# Voluntary groups need more support for social enterprise, says CAF

- Link: https://fundraising.co.uk/2004/05/02/voluntary-groups-need-more-support-social-enterprise-says-caf/
- Published: 2004-05-02T23:00:00+01:00
- Author: Howard Lake

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.

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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.

 

 

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.”

 

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