1.6.5 Established community businesses
Research commissioned by Power to Change in 2019 estimates there are 9,000 community business in England. The research identifies specific market sectors community businesses are engaged in, some of which are also heavily represented by societies issuing community shares, such as community energy, shops and pubs. It also identifies market sectors where there has been relatively little community shares activity, such as village halls, transport, housing, sports, leisure and libraries, as well as arts centres and facilities, parks, health and social care. These sectors represent an important opportunity for the growth of community shares. Many of these enterprises are structured as registered charities, community interest companies, or simple companies limited by guarantee, all of which can be converted to a suitable form of society (see Section 2.6).
Some of these sectors, notably housing and sports, include many long-established community businesses that are structured as societies. There are more than 8,000 societies in the UK that are over 10 years old, but only 40 or so of these societies have ever issued significant amounts of withdrawable share capital. This includes over 1,500 societies in the housing sector and more than 400 societies in the sports sector. Very few established societies use the full scope of their corporate form to engage the communities they serve, and it may well be that very few of these societies fully appreciate the capability their corporate form offers for simultaneously raising investment capital and engaging their communities.
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