Community Business is led by local people to look after what matters to them. Any profits flow back into the business to deliver positive local impact. It can bring many benefits to local areas.
Communities come together and set up community businesses to address challenges they face together. There are many types of community business. They can be shops, farms, pubs or call centres, among many other types of business. What they all have in common is that they are accountable to their community and that the profits they generate deliver positive local impact.
The four key features of a community business are:
- Locally rooted: They are rooted in a particular geographical place and respond to its needs. For example, that could be high levels of urban deprivation or rural isolation.
- Trading for the benefit of the local community: They are businesses. Their income comes from things like renting out space in their buildings, trading as cafes, selling produce they grow or generating energy.
- Accountable to the local community: They are accountable to local people, for example through a community shares offer that creates members who have a voice in the business’s direction.
- Broad community impact: They benefit and impact their local community as a whole. They often morph into the hub of a neighbourhood, where all types of local groups gather, for example to access broadband or get training in vital life skills.