Mark Isherwood
North Wales Assembly Member Mark Isherwood has spoken in the Assembly this week of the need for co-operatives and mutuals to have viable business models.
Questioning the Economy Minister, Edwina Hart, Mr Isherwood said social enterprises need to make profits and referred to calls made at the Denbighshire Voluntary Service Council AGM for the sector to stop being referred to as ‘not for profit’.
He said: “As I previously worked in the mutual sector for 21 years, I am, as you can imagine, a bit attached to it, but I also recognise that it is not a magic bullet and it can go bust, as, sadly, I believe my own former employer did. Therefore, how do you respond to the statement from speakers at December’s Annual General Meeting of Denbighshire Voluntary Services Council that we must stop saying that the sector is not-for-profit, because we all have to make a profit or go under, and that social enterprise delivers services in areas of market failure, where the public or private sector is weak?”
The Minister replied: “Well, if they would like to write to me directly, I might respond to them directly.”
Mr Isherwood added: “I am sure that the Minister could have answered but regret that she wouldn’t. As we heard at Denbighshire Voluntary Sector’s AGM, ‘a social enterprise must have a viable business model if it is to reinvest surpluses in people and communities, supporting enterprise, innovation and entrepreneurial culture, driving regeneration.’”
