Governance challenges and support needs of social enterprises

Good governance is essential for social enterprises to thrive and be sustainable, according to a new research report from the Governance Hub and the Social Enterprise Coalition. The report, which is based on research undertaken by The Open University, will be of use to policy makers in government and infrastructure and governance advisers working with social enterprises.

The research, led by Roger Spear from the OU’s Faculty of Mathematics, Computing and Technology and including Professor Chris Cornforth from the OU Business School, shows that a priority for the social enterprise sector is to strengthen links with umbrella bodies, local agencies, and consultants working at local and regional levels and provide them with appropriate training and support.

Anne Moynihan, Head of Governance Hub, said: “The research was commissioned to identify gaps in the governance needs of social enterprises and make recommendations for future action. It also demonstrates the range of different types of social enterprises, and that the boundaries between the social enterprise sector and other sectors are very blurred.”

The research outlines that social enterprises have distinctive requirements for support and information on areas such as overseeing commercial activity and managing business risks, legal and governance structures for trading subsidiaries and small organisations, the governance of multi-organisation partnerships, achieving a balance between social and economic goals and the importance of managing relations with members and other stakeholders. However, the research also reveals that the governance advice sought by social enterprises needs to be tailored to different types of social enterprise, with their different values, structures, traditions and governance terminologies used.

The full research report, For Love and Money: governance and social enterprise, and an executive summary are both available from the Project web page.

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