There is a "remarkable" preference among the public for community businesses (social enterprises) that reinvest their profits to deliver public services rather than private, public and voluntary sector providers, according to research by the Social Enterprise Coalition (SEC).
There are currently 62,000 social enterprises in the UK, contributing over £20bn to the economy and employing nearly 1m people.
While there could be an element of 'they would say that wouldn't they', the SEC claimed that its research showed that 43 per cent of people polled said they wanted social enterprises to run public services, 36 per cent wanted 'the government or public sector', 4 per cent preferred the private sector and 3 per cent wanted charities to deliver services.
However, the SEC warned that there was still a danger of privatisation if social enterprises and new public sector mutuals were not 'asset locked' for public benefit.
Chief executive Peter Holbrook said: "It's hugely encouraging to the social enterprise movement that the public seems to instinctively understand what social enterprise offers when it comes to public services. Local, community-based organisations that are designed around a particular community's needs are the future. There's a growing appetite for 'community' in the UK."
He added: "In light of the government's apparent scaling back of plans to use the private sector to deliver public services, it's more important than ever that social enterprise, which has been used increasingly as a test-bed for public services by successive governments, is widely understood and employed by commissioners."
But Holbrook said that unless there were safeguards in place social enterprises and mutuals could be swept up by private profiteers and that would be a disaster for communities.
"Large private sector providers may deliver a quick win to rectify the UK's balance sheet, but when it comes to public services, it should be the delivery of better outcomes for people that are the measure of success," he said. "Social enterprises deliver multiple benefits that are not immediately measured in pound signs but save money in the long run. Rather than satisfy the needs of shareholders, they reinvest the bulk of their profits, simultaneously tackle social problems and support economic growth."
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Time to get serious: International lessons for developing public service mutuals
In the context of the UK Coalition Government’s policies to promote public service mutuals, Time to get serious: international lessons for developing public service mutuals examines the experience in Spain, Italy and Sweden. It identifies some key factors for success, learning lessons and questions that are relevant for the development of new co-operative models in the UK.
The report is written by Jonathan Bland, an international expert on co-operatives, social enterprise and social innovation.