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UK Government explores benefit company status

By ESELA Posted 27/01/2017

In the UK, an advisory panel of senior business leaders established by the Government published its report on ‘Mission Led Business’ on 5 December 2016. The report sets out ten recommendations to encourage the growth of mission-led businesses over the next decade in the UK. One of the key recommendations is that the Government should explore the creation of a ‘benefit company’ status.

The Minister for Civil Society published an open letter to the panel listing the government initiatives in this area including:

  • the creation of a taskforce to help everyday savers invest in line with their values;
  • the creation of an online tool to help new entrepreneurs set up mission-led businesses;
  • the development of a cross-governmental program which brings together leaders of the government, business and the social sector; and
  • carrying out a cross governmental study to build the evidence base around the rise of social enterprise and mission-led businesses in the UK.

Alongside the report of the advisory panel, the Government and Big Society Capital published research estimating that mission-led businesses represent 123 000 businesses in the UK – 2.7% of business volume, 4.3% of the economy and 4.5% of the workforce.

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