The recession is seeing more people starting up a social enterprise according to a leading entrepreneurs organisation.

Sarah Crawley from iSE (Initiative for Social Entrepreneurs) believes the downturn has given people the time and opportunity to follow through with previously unattainable plans.

She said: “The impetus for some is having been made redundant and deciding that now is the time to take action on a business idea they have been thinking about, for others it’s part of the business process of identifying needs and opportunities in a growing market.”

Social enterprises are distinctive because their social or environmental purpose is central to what they do. Rather than maximising shareholder value their main aim is to generate profit to further their social and environmental goals.

Ms Crawley said: “The term social enterprise covers a wide range of business structures including co-operatives, community interest companies, social firms, industrial and provident societies and companies limited by guarantee (often the trading arms of charities).”

A success is Roots HR CIC - which iSE helped to launch - which is the first social enterprise in this country to offer HR services for the ‘Third Sector’.

Managing director Jan Golding said: “Charities, voluntary and community organisations are often too small or under-funded to employ in-house HR professionals. I decided to set up a not-for-personal-profit business with the aim of providing an affordable service.”