Social ventures are more likely to survive over a 30-year period than public limited companies (PLCs), a report has claimed.
Research by the University of Northampton found the top 100 social ventures – including both social enterprises and charities engaged in commercial trading – were no less likely to cease operating or fail to repay investment than PLCs.
The top social ventures were slightly more likely to be enduring after three decades than the top 100 PLCs.
Together, the ‘competitive third sector organisations’ analysed were 8% more likely to have survived the past 30 years than PLCs.
Who lives the longest? was commissioned by the E3m social enterprise leaders programme, in partnership with law firm Bates Wells Braithwaite and several of E3M’s members.
Professor Simon Denny, director of enterprise, development and social impact at the University of Northampton, said: ‘The survivability of the top social ventures is no reason to exclude them as suppliers for large public or private contracts, or to consider them a poor investment.’
Partner at Bates Wells Braithwaite, Abbie Rumbold, said: ‘Nobody is claiming that being a social enterprise or trading charity is plain sailing – there will always be those that fail. But to give social ventures tougher contracts than traditional businesses is both unjustified and unfair.’
Jonathan Bland, founder of E3M and managing director of Social Business International, said: ‘Collectively the E3M Social enterprises have a turnover over £1bn and provide sustainable, long-term services for public benefit. Some of them are over 100 years old! This reports demonstrates that this model of business should be taken much more seriously by public authorities.’
