Scottish government launches new plan to support social enterprises

A new strategy to help social entrepreneurs with funding and other support has been unveiled by the Scottish government.

Included in the plan for 2024-26 are 17 actions to support the growth of the third sector and social enterprises in Scotland.

Among the measures are £3.2m being invested in the Social Entrepreneurs Fund over the next two years, and a pilot from the Social Growth Fund that will offer 0% interest loans to help organisations manage short-term cash flow issues.

The government will also launch a "Buy Social" marketing campaign to promote products and services provided by Scottish social enterprises nationally and internationally, develop procurement consortia to help social enterprises secure larger contracts, and launch a directory of social enterprises in Scotland.

The latest figures show there are around 6,000 social enterprises operating in Scotland. They employ almost 90,000 people and contribute £2.63bn to the Scottish economy. Over 70% are run by women.

The launch of the action plan coincided with environmental charity Changeworks becoming the first social enterprise to sign up to the Buy Social Pledge, a new initiative from Social Enterprise Scotland and supported by the Scottish government that sees businesses commit to engage social enterprises in their supply chains and procurement opportunities.

Employment and investment minister Tom Arthur said:

"Social enterprises play a vital part in the economy, helping us progress towards a society that is fairer, greener and more inclusive. It is fitting that we publish this action plan on Social Enterprise Day, as we celebrate Scotland's position as a global leader in this sector.

"Changeworks is at the heart of building a more sustainable economy in Scotland, driving transformation in energy efficiency and helping tackle fuel poverty.

"The Scottish government is committed to growing social enterprises around the country and I have enjoyed learning more about the vital work being done."

Full list of measures in social enterprise action plan

1. Invest £3.2m in the Social Entrepreneurs Fund across the life of the action plan, expanding access to include applications from community groups.

2. Ensure that Scottish social enterprises are promoted, recognised and valued as mainstream business models both within Scotland and internationally.

3. Continue to invest in entrepreneurship and commercialisation opportunities across the social enterprise ecosystem.

4. Provide additional support to enable social enterprises to embrace digital transformation.

5. Enhance support and coordination for social enterprises looking to access funding or business support.

6. Encourage local and regional networking and collaboration by social enterprise networks (SENs) and third sector interfaces (TSIs).

7. Open a dialogue with the Scottish National Investment Bank (SNIB) to encourage investment into the social enterprise ecosystem.

8. Promoting and showcasing 'best practice' across the social economy both within Scotland and globally.

9. Advocate for supportive policies and raise awareness of social enterprises across public sector organisations.

10. Conduct a review of funding and social investment mechanisms to ensure alignment with sector needs.

11. Reinvest financial returns from the Scottish Social Growth Fund back into the social enterprise ecosystem to support organisations in crisis.

12. Reinvest financial returns from the Scottish Social Growth Fund to support increased diversity and inclusion within the social enterprise ecosystem.

13. Increase the diversity of social enterprise boards to reflect the population of Scotland.

14. Launch a national Buy Social marketing campaign and promote Buy Social Scotland Internationally.

15. Develop a thematic directory of social enterprises in Scotland.

16. Consortia development and procurement support programme.

17. Explore the potential to launch a national Social Enterprise Dynamic Purchasing System.