Government’s flagship model for social enterprise actually undermines the sector

Research finds that the Community Interest Company (CIC) form introduced by Government to further social enterprises, may actually be hindering the sector

ISBE member Adrian Ashton has been exploring some of the claims made about CICs, and finds that while for some they’re a useful vehicle to achieve their ambitions, for the wider social enterprise sector for which they were created to benefit, they’re undermining the core messages about what this alternative business model stands for.

This is on the basis that as social ‘enterprises’, most CICs don’t generate any income through trade – to the point where as an organisational type, they’re more reliant on grants than charities are to conduct their activities and sustain themselves.

His writing up of these arguments are not meant to be taken as an attack on any venture that’s adopted this legal form, but rather an attempt to help widen the conversation about them, so that (social) entrepreneurs might be the best informed decisions about their ventures in the future.

Adrian Ashton


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