The guide, published by Social Enterprise UK, highlights how not-for-profit groups and co-operatives can deliver health, education and transport services.
According to the guide, 82% of social enterprises reinvest their profits back into the communities where they work, and 39% are based in the most deprived communities in the country. Mutuals and not-for-profit groups are also more likely to be led by women, young people and those from ethnic minority groups.
‘Social enterprises are designed to bring about positive change and when a local authority chooses a social enterprise, the money goes further and works harder,’ said Social Enterprise UK chief executive, Peter Holbrook.
‘But when a contract goes to a large private sector provider, local authority spend can be wasted, because it too often evaporates out of a community.