Government boost to social enterprise
Oct 28 2003
Companies that benefit their local community may soon be able to register as a new kind of company under Government proposals, which have received widespread support according to a recent report.
The Community Interest Company (CIC) will be designed for enterprises whose profits and assets benefit their local community and/or the wider public. It will give ‘social enterprises’ a more flexible alternative to charity status. Examples of organisations that would qualify would be the Big Issue and the Eden Project in Cornwall.
Proposals for the CIC were published in a consultation document by the Department of Trade & Industry (DTI) in March this year. Since then, over 130 enterprises responded with feedback, the overwhelming majority in favour of the new-style company.
The Government intends to “combine entrepreneurial spirit with a sense of social purpose to deliver new opportunities and services where they are most needed.” These services would support existing Government services in areas such as childcare provision, social housing, leisure and community transport.
With the high level of support for CICs, the Government has said it will push through legislation creating the new type of company “as soon as Parliamentary time allows.”
Minister for Community policy Fiona MacTaggart said, "Community Interest Companies are an excellent example of how the Government can help communities to help themselves. CICs offer a radically new way for organisations to pursue enterprise in the public interest, dedicating their profits to the public good, and creating real opportunities for people in areas where they are needed most.”
For more details on Community Interest Companies, click here or email cics@dti.gsi.gov.uk or write to Patrick Barry, Community Interest Companies Team, DTI, 1 Victoria Street, London SW1H 0ET.
(27/10/03)