Tobias Gould, social entrepreneur and member of the Help to Grow: Management Course authoring team, explores why inclusive growth is a commercial opportunity that many UK SMEs are overlooking.

Most SMEs think inclusive growth is someone else’s responsibility. They assume it’s something councils, charities or large organisations deliver while businesses get on with growing. That is a mistake.

As local authorities develop new growth plans under the Government’s devolution agenda, inclusive growth is becoming a bigger part of regional economic policy. The ambition is to create economic growth without leaving disadvantaged people, communities or places behind. While many businesses see themselves as spectators in that process, they have an opportunity to become active participants and strengthen their own organisations at the same time.

Working with businesses taking part in the Help to Grow: Management Course, I’ve seen that the businesses that embrace inclusive growth are often better placed to attract and retain talented people, build stronger relationships with customers and communities, and align themselves with future regional investment priorities. Rather than treating inclusive growth as another corporate responsibility initiative, SMEs should view it as a practical way to build a more resilient, competitive business.

Don’t confuse effort with impact

Too often, we see Help to Grow: Management participants confuse effort with impact when they first join the course. We’ve all seen highly skilled professionals spending hours baking cakes or painting community buildings, while the expertise that makes their business valuable goes unused. Of course, this activity is well intentioned – but if a company wouldn’t deploy its people that way for paying customers, why accept it when trying to create social value?

Instead of asking, “What charity event should we organise?”, businesses should ask a different question: “How can our expertise create the greatest benefit for society while strengthening our business?” That shift in thinking transforms social impact from an occasional activity into something that creates value for everyone involved.

Build on what you already do

Creating meaningful social impact doesn’t necessarily require new budgets or major initiatives. Every business already creates social value through employment, skills development and the products or services it provides. The opportunity is to become more deliberate about who benefits.

Rather than creating standalone programmes, businesses can make small adjustments to recruitment, training, procurement or customer initiatives that support disadvantaged groups while advancing commercial objectives.

For example, an organisation delivering internal training could offer spare places to people referred by local charities or community organisations. A business struggling to recruit could guarantee interviews for applicants from areas experiencing high levels of deprivation, widening its talent pool while creating new opportunities. These are relatively small changes, but they can strengthen community relationships and help businesses access skills they may otherwise have overlooked.

Focus where your expertise has the greatest value

Just as successful businesses define their target markets, they should also be clear about the social challenges they are best placed to address. Trying to solve every issue usually means making little difference to any of them. Instead, focus on the areas where your expertise naturally aligns with a particular need.

A construction business might create employment pathways for people experiencing homelessness while addressing skills shortages. A wealth management firm could improve financial literacy in schools serving disadvantaged communities. A technology company may be well placed to support digital inclusion or mentor young people considering careers in the sector.

The closer the connection between commercial expertise and social impact, the greater the value for both the business and the community.

Measure what changes

Like any business investment, inclusive growth should be measured if organisations want to improve it.

The first step is understanding what activities are already taking place. Many businesses are contributing far more than they realise through recruitment, training, purchasing decisions, employee development and community partnerships. A simple social value audit often reveals opportunities to strengthen existing activity rather than creating something entirely new.

Measurement should then move beyond counting activity and focus on outcomes. How many people found employment? Developed new skills? Progressed into further education? Those are the results that demonstrate whether an initiative is creating meaningful change.

Measurement frameworks such as the Outcomes Star and Better Society Capital’s Outcomes Matrix  can help businesses assess longer-term outcomes. Measuring Social Return on Investment (SROI)  can also provide an estimate of wider value created. Alongside data, personal stories and case studies often provide the clearest picture of the difference these initiatives make.

Why inclusive growth makes commercial sense

The strongest argument for inclusive growth is that it is good business. Around 70% of consumers prefer to buy from brands that reflect their personal values, while younger employees increasingly expect employers to demonstrate social responsibility alongside commercial success. Research shows that 61% of Gen Z employees place significant importance on purpose when choosing where to work.

Embedding inclusive growth into everyday business operations helps create a stronger organisational culture because employees can see how their work contributes to something beyond profit alone. That sense of purpose supports engagement, loyalty and trust, while helping businesses stand out in increasingly competitive labour markets.

There are broader commercial advantages too. Businesses that understand local priorities are often better positioned to build relationships with stakeholders, identify opportunities linked to regional investment and strengthen their reputation within the communities they serve.

The experience of Certified B Corporations illustrates the potential of combining purpose with performance. Between 2023 and 2024, small and medium-sized UK B Corps recorded turnover growth of 23.2%, compared with the UK average of 16.8%, while increasing employee headcount by 9.6% during a period when national employment fell.

A competitive advantage hiding in plain sight

As local growth strategies continue to evolve, SMEs have an opportunity to recognise inclusive growth as part of their own commercial strategy.

Businesses that stop separating social impact from everyday decision-making are likely to build stronger teams, deeper community relationships and more resilient organisations. The SMEs that thrive over the next decade are likely to be those that create value for both their organisations and the communities around them. Not because they have to, but because it gives them a genuine competitive advantage.