Social Enterprise and Health and Well-being Impacts
Case study
Scotland, United Kingdom
Social entreprise
Social enterprises in Scotland address health inequalities by tackling the social and economic determinants of health, such as unemployment, poverty, and social isolation. Operating through a hybrid financing model that combines commercial income with grants and public funding, these organisations reinvest profits into community-focused activities that improve wellbeing, employability, and social cohesion.
Context and problems addressed
Many communities in Scotland face significant social and economic challenges that contribute to health inequalities. These include unemployment, poverty, financial exclusion, poor housing conditions, social isolation, and limited access to services. Such issues are recognised as important social determinants of health that negatively affect physical and mental wellbeing. Public health systems often focus on treating illness rather than addressing these upstream determinants.
At the same time, public sector resources are constrained, limiting the ability to provide preventative and community-based interventions. Social enterprises, that is, businesses that pursue social objectives and reinvest profits into community benefit, have therefore gained increasing attention as potential actors in improving health and wellbeing. However, there is limited empirical evidence on how social enterprise activities contribute to health outcomes.
Intervention and financing model
This study analysed the activities of 17 social enterprises operating across Scotland, working in areas such as employment support, housing services, community development, financial services, and support for vulnerable populations. These organisations aim to address social determinants of health through initiatives including job training programmes, community regeneration projects, affordable housing provision, and financial inclusion services.
The organisations operate under a social enterprise financing model, combining income from commercial activities (such as cafés, farms or training services) with grants and public contracts. Profits generated through trading activities are reinvested to support social missions rather than distributed to shareholders. This model enables social enterprises to sustain services while delivering social value to local communities.
Profits generated through trading activities are reinvested to support social missions rather than distributed to shareholders.
Key outcomes and associated measurements
The study found that social enterprise activities generate several intermediate outcomes that contribute to improved health and wellbeing. These include increased social connectedness, improved employability and employment opportunities, enhanced confidence and self-esteem, and stronger community cohesion.
Economic outcomes include improved financial stability for individuals and increased local economic activity through job creation and local spending. Environmental and community improvements, such as the development of community spaces and better housing conditions, were also observed.
These outcomes contribute to improved mental and physical wellbeing, including reduced social isolation, increased physical activity, and better overall quality of life. The findings suggest that social enterprises can function as “non-obvious” public health actors by addressing upstream determinants of health and reducing demand for more costly remedial services.
Related case studies
Workplace Health Promotion in German Social Firms
The Prevention Act in Germany
ADIE’s social impact contract
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