Social enterprise governance needs highlighted in new report

Good governance is essential for social enterprises to thrive and be sustainable, according to new research from the Governance Hub and the Social Enterprise Coalition. The research, undertaken by the Open University into the governance needs of social enterprises, shows that a priority for the social enterprise sector is to strengthen links with governance advisers and consultants working at local and regional levels and provide them with appropriate training and support.

The research report, ëFor Love and Money: governance and social enterpriseí outlines that social enterprises need specific support and information on areas such as overseeing commercial activity and managing business risks, legal and governance structures for trading subsidiaries and small organisations and the governance of multi-organisation partnerships. However, the research also reveals that the governance advice sought by social enterprises share similarities with other community based organisations. This includes problems maintaining the balance between social and business goals, getting people with the right skills for boards, involving users in governance issues, accountability to users, ëfounder syndromeí, and access to information on governance, especially for smaller organisations.

Anne Moynihan, Head of Governance Hub, said:

ìThe Hub and the Social Enterprise Coalition commissioned this research to identify gaps in the governance needs of social enterprises and make recommendations for future action. This research demonstrates the range of different types of social enterprises, and that the boundaries between the social enterprise sector and other sectors are very blurred. Nevertheless, the particular needs that have been identified should now be addressed by policy makers and people working in our sector.î

Jonathan Bland, Chief Executive of the Social Enterprise Coalition said:

ìThe report has come at a very important time when social enterprises are growing and becoming increasingly important in many areas ñ public service delivery, welfare to work initiatives, emergence of ethical markets to name a few. The report needs to be taken up by Capacitybuilders, government and policy makers to create tailored pathways for business support and advice for social enterprise.î