'What’s encouraging is that many are actively looking for new areas that they can expand and grow their operations'
Tamara Pekelman, business adviser at Business Link in London
The recession is creating new business opportunities for social enterprises and has not yet stalled access to finance, according to research published by Business Link in London today.
Of 130 social enterprises surveyed in London, half reported the recession had led to new opportunities, while 72 per cent were planning for modest or substantial growth over the next three years.
However, the business support agency's research revealed almost one third of social enterprises reported a fall in sales. It also revealed high dependence on public funding through contracts, which could be hit as public spending is squeezed over coming months and years.
Tamara Pekelman, business adviser at Business Link in London, said that the poll results pointed to a thriving social enterprise sector in London.
‘This poll highlights a growing entrepreneurial spirit among London's social enterprises,' she said.
‘The sector is of course not immune to the recession, but what's encouraging is that many are actively looking for new areas that they can expand and grow their operations.'
Three quarters of respondents said they had no plans to downsize, while 82 per cent had no intention of making redundancies.
Pekelman said: ‘Many owners are optimistic about their business prospects and are planning on making positive changes to their business operation such as up-skilling their staff.'
Elsewhere, the findings suggested that social enterprises set up to offer financial services reported increased enquiries from community enterprises and projects. Pekelman suggested this could be the result of mainstream banks scaling back their lending.
Business Link in London is running a series of workshops, as well as delivering one-to-one support for social enterprises across London. For more information call the Business Link helpline on 0845 6009006.
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