An Overview of the Social Enterprise Sector

Temi OdesanyaMarketing Officer

‘a social enterprise is a business with primarilysocial objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by theneed to maximise profit for shareholders and owners'

Government definitionSocial Enterprise Mark website

What is Social Enterprise?

What is Social Enterprise?• Social enterprises (SEs) = profit reinvesting

businesses that trade for social/environmental aim• Main objectives - to create jobs, support vulnerable

people, improve health & well-being, promote education & literacy and protect the environment

Findings from ‘Fightback Britain: State of Social Enterprise Survey 2011’

Different types of social enterprise

Development trustsCredit unions

Housing AssociationsSocial Firms

MutualsWork Integration Social Enterprises

Worker co-operatives

Social Enterprise in the UK

• 62,000 social enterprises in the UK – Estimated to 250,000

– Data from the Annual Survey of Small Business 2005-2007– Social Enterprise UK

Legal structures

Findings from ‘Fightback Britain: State of Social Enterprise Survey 2011’

Sector traits• 1 in 7 of all UK SEs is start-up - more than 3x

proportion in mainstream small businesses• 58% of SEs grew last year - compared to 28%

of SMEs• Some of the biggest UK SEs started in the

recession of the ‘80s• Trade is most common source of income, rather than public services

Findings from ‘Fightback Britain: State of Social Enterprise Survey 2011’

Sector traits

Findings from ‘Fightback Britain: State of Social Enterprise Survey 2011’

• Leadership team – 86% women; 27% BAME• 74% actively involve beneficiaries in decision

making (9 out of 10 in most deprived communities)

• Employ more people relative to turnover than mainstream SMEs• Operate: 20% local, 19% national, 16% a region

Creation of quality, paid, sustainable employment for individuals furthest away from the labour market

Social enterprises, WISEs & Social Firms

Social Firms

Social Firms are Values Led

Enterprise: “business that support” rather than “project that trades”

Employment: social & economic integration through employment and market wages

Empowerment: supportive environment, real opportunities and meaningful work

tackle stigmacreate jobssocial valuecost benefits to society employment and health alignedsocial & economic mission integrityvolunteering, training and paid opportunitiescomplement other employment models

The value of Social Firms

Royal British Legion Industries• 1919 - treatment, training & support after WW1• Manufacturing division = social enterprise• Pallet & signs manufacture, mailing, print,

distribution, fulfilment services • Preferred supplier to Network Rail• Needs diversification of product range & growth

Argonaut Community Enterprises

• 2010 (CLG) - mission - work opps for deaf or disabled, commercially viable services in visible roles

• Argonaut Cleaning Solutions, Argonaut Facilities (demand), Argonaut Security – ex-military

• Argonaut Distribution – mail, print, fulfilment• London, Birmingham, Hampshire, Liverpool• Ambitious, entrepreneurial – hampered

as under 3 years trading history

Policy developments

• Big Society (Localism Act 2011)

• Govt target –#SMEs supplying public sector 5% 25%

• Main government focus on public service delivery - Mutuals

• Mostly NHS ‘spin outs’ but no contract guarantees (CS Health)

• Payment by Results / Social Impact Bonds

• Open public services White Paper– “Public services, social enterprise & social value bill”– social value in procurement – need for any orgn bidding for public

sector contracts to demonstrate

Social impact

• Qualitative vs. quantitative

• SROI – indicates the value of the social impact in financial

terms

• Social Accounts – explores the nature and extent of impact as

experienced by various stakeholder groups

Corporate Engagement

• PwC• Deloitte• Ernst & Young• KPMG• Guinness• Ben and Jerry's• O2• Lend Lease• Wates

Wates social enterprise strategy

To engage with Social Enterprises in the course of normal business:

• embedding them in the supply chain; • contracting for skills, goods or services on each project;• supporting community projects involving SEs - building work,

business skills and funding;• working on joint client initiatives with SEs; • by pointing SEs towards other organisations who can support their

growth & development; and• build a model of good practice for working with SEs to be shared,

both within and beyond the construction sector.

Future

• Green – global drive, local execution• Health & Social Care – fiscally driven• Community ownership

– recreating communities as safeguarded areas • Criminal justice• Employment & jobs market

– labour driven businesses • SE is fleet of foot

Contact: Temi Odesanya01737 231 360

www.socialfirmsuk.co.ukinfo@socialfirmsuk.co.uk

FacebookTwitter: @socialfirmsuk #socent

LinkedInBlog

July 12 – Conference, Uni of Leicesterworkandjobs.eventbrite.com

Mutuals

• A public service mutual is an organisation which has left the public sector (also known as ‘spinning out’) but continues to deliver public services

• “Government is committed to encouraging and supporting anyone who is seeking to follow their path.”

• Challenges– TUPE – liabilities– Cultural– Suspicion– Top down– Pressure to deliver

http://mutuals.cabinetoffice.gov.uk

Central Surrey Health

• 2006• It was the first social enterprise to come out of

the NHS• Lost their first competitive bid to Assure

Medical• Expected to raise a £10m bond as surety• Wise Group in Scotland, Work Programme• LPT & Working Links