SQW and Simon Clark Associates were commissioned by Highlands and Islands Enterprise (HIE) to carry out an assessment of the social economy of the Highlands and Islands in July 2001.

The social economy has traditionally played an important role in the Highlands and Islands. The remote and dispersed nature of many communities has resulted in a greater reliance on community and voluntary sector controlled organisations than is the case in lowland Scotland.

Key points from the report included (at date):

• The social economy comprises 8,142 organisations and generates an annual income of £360m pa.
• Employs 6,250 people on a full-time basis and 12,900 part-time. The sector provides paid employment for nearly 20,000 individuals, equivalent to 10,700 FTE jobs. In addition to this total, the sector creates 100,000 volunteering opportunities.
• The social economy sector is essentially a small SME sector. Half of the organisations sampled reported an annual income of £14,000 or less.
• A wide range of activities are conducted within the social economy, relating to arts, culture and music, business and employment support, community development, education, environment, health care, housing, religion, social care, social groups, sport and lifeboat/mountain rescue.
• The areas with the strongest relationships between social economy organisations and main agencies were Western Isles and Caithness and Sutherland. Relationships with the Councils are strongest in Argyll, Caithness and Sutherland and Ross and Cromarty and Western Isles. In Caithness and Sutherland, 82% of social economy organisations reported a strong or average relationship with the LEC.

The full report, or executive summary version, can be downloaded here, right.