What is community enterprise?

The UK has a long and proud tradition of community enterprise.  The phrase ‘community enterprise’ goes back many decades, pre-dating the more recent concept of ‘social enterprise’.

Community enterprise is a significant sub-sector within the wider social enterprise sector.

It shares the same definition as social enterprise: an organisation trading for social purpose with profits reinvested rather than going to shareholders.

But a community enterprise is more specific in that it is based in, and provides benefits to a particular local neighbourhood or community of identity.  A community enterprise is owned and managed by members of that community.  It is an organisation run by a community as well as for a community.

Some community enterprises go further and develop a range of different enterprises, products, services and projects to meet a range of different social, economic and environmental needs in their community. They provide a more joined-up approach to tackling often deep-rooted and complex issues.  This type of community enterprise is called a development trust, and most development trusts aim to acquire and develop local land and buildings.

If you would like support to set up and run a community enterprise, Locality can help. Please contact our Head of Enterprise Neil Berry via or visit our get support page.