Voluntary groups need more support for social enterprise, says CAF
Howard Lake | 2 May 2004 | News
Voluntary and community groups need greater support to face the challenges of social enterprise activity, according to research published by Charities Aid Foundation (CAF).
“Social Enterprise in the Balance”, conducted by CAF and Manchester University,
explores the potential for social enterprise as a sustainable activity among voluntary and community groups.
Not surprisingly, one of the major challenges was found to be funding. According to the study, funders and investors often have unrealistic expectations of risk and returns, while many groups encounter gaps in funding at critical
stages of their development. One of the key recommendations of the report is that voluntary and community groups need to look to dedicated funding mechanisms that support their development, coupled with funding strategies for the longer-term.
Advertisement
The research found that another area of tension lies in balancing commercial and social aims. Much of the social enterprise activity undertaken by voluntary and community groups spans the public, private and voluntary sectors, and this can create conflict between the various stakeholder groups.
Cathy Pharoah, Director of Research at CAF, believes there is clear potential among voluntary and community groups for the development of social enterprise: “The voluntary sector is uniquely placed to support local, social and economic growth.
“What is needed now is a clearer understanding by policy makers, funders and
investors, of the challenges these groups face, in delivering their own, unique brand of social enterprise.”
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.