Much to learn from ‘dynamic’ Sheffield when it comes to social enterprises, University of Sheffield study finds

8th January 2026

Researchers find the impact of the social enterprise sector across Sheffield is huge and particularly active in enhancing health and wellbeing and working to address inequalities.

A new report has praised the state of Sheffield’s social enterprise scene and says others could learn from it.

Sheffield achieved Social Enterprise Place status by Social Enterprise UK in 2022, for being a hotspot of social entrepreneurial activity.

The latest study by researchers from the University of Sheffield’s Management School, in collaboration with Sheffield Social Enterprise Network (SSEN), paints a positive picture of the city's social enterprise sector, revealing its strong social performance, high growth expectations, and a dedicated focus on supporting vulnerable people. And researchers think other places could follow Sheffield’s blueprint.

The project set out to understand Sheffield's status as a 'social enterprise place,' shedding light on its impact and potential.

There are currently around 200 social enterprises operating in Sheffield across a range of sectors, including technology and digital, education and learning, community farms, creative and cultural industries, and renewable energy.

Researchers found the impact of the sector on individuals, communities, the economy and the environment across Sheffield is huge with the sector being particularly active in enhancing health and wellbeing and working to address inequalities.

The city’s social enterprises deliver important services for others, including public service contracts, and sell goods and services which benefit local economies.

They also create and support numerous jobs, including providing employment opportunities for vulnerable people and individuals who may struggle in traditional labour markets. 

Key findings from the study revealed:

- 82 per cent of the social enterprises surveyed as part of the study thought Sheffield was a good place to start a social enterprise.
- On average, the city’s social enterprises reported receiving 63 per cent of their income from trading.
- A majority of social enterprises made a profit (39 per cent) or broke even (33 per cent) in the most recent financial year.
- Expectations for the next 12 months are positive - 80 per cent of social enterprises said they expect to increase their impacts and 75 per cent expected to improve their turnover.
- However, the study also found that despite the positive outlook, there were areas for development, particularly around measuring social value and addressing issues of access.

While many social enterprises know they are making a difference in the community, many lack the tools to be able to prove it with numbers.

The report found only 33 per cent attempted to quantitatively measure the social value they create, and 74 per cent said they would benefit with help with impact assessment.

Fifty-seven per cent of enterprises also reported accessing appropriate finance to be a challenge in Sheffield.

The research also highlighted potential issues of access and opportunity, especially for social entrepreneurs from ethnic minority backgrounds.

The report shows that Sheffield’s social enterprise sector is vibrant and has momentum with 63 per cent of enterprises reporting their positive impacts grew over the past year.  The sector has much potential and is dynamic adapting and getting better and better at what it does,” said Dr David Littlewood, Senior Lecturer in Strategic Management at the University of Sheffield and lead author of the study.

"Simpler tools are needed for social enterprises to be able to show their worth and impact in the city and this could in turn help unlock more funding.," said Dr Sergej Ljubownikow, Senior Lecturer in Strategic Management and co-author

"With more support in this area the city’s social enterprises can contribute to a more prosperous, flourishing, and sustainable future for Sheffield and become a blueprint for other cities to follow," said Dr Sergej Ljubownikow, Senior Lecturer in Strategic Management from the University of Sheffield and co-author of the study.

To read the full report, visit: https://sheffield.ac.uk/management/news/much-learn-dynamic-sheffield-when-it-comes-social-enterprises-university-sheffield-study-finds-0