Social enterprise = real enterprise

There is still a tendency to think of social enterprises as micro-businesses, doing good in a small way. Of course this is often the case and no bad thing, but it belies the truth that there are also major businesses operating as social enterprises.

As well as being an award winning social enterprise that delivers specialist transport services to Hackney and the surrounding area, HCT Group (formerly Hackney Community Transport) has a turn over of £18.5m per annum, operating several of the London red bus routes.

Central to our success as a social enterprise over the past 26 years has been the concept that the tools of business can create positive social change. The essence of a social enterprise, as I am sure readers of this blog will know, is that it trades to deliver social returns. So, in order to be a successful social enterprise, you need to be a successful enterprise.

This is a fundamental difference to the way in which charities operate, and indeed is where some of the confusion around social enterprises comes from. Social enterprises are just that – businesses that do something with their profits that does not include adding to the bank balance of shareholders.

To say HCT is anything but a serious business committed to delivering first rate transport services to an ever growing number of people would be wrong. However, because our social goals are at the centre of everything we do we are not just another big company with a 'CSR policy'.

Prioritising our social aims means we remain integrated with the communities which we serve and, I believe, leads us to provide a better service.

So, to quantify the success, let's look at the numbers. As our name suggests, we started life in Hackney, but over time have grown to operate from six sites in London and two in Yorkshire. The organisation has enjoyed 18 years of continued growth, has gone from what was in all honesty, a failing organisation in 1990 that employed eight staff, to a thriving business which employs 450 staff today. (I joined the organisation in 1990 as a bus cleaner and have progressed to chief executive in that time, so like to think I had a part to play in the turn around!)

Perhaps the strongest indicator, 96% of the revenues of HCT Group are secured in open tender with the private sector, proving that we are often chosen over more traditional private providers when it comes to key local authority contracts.

Given the current business opportunities continuing to grow we would anticipate the growth rate to be maintained, with new sites a natural progression.

We have recently taken over another transport operator in Yorkshire having previously merged with two community transport operations in London. We also have a joint venture through which we provide transport under contract to the Olympic Delivery Authority, a fantastically exciting scheme with which to be involved, transporting workers from key pick up points between construction areas, venues and compounds within the Olympic Park.

Social enterprise can all too easily be lumped into the 'charity' box, without understanding exactly how it works and indeed, that it works as well, if not better, than many private sector businesses. HCT is an enterprise, an enterprise that delivers benefits for the local community. But, as with any business, it is vital to stay efficient and profitable for otherwise we cannot deliver on the social side. The two are not mutually exclusive and HCT is testament to that.

Dai Powell is chief executive of Hackney Community Transport and a social enterprise ambassador.