CIC at 5 Years: 95% of All CICs Are Still Standing

CICs have been around for five years now. That feels like both a long time and no time at all. When my sister and I incorporated one of the first hundred CICs back in 2005, we were stepping into unknown territory. There was no established community, no support infrastructure, no body of experience to draw on. Just a piece of legislation that seemed to make sense and a conviction that it could work.

Five years on, the numbers are starting to tell a powerful story.

As of last week, 4,102 CICs have been created since the legislation came into force. Of those, 3,895 are still active. That’s a survival rate of 95%. Let me put that in context. Most startup businesses fail within the first three years. The vast majority of new companies don’t make it to year five. But CICs — organisations that are deliberately choosing to constrain their profit distribution and lock their assets into community purpose — are surviving at a rate that most business forms would envy.

Why? I think there are a few reasons.

First, the community interest test means CICs are founded with a clear, articulated purpose. They know what they’re for, who they serve, and how they’ll measure success. That clarity is worth more than any business plan.

Second, the asset lock provides a discipline that keeps organisations focused on their mission rather than drifting toward private benefit. It’s not a constraint — it’s a framework that helps CICs make better decisions.

Third, and perhaps most practically, CICs are set up by people who genuinely want to make a difference. They’re mission-driven in a way that gives them resilience through the tough early years.

But the survival rate isn’t the full story. Of those 4,102 CICs, the vast majority are small — the £100 startup as well as the multi-million pound healthcare provider. The diversity is extraordinary, ranging from art to zoology, from the Shetland Isles to the Scilly Isles. And the concentration of CIC activity in the poorest wards tells its own story about who this model is really serving.

At the CIC Forum yesterday, I presented some of this data for the first time. We’ve started building a central data system that captures creation rates, conversions, regional breakdowns, sector classifications, and survival trends. It’s early days for the system, but already the picture is clear: CICs are not just surviving — they’re proving that purpose-driven business is a viable, durable model.

Five years in, 95% still standing. That’s not a bad start.