Is my business a ‘community business’?
How do you know if your business is a ‘community business’? There are four main criteria that community businesses share.
Businesses that are based in their community
- Typically that local area will be smaller in size than a local authority. It will be well defined and may include a number of postcodes or villages.
- People must self identify with that area.
- A majority of staff, volunteers and other stakeholders should be drawn from the local community and reflect its diversity.
Accountable to the local community
The business must be locally controlled
- The local community must have a genuine say in how the business is run, eg through regular consultation, membership or ownership.
- There are formal structures to engage a large number of local people on a frequent and ongoing basis.
- A large majority of the management and trustees should be drawn from the community.
Trading for the benefit of the local community
Profits must stay in the area
- The organisation must have a clear trading model.
- A majority of its profits should be distributed locally and used to deliver local benefit.
- The project we are funding must have charitable purpose. Any private benefit must be incidental.
Broad community impact
You must address challenges in your community
- A community business should contribute to a broader sense of confidence and pride in a place.
- It must be able to articulate how it is tackling the specific issues that exist in its community.
- A community business must be able to show the impact it is making.