Spark York

How a Shipping Container Community Became a Social Enterprise Success Story

Back in 2018, Spark York was born - an accessible, inclusive and sustainable space where bright minds, particularly those from underserved communities, could start a business without financial risk.

Set up as a Community Interest Company (C.I.C.), it was built on one fundamental belief - that business can and should be used as a force for good.  Every penny of profit is reinvested into the venue, the community and the entrepreneurs who see their ideas become a reality.  As Development and Finance Director Sam Leach puts it:

“We didn’t want shareholders.  We wanted to own our assets.  It means we have a circular business model, investing all profits back into the project to maintain the venue, support the team and continue driving its social impact.”

Breaking barriers, not budgets

Having grown up and been a student in York, Sam says he’d watched too many young creatives - chefs, designers, musicians, artists – being lost to bigger cities like Leeds, Manchester and London.  So he set out to create a space where creatives could setup without worrying about liabilities, business rates, being trapped in a lease they couldn’t get out of if they weren’t successful.

“The goal was always to offer space where people from all walks of life could test, build and grow their ideas - especially those who might never have had the opportunity otherwise, including female entrepreneurs, those with disabilities, ethnic minorities and so on.  This was our core social mission, to create a really positive space, building social cohesion across the city.  We also realised we could subsidise community groups who couldn’t afford central locations to meet.  It was all about letting people have a go, meeting friends - ultimately, bringing people together.”

Longevity was our biggest challenge

With only three years on the original lease, Spark had to build their whole venue and facility on that basis, so it was tricky in terms of fundraising.  £600,000 was raised through social investors, local philanthropists and crowdfunding to create a modular space built from 23 upcycled shipping containers.  Affordable, flexible and temporary – perfect for a temporary home.

Opening with 23 businesses, over 65 start-ups have now launched there, 25 have grown and moved into permanent premises in other council properties and around 80 full-time local jobs have been created.  With up to 7 thousand visitors each week, the ripple effect of this social enterprise is undeniable.

And it doesn’t stop with business. The venue provides free space for over 100 local community groups - charities, running clubs, community associations - who would otherwise struggle to find an affordable, central place to meet.  In fact, for every £1 invested, the project delivers £12.78 in social value.

It’s a business – just not as you know it

There’s a misconception that social enterprises aren’t real businesses but Spark proves the opposite.

“We run a tight ship,” explains Sam.  “We rent out retail and co-working space.  We also have some large corporate clients which helps us subsidise community groups and smaller traders.  Every inch of the model is commercially sound because financial sustainability is what unlocks social impact.”

Today nearly all income is generated through trade.  That financial resilience allows them to stay open all year, even installing a full winter roof to weatherproof the venue.  

Longevity was our biggest challenge

With only a three-year lease at the start, the project was always intended to be temporary.  That meant creative thinking from day one.  However, the decision to use shipping containers, while practical, sparked controversy.

“There’s a fear in a place like York,” said Sam, “that it would take away from the city’s aesthetic.  But there are also parts of York that don’t fit that vision.  We wanted a space that is locally embedded, that locals are proud of and feel is their own, not just for visitors.”

Businesses include everything from tattoo studios and hair salons to food traders, bars, event spaces and a co-working hub.  At one point, there was even an urban farm growing herbs and greens for the venue’s food traders.

They also run a zero-waste supermarket, using surplus food that would otherwise go to landfill.

Impact that goes beyond profit

While the financial impact is significant (more than £5 million in combined annual turnover across site businesses) it’s the social values that are the true driver.

Spark has created a culture of respect and inclusion, where people from marginalised backgrounds feel safe and welcome, where neighbours live side-by-side with business owners and collaboration is key.  Tenants are even incentivised to become better businesses.

“We think we’re one of the first landlords in our sector to incentivise tenants to act in more socially conscious ways.  We have a social commitments clause in our lease and offer a 10% rent reduction if a tenant can satisfy certain requirements, like being a Real Living Wage employer.”

Future vision

Long-term, they’re looking for a permanent home within the city centre to fully realise their entire business plan.  In particular, they want to put on live music and performances which, due to the close proximity of neighbours, they are unable to do so.  Currently they put on quizzes using headphones!

Last year, they opened a second C.I.C. in London, a gallery space for marginalised artists just off Fleet Street.  They’re also in negotiations with two other northern cities to replicate its model, proving this isn’t a one-off.  It’s a movement.

Social enterprises play a central role in the regional economy

“We’re part of the York social enterprise coalition.  We support, advocate and work together on projects (and promote social enterprise as a future business model) alongside tackling societal challenges.

“With the combined authority, there's a great opportunity to support social enterprises across the region, including rural communities and coastal towns.  As an engine for social and economic growth, it will help keep local talent.

“If you can create a support system at different levels - grassroots, peer to peer, the combined authority - it’s a really effective way of telling a young person in, say, Scarborough, they don’t have to leave if they don’t want to.  There’s access to support and funding right here.  I strongly believe that those who are most likely to create lasting impact are those that understand the area and have a strategy on how they deliver that change.

Advice to other social entrepreneurs

Sam Leach says running a social enterprise is the best thing you can do in business but you must ensure your business model works as a business.

“We are not a fringe activity.  We create jobs.  We build local supply chains.  We grow local economies.  We deserve to be taken seriously.

“It’s not always easy.  Funding is still a challenge and grants are competitive.  While there is a growing number of investors motivated by impact over profit, they still want their money back, even if they’re not chasing a return.  But the landscape is changing, and with things like B Corp Certification and the Good Business Charter, there's a way of validating and making it easier for investors to identify enterprises that really care about impact.”