In discussions around the future of work, it’s perhaps fair to say that social enterprises don’t feature a great deal, unless they are referenced in terms of their ability to help people reskill and re-enter the workforce (or support those unable to do so).  New research from the University of Warwick suggests they may also play a crucial role as an employer themselves.

The researchers set out to analyze how resilient organizations such as social enterprises and co-operatives were to economic changes, and indeed how such organizations can help to support employment levels and provide ‘good’ jobs in the face of such changes.

The research focused its attention on twenty organizations across five countries in the EU to explore the contribution they made to both job creation and retention, whilst also exploring how these organizations can be best supported in their endeavors.

Unexpected resilience

The analysis found that social enterprises were surprisingly resilient to the financial crisis, with a strong track record of both creating and maintaining jobs.  What’s more, workers in such organizations reported feeling that the jobs were of high quality, both in absolute and relative terms to jobs elsewhere.

A key factor in this strength was the management skills found in these organizations, with managers having access to informal support from their own social networks that helped to drive success.  This support was far more available than any official support from government channels, who the authors believe could do far more to support social enterprises, especially in tendering processes that so often focus on the cheapest supplier.

“The challenge for UK and other European economies since the financial crisis is not just how to create jobs, but—in the era of zero hour contracts, the gig economy and flexible labour markets—how to achieve growth in good jobs,” the authors say.  “This study concludes that not only can cooperatives and social enterprises achieve employment growth at least on a par with other types of organisation, they create good quality jobs. They do this through inclusive management; reinvesting and sharing economic value; shared values; and prioritising jobs not just wages and profit.”

They are not perhaps the most obvious source when looking at the future of work, but the data suggests they may be an area that deserves more attention.