The FINANCIAL — A significant number of the UK’s social enterprises are exporting goods and services, according to a new report published by British Council, but greater support is needed to help them break into new markets overseas.
Almost half of social enterprises surveyed (46%) saw an increase in income from trading overseas in the last quarter. In a sign of business optimism, two thirds (65%) said they expected an increase in income from exporting in the next three months. However, the research, which is the first of its kind in the UK, identified a number of barriers to social enterprises trading overseas, with respondents citing access to local networks as the biggest obstacle to exporting (45%), followed by access to finance (35%).
The authors of the research say greater collaboration is needed between export and social enterprise support bodies and social investors to help overcome these barriers, as well as greater awareness among social enterprises of existing support that is available. Almost half (49%) of social enterprises surveyed said they received no support with their exporting activity, according to British Council.
The report follows the 2013 national survey of the social enterprise sector, which showed 11% of social enterprise trade overseas. Social enterprises are businesses with social or environmental purpose that reinvest profits for a social cause.
“The UK is a global leader in social enterprise and social investment – but the social enterprises currently best known for operating at scale internationally are outside the UK. UK social enterprises should have a competitive advantage in trading and franchising internationally, but almost half of the social enterprises surveyed said they receive no support with their exporting activity,” Paula Woodman, the British Council’s Global Social Enterprise Adviser, said.
“The UK is very well placed to enhance its international social enterprise trade. We hope this report inspires a range of agencies and intermediary organisations in the UK to join the British Council and SEUK in supporting the growth of this promising export market. Doing so will create jobs, deliver social benefits and foster sustainable and inclusive development at home and abroad,” she added.
“Social enterprise is showing itself as a key player in the export market and our research suggests the sector’s stake in exporting is set to get stronger,” Peter Holbrook Social Enterprise UK’s Chief Executive, said. “Exporting can bring lots of benefits for social enterprises, but breaking into overseas markets can be a daunting and challenging task. Not all social enterprises know how to go about developing international opportunities. It’s the job of organisations involved in social enterprise here in the UK and abroad to connect social enterprises with support that’s available and help them to develop their export offer,” he added.
“Building a strong export market is one of the UK’s major priorities to help grow its economy. We want to ensure social enterprises are at the heart of this – their work is vital to help tackle some of the greatest global challenges of our time,” he said.
Europe is the region that the majority of social enterprises surveyed export to (79%), followed by North America (49%). Canada is the most popular country to export to, with 16% of respondents exporting there. Collaboration is important: of those social enterprises recorded as exporters, a third said they are working as part of a joint venture. Exporting isn’t exclusive to large organisations: the majority (72%) of exporters have less than 10 employees, while 80% have turnover of less than £500,000, according to British Council.
Discussion about this post