Mission-led business and social enterprise Dan Gregory, Bristol, 22 November 2017

2. WHY SOCIAL ENTERPRISE? Global GDP Global trade in goods and commercial services Global FDI Developing countries spend on infrastructure Remittances Debt payments Investment by state-owned TNCs ODA CSR of UK and US Fortune 500 Impact investment

social impact measurement inclusive business social impact measurement co-operatives social and solidarity economy social enterprise sharing economy social entrepreneurship social impact investment

1. Profit distribution? INEQUALITY!

Independent of government Majority of income earned through trading Enshrined social (or environmental) purpose Reinvest the majority of profits

fully distribute its profits; an intention to have a positive social impact as a central purpose of its business; long-term or binding commitment to deliver on that intention through its business and operations; reports on its social impact to its stakeholders.

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“Mission-led businesses are mostly a new phenomenon”! “Across the country there is a new breed of brilliant entrepreneurs who want to make a profit with their business, but also apply their enterprise and flair to make social impact a core purpose of their business endeavour”.

So “mission-led businesses” do not include mission-led businesses. 4. “Mission-led business” excludes those which place some limits in profit distribution! So “mission-led businesses” do not include mission-led businesses.

5. “Corporate welfare” Energy industry = £5 billion per year Rail = £6 billion Farming = £3 billion. Regional subsidies = £3 billion Employing young people = £1 billion + billions more to support access to finance

6. World Bank Sustainable Development Goals The Pope Prince Charles Archbishop of Canterbury Bank of England World Economic Forum

“If we burden [British businesses] with endless social and environmental goals – however worthy in their own right – then not only will we not achieve those goals, but the businesses will fail, jobs will be lost, and our country will be poorer."

“SOCIAL INVESTMENT WHICH, TO MY MIND, STANDS TO MAKE PERHAPS THE SINGLE MOST SIGNIFICANT DIFFERENCE TO HOW WE FUND AND DELIVER SOCIAL SERVICES IN YEARS TO COME”

“organisations which exist wholly or mainly to provide benefits for society or the environment”.

“it is neither necessary nor helpful for social investment that has been earmarked for the social sector organisations to be diverted towards the mission led, for-profit businesses.”

“We desperately need more socially and environmentally responsible businesses in order to ensure equitable and sustainable life on earth, not because Ministers, a team in the Cabinet Office or Big Society Capital are finding it more difficult than they envisaged to support access to finance for the social sector.”

For more information please contact: dan.gregory@socialenterprise.org.uk www.socialenterprise.org.uk @SocialEnt_UK