Social Enterprises may struggle to be financially sustainable, says new report

Social enterprises struggle to marry financial sustainability with core missions and it is unreasonable to expect them to do so, says a new report from the Charities Aid Foundation (CAF).

The report, Social Enterprise in Practice, found that five new social enterprises with strong connections to voluntary and community action, and that were tracked over a five-year period, struggled with the added burden of economic outputs and financial returns, which came into conflict with their social concerns.

It found that where a social enterprise intended to have both social and economic outputs, financial sustainability may not be feasible, and economic success was particularly difficult to achieve for groups that employed disadvantaged or marginalised people.

The report also identified the need for regular training of staff about aims and objectives of social enterprise businesses, and cited the sector’s need for a broad support network of trustees, advisors and business mentors; and that regional development agencies and local authorities should deliver socially relevant support packages.

To read the full report click here.