – the role of social enterprises in governance has never been more relevant. Social enterprises, which prioritise social or environmental impact alongside profit, offer an innovative and people-focused approach to addressing societal issues that public services alone cannot always meet effectively.
Modern governance increasingly values collaboration, innovation, and sustainability. Social enterprises sit at this intersection, operating with the agility of the private sector but the purpose of the public. They provide critical services in areas such as housing, education, healthcare, and employment support, often reaching marginalised communities that traditional systems overlook. By reinvesting profits into their mission, social enterprises create long-term, sustainable change, aligning with many of the UK government’s social value and levelling-up agendas.
Public–private partnerships are key in today’s governance model, and social enterprises are ideal partners. With their deep community ties and data-driven impact, they bring both accountability and local knowledge to policy implementation. Government initiatives such as social value procurement – where contracts are awarded not just on cost, but on community benefit – have opened new opportunities for collaboration, encouraging public institutions to embed purpose-driven organisations into their delivery models.
Furthermore, social enterprises support national goals such as inclusive employment and net-zero targets. Many are leading the way in ethical job creation, especially for disadvantaged groups, while others innovate in circular economy practices and green technologies. Their dual focus on profit and purpose makes them powerful allies in building a fairer, greener society.
For governance to be truly modern and effective, it must reflect the needs and ambitions of all its citizens. Social enterprises, with their grassroots knowledge and impact-first ethos, help bridge the gap between state and society. By recognising and supporting their contribution, governments can co-create more resilient, inclusive systems that better serve everyone.
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References
Department for Digital, Culture, Media & Sport (DCMS), 2018. The Civil Society Strategy: Building a Future That Works for Everyone. [online] Available at: https://www.gov.uk/government/publications/civil-society-strategy
Social Enterprise UK, 2023. No Going Back: State of Social Enterprise Report 2023. [online] Available at: https://www.socialenterprise.org.uk/report/no-going-back/
OECD, 2022. The Social Economy and the COVID-19 Crisis: Lessons Learned and the Way Forward. [online] Available at: https://www.oecd.org/cfe/leed/social-economy
Nicholls, A. and Teasdale, S., 2017. Neoliberalism by Stealth? Exploring Continuity and Change Within the UK Social Enterprise Policy Paradigm. Policy & Politics, 45(3), pp.323–341.