BUSINESS BIO

Where are you based? Headquarters in London

Key business markets: Homelessness, publishing

Annual turnover: £6 million

% of turnover which is trading income (as opposed to grants): 100%

Number of employees: 125

www.bigissue.org.uk

 

ambassadors

John Bird

John Bird
  • The Big Issue

  • 64

  • Founder and editor-in-chief

  • London

It began with 10 vendors and one publication and has now spawned a whole group of initiatives with a global reach, all focused on using enterprise to create opportunities for vulnerable people.

Despite best intentions, government-funded and charitable solutions to homelessness often disappoint. It takes more than money and support, it seems, to help vulnerable people successfully reintegrate into society.

When Social Enterprise Ambassador John Bird founded The Big Issue with Gordon Roddick in 1991, he had different ideas about how to reduce rough sleeping and its associated problems. A former rough sleeper, his innovative concept was to offer homeless people a “hand-up, not a hand-out”.

The Big Issue magazine gave socially excluded people the chance to earn a legitimate income. Today, more than 2,500 homeless vendors in the UK buy the weekly magazine for 75 pence and sell it for £1.50, making 50% profit per issue.

Reducing the social business solely to its financial parts would be to miss the point, however. Besides their own money, The Big Issue’s five UK editions give rough sleepers a range of less tangible benefits, including greater self-confidence, status and self-esteem. And following the “hand-up”, The Big Issue’s charitable foundation takes over, helping vendors to meet their ambitions: it focuses on employment, education, housing, health and financial independence.

Almost two decades since it began (initially with just 10 vendors), the business has become a global phenomenon. It is a founding member of the International Network of Street Papers, which represents similar social businesses in 50 countries and The Big Issue trademark has been adopted by magazines in Asia, Africa and Australia.

Closer to home, The Big Issue family of companies includes the finance company, Big Issue Invest, run by another ambassador, Nigel Kershaw. Its mission is to fund the growth of the social enterprise sector.

The truth is that most money spent on social problems is about emergency and coping. Instead of maintaining people in discomfort, we need to create more legitimate exit plans. There is a lot of work to be done, and that’s where social businesses come in.

In the last four years, it has provided capital to 23 enterprises, including ethical bottled water company Belu and social care organisation Turning Point.

The Big Issue, meanwhile, has become increasingly active in sponsorships and partnerships, teaming up with the likes of The Globe Theatre and The Big Chill. It also runs a film festival in association with the Barbican.

“Barbican Cinema is committed to encouraging new film makers, young and old, to develop their skills and expertise,” says Robert Rider, head of cinema at the Barbican. “The Big Issue has made a rich and vital contribution to the journalistic, social and cultural life of London and we were honoured to present a festival for audiences and film makers to see new work on the big screen.” 

Today, The Big Issue’s turnover has reached £6 million. Has expansion been a challenge? “Growth is dangerous,” says John, “but the key is to keep things simple. If what you’re offering starts getting too complex, it’s losing its way.” For this enterprise, the principal focus has always remained; creating a magazine that rivals anything sold on the news stand.

“Homeless people are proud to sell it,” he says. “And because it’s a social enterprise, it inspires everyone. No one is accumulating a profit; it’s not exploitative, just talent of people.”

Today, Bird says that The Big Issue’s influence is greater than the business itself. And while it has re-energised the homelessness sector, he believes there are many more opportunities out there for socially-minded big thinkers.

“It costs £60,000 a year to have someone homeless in London,” he says. “The truth is that most money spent on social problems is about emergency and coping. Instead of maintaining people in discomfort, we need to create more legitimate exit plans. There is a lot of work to be done, and that’s where social businesses come in.”

Quick Facts

  • The Big Issue Foundation has met and worked with over 10,000 vendors since 1995.
  • Big Issue Invest provides between £50,000 and £200,000 of loan finance for social enterprises at competitive rates.
  • A study by management consultants McKinsey & Co described The Big Issue as the most trusted and well-known social enterprise brand in the UK.

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