3rd October 2024
When Jess began the TN card in February 2020, she was sure of one thing: The TN card must be a Social Enterprise. And on the homepage of our website, you'll see proudly highlighted that we’re verified by both Social Enterprise UK and Social Enterprise World Forum (People + Planet First) – two leading organisations building valuable social enterprise networks across the UK and worldwide.
But, as you read this, you might be wondering: ‘What does the term ‘social enterprise’ actually mean?’ We get it: companies use lots of different terms these days (especially to make themselves look good), meaning it can be hard to understand what’s what. To help clear things up, we’ve compiled a quick lowdown on everything you need to know about social enterprises.
What is a social enterprise?
While social enterprises are businesses, they stand apart from ‘regular’ companies thanks to their aims and actions. Ethically minded, they prioritise the planet and its people – with their work solely focused on initiating and supporting positive environmental and social impacts. Many social enterprises are not-for-profit, and invest the money they make back into the business to do further good or to help fund philanthropic initiatives.
The TN card is a not-for-profit business, which directs membership sales from our wonderful community back into providing free marketing and support for participating High Street businesses (our TN card 'partners') - from our app to social media, photography and podcasts, and our community events and business workshops. We also donate 10% from every TN card sold to West Kent Mind - by our fifth birthday in February 2025, we'll have donated over £30,000 to this vital local charity from sales and fundraisers.
According to Social Enterprise UK, a business must meet certain criteria to be classed as a social enterprise:
Possess a clear environmental or social mission, which is included in the company’s governing documents
Must be controlled in the interest of their stated mission
Must donate or re-invest at least half their profits or surpluses towards said mission
Should earn more than half its income through trading
Must be independent and not controlled by the government or state
Their operations and impacts should be transparent
At the TN card, we are clear about where membership sales are being used and we transfer 10% of all membership revenue at the end of each month to West Kent Mind. The TN card's prioritisation of people and planet over profit are registered at Companies House, in our Articles of Corporation.
Are there lots of social enterprises?
Yes! The TN card is one of over 131,000 (and counting) social enterprises in the UK and around 10 million across the globe. They account for about 3% of businesses worldwide – which is no small feat. Social enterprises are active in all sectors and industries, from shopping, sports, and travel to education, law, and arts and culture. You might be surprised to learn that some popular brands are social enterprises, such as Patagonia clothing, TOMS shoes, and Divine chocolate.
Although the term and concept of social enterprise feels relatively recent, research suggests this way of doing business may go back centuries. Imagine how your Victorian ancestors might have been doing their bit for change!
Do social enterprises contribute to the economy?
They sure do. These types of businesses not only make social and environmental impacts, but provide significant contributions to the economy. Statistics reveal that social enterprises in the UK alone employ 2.3 million people and contribute a massive £60 billion to the economy each year. On a global scale, these businesses are estimated to create around $2 trillion (about £1.57 trillion) in annual revenues. That’s A LOT of money to do good with!
Do social enterprise and ESG mean the same thing?
ESG – or environmental, social, and governance – is the latest buzzphrase in the business world, and there’s a good chance you’ve heard your employer mention it. However, just because a company has an ESG policy or framework, it doesn’t automatically make it a social enterprise. The whole purpose of a social enterprise is to address environmental and social issues, and channel a large proportion of its profits into doing good. On the other hand, an ESG framework is simply a ‘tool’ that a company can adopt to help guide them in making more positive impacts on society and the environment. Companies following an ESG are also not obliged to bestow any of their profits on beneficial causes.
How do I find out more?
For more information on social enterprises in the UK, and a directory of businesses who've received certification, visit Social Enterprise UK's website here.
