In its Social Enterprise Action Plan, the government has announced plans to knock down the barriers preventing social enterprises – businesses which are founded for a social purpose and reinvest their profits in the company or community - from thriving.

Measures outlined in the plan include promoting social enterprise in schools, consulting with the finance sector, and making £10 million available for co-investment in social enterprise with the private sector. A £5.9 million pot will be made available to regional development agencies over four years to offer business support, and a further £2.4 million has been offered to support organisations that represent social enterprise at a national level, raising its profile and speaking out for the sector.

Up to 20 social enterprise ambassadors are also to be appointed to act as role models for new entrepreneurs across the UK.

Unveiling the action plan, minister for the third sector Ed Miliband said: “From classrooms to boardrooms, people need to know what social enterprise is and what it can achieve. That is why we are launching this action plan – to shine a light on a movement this is at the vanguard of social change.”

“Social enterprises are having an incredible impact across the UK, from tackling social exclusion to providing opportunities for the young to help shape our communities,” added Cabinet Office minister Hilary Armstrong. “She said the action plan put in place measures to support inspiring people to devote themselves using business acumen to change lives across the country.

Chancellor Gordon Brown said social enterprise was the new British business success story. According to latest figures, social enterprises in the UK contribute £8.4 billion per year to the GDP but only one in four people understand the concept of social enterprise.