A new initiative has been launched to support social entrepreneurs and boost employment in the London boroughs that are hosting the 2012 Olympic Games.

Unveiled by Olympic medalist Jonathan Edwards in Hackney, arc, organised by Business in the Community and supported by Deloitte and BP, aims to generate 1,000 jobs for local people and support 200 businesses that are trying to tackle the social-economic issues faced by Barking and Dagenham, Greenwich, Hackney, Newham, Tower Hamlets and Waltham Forest, some of the most deprived areas in the UK.

David Sproul, Deloitte’s chief executive, said: “I would say that most innovation that is good for society is also good for business. The pioneering spirit of entrepreneurs and innovators has a direct ability to help build a better society, enhancing the quality of human lives. Social enterprise epitomises that connection, and we should do all we can to help it succeed.” 

The launch followed the publication of findings in the Fightback Britain report, which detailed the recent explosion of social enterprises in deprived areas. Two fifths of social enterprises are based in such locations compared with only 13% of more mainstream small companies. 

The first two enterprises which will participate in the arc campaign are Bikeworks, an initiative that provides a range of public cycle services and reduces landfill, and Blue Sky Development and Regeneration, which provides paid work for prison leavers.

Peter Holbrook, chief executive of Social Enterprise UK, which is supporting the scheme, said: “It’ll be terrific to see social enterprises start up and grow in some of London’s most deprived boroughs. Not only will jobs be provided at a time when youth unemployment is at an all time high, but whole communities will benefit because social enterprises are a force for good – they exist to tackle social issues and environmental problems.”