Data published this year by the Department of Rural and Community Development cites over 4000 social enterprises in Ireland. Yet less than ten years ago the figure of 1420 social enterprises was published. Has there been an explosion in the number of social enterprises? Or is it just a question of the method of counting? This particle looks at the origins of the 1420 figure.
In 2014 the former semi-state body Forfas published the estimate of 1420 social enterprises in Ireland. The Forfas report was important, indeed seminal, in paving the way for the current social enterprise policy in Ireland. The report’s authors obtained the figure of 1420 from a report published by Clann Credo ‘The Economic and Social Contribution of Clann Credo – the Social Investment Fund, December 2011’. Section 4 (p.29) of that report stated that it “presents a brief description of the wider SECB [social enterprise and community business] sector in Ireland, utilising a new, comprehensive database compiled specifically for this study”. They go on to explain that Clann Credo and their consultants DKM commissioned a dataset from INKEx, which was the precursor organisation to Benefacts. The methodology for obtaining the data is set out in Appendix 1 of the Clann Credo report and reads:
“Clann Credo commissioned INKEx to perform a data analysis of the Irish Nonprofits Database that was focused specifically on the SECB sector. This was ensured by selecting companies that:
• Were Limited by Guarantee and
• Were registered as a charity
The final list excludes overseas charities, hospitals, hospices, churches, schools, banks, and national bodies and interest groups. It was checked line by line to make sure that it was as comprehensive as possible and captured the SECB sector only. Some additional lists were incorporated, containing companies in receipt of Pobal grants, community associations registered with Muintir na Tire and a list of Clann Credo clients.”
Note that this was written before the creation of the Irish Charities Regulator and “registered as a charity” would have referred to registration of a CHY number with Revenue.
The Clann Credo report tells us that an “iterative process of refining the listing ultimately resulted in a directory of 1,420 SECBs in operation in 2009. We are confident that this is the most up-to-date and comprehensive listing of the sector in Ireland available to date.” While this list of 1420 organisations must have been interesting, it is difficult to reconcile the methodology of data collection with any definition of social enterprise in use at the time or currently. By its own account, the listing excluded CLGs without a CHY number. And it must have missed any and all social enterprises operating as CLGs without charitable status, limited companies, cooperatives (Industrial and Provident Societies) and other legal forms.
PS The same Clann Credo report cites average trading income at 17% of turnover. That figure is incorrect. I discuss trading income in a further blog post here.
© Danielle Byrne, 2023
Social Economy Investigator 
Leave a comment