MORE social enterprises will be helped to start and grow in Exeter under a new council-funded initiative.

Exeter City Council is to invest £25,000 in a 12-month trial scheme to support and promote the sector, which is expected to play an increasingly important role in the local economy.

Social enterprises, such as East Devon IT company Cosmic, are businesses with primarily social objectives, which invest any surpluses back into the business or the community, rather than generating profits for shareholders.

There were an estimated 62,000 social enterprises in the UK in 2007, with a combined turnover of £24 billion and employing 800,000 people.

In a report to the council's economy scrutiny committee, Richard Ball, head of economy and tourism, said: "Exeter does not have in place a coordinated and focused programme of business advice and support for social enterprise pre-starts, start-ups and existing businesses.

"While there are a number of fledgling social enterprises within Exeter, they also lack a concerted city-wide effort to promote and support this potentially integral part of the local economy."

Now the council is to commission the Community Enterprise Unit (CEU) — itself an Exeter-based social enterprise — to provide a range of advice and mentoring for pre-start, start-up and existing social enterprises.

It is expected that the scheme will support at least 10 new start-up social enterprises in the city over the next 12 months, as well as helping 10 existing businesses to increase their turnover by a minimum of 10 per cent.

Mr Ball's report states that social enterprises can help to diversify the city's employer base, thereby strengthening the economy, as well as providing employment or voluntary work for people who are not 'job ready'.

Anne Mountjoy, spokeswoman for Rise SW, the Exeter-based social enterprise network, welcomed the initiative and said it was much needed.

"We would encourage as much specialist support for social enterprises as possible," she said.

"Normally if people come to us with inquiries, we refer them on to Business Link, which has a specialist social enterprise service.

"So the more the better, especially if CEU are involved, because their social enterprise advisors are SFEDI [the UK sector skills body for enterprise] accredited, so we know they will get good quality advice through them."

She also argued that social enterprises would play a growing role in the local economy as Exeter emerges from recession.

"One of our top messages is it's the start of a business revolution," said Anne.

"We think that consumers and the general public are tired of corporate greed and the distrust around banks, so people are looking for more ethically minded businesses."