Social enterprise in Northern Ireland: A growing economic force for good

Social enterprise businesses in Northern Ireland are an increasingly prominent contributor to the wider economic and social landscape in the region.

Social enterprises are a unique combination of entrepreneurial spirit mixed with social objectives with the aim to create positive social or environmental impact rather than maximising profits for shareholders. They are pivotal in fostering inclusive growth and societal resilience.

Growth of the sector

The sector continues to grow under the stewardship of Social Enterprise NI, which has led the sector in Northern Ireland since 2012. Soon to be updated statistics from 2019 confirm there were 843 social enterprises in the region, contributing £1.2 billion to the local economy and employing 25,000 people. The imminent piece of research is expected to show an increase in these figures. This growth is also reflected across the UK and Europe, where social enterprises are increasingly recognised as key players in addressing societal challenges.

Current activity

Social Enterprise NI is the representative body for the social economy in Northern Ireland and is making considerable progress in promoting the benefits of the social enterprise business model, including establishing social partnerships with the private and public sector.

Chief Executive Colin Jess states: “As an organisation we are experiencing a growing interest in the work of our members from those in the public and private sector.

“This has been driven by Social Enterprise NI’s promotion of the social enterprise business model, and by the approval of Public Procurement Notes by the Executive in 2021, particularly PPN 01/21. From June 2022, this has mandated all government tenders to include a minimum of 10 per cent of their total award criteria to be allocated towards the scoring of social value.

“I was delighted to be asked by the former Finance Minister to represent the social economy on the reconstituted Procurement Board in 2020 and through this Social Enterprise NI has been promoting and encouraging partnerships between social enterprises and private/public sector bodies to help deliver on the expected policy outcomes.

“We are also delighted to be formally launching the Northern Ireland Social Enterprise directory in the next few weeks at our Meet the Procurer event being held on 24 September 2024. The directory will be an interactive portal, accessible to members of Social Enterprise NI from all sectors which will contain a search function by business type, location, and a means to direct message other organisations from within the site. This will create meaningful dialogue between organisations.”

Government and policy support

Government support is crucial for the development of the social enterprise sector. In Northern Ireland, various policies and programmes aim to foster this ecosystem. For instance, the Minister for the Economy Conor Murphy MLA has recognised social enterprises as a critical part of the economy and has formed a new Social Economy Action Group, with Social Enterprise NI being a core member, working with his department to support capacity building. Social Enterprise NI also play an important role in promoting the social enterprise business model within public procurement and commissioning circles.

Furthermore, Social Enterprise NI plays a vital role in advocating for the sector, providing resources, networking opportunities, and representing the interests of social enterprises in policy discussions, being included in DfE’s Social Economy Policy Group.

One current example of the wider role of Social Enterprise NI is in supporting the Chair of the All-Party Group for Social Enterprise, Stewart Dickson MLA’s Private Members’ Bill on Social Value.

Jess says: “Social Enterprise NI has been lobbying for many years to bring legislation to Northern Ireland. We are delighted to enjoy cross party support of this work, and we will engage with Stewart and his team to bring this through within this mandate.”

Challenges and opportunities

While the social enterprise sector in Northern Ireland is thriving, it faces several challenges. One major challenge is access to funding. Unlike traditional businesses, social enterprises often struggle to attract investment due to their focus on social rather than financial returns. There is a requirement to focus on business activity and income generation and to be less grant reliant, though this can be challenging.

Another challenge is for greater public awareness and understanding of what social enterprises are and the value they provide. This lack of recognition can hinder their growth and sustainability, as potential customers, investors, and partners might not fully appreciate their dual mission of profit and purpose.

What next?

Social Enterprise NI leads the sector in Northern Ireland, lobbying for support by engaging closely with MLAs, and continuing to promote the benefits of including social enterprises in supply chains. They encourage private and public sector to transfer the skill sets of their staff to help develop both capacity building and by creating meaningful social value by developing the social partnerships mentioned above. Increased public understanding and recognition of social enterprises will also be crucial to the sectors development.

As the sector continues to grow and evolve, it offers a powerful model for inclusive and sustainable development, where business operates as a force for good and where profits or surpluses are recycled back into local communities to support those at most need. Social Enterprise NI invites you to join them and play a part in creating a new economy for all and generate real profit with purpose.

If you want to know more, then make sure to become a Social Value Partner of Social Enterprise NI and check out its new directory, providing access to all social enterprises in Northern Ireland. Get in touch for more details.

E: colin@socialenterpriseni.org
E: amanda@socialenterpriseni.org
W: www.socialenterpriseni.org