Survival has been the main aim for many social enterprises in the coronavirus pandemic - but some ventures have used the crisis to diversify and transform.
These are the findings from a new report published on the effects of Covid-19 on the sector in Wales.
The report evaluates the response to the lockdown, the support the sector has received so far, the assistance it will need to re-build, and makes observations about future prospects and opportunities.
Latest research for the sector shows there were over 3,000 social businesses operating in Wales in 2018/19, employing around 55,000 people and contributing over £3bn to the local economy.
Derek Walker, chief executive of the Wales Co-operative Centre and spokesperson for the Social Enterprise Stakeholder Group in Wales, said: “There’s no escaping the fact that the focus for the majority of established social enterprises in Wales during this pandemic, if not all, has been survival.
“A large number have had no choice but to enter ‘hibernation mode’.
“Dealing with the consequences of lockdown has been a very stressful period for social businesses up and down the country, with some leaders finding it difficult to cope with the crisis, and it has taken its toll on their well-being.
“Although we have all found the lockdown period extremely difficult, there have been a number a number of positive outcomes associated with this phase.
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"We have seen people getting to know their local communities again and changing their purchasing habits with a more ‘buy local, buy social’ mentality.
"We have also seen social enterprises managing to rapidly diversify their services and transform their businesses on to online platforms, developing online sales and payment systems showing to all of us just how resourceful and innovative the sector can be in times of crisis.”
The report found that many existing social enterprises had been able to access emergency funding and that business support had been readily available and well-coordinated. But there are many uncertainties and challenges highlighted within the report, with many social enterprises concerned about their future income.
Emergency funding is likely to run out before income streams get back to levels seen pre-lockdown.
As it stands, no one is certain how this gap will be bridged.
Galeri Caernarfon Cyf, which runs a theatre, two cinema screens, 24 business office units, and art space, is one of those social enterprises significantly impacted.
The company contributes more than £5 million per annum to the local economy.
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It employs over 50 members of full-time, part-time and seasonal staff and supports an additional 50 jobs in the local economy. It has had to close all its facilities and offices. Most staff have been furloughed. It has applied for a range of interim grant and loan financial support through Welsh Government and the Arts Council of Wales.
Mr Walker added: “The Social Enterprise Stakeholder Group in Wales, which has come together to produce this report, will continue to work together to address the concerns raised by our clients and members about the ongoing impact of COVID-19.
“The group will continue to lobby and raise awareness of how critical social enterprises is during the COVID-19 crisis and how important the sector will be to rebuilding communities, as well as local, regional and national economies.
“What is clear is that in the longer term we need to ensure the continuity of funding for sector specific business support in Wales. The support provided should be flexible and pertinent to the needs of the social enterprise sector.”