The Mark of the Social Enterprise is launched

Tags: awards | social enterprise

February 1st saw the launch of the Social Enterprise Mark, the unique brand hoping to revolutionise the way social enterprises are recognised throughout the UK and beyond.

The Mark is used to identify businesses that meet a set of criteria for social and environmental aims, and to give these companies access to a network of social enterprises across the country. The Social Enterprise Coalition, the national body for social enterprise, announced the arrival of the Mark in Cardiff, with an official address from their chief executive Peter Holbrook; Lucy Findlay, chief executive of RISE, the social enterprise regional network for South West England; and Angela Smith MP, Minister for the Third Sector.

The Social Enterprise Mark is awarded to businesses which can show they are working for social and/or environmental goals, and that 50% of their profits are reinvested towards achieving those goals.

The Coalition advocates the setting up of social enterprises, and aspires to see increasing numbers of both new and existing organisations considering this option. The creators of the Social Enterprise Mark hope it will "do what the Fairtrade Mark did for Fair Trade", by giving social enterprises an identifiable brand.

Why the Mark exists

The Mark is a brand for social enterprises, to recognise the impact they are making across the UK and beyond. The Government defines social enterprises as "businesses with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners."

The Social Enterprise Coalition believe not enough people know about the work certain businesses are doing to benefit society and the environment, and are using the Mark to remedy this lack of awareness. By increasing the profile of this brand, the Coalition hopes to promote the work of social enterprises so more people will buy from, engage with, start up and work for businesses which have qualified to receive the Mark.

What separates a social enterprise from other businesses?

Businesses compete to deliver goods and services, but the distinguishing feature of a social enterprise is that positive social and environmental goals are at the forefront of what they do, and the profits they make are reinvested towards achieving a set positive impact. Examples of high profile social enterprises include The Big Issue, Jamie Oliver's restaurant Fifteen, and the Fair Trade company Café Direct.

Social enterprises operate in many different sectors in the UK, from health and social care, to recycling and sport. Social enterprises do not operate in the same way as other businesses, because the driving factor is not only capital gain, but social and environmental objectives and community values. In a recent survey into social enterprise, 45% of respondents said that 'putting something back into the community' was their reason for setting up such a business.

Why the Mark is needed now

There are 62,000 social enterprises in the UK contributing £24bn to the UK economy and employing around 800,000 people, according to the SE Coalition. Ethical buying is on the increase, and people are looking for new ways to interact with businesses. The Mark aims to link existing businesses with people who have adopted this socially-minded attitude, and to support the forging of new connections with the private sector and government.

How the Mark was made

The Mark came out of a partnership between the Social Enterprise Coalition and RISE. A steering group made up of social enterprise leaders and supporters agreed that a brand was needed to distinguish the sector and together came up with its purpose, accreditation criteria, and appearance. It grew from the Social Enterprise Mark already piloted by RISE in the South West of England.

Good for the economy

To thrive in today's economy, social enterprises need to be ambitious and competitive, and their contribution to the UK is measurable and growing. Recent data (State of Social Enterprise Survey, Social Enterprise Coalition 2009) shows that despite the recession, social enterprises are twice as confident of future growth as typical small to medium enterprises (48% of social enterprises as opposed to 24%).

Furthermore, since the beginning of the economic crisis, 56% of social enterprises increased their turnover from the previous year whilst less than 20% have seen it go down.

How to qualify

To qualify for the Social Enterprise Mark, a business must meet with the following criteria:

• It can provide evidence of the company's social and environmental aims
• The company has its own constitution and governing body
• At least 50% of the company profits are spent on socially beneficial purposes
• The company earns at least 50% of its income from trading
• It can provide externally verified evidence it is achieving its social or environmental aims
• On dissolution of the company, all residual assets are distributed for the social/environmental purposes

How to apply for the Mark

Visit the website for more information about applying and qualification criteria or contact apply@socialenterprisemark.org.uk.

It costs £99 to apply for the Mark,and you can apply using the online application form.