CICs Are Officially the Most Popular Legal Form for Social Enterprise — Told You So

Social Enterprise UK published its State of Social Enterprise survey, and buried in the data was a finding that should have been front-page news. For the first time, CICs have overtaken Companies Limited by Guarantee as the most popular legal form for new social enterprises.

I’ve been predicting this for years. The registration data has been pointing in this direction since the mid-2010s. The CIC model offers something that Guarantee companies can’t match: a dedicated regulatory framework, a recognised brand, a community interest test that provides genuine accountability, and — for those that want it — a share structure that can attract investment.

The numbers in the SEUK survey confirm the trend. CICs now represent the largest single legal form among social enterprises. They’ve surpassed the CLG structure that dominated the sector for decades. The CIC model, which was a legislative innovation in 2005, has become mainstream.

What does this mean in practice? It means that the CIC brand has finally achieved the recognition that the registration numbers suggested it deserved. It means that when a new social entrepreneur asks “what structure should I use?”, the answer is increasingly “a CIC.” It means that the model that I and others fought for has become the default choice.

But it also means that the responsibility on the CIC infrastructure is greater than ever. If CICs are the most popular form, then the support systems need to match. The CIC Regulator needs resources proportionate to the register’s size. The investment products need to be designed for CICs specifically. The policy framework needs to recognise that CICs aren’t a niche alternative — they’re the mainstream.

The SEUK survey is a vindication. It proves that the CIC model has won the argument on its merits. But winning the argument is one thing. Building the infrastructure to support victory is another.

We are, for the first time, the most popular legal form. Now we need to act like it.