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In the UK, the announcement by the government that employment rights will become more flexible can raise some new challenges for the social enterprise business model by leaving local government spin-offs in hot water.
A bill known as Right to Provide will make the choice between entrepreneurship and employment more stark. The government’s intention to erode many long-held employment rights so that companies can have more flexibility in their approach towards employees will have unintended consequences for social enterprises that have been set up by employees to provide services commissioned by a council.
Some say it would make the social enterprise business model less cost-effective then other businesses that might be competing for the same contract in the future. The Right to Provide is likely to change these employee-owned social enterprise spin-offs into full-fledged businesses in order for them to survive.
New Challenges For Social Enterprise Business http://goo.gl/fb/A3NV7 #socent