Thesocialbusiness sector in Wales is worth an estimated £3.18bn to the economy, reveals new research.
The Mapping theSocialBusiness Sector in Walesreport from the Wales Co-operative Centre, identified a total of 2,022 organisations as operating in thesocialbusiness sector.
They also employ around 55,000 people and provide volunteering opportunities to a further 58,000.
The £3.18bn economic impact represents a rise of 34% on the last analysis compiled in 2016.
In addition, around a quarter of all businesses invest their profits in theirsocialobjectives while more than three-quarters pay the Real Living Wage to all their staff, compared to 48% of Welsh SMEs.
The report is based on survey data from 699socialbusinesses, with the aim of providing an up-to-date outline of the state of the sector; including its size, composition and contribution to the Welsh economy.
Other key findings include:
- 56% ofsocialbusinesses generate more than three quarters of their income through trading activity
- 17% of new staff were unemployed immediately before taking up the post.
Deputy Minister for Economy and Transport, Lee Waters, said: "This research shows a confident sector that employs around 55,000 people and contributes over £3bn to our economy. As headlines, these are impressive figures but they do not tell the whole story.
"Socialbusinesses are embedded within their communities and they are driven by those communities. They deliver good jobs, closer to home, where communities need them.
"Socialbusinesses work actively to address local issues through trading and then reinvesting the income they earn into the things that matter to them.
“They are also good employers, offering opportunities and training to those people furthest from the market place but are also increasingly paying those people a real living wage.
"Such a thriving sector offers an opportunity, and a challenge, to Wales.
"How can we use thesesocialbusinesses as a platform to better deliver more sustainable and inclusive growth and to address thesocialand economic aspirations we have for our country?”
Derek Walker, chief executive of the Wales Co-operative Centre, lead development agency for thesocialbusiness sector in Wales, said: "This report demonstrates that thesocialbusiness sector is a varied and innovative sector, which offers enhanced economic, environmental andsocialvalue to our country and as such makes an important contribution to Wales’ efforts to achieve its goals for future generations.
"These findings should inform the emerging strategy that is currently being developed for the sector to enable it to capitalise on opportunities and minimise barriers.
"It is a sector that, with support that targets start-ups, growth and sustainability, can continue to grow and make a positive contribution as we navigate through theimpactof the Brexit process.”
