As part of our package of member benefits, VONNE’s Gold and Silver Membership+ supporters have the opportunity to submit a guest post for our website. This blog by Kate Duffy, Founder of Silver members Junction Point CIC, explores the complexity of structures for founders of social purpose organisations and unveils their new accredited course in Starting & Developing a Social Enterprise.
Beyond Structure: Strengthening Foundations for Social Impact
The North East has always been a place where people look out for one another. It’s part of who we are. So it feels entirely natural that more people than ever are stepping forward to create ventures designed to make a difference. Whether it’s a charity, a CIC, a social enterprise or a purpose-led business, there’s a huge amount of energy and care going into trying to do things differently.
In a world where so many people want to do good, perhaps the real question is not whether we need more ventures but how we ensure they start with the right foundations. Social enterprises in the North East contribute around 4% of regional GDP, support 37,000 jobs, and reinvest approximately £26 million annually into their social missions (Social Enterprise UK, 2024).
Over the years, working alongside a wide range of changemakers, I’ve come to appreciate just how “grey” this sector really is. It’s rarely as simple as charities on one side and commercial businesses on the other. Not every purpose-led venture is a charity. Not every social enterprise is a CIC. Some founders begin as sole traders with a strong trading model and a clear social mission. Others incorporate as companies limited by shares and pursue B Corp certification. Some blend trading and grant funding over time. That diversity is a strength. It reflects the many ways people are trying to solve real problems in our communities.
At the same time, structure really matters.
When someone sets up a charity, there is usually careful scrutiny around purpose. Trustees are appointed. Governing documents are reviewed. The public benefit case has to be clearly articulated. There is often 1:1 guidance because the unique “why” of the organisation and the intentions behind it matter deeply.
In the enterprise start-up world, the emphasis can be different. Speed, iteration and testing are encouraged. Entrepreneurs are supported to launch, refine and pivot quickly. That mindset has real value too.
Social enterprise often sits somewhere between these two approaches. It carries social purpose and public accountability, but may not always receive the same depth of reflection around its foundational “why” as charities do. Equally, it may not consistently benefit from the disciplined commercial validation processes that some enterprise accelerators promote. The result can be a kind of missing middle where intention is strong, but the structured thinking that underpins long-term sustainability isn’t always given the same weight.
We’ve seen founders change legal structure after a few years not because they got it wrong, but because they were still working out the best route to achieve what they cared about most.
Over time, what we’ve come to realise is that the starting point seems to matter more than anything else.
Before legal structure. Before funding strategy. Before branding or activity design. We need to ask ‘Why?’
What is the problem? Who is most affected? What evidence exists? What change are we genuinely trying to see? Who is already working in this space?
When founders take time to work through those questions properly, something shifts. They are freer to be creative with the how. Starting with why might lead to a sole tradership with a solid trading model that is unapologetically purpose-driven. It might lead to a company limited by shares seeking B Corp certification. It might lead to a CIC or a charity. The structure becomes a tool in service of purpose, rather than a badge of identity.
And perhaps that’s where the wider conversation needs to go. If more businesses are actively pursuing social missions not just operating ethically, but intentionally designing around impact do we need to think a little wider about how we support them? About who sits within the VCSE conversation? About how we unite our collective network of changemakers rather than keeping commercial and VCSE worlds entirely separate?
Of course, we need to be careful. Standards matter. Accountability matters. None of us want to dilute what it means to pursue social impact seriously. But holding high standards doesn’t have to mean keeping people out. It might instead mean strengthening foundations so that whichever route founders choose, they are doing so thoughtfully and intentionally.
As a North East–rooted organisation, Junction Point CIC has been exploring this in practice. In partnership with Durham University Business School, and shaped by the experience of more than 40 social entrepreneurs, we developed a structured Level 2 Award in Starting & Developing a Social Enterprise. The programme begins with why and integrates business modelling, governance, legal structures, finance and impact into one coherent journey. We continue to deliver locally, and will be licensing the materials to trusted partners across the UK who understand their own communities best.
For us, the aim has never been to narrow the sector or prescribe one correct model. It is simply to raise the bar on foundational thinking.
Because intent is powerful. The North East has that in abundance.
When we pair that intent with thoughtful, well-designed foundations, we give social ventures, in all their different forms, the best possible chance to thrive.
Kate Duffy
Founder, Junction Point CIC
Kate Duffy is the Founder of Junction Point CIC, a North East–rooted organisation working alongside changemakers to design sustainable, purpose-led ventures. As a SFEDI-accredited centre, Junction Point has partnered with Durham University Business School to develop an accredited Level 2 Award in Starting & Developing a Social Enterprise, supporting founders locally and through licensed partners across the UK.
The first cohort of learners will be due to start the course in early April - you can use the code EARLYBIRDAPR26 to get a discount on the course fee until 20th March. Find out more.
Image credits: Junction Point CIC