Mapping Report

The UK Social Firm Sector 2010

CONTENTS EXECUTIVE SUMMARY…………………………………………………………………………………… 2 ACKNOWLEDGEMENTS …………………………………………………………………………………. 3 INTRODUCTION……………………………………………………………………………………………. 4 AIMS AND OBJECTIVES………………………………………………………………………………….. 5 METHODOLOGY…………………………………………………………………………………………… 5

Mapping Meetings Mapping via Telephone Conversations Mapping via Email Shared Mapping Issues Other Means of Obtaining Information

CHANGES AND DEVELOPMENTS IN THE SOCIAL FIRM SECTOR………………………………..6 Numbers and Sector Growth……………………………………………………………………………...6

Comparison with 2006 Businesses that have exited the sector Identifying New Entrants to the Social Firm Sector

The Current State of the Social Firm Sector…………………………………………………………...9 Legal Form

Size, Spread and Focus…………………………………………………………………………………. 10 Size and Spread Movement within the Social Firm sector Target Employee Groups Employee Numbers Service Users Trainees Volunteers

Businesses – Trading Sectors…………………………………………………………………………..15 Trading Sectors and Income National Products and Services Higher Earning Trading Sectors

Businesses – Income……………………………………………………………………………………. 17 Commercial Income Non-commercial Income

Businesses – Management, Support and Quality …………………………………………………. 20 Business Management Financial Management Staff Support Quality

CONCLUSION……………………………………………………………………………………………... 23 APPENDICES………………………………………………………………………………………...........24 Appendix 1 Businesses in the Social Firm sect Appendix 2 Businesses that have exited the sector Appendix 3 Target Employee Groups Appendix 4 Employment Figures Appendix 5 Income and Employment in the Social Firm Sector Appendix 6 Trading in the Social Firm Sector Appendix 7 The top 20 Income Earners in the Social Firm Sector Appendix 8 Responses to questions on Business Management 2010 Appendix 9 Responses to questions on Financial Management Appendix 10 Responses to questions on Staff Support Appendix 11 Responses to questions on Change Appendix 12 Responses to questions on Significant Issues for the Future

1

EXECUTIVE SUMMARY This report, the first detailed one since 2006, seeks to provide a picture of the Social Firm sector in 2010 and examine some of the changes to the sector in the last four years in the UK. Since the last report the sector has widened its focus to include other disadvantaged groups such as ex-offenders, homeless people and those who have previously been involved in substance abuse. This report comes as a result of ongoing work to map the sector and is therefore not based on a snapshot in time but rather information gathered over time. As such it cannot be fully up to date: something that should be borne in mind when being read. Some of the collected data is incomplete (e.g. employment figures) and so the actual information collected has been used to inform sensible and realistic projections which may be of assistance but are therefore not completely accurate. The purpose of this mapping report is to provide as factual a picture as possible on the Social Firm sector: its size (people employed, turnover), growth and the issues faced in expanding, structure (legal form, industry sectors, geographical spread), its successes and thoughts on future challenges. Some Mapping Highlights

• The sector has grown by 32% since 2006

• There are now 99 Social Firms and 82 emerging Social Firms

• Company Limited by Guarantee is the most favoured legal structure

• In England, Yorkshire & Humberside has the highest number of enterprises in the

Social Firm sector (22) whilst the Eastern region has the highest growth rate at 150%

• Supporting people with mental health needs remains the largest target employee group

• The sector now includes employment for ex-offenders, the homeless and ex-substance

abusers

• 1064 severely disadvantaged people have found paid employment within the sector –

58% of its total workforce

• Projected increase in employment of 62% across the sector since 2006

• Top three business sectors are Catering, Recycling and Horticulture

• Just seven business sectors represents 83% of Social Firms’ trading activities

• 74% of Social Firms earn 75% or more of their income from trade

• Double the amount of Social Firms trade nationally compared with the social enterprise

sector as a whole

• 87% of Social Firms have an earned income of up to £500k

• The top 4 income earners all started out as supported factories

2

ACKNOWLEDGEMENTS

We can only report on what we know and what people share with us. Obtaining information from busy people is not always easy.

Running a Social Firm is hard work and managers rarely, if ever, really have the time to provide the information we seek.

But information is knowledge. The information that managers and CEOs provide forms an

essential part of the tools we need to work and lobby on behalf of the Social Firm sector - the businesses and the people that work within them.

We are very grateful to all who have generously given their time to provide information on

their business and its development as a Social Firm.

Thank you

3

INTRODUCTION

Since the last full mapping report in 2006 the Social Firm landscape has changed. The focus has broadened to include other disadvantaged groups such as ex-offenders, homeless people and those who have previously been involved in substance abuse. The sector has grown; the last full mapping survey identified 137 businesses in the Social Firm sector, now we are aware of 181 that are definitely part of the sector. This report will examine the growth and changes since 2006 and present a view of the current state of the Social Firm sector.

We know that the wider social enterprise sector is an increasingly important part of the business landscape in the UK1. This report provides an insight into the Social Firm sector within that landscape, the increases in the sector (in scale and complexity) and the issues it faces in expanding.

Some enterprises that are mapped go out of business. This is no different to the SME sector and the time we spend gathering detailed information on these businesses is never wasted as there are always lessons to be learnt. For those new to Social Firms it is perhaps useful to look at why we believe mapping of the sector to be so important. In 2004 there was no real overview of the Social Firms sector, its growth or the quality of the firms within it. Although Social Firms UK had a clear view of what should be defined as a Social Firm and what would constitute an emerging Social Firm2 it didn’t have; • any in depth knowledge of the extent to which this was understood by and worked towards by

businesses in the sector; • an overall methodology for identifying the level of development of individual Social Firms and

emerging Social Firms; • a way of finding out about the quality of enterprises in the sector; or • a system for identifying new entrants to the sector. It was decided that a programme of mapping for the sector would start to address these gaps. It was hoped that mapping would also create another opportunity for dialogue with Social Firms, increasing the two way flow of information about what is needed to support Social Firms and the development of the sector as a whole. This is the second detailed mapping report. We have probably not come across all of those out there (usually categorised as ‘social enterprises’) that are Social Firms and even if we had it would not be possible to fully map every one of them; however, we are confident that this report is based on good, sound data and information. The tables and charts shown in this report provide the base number from which the information and any conclusions are drawn. We hope it provides a good insight into the sector and the information you are seeking. Let us know what you think and what additions you would like next time - and if you know of an enterprise that you think might be in the Social Firm sector, please do tell us.

1 State of Social Enterprise Survey 2009. Published by the Social Enterprise Coalition. 2 Briefly a Social Firm was described as; a market led enterprise whose social mission was the creation of good quality employment, within the enterprise, for disabled people (including mental ill health and learning disability) who are furthest from the labour market. At least 25% of the workforce would be drawn from the target disability group(s), more than 50% of the income would come from trade and any profits were principally reinvested to grow the enterprise. An emerging Social Firm was an enterprise committed to becoming a Social Firm. It would be working to a business plan that illustrated how they were going to achieve their goal and usually in the early stages of trading. Often less than 25% of the staff would have come from the target disability group(s) and/or income from trade was less than 50%.

4

AIMS AND OBJECTIVES The aim of this report is to provide an overview of the Social Firm sector. Objectives will include such standard reporting as the numbers of known Social Firms and emerging Social Firms; their regional and national spread; the industry sectors represented; the types of legal form used; employee numbers and the percentage of commercial income. In addition the information gathered is used to gauge the size of the sector as a whole. The report will also be used as an opportunity to examine the growth of the sector and the issues affecting growth. In so doing it acknowledges that some firms are no longer trading or not trading as Social Firms and seeks to learn from the knowledge gained.

METHODOLOGY Since the last mapping report the way information is collected has changed slightly. Mapping in Scotland, for instance, is the responsibility of Social Firms Scotland which undertakes it a little differently. Using the base data collected, the information and views on the mapping methodology set out here are those of Social Firms UK. Many social enterprises can, from the outside, look like Social Firms3. Before starting to fully map an organisation, time is spent obtaining more information. This always includes checking the company website and often following this up with some enquiries. Once it has been established that the enterprise is likely to be in the Social Firm sector, or close enough to be interested in becoming a Social Firm, we seek to map the enterprise. The collection of mapping information is carried out in a variety of ways but a mapping questionnaire is a major tool. This is essentially the same as in 2006. The one real change is the inclusion of some more detailed questions on self employment within the Social Firm sector. As previously the questionnaire can be divided into the objective questions – employee numbers, legal form etc and obtaining more subjective information e.g. position on such things as access to financial advice, health and safety and the emphasis placed on training and learning. Mapping Meetings Using the mapping questionnaire in a face to face meeting is by far the most effective way to obtain good rich responses to subjective questions. Meetings facilitate a really positive exchange of information and offer an opportunity for people to give some time to consider the quality and development of their Social Firm away from the day to day rush and responsibility of running a Social Firm. Although responding to the mapping questionnaire in this way takes more time the discussions that follow are seen as beneficial to the enterprise. Mapping via Telephone Conversations Time and geography mean that meetings are limited and completing questionnaires over the phone is the next best option. Responses to the more subjective questions given over the phone tend to be ‘first thoughts’ and are not normally discussed in any detail. There is no perceived benefit to enterprises from ‘telephone mapping’. As a result the information is often limited to updating details on industry sectors, employee numbers and income. Mapping via Email Sometimes questionnaires are emailed to people but return rates are very low. Responses are always limited to obtaining objective information.

3 Social enterprises are businesses that trade for a social or environmental purpose, and their profits are reinvested back into the company to

help them achieve this purpose. There are many types of social enterprise. Probably one of the best known is the Eden Project whose aim is regeneration and conservation. Social Firms are another type of social enterprise. Social Firms can be identified by their social mission. This is to create jobs for people who find it hardest to get them. For more information go to: www.socialfirmsuk.co.uk

5

Shared Mapping Issues Regardless of whether mapping information is collected face to face or over the ‘phone, responses obtaining detailed information on employee hours if the workforce is higher than around 10-15 can take time4. Some firms will provide information on the percentage of commercial income but are reluctant to disclose the actual income levels. Other Means of Obtaining Information As previously mentioned other methods are used to collect information e.g. company websites, applications to become or retain Star Social Firm5 status and projects. Some projects, for example, a recent social enterprise survey undertaken for the Romanian government provided some useful updated mapping information.

CHANGES AND DEVELOPMENTS IN THE SOCIAL FIRM SECTOR Numbers and Sector Growth As with the wider social enterprise sector Social Firms vary widely in their size, the scope of their operations and turnover. In this respect Social Firms (like the social enterprise sector as a whole) mirror the SME business6 sector. At present all the enterprises in the Social Firm sector are also SMEs with just one (The Pluss Organisation7 with a turnover in the region of £23 million and staff of over 400) on the very upper limit of the SME sector. In this section the developments in the number of Social Firms, employee numbers, income, geographical spread etc will be examined. Comparison with 2006 This first section compares the number of Social Firms and emerging Social Firms since the last mapping in 2006. More in-depth information on the growth and change in the sector can be seen in Table 1 overleaf. Some of this increase can be attributed to the broadening of the definition of Social Firms to include other disadvantaged groups such as ex-offenders, homeless people and ex-substance abusers, rather than only disabled people (this changed at the end of 2006).

There are now 181 businesses in the Social Firm sector

The sector is made up of:-

99 Social Firms & 82 emerging Social Firms

This is an overall increase of 32% since 2006

The balance between Social Firms and emerging Social Firms

has changed slightly, with Social Firms increasing from 51% to 56%

4 The percentage of employees in Social Firms is calculated on the FTE (full-time equivalent) numbers to obtain an accurate picture. Where

some people work just three hours per week and others may be working 12 or 16 hours obtaining this information can take some time and people are, understandably reluctant to spare the time to find the information requested.

5 The Star Social Firm is a quality standard that is awarded to Social Firms that have proved the quality of their business and the employment they provide for severely disadvantaged people. Visit www.starsocialfirms.co.uk for more information.

6 In its report, “ Small and Medium sized Enterprise (SME) Statistics for the UK and Regions 2008” the SME sector was defined by the Department for Business, Innovation and Skills as ‘businesses with a turnover of under £25 million and fewer than 250 employees.

7 The Pluss Organisation is one of a number of Social Firms that began life as a supported factory. Historically supported factories were provided with a great deal of support via government programmes. This enabled firms to develop and invest in expensive manufacturing equipment and is the reason why income levels are, in the main, higher than other Social Firms. Pluss, like other Social Firms that started out as a supported business, have developed into ones in which the workforce is actively empowered and the company works to the Social Firms UK Values-Based Checklist and, indeed, Pluss has recently been re-approved as a Star Social Firm.

6

The last mapping report showed that between 2005 and 2006 there was an increase of 15% in the number of firms known to us in the Social Firm sector. Since 2006 the overall growth level is 32%, an average of 8% per year. These figures clearly show a slowdown in growth and the recession must play a part in this. However, a comparison between growth over 1 year and over 4 years is likely to be misleading. With hindsight we now know that the numbers of firms identified between 2005 and 2006 were not sustainable over the longer term. This suggests that taking a measure over a short period is likely to be less accurate and not a good predictor of longer term growth.

Overview of Numbers Enterprises in the Social Firm Sector in 2006 and 2010

2006 2010 Percentage changes All Nations and Regions

Social Firms

Emerging Social Firms

Total Social Firms

Emerging Social Firms

Total Increase/decrease

emerging Social Firm

numbers

Increase/decrease in

Social Firm

numbers

Total overall increase/de

crease

East Mids 1 6 7 0 1 1 -83% -100% -86%

Eastern 5 1 6 7 8 15 700% 40% 150%

London 7 8 15 12 9 21 13% 71% 40%

North East 2 2 4 4 1 5 -50% 100% 25%

North West 1 4 5 4 1 5 -75% 300% 0%

South East 13 4 17 10 4 14 0% -23% -18%

South West 2 4 6 5 3 8 -25% 150% 33% West Mids

8 17 25 10 8 18 -53% 25% -28% Yorks & Humber 7 11 18 17 5 22 -55% 143% 22% N Ireland

3 2 5 4 3 7 50% 33% 40% Wales

2 7 9 7 9 16 29% 250% 78% Scotland

13 7 20 20 29 49 314% 54% 145% Total 64 73 137 100 81 181 11% 56% 32%

2006 2010 Percentage changes Social Firms

Emerging Social Firms

Total Social Firms

Emerging Social Firms

Total Increase/decrease

emerging Social Firm

numbers

Increase/decrease in

Social Firm

numbers

Total overall increase/de

crease English regions

combined

46 57 103 69 40 109 -30% 50% 6%

2006 2010 Percentage changes Nations Social

Firms Emerging

Social Firms

Total Social Firms

Emerging Social Firms

Total Increase/decrease

emerging Social Firm

numbers

Increase/decrease in

Social Firm

numbers

Total overall

increase/decrease

N Ireland Subtotal 3 2 5 4 3 7 50% 33% 40% Scotland Subtotal 13 7 20 20 29 49 314% 54% 145% Wales Subtotal 2 7 9 6 10 16 43% 200% 78% Total - three nations 18 16 34 30 42 72 163% 67% 112%

Table 1

See Appendix 1 for a complete list of the businesses currently known of in the Social Firm sector.

7

Businesses that have exited the sector The slower growth is thought, in part, to be a result of businesses that have either not survived, or converted to other types of social enterprise. This section looks briefly at organisations that have come and gone and seeks to learn from our knowledge of why this has happened. Losses are never welcome but they need to be seen in their wider context. Social Firms are a part of the SME (small and medium enterprise) sector; a sector that in the UK houses around 3.6 million enterprises most of which (99.5%) employ less than 2508 people. More particularly of the 175,000 business that register for VAT each year most will survive their first year but, by the end of the third year around one third will have ceased trading. Previous research has suggested that the closure of Social Firm businesses is certainly no worse and probably slightly better than that for the SME sector as a whole. For a variety of reasons (not all related to the economic downturn) we know of around 50 enterprises that were in the Social Firm sector that have either ceased trading or have been absorbed into other enterprises or are trading as social enterprises but not as a part of the Social Firm sector. Of the fifty around thirty have ceased trading. It’s always hard to know whether an organisation goes down because it is a victim of the recession and whether there were other contributory factors. It does seem fair to say that several of the Social Firms would probably have gone under anyway. This might be, for example, because they were underfunded or did not have sufficiently robust financial control systems in place. A few found themselves in the wrong marketplace, encountering declining demand or being in the wrong location. This suggests that there is room for improvement in the financial and business management within the sector and perhaps points to a need for greater support in these areas (although this is not borne out by the responses to questions on business management shown later in this report). One factor is very clear: the most significant losses to the sector have been where the number of firms has multiplied fast under one umbrella organisation. Of equal note are the enterprises that although still operating are no longer seeking to attain or maintain the minimum 25% of severely disadvantaged employees and are therefore no longer considered to be a part of the Social Firm sector. These are firms that are in sympathy with the Social Firm model but have concluded they are not able to maintain either sufficient business focus or the level of employment of those furthest from the labour market. See Appendix 2 for information on the spread of losses to the sector. Whilst this fallout is significant it is thought that we now have a sector that is much more grounded; one that fully understands what it is to be a Social Firm and has significantly developed its ability to trade at commercial rates and to develop and grow. Identifying new entrants to the Social Firm sector Although there are inevitably losses there are Social Firms yet to be discovered. We are constantly learning of social enterprises that we believe to be a part of the Social Firm sector. Across the UK there are over forty enterprises on our radar with whom we need to do more work to establish that they are indeed part of the Social Firm sector. This does suggest that growth is happening faster than we are currently able to track it. These enterprises do not include supported factories which we are confident will, increasingly, want to move forward and work to become Social Firms. If just 50% of the organisations that we have logged are confirmed as being in the Social Firm sector we would break through the 200 barrier. Working to engage with the enterprises we have already identified and building links with supported factories that want to become Social Firms is a priority for Social Firms UK.

8 The numbers vary in the different definitions.

8

The Current State of the Social Firm Sector This section begins by giving an overview of the current sector – legal forms, regional spread, employee focus, business focus. It will then look at the changes since 2006. Legal Form Since 2006 changes to the Companies Act means that understanding what is and is not a social enterprise in terms of their legal form has become a little more complex. It is now possible to have a variety of legal forms enhanced by an ‘entrenchment provision’. Since the content of the entrenchment provision is not prescriptive each will need to be taken on its merit. Within the Social Firm sector the ‘provisions’ would need to meet the Social Firm values as set out in the Values-Based Checklist.

Chart 1 At present there are two Social Firms with a legal structure enhanced by an entrenchment provision included in the ‘other’ in Chart 1. Other ‘others’ include enterprises that are an integral part of the parent organisation (rather than a subsidiary).

Comparison of Main Legal Form in the Social Firm Sector 2006 and 2010

Percentage of Whole

2006 2010 Company Limited by Guarantee and a registered charity

35% 18%

Company Limited by Guarantee

17% 20%

Company Limited by Share

13% 8%

Statutory Organisations

13% 8%

CIC(Ltd by guarantee & Share combined)

9% 11%

Subsidiary of Charity/Other parent organisation

9% 9%

Table 2 As can be seen from Chart 1 and Table 2 there appears to be a reduction in Companies Limited by Guarantee and that are also registered charities. It also appears that, after the first enthusiastic flurry, interest in the Community Interest Company (CIC) model has waned.

9

Size, Spread and Focus A little complicated but taking Tables 1 and 3 with Charts 2 and 3 together does provide an overview of the size, spread and focus the Social Firm sector in 2010.

• Table 1 give information on the spread of Social Firms and changes since 2006. • Chart 2 provides information on the numbers of Social Firm businesses and their

regional/national spread. • Chart 3 and Table 3 gives the breakdown of employee focus in the sector.

As previously noted the sector as a whole has increased by 32% since 2006. Size and Spread The extreme changes within regions and nations and the spread of Social Firms throughout the UK are uneven and there is no perceived pattern. Comparisons between nations and regions are not necessarily valid but, it seems no surprise to find that Scotland, which has the support of Social Firms Scotland, has the largest number of firms (49) whilst the East Midlands which no longer has a Social Firm champion shows a decrease of 83% in its Social Firm presence. It is also perhaps relevant to know that the RBS SE100 report found the East Midlands to be the worst performing, region with social enterprise income growth of only 15%9.

Chart 2 In the English regions the South East and West Midlands both show an overall reduction in the

he Eastern region has an impressive high has resulted in an overall increase of just 6% in

number of enterprises in the Social Firm sector whilst tgrowth rate of 150%. The very varied level of change the English regions.

9 The RBS SE100 growth rate is measured over the last year whereas the growth of the Social Firm sector in this report is measured over

four years.

10

Movement within the Social Firm Sector Looking at the movement within the sector – numbers of enterprises that were known in 2006 and are

d and grown. Mapping has shown that the number of:

43 E. New Emerging Social Firms identified since 2006 = 67

Of these, figure al Firm but the numbers that were around as emerging Social Firm in 2006 and are still ‘emerging’ is perhaps something t eeds Target E e Cha in tes th ome 8 (155) firms havesome level on supp ng peo with me tal health needs. This does not include those wittho abuse issues although it is

t people in these target groups do also

bilities. 15% f firms focus purely on supporting people with a learning disability. Adding together all those that

cus on learning disability the total number that employ people with learning ). As with mental health numbers of people with a learning disability are also

still trading, the numbers that have developed from emerging to Social Firm etc provides some insight into the way the sector has develope

A. Social Firms operating in 2006 and still in sector = 35 B. Emerging Social Firms operating in 2006 and still in sector as emerging businesses = 17 C. Emerging Social Firms operating in 2006 and that are now Social Firms = 19 D. New Social Firms identified since 2006 and still operating =

B is surprising. It is well known that it takes time to establish a Soci

hat n

mploye

attentio

Groups

n.

rt 3 dica of focus

at s 6%orti

ple

nh a focus on ex-offenders, homeless people or se with substance

known thahave mental health problems. Taken together this shows that the sector still has a strong focus on supporting people with mental ealth needs - as it did in 2006. h

Again, as in 2006, the second largest target employee group is people with learning disaohave some level of foisabilities is 141 (77%d

ex-offenders, homeless or have problems with substance abuse.

Target Employee Groups by Number in the Social Firms Sector

All Mental Health

Learning Disability

MH & LD Combined

Physical Disability

Sensory Loss

Ex Offenders

Ex Substance

Misuse Homeles

s BEM

41 51 37 63 21 15 7 2 8 5

P ease note: Due to the variatiol ns in the target employee groups the numbers shown here add up to more than the numbers of nk own firms in the sector.

Table 3. W ilsth support for people w

s it should be noted thith mental health needs or learning disability are clearly the two highest

group many firms focus on more than one group the numbers shown in T le he sector (and therefore the numbers of firms

d arning disabilities is higher than the reality).

groups by regions and nations can be found in Appendix 3.

at since ab 3 are greater than the number of businesses in tite as supporting people with mental health needs or lec

Further information on target

11

E p In 2006 the sector employed more than 1600 FTE (Full Time Equivalent) staff with 860 of them being peop o were employed as being furthest from the labour market. Nearly 21% of disadvantaged people worked less than 16 hours per week. Chart 4 and the figures below are taken from analysis of the firms that supplied full staffing information for the 2010 mapping. On these alone the sector has nearly 1900 staff. This can be broken down as follows: STAFF NUMBERS • All Staff: 1886 • Severely disadvantaged (SD) staff: 1064. Plus there are 9 known self employed staff • Full Time Equivalent (FTE) staff: 1751 • FTE SD staff: 1009 • Percentage of FTE staff who are severely disadvantaged: 58%

FULL TIME POSTS • Full time posts:1344 • SD staff in full time posts: 624 • Percentage of SD who are in full time posts: 46%

PART TIME POSTS • Part time posts: 542 • SD staff in part time posts: 440 • Percentage of SD who are in part time posts: 81% • SD staff working less than 16 hours a week: 210 - just under half the part time posts

m loyee Numbers

le wh

Chart 4

12

Taking into account both full time and part time employment for severely disadvantaged staff the hours a week across the sector reduces to 20% - almost

entical to 2006.

rojected Real Rize of the Sector

sing information obtained it is possible to make projections as to the real size of the sector in 2010.

• 2600 staff employed • 2451 • 1798 peo

severely disa d p• 64 e ed b rely tag le• Ac rea oy ince s 62%

info on obta it is also possible to ate that across the sector:

verage number of staff per business is 14 avera number o TE staff p usiness 3.5

e avera number o TE staff p are sev disadvant d is 8 e med umber of E staff is

dices 4 and 5 contain some more detailed information on staffing and income.

ers

to offer ork training/experience. Others do not. Mapping suggests a reduction in the numbers of Social

percentage of staff working less than 16 id P U Real Trading Value It is estimated that the real trading value of the known sector is over £83 million Employee Numbers It is estimated that across the 181 firms there are:

full time equivalent staff employed ple in full time posts - of these 857 are filled by

dvantageposts fillse in empl

eople y sevement in the

5 part timtual inc

disadvan sector s

ed peop 2006 i

Using the rmati ined calcul • the a• the ge f F er b is 1• th ge f F er business that erely age• th

ian n FT 4.5

Appen Service Us ‘Service users’ is an emotive term and we are conscious that is one that is not liked. Unfortunately an easily understood alternative has not yet been found. It is used here to differentiate a group who are not in paid employment and for whom the Social Firm provides work related training paid for by organisations such as health or social services. As in 2006 some Social Firms have contractswFirms that have such contracts. Table 4, below, shows that only 17% of businesses have service users and that where they do the main focus is people with learning disabilities.

Summary of Businesses in the Social Firm Sector With Service Users 2010

Number of Firms

Mapped

Number of Firms that

Have Service Users

Total No. of Service

Users per Week

Average No. of Service Users per

Firm

% of l Firms that Take Service Users

No of Firms that Focus on Service

Users with a Learning Disability

% of Firms Focusing on

Service Users with a learning

Disability

England 94 25 7%7 175 4 57%

NortIrela 1 35 35 25% 1 100% hern

nd 4

Scotl 33 12 14 36% 4 % and 5 12 33

Wales 15 5 72 14 33% 5 0% 10

Total 146 25 427 17 17% 14 56%

Table 4

13

Trainees

s that only 23% of businesses have trainees. It is thought that these figures will probably xclude many of those recently taken on under the Future Jobs Fund and who are working to some

onversations with Social Firms would suggest that the number of people who are really trainees on

olunteers The number of firms that have volunteers, at just 27%, is slightly less than those claiming to take trainees. The focus of volunteering is split roughly 50/50 between people with mental health needs and those with learning disabilities. The later section on staff support indicates that most firms have volunteer agreements in place and there was a clear distinction made between the roles and responsibilities of workers and volunteers, as required by legislation.

Table 5 showelevel of formal training. When mapping there is often some confusion over the difference between a trainee and a service user and it is possible that the numbers are sometimes counted twice. Ctime limited training leading to a qualification (not permanent employees and not also service users) is very low and in reality is likely to be lower than the number of service users attending for work experience.

V

Summary of Trainees per ial Firm Businesses 2010 Week (average number) in Soc

Number of Firms Mapped

Number of Firms that Take Trainees

Total No. of Trainees per

Week Average No. of

Trainees per Firm % of Firms that Take Trainees

All English Regions 94 23 428 19 24% Nort Irela 4 3 1 14 %

hernnd 4 75

Scotla 33 7 4 15 % nd 10 21

Wale 15 1 9 % s 9 7

Total 146 34 582 17 23% Table 5

Summary of Businesses in the Social Firm Sector that have Disadvantaged People Attending as Volunteers 2010

Number of Firms Mapped

Number of Firms that have volunteer

s

Total No. of volunteers per Week

Average No. of

volunteers per Firm

% of Firms that

have volunteer

s

No. of Social

Firms that focus on mental

health and have

volunteers

% of Firms that have

volunteers with mental

health needs

No. of Firms that focus

on learning disability and have

volunteers

% of Firms that have

volunteers with

learning disabilities

England 94 26 166 6 28% 8 32% 11 42% Northern Ireland 4 1 3 3 25% 1 100% 1 100%

Scotland 33 10 136 14 30% 7 70% 6 60%

Wales 15 2 6 3 13% 1 50% 1 50%

Total 146 39 311 8 27% 17 44% 19 49% Table 6

14

Businesses – Trading Sectors Since 2006 there has been little change in the type of products and services offered and their level of representation in the sector. In 2006 catering represented nearly 23% of the sector whilst recycling, horticulture and training were all around 10%. Catering continues to be the largest trading sector (numbers of firms) but the percentage share has reduced and now accounts for 19% of all businesses or parts of businesses. Recycling (waste, wood, electrical, furniture, white goods and IT), which was marginally below horticultural, is now ahead with 10% of the firms working in recycling. Within the ‘horticulture’ label (7% of firms) the emphasis is now very much on contract gardening and maintenance services and, as can be seen in Chart 5 below, this sector is now shown as grounds/garden maintenance/horticulture.

Trading Sectors and Income Of the business ese are shown in Table 7 ov leaf. This t illustrates the changes rs with ince 2006. Traini p by uge 113% his ‘jump’ is li o be due to firms at carried out training previously but where it wasn’t counted as an income earner. This is possibly because the income wa ow level a wasn’t c ome. However, it is more that either the training was previously gain without ompetitive tend r disadvantage f were not fully involv oviding tha ning. If so was not coun a trading income These seven trading sectors be n them rate in the re £20 million in tr ome per year. More ation on bu s and ir trading secto be found in App 6.

es in the Social Firm sector, 83% are in just seven trading sectors. Ther able also in numbe in these groupings s

ng is shown as u a h . T kely t th

s at a l nd it onsidered as inc likelyd stafed

t trai a c this

er and/oted ased in pr .

tweesinesse

gene the

gion of rs can

ading inc inform endix

15

Business Fo the sev ost popular ess types in 201cus - en m busin 0

Nu Numbers 2010 Perc e

increase/decrease since Percentage of the sector mbers2006 2006 in 2010

entag

Total of whole sector 137 181 32%

Catering 35 37 6% 21% Training 15 32 113% 18%

All recycling 16 20 25% 11% Retail 12 19 58% 11%

Grounds maintenance, gardening & horticulture 15 14 -7% 8%

Packaging, mail 11 fulfilment 12 9% 7% Printing/print finishing 4 12 200% 7%

Total of top 7 108 146 35% 83% Percentage of whole 79% 83%

Please note: The majority of firms are not single focus e.g. furniture recycling companies have retail sales and so will be counted twice. Similarly many firms also have training as part of their commercial income.

Ta le 7 b

Nation Sin umber of nationally available products and services has grown and the st 23% of the sec se sector where just over 10% of ent ices nationally. Of the national firms:

igher earning Trading Sectors

nother way to look at the businesses in the sector is to view the top 20 earners. These firms all in one or more of the following ten trading sectors:

oods, furniture, retail, IT, waste

ing)

al Products and Services

ce the last full mapping the nre are now 41 enterprises in the Social Firm sector that sell nationally. This is almotor as a whole in comparison to the wider social enterprierprises offer goods and serv

• 26 are in England regions (63%) • 11 are in Scotland (27%) • 4 are in Wales (10%) H Aoperate with

1. Light engineering 2. Equipment provision repair and maintenance 3. Manufacturing 4. Recycling - white g5. Fulfilment, mailing, storage, packaging 6. Retail 7. Furniture manufacture 8. Facilities management (includes office management, conference and cater9. Contract grounds maintenance, horticulture, gardening 10. IT services and training

16

J

17

ust under half of the top 20 earners (which are considered further in the following section) are supported factories. More information on supported factories can be found at

e end of Appendices 1, 4 and 6.

ikeworks

owth rate of 193%

)

Th on three Social Firms:- Mow & of an extraordinary 710% Brighte ellent growth rate of nearly 83% Ox trading began 2005 & also has a very impressive growth rate of 76%

Business Income in the Social Firm sector, as for the wider social enterprise sector, can be a combination of co ercial (grants etc). Both are considered in this section. Chart 6, shown a l non-commercial income by regions and n .

lthough a number of enterprises are reluctant to provide financial information which is regarded as

1. within emerging Social Firms:

2. within Social Firms: comes from trade

• •

3 a

• rn 100% of their income from trade earn 75% or more of their income from trade

The c ve) would seem to suggest that organisations are now being more cautious and seeking to grow the levels of income before taking on more disadvantaged staff. However the percentages given for income from trade should be treated with real caution. Given that other costs, e.g. overheads, staff support and premises are often not factored in it is known that the overall percentage of income from trade will be lower than shown. The

business that began as th Growth Rates B

• Founded in 2007 and a 2009 Social Enterprise Award winner • In its first year Bikeworks had a trading income of £175,000 • This rose to £512,000 in 2008 - a gr

The Soap Co (Keswick

• Began trading in 2007 - had a first year income of £18,000 This rose to £83,000 in 2009 - a growth rate of 361% •

e RB SS E100 Data Report published growth rates

Grow - began trading June 2006, have had a growth rate r Future Workshop - trading began 2005 & has an exc

ford Wood Recycling -

es – Income

mmercial (earned) and non-committle further on, shows the breakdown of commercial and

ations and very clearly demonstrates the emphasis on earned income Acommercially sensitive, mapping has collected some solid financial information from which the value of the sector as a whole can be calculated. Commercial Income Mapping suggests that 91% of the total income to the sector is earned and that

• 71% of their total income comes from trade • 47% earn all their income from trade • 66% earn more than 50% of their income from trade

• 92% of their total income49% earn all their income from trade

74% of businesses earn 75% or more of their income from trade

. cross the sector as a whole: 9% of businesses ea• 74% of businesses

in ome figures for emerging Social Firms (shown in 1. abo

figures given for the sector overall will, of course, be affected by the likely inaccuracies within the ercentages given for emerging Social Firms.

The top 20 48 million between them n (in the South West) the other sectors together st bute significantly to the earnings of the Social Firm sec From can be seen that

• the sector have commercial income of r £250,r is made p of businesses that up to £ 0,000

earn betwe n £500K and £5m and just one ea s over £5 Analysis also suggests that:

average earned income per business is just under £329k; and • the median figure for earned income per business is £175k.

Commercial Income and Staffing Analysis indicates that: • within emerging Social Firms the commercial income per each full time equivalent employee is

just over £15,750; • within Social Firms the commercial income per each full time equivalent employee is a fraction

under £39,000; and • across the sector as a whole the commercial income per each full time equivalent employee is

approx £36,000.

p

earners in the top ten trading groups (mentioned above) earned just over £ in 2009. Although almost half of this was earned by The Pluss Organisatio

ill contritor.

Table 8 it :

75% of businesses in• 87% of the secto

unde50

000 u earn

• 11 businesses e rn m

• the

Commercial Income by Bands for Social Firms & Emerging Social Firms 2010

Commercial Income: England Northern

Ireland Scotland Wales Total Percentage

Under £250K 52 3 18 7 81 75%

Over £250K under £500K 9 0 4 0 13 12%

Over £500K under £1m 6 0 0 1 7 7%

Over £1m under £5m 3 0 1 2 6 6%

Over £5m 1 0 0 0 1 1%

107 100% Table 8

18

Chart 6 Chart 6 a shows the rela ship bet en earned and non-earned income i e Social Firms sector by and nations. Non-Com ial Income Informatio ents icates th just 9% of e total inc in the So l Firm sector is non-comm merging Social Firms where this is just over s shown in Chart 6 the areas with most non-commercial income are London and

cotland.

rtainly for emerging ocial Firms.

irms that do have non-commercial income tend to receive this from more than one source.

bove tion we n th regions

merc

n from respond ind at th ome ciaercial. The focus for non–commercial income is within e

29%. AS Information on the types of non-commercial income received are shown in Table 9 below which also suggest that only 33% of businesses in the Social Firm sector receive non commercial income. Other information collected on income suggests that 49% of firms receive some level of non-commercial income. This latter figure is thought to be a more realistic representation – ceS F

Sources of Non Commercial Income Within the Social Firms Sector 2010

England Northern

Ireland Scotland Wales Total

Charity 5 0 4 3 12 Grant Giving

rust 11 1 9 3 24 TH 1 2 8 3 14 ealth Other 6 0 3 0 9 SLA 8 1 10 1 20

Social Services 2 0 3 3 8

Base: of 146 respondents 48 said they received non-commercial income Table 9

19

Whilst this relatively low reliance on non-commercial income appears very positive this information oes need to be tempered with the knowledge that firms, and in particular, emerging Social Firms,

receive support from their parent orga vided is often with the cost of premises and staff support. Given that these costs are often not factored in the level of non-commercial income is likel Map

1. Within emerging So• the non-commercial income received for every FTE is ion o

E is in the region of £3,400

3. Across the sector as a whole that; ery full time e lent employ in the

Bus The tive mapping questions can be roughly divided into three areas – business, finance and staf t. Tables 10, 11 and 12 below provide information on the percentage of respondents that tro gly agreed or agreed with the statements and compares this (where possible) with response in

dnisation. The support pro

y to be higher, and perhaps significantly so, within emerging Social Firms.

ing suggests: p

cial Firms; in the reg f £6,500

2. Within Social Firms; • the non commercial income received for every FT

• the non commercial income received for ev quiva ee is region of £3,700.

inesses - Management, Support and Quality

subjecf suppor

s n2006. Fuller details of the responses can be found in Appendices 8, 9 and 10. Business Management

Business Management

Using a five point ‘Strongly Agree to Strongly Disagree scale’ respondents were asked to grade the following statements.

Statement Percentage that strongly agreed

or agreed

In 2006 percentage that agreed with the

statement Our constitution demonstrates a strong commitment to the employment of severely disadvantaged people within our business. 90%

Our Business Plan is in place, up to date and actively used. 73% 11%

Our Marketing Plan is in place, up to date and actively used. 57% 30%

There is a management structure that supports trading as the primary means of achieving our social purpose. 93% 60%

Our Board fully understands the Social Firm model and fully supports our development as a Social Firm. 71% Base 73 Table 10

With since and a most welcome one, is the ntage of respondents who now have a business plan that is in place, up to date and the number of firms having a m ing plan is o dramatic nevertheless it is a very positive development. There is certainly much more focus given on marketing now years ago was rare. In a ial Firms clearly showe at although businesses overnance is not the issue it once was.

regards to business management the really big change jump in the perce

2006,

actively used. The rise in arket not s

– something that five or six

ddition discussions with CEOs and managers of Soc d th still find it hard to attract board members, board g

20

Fina anagement

to the questions on finance would seem to suggest the sector now feels more omfortable with financial management and has made strides in developing its ability to access good

ncial M The responses cfinancial information and expertise. However, the issues around business planning and management of financial resources (as previously discussed) certainly played a part in businesses closing and the clear development of good focused business systems is welcomed.

Financial Management

Using a five point ‘Strongly Agree to Strongly Disagree sked to grade the following statements.

scale’ respondents were a

Statement

Percentage that strongly agreed

or agreed

Percentage that agreed with the

statement in 2006 O vel Agreements recover all costs and ur Contracts/ Service Legenerates a surplus 39%

Our cash flow situation is healthy. 61% 40%

Our financial situation is healthy. 61% 17%

W have excellent access to accurate & timely financial information. e 97% 75%

We have excellent access to financial expertise to assist us in growing our business. 79% 55%

Base 73 Table 10

Staff Support A nu pping questions sought to find out more about the quality of the support systems that are in place. It is perhaps not surprising that with the strong emphasis on support in the Social Firms sector scores were generally high in this section. The response to the statement on equal opportunities which, scored relatively low does seem a little out of place. This may well be because Social Firms can tend towards ‘walking the walk’ without being able to spend the time ensuring polices are written down.

mber of ma

Staff Support

Using a five point ‘Strongly Agree to Strongly Disagree scale’ respondents were asked to grade the following statements.

Statement

Percentage that strongly agreed

or agreed

Percentage that agreed with the

statement in 2006 Our staff support systems are excellent.

79%

The emphasis placed on training is excellent.

85%

We have good Volunteer Agreements in place.

79%

Our Health and Safety policy and implementation is excellent.

99%

Our policies and procedures on environmental sustainability are excellent.

94%

Base 48 Table 12

21

The high score given to the question on environmental sustainability is also of note. Some Social Firms have clearly given a great deal of thought and put a lot of time and effort into being an environmentally responsible company. For others the will is there but actions are limited by a variety of outside influences and an agreement that everything is being done may be set within the confines of what is allowable by others. Quality The consolidation of Social Firms, as evidenced by the increased number of Social Firms (rather than emerging Social Firms), is thought to go hand in hand with the development of quality in the sector. There are quite a few Social Firms that would like to prove this quality by becoming Star Social Firms. The reality of running and growing a Social Firm means that too often time cannot be spared for ‘non-essentials’ such as proving quality by becoming a Star Social Firm. That said firms are increasingly recognising the link between being able to confirm quality to their staff (increasing commitment) and customers (increasing sales) and a number of Star Social Firm applications are in progress.

Social Impact The RBS SE100 Report 2010 showed that 3 Social Firms:-

- Bookdonors CIC, - Frame of Mind CIC, and - Mow and Grow

and two organisations that run Social Firms:-

- Broomby and - The Create Foundation CIC,

were featured in the section on measuring and communicating their social impact… …each scored 4/5 out of a possible 5/5.

It is clear that the Social Firm sector is maturing and that the businesses within it are gaining a reputation for successfully balancing the needs of the business and the needs of the staff within them. Numbers of Social Firms and emerging Social Firms either have good social accounting systems in place; e.g. NMC Design+Print, or are bringing them in; e.g. wood@aldingbourne and Decoda. The quality of Social Firms was recognised with Pack-IT, Bikeworks and Brighter Future Workshop winning three of the four categories in the 2009 Social Enterprise Awards. Quality is a broad church and responses to the two mapping questions, shown in the box on the next page, tend to reinforce the view that both development and planning are gaining in quality. A representative selection of the responses can be found in Appendices 11 (Change) and 12 (Significant Issues in Expanding).

22

Mapping Questions on Change and Significant Issues for the Future

1. What was the greatest change in your business in the last year? 2. What are the two most significant issues you face in expanding your enterprise?

Responses to such questions are inevitably going to come under three main areas:

1. People

2. Development

3. Finance

These areas are, of course, closely interlinked and whether looking back or looking forward will predominate. It was found both emerging Social Firms and Social Firms when considering their greatest change, had an essentially positive message i.e. that in spite of the difficult economic climate they are developing and growing with increased income and more (and more engaged) staff. Looking forward, unsurprisingly the greatest issue being faced is finance. The top financial concern is funding/obtaining finance; to get into new ventures and to move to new premises for capital growth.10 Concerns were voiced over cash flow and finding ways to increase the level of sales to stay in business. People and finance were closely linked with concerns about getting in more money to employ more, much needed, staff. Marketing is now firmly on the agenda. Taken overall responses do indicate that the sector has done a lot of growing up in the last four years. In doing so has become a sector where the quality of the businesses is much more evident. Staff support and the eternal question of how to support people to come off benefits remains vital. What is new is more emphasis on obtaining finance for growth, the more strategic outlook, the acknowledgement that marketing has an important part to play and real evidence of a sector that is balancing business and staff needs not just with care, but also with professionalism.

10 The work that Social Firms UK has been carrying out with Remploy under the TEP scheme is relevant to this concern. More than 10

disabled people have currently benefitted by working in Social Firms under this scheme the cost of which has averaged around £3,000 per year for three years. More information on the actions being taken by Social Firms UK can be found in their Manifesto Business Changing Lives. . Go to www.socialfirmsuk.co.uk.

23

CONCLUSION Whilst Social Firms seem to be holding up well in the recession (as does the wider social enterprise sector11) growth of the sector across the UK as a whole is modest. This is not entirely unexpected, given the harsh economic conditions in recent years for business generally; the emphasis has been on survival rather than growth in existing Social Firms and new starts have been appearing at a lower rate than previous years. There is a recognition that growth in the Social Firm sector should be through scaling out (more) rather than scaling up (size) so continued emphasis on start-up Social Firm businesses is more important than ever. The Social Firm sector remains positive despite the above factors and the 2010 mapping statistics reflect its achievements which are all the more impressive because of the difficult trading conditions of recent times. From this mapping report it can be concluded that: • Although growth is uneven and a little slow the sector remains positive with more firms starting

up, creating more employment opportunities.

• There have been losses to the sector but these are within the expectations of the SME sector as

a whole. Multiple firms that grow quickly under one umbrella do seem to be more vulnerable.

• There is a more solid base of Social Firms that have been around for a long time.

• The Social Firm sector is one that really does seek to ‘earn its keep’.

• The sector has made significant strides with evidence of a greater professionalism and more

emphasis on becoming quality businesses. This is evidenced by the greater emphasis on sound

financial systems businesses planning, marketing and good governance.

For continuation of the mapping process itself, ways to improve knowledge of possible new entrants to the Social Firm sector need to be explored. Social Firms UK actively uses social media platforms to contribute to online conversations, trying to capture content regarding possible emerging Social Firms and/or social enterprises which are focused on job creation, though this is only one channel and others need to be mined. Referrals from other support agencies in the wider sector need to be generated as they may well be the first local port of call with regards to business support. Whilst the future remains uncertain for UK business, the new Coalition Government’s ownership of ‘Big Society’ and what that represents could be good news for the Social Firm sector. As the government wants everyone to do more for less, this could open up trade opportunities as the private and public sector seek to establish civil society credentials via social impact clauses and support for the sector generally. It will be increasingly important for Social Firms to hone how they use social impact measurement in both the tendering process and across their marketing activity as a whole. Capitalising on this political agenda is key to the sector’s growth over the next few years and we are working hard to ensure that our members are represented at a national level. How this decentralisation is translated at a local or regional level has yet to be defined though will invariably mean a lot more activity and contact for already stretched business owners and managers. Commercial interest in the sector is becoming more evident and some good individual examples have been well established for many years. Private company engagement as a whole though remains both time-consuming and unscientific. Sharing best practice case studies are one way of exploring what has worked for others and examining approaches which may have a broader application. The wholesale commitment to quality across the Social Firm sector bodes well for the active promotion of trade activity and future sustainability; though good contract stories need to be shared and co-promoted by the sector as a whole. A more collective approach to business opportunities

11 State of Social Enterprise Survey 2009. Published by the Social Enterprise Coalition.

24

makes both financial and time-management sense, though how these approaches could be coordinated presents a challenge to the sector. We are currently looking at how Social Firms UK can facilitate group-wide trade and will continue to develop relationships which could realise these opportunities. Financial stability remains the most pressing concern for Social Firm managers and it is unclear how the Big Society Bank launched recently by the Coalition could alleviate this situation. The use of dormant bank accounts coupled with private capital to support and enable the growth of social projects sounds like it should directly benefit the sector; though it will invariably mean more engagement and possibly a repackaging to meet requirements. Finally, the overall conclusion from this most recent mapping information is that the sector has moved on. Although there are concerns, and emerging Social Firms in particular do need support, the sector can congratulate itself on the progress made. Businesses are much more aware of the challenges they face. They have a positive approach, are open to new ideas and seek new ways to expand via new markets.. We feel confident that the sector is poised to use the development and business knowledge gained for the next stage in growing strong, successful and quality businesses in the Social Firm sector, with ultimate benefit and value to people with severe disadvantages in the labour market, the economy and society as a whole. In 2006 the estimated cost savings of the Social Firm sector to the state were £30m in benefit costs, £8.5m in health costs and around £1m in Social Services spend. This data will now be updated using the 2010 mapping information contained in this important report - which could not have been produced at a better time than this when the country is having to make significant savings and scrutinise the value of all its work-related programmes. Social Firms UK has invested in undertaking this mapping exercise since 2003 and its value at a national level is immense; we are certain that its contents will assist in the continued policy lobbying for recognition of support of the Social Firm model which will, in turn, be beneficial to the businesses on the ground actually creating these much needed jobs for people otherwise excluded from the labour market through disability or disadvantage. The Social Firm model makes sense; this mapping report reflects the reality of that.

25

Appendix 1

Businesses in the Social Firm Sector 2010

Region/Nation Name of business Social Firm Status

Social Firm Emerging Social Firm E Mids Rumbles At The Lawn Emerging Social Firm Eastern Furniture Link Bedford Social Firm Eastern Daily Bread Co-operative (Cambridge) Social Firm Eastern MillRace IT Social Firm Eastern Mow & Grow Ltd (Norfolk) Social Firm Eastern Norfolk Industries* Social Firm Eastern Screenreader.net CIC Social Firm Eastern Whitehouse Enterprises* Social Firm Eastern Created 4 You* Emerging Social Firm Eastern Café Libra (Felixstowe)* Emerging Social Firm Eastern Café Libra (Ipswich)* Emerging Social Firm Eastern Creative Sign Solutions* Emerging Social Firm Eastern Graphic Design & Print Emerging Social Firm Eastern Mow and Grow (Norwich City) Emerging Social Firm Eastern Mow and Grow(Suffolk) Emerging Social Firm Eastern Mow and Grow (Cambridgeshire,

recycling) Emerging Social Firm

London Access Print, Copy & Design Emerging Social Firm London Bikeworks CIC Social Firm London Blue Sky Development & Regeneration Social Firm London Café Nova Interchange Social Firm London Catering2Order Social Firm London Core Landscapes Social Firm London CUC Social Firm

London First Fruit Furniture Warehouse Social Firm London Groundswell UK Social Firm London GWB Products Ltd* Social Firm London Lambeth Accord Social Firm London Third Sector Mailing Social Firm London Newco Products* Social Firm London Clean Slate Distribution (London) Emerging Social Firm London Equals Training Emerging Social Firm London Many Hands Painting, Decorating &

Home Maintenance Services Emerging Social Firm

London Many Hands Office Services Emerging Social Firm London Meanwhile Wildlife Garden Landscape

and Garden Services Emerging Social Firm

London Meanwhile Wildlife Garden Plant and Garden Supplies Emerging Social Firm

London Pearce Distribution Services Ltd Emerging Social Firm London Scotch Bonnet Catering Emerging Social Firm

26

N East Ayresome Industries* Social Firm N East B2G Diner Social Firm N East Busy Bodies Social Firm N East Addictions UK Social Firm N East Green Box Emerging Social Firm N Ireland Acceptable Enterprises (Larne) Ltd Social Firm N Ireland Daisies Café Social Firm N Ireland Daisies Café (2nd one to open) Social Firm N Ireland Daisies Café (newly opened third) Emerging Social Firm n Ireland The Orchardville Company Social Firm N Ireland Edgecumbe Café Emerging Social Firm N Ireland Edgecumbe Catering Services Emerging Social Firm N West Brighter Future Mobility & Training Social Firm N West CREATE UK Social Firm N West NMC Design & Print Social Firm N West The Soap Co. (Keswick) Social Firm N West Benchmark Emerging Social Firm S East Able Types Social Firm S East Netherne Printing Services Social Firm S East Oxford Wood Recycling Social Firm S East Riverside Centre Social Firm S East Travel Matters Social Firm S East Frame of Mind Social Firm S East Sector Mailing Services Social Firm S East Sunlight Design Print and Publishing

(Parent Sunlight Social Enterprises CIC) Social Firm

S East Sunlight People (Parent Sunlight Social Enterprises CIC) Social Firm

S East The Living Room (Parent Sunlight Social Enterprises CIC) Social Firm

S East wood@aldingbourne Emerging Social Firm S East Decoda Emerging Social Firm S East Furniture NOW! Emerging Social Firm S East Sunlight Studios (Parent Sunlight Social

Enterprises CIC) Emerging Social Firm

S West Hillcrest Branch Social Firm S West Aquamacs Devon & Cornwall Social Firm S West Clean Slate Distribution Social Firm S West The Pluss Organisation* Social Firm S West The Vassell Centre Social Firm S West Clean Slate Employment Emerging Social Firm S West Clean Slate Training Emerging Social Firm S West Green Machine Emerging Social Firm Scotland Aberdeen Care & Repair Emerging Social Firm Scotland At Work Scotland Emerging Social Firm Scotland Bookdonors CIC Social Firm Scotland Candies Cuisine Social Firm

27

Scotland Edinburgh Embroidery Services Social Firm Scotland Erskine Furniture* Social Firm Scotland Erskine Print* Social Firm Scotland Green Tracks Social Firm Scotland Haven Products Ltd* Social Firm Scotland LAMH Recycle Social Firm Emerging Social Firm Scotland Parkview Laundry Social Firm Scotland RSB(Royal Strathclyde Blindcraft

Industries)* Social Firm

Scotland Shetland Soap Company Social Firm Scotland Six Mary's Place Guest House Social Firm Scotland Solstice Nurseries Social Firm Scotland Spoon Café Social Firm Scotland The Soap Co. (Edinburgh) Social Firm Scotland Touchwood Recycling Ltd Social Firm Scotland Unity Dinner Social Firm Scotland Upkeep Social Firm Scotland Watch Us Grow In The Community Social Firm Scotland With People Social Firm Scotland CFINE Emerging Social Firm Scotland Computer Health Centre Emerging Social Firm Scotland Erskine Garden Centre Emerging Social Firm Scotland FBS Enterprises Emerging Social Firm Scotland Foyer Works Emerging Social Firm Scotland Furniture Plus Fife Emerging Social Firm Scotland Gallery on the Corner Emerging Social Firm Scotland Grangemouth Industries* Emerging Social Firm Scotland Grean Emerging Social Firm Scotland Hebridean Chocolate Emerging Social Firm Scotland Home Improvement Project Emerging Social Firm Scotland Kingsmeadow Catering Emerging Social Firm Scotland Ness Soaps Emerging Social Firm Scotland Nursery Needs @ Watch Us Grow Emerging Social Firm Scotland Rag Tag N Textile Emerging Social Firm Scotland Raploch Community Enterprise Emerging Social Firm Scotland Reid Macewan Training and

Conference Centre Emerging Social Firm

Scotland Restart Orkney Emerging Social Firm Scotland Rosie's Café Emerging Social Firm Scotland Send-it Fulfilment Solutions Emerging Social Firm Scotland Shetland Coffee Company Emerging Social Firm Scotland Short Cut Emerging Social Firm Scotland the bread maker Emerging Social Firm Scotland The Community Warehouse Emerging Social Firm Scotland TimberWORKS! Emerging Social Firm Scotland Vanishing Willows Cafe Emerging Social Firm Scotland VIP Partners Emerging Social Firm W Mids Four Seasons Function Room Emerging Social Firm

28

West Mids All Formats: Sign Making Social Firm West Mids All Formats: Transcription Services Social Firm West Mids Concept Conference Centre Social Firm West Mids Green Horizons (Pathways -

Shropshire) Ltd Social Firm

West Mids icycle Social Firm West Mids Manufacturing Link* Social Firm West Mids Pack-IT Hereford Social Firm West Mids Packaging Link* Social Firm West Mids The Frogmeadow Community Café

(Pathways - Shropshire Ltd) Social Firm

West Mids Top Bites* Social Firm West Mids Benedict's Coffee Room Emerging Social Firm West Mids Cherry Orchard Gardening Service Emerging Social Firm West Mids Kings Hill Nurseries Emerging Social Firm West Mids Mow and Grow (North Birmingham) Emerging Social Firm West Mids Newpath Contract Packers Emerging Social Firm West Mids Oak Farm Tea Rooms (Pathways

Shropshire Ltd) Emerging Social Firm

West Mids Textiles By St. Annes Emerging Social Firm Wales Cae Post Social Firm Wales MTIB* Social Firm Wales Green Shoots Catering Social Firm Wales Pack-IT Promotions Social Firm Wales Pembrokeshire FRAME Ltd Social Firm Wales Suresprung Furnishings* Social Firm Wales Your Pets Warehouse Ltd Social Firm Wales Beacons Creative Wales Ltd Emerging Social Firm Wales Dee-Tex Project Emerging Social Firm Wales EB's Coffee Shop Emerging Social Firm Wales Green Horizons Merthyr Ltd Emerging Social Firm Wales Morphious Ltd Emerging Social Firm Wales Mow and Grow (Wales) Emerging Social Firm Wales Park View Café Emerging Social Firm Wales Not Just Nuts Emerging Social Firm Wales Ten Green Bottles Powys CIC Emerging Social Firm Yorks & Humber Buster's Café (Doncaster) Social Firm Yorks & Humber Buster's Café (Becklin Centre) Social Firm Yorks & Humber Buster's Coffee Merchants Social Firm Yorks & Humber Create Café Create (Boar Lane) Social Firm Yorks & Humber Create Cafe (Leeds Parish Church) Social Firm Yorks & Humber Create Food Social Firm Yorks & Humber Create Housekeeping Social Firm Yorks & Humber Cream Catering Social Firm Yorks & Humber Electroville Social Firm Yorks & Humber just coffee people Social Firm Yorks & Humber Lippy People CIC Social Firm Yorks & Humber People Matters (Leeds) CIC Social Firm

29

Yorks & Humber Pugney's Waterpark Café Social Firm Yorks & Humber Rerun Social Firm Yorks & Humber Speakup Social Firm Yorks & Humber Viewpoint Sheffield Branch) Social Firm Yorks & Humber Viewpoint (Leeds Branch) Social Firm Yorks & Humber Catering Plus Ltd Emerging Social Firm Yorks & Humber Mow and Grow (Grimsby) Emerging Social Firm Yorks & Humber Friendly Resource Company Emerging Social Firm Yorks & Humber Friendly Training Company Emerging Social Firm Yorks & Humber Friendly Information Company Emerging Social Firm

Please Note: Those firms marked with an * are either ones that started life as a supported factory or are more recent developments of the parent firm e.g. Created 4 You, Creative Sign Solutions and the two Café Libra are all more recent enterprises started by Whitehouse Enterprises. The information on which firms in Scotland started as supported factories has not been fully verified. Historically supported factories were provided with a great deal of support via government programmes. This enabled firms to develop and invest in expensive manufacturing equipment and is the reason why their income levels are, in the main, higher than other Social Firms. All these businesses have developed into ones in which the workforce is actively empowered and the company works to the Social Firms UK Values-Based Checklist.

30

31

Appendix 2

Numbers of enterprises that have are no longer a part of the Social Firm sector

Region Ceased Trading

Social enterprise but not in Social Firm

sector

Total

East Midlands

1

5

6

Eastern

1

2

3

London

1

4

5

North East

1

1

2

North West

2

2

4

N Ireland

0

0

0

Scotland

3

0

3

South East

2

1

3

South West

0

0

0

Wales

1

1

2

West Midlands

4

2

5

Yorkshire & Humber

1

1

2

Total

17

19

35

Appendix 3

Summary of Target Employee Groups by Region 2010

Employ from all target groups

Mental Health Learning Disability

MH & LD Combined

Physical Disability

Sensory Loss Ex Offenders

Ex Substance

Misuse Homeless BEM

East Mids 0 0 1 1 0 0 0 0 0 0Eastern 3 2 3 5 1 2 0 0 0 0London 1 3 7 10 5 5 1 3 1N East 3 1 1 2 0 0 1 0 0N West 1 2 2 1 0 0 0 0 0S East 2 5 2 7 0 0 0 0 0 0S West 1 2 1 3 1 1 0 0 1 0West Mids 1 7 7 14 6 10 1 3 0 3

Yorks & Humber3 2 3 5 1 1 3 3 4 0

England 3 2 4 6 1 2 0 0 0 0 N Ireland 0 1 3 4 0 0 0 0 0 0Wales 1 9 7 16 5 3 0 2 0 2Scotland 5 16 9 25 6 3 2 1 0 0

Grand Total 18 26 29 55 16 21 5 7 8 4

32

Appendix 4

Summary of Total Number of Known Employees 2010

Emerging Social Firms Full Time Posts

Severely Disadvantage

Full Time Posts

Part Time Posts

Severely Disadvantage

Part Time Posts

Severely Disadvantaged Working less then 16hrs

Severely Disadvantaged Self Employed

Full Time

Severely Disadvantaged Self Employed

Part Time

SD Hours Permitted

Total FTE Staff

Severe Disadvantaged

FTE

East Midlands 4 2 6 3 2 0 0 0 7 5Eastern Region 4 2 1 0 0 0 0 0 4 2London 6 5 3 2 0 0 0 0 8.8 6North East 0 0 1 0 11 0 0 0 0.8 0North West 2 0 0 0 20 0 0 0 2 1South East 28 14 14 14 8 0 0 0 41 26South West 43 26 0 0 0 0 0 0 43 26West Midlands 10 0 12 0 0 0 0 0 30.65 9.5Yorkshire & Humberside 0 0 0 0 0 0 0 England 97 49 37 19 41 0 0 0 137 76 Northern Ireland 3 1 0 0 0 0 0 0 3 1Scotland 20 4 18 27 23 0 0 0 35.7 9.06Wales 29 6 24 19 5 0 0 0 37.4 15.8Grand Total 149 60 79 65 69 0 0 0 213 101

Social Firms Full Time Posts

Severely Disadvantage

Full Time Posts

Part Time Posts

Severely Disadvantage

Part Time Posts

Severely Disadvantaged Working less then 16hrs

Severely Disadvantaged Self Employed

Paid on Permitted

Earnings without Employment

Contracts

SD Hours Permitted

Total FTE Staff

Severe Disadvantaged

FTE

East Midlands 0 0 0 0 0 0 0 Eastern Region 75 34 90 74 9 4 0 0 127.6 76.2London 198 121 43 20 15 0 0 0 230 140.2North East 95 63 12 9 1 0 0 0 97.7 66.5North West 6 5 16 13 1 0 0 0 24 17.4South East 11 5 18 15 10 0 0 0 55.7 49.48South West 499 201 13 4 1 0 0 0 465 232.3West Midlands 37 21.5 9 6 13 0 0 0 40.25 22.8Yorkshire & Humberside 56 22 68 52 33 5 0 0 97.34 59.24England 977 473 269 193 83 9 0 0 1138 664

33

Northern Ireland 28 10.7 6 5 0 0 0 0 30.3 11

Scotland 103 31 184 174 58 0 0 4 203.23 126.04Wales 87 50 4 3 0 0 0 0 166.7 106.8Grand Total 1195 564 463 375 141 9 0 4 1538 908

Social Firms & Emerging Social Firms

Full Time Posts

Severely Disadvantage

Full Time Posts

Part Time Posts

Severely Disadvantage

Part Time Posts

Severely Disadvantaged Working less then 16hrs

Severely Disadvantaged Self Employed

Paid on Permitted

Earnings without Employment

Contracts

SD Hours Permitted

Total FTE Staff

Severe Disadvantaged

FTE

East Midlands 4 2 6 3 2 0 0 0 7 5Eastern Region 79 36 91 74 9 4 0 0 131.6 78.2London 204 126 46 22 15 0 0 0 238.8 146.2North East 95 63 13 9 12 0 0 0 98.5 66.5North West 8 5 16 13 21 0 0 0 26 18.4South East 39 19 32 29 18 0 0 0 96.7 75.48South West 542 227 13 4 1 0 0 0 508 258.3West Midlands 47 21.5 21 6 13 0 0 0 70.9 32.3Yorkshire & Humberside 56 22 68 52 33 5 0 0 97.34 59.24

England 1074 522 306 212 124 9 0 0 1275 740 Northern Ireland 31 11.7 6 5 0 0 0 0 33.3 12Scotland 123 35 202 201 81 0 0 4 238.93 135.1Wales 116 56 28 22 5 0 0 0 204.1 122.6

Grand Total 1344 624 542 440 210 9 0 4 1751 1009 Number of Social Firms providing data = 118

34

Appendix 5

Information Provided by the Social Firm Sector 2010 Showing Income and Employee Numbers

Organisation Name

Commercial Income

Non Commercial Income

Total Income Percentage Commercial

Income

Percentage Non Commercial Income

total FTE Staff

Severe Disadvanta

ged FTE

Percentage Disadvantaged

Staff

Social Firm

status

East Mids Rumbles @ The Lawn £134,569 £9,634 £144,203 93% 7% 7 5 71% Emerging

Subtotal East Mids

£134,569 £9,634 £144,203 93% 7% 7 5 71%

Eastern Norfolk Industries For The Blind £482,000 £270,000 £752,000 64% 36% 24 15 63%

Social Firm

Eastern MillRace IT £515,000 £0 £515,000 100% 0% 11 5 45%Social Firm

Eastern

Daily Bread Co-operative (Cambridge) Ltd £887,000 £0 £887,000 100% 0% 11.2 2.5 22%

Social Firm

Eastern Screenreader.net CIC £97,000 £0 £97,000 100% 0% 2 2 100%

Social Firm

Eastern Graphic Design & Print CIC £128,000 £0 £128,000 100% 0% 4 2 50% Emerging

Eastern Whitehouse Enterprises £619,000 £0 £619,000 100% 0% 73.4 47.7 65%

Social Firm

Subtotal Eastern £2,728,000 £270,000 £2,998,000 91% 9% 125.6 74.2 59%

London Equals Training CIC £7,000 £7,000 £14,000 50% 50% 3 3 100% Emerging

London

Scotch Bonnet Catering (Southside Partnership) £25,000 £0 £25,000 100% 0% 1.8 0 0% Emerging

London Pearce Distribution Services Ltd £130,000 £0 £130,000 100% 0% 1 1 100% Emerging

London Catering2Order £160,000 £0 £160,000 100% 0% 16 14 88%Social Firm

London Café Nova Interchange £170,000 £0 £170,000 100% 0% 5.5 2.5 45%

Social Firm

London Groundswell UK £224,892 £0 £224,892 100% 0% 0 0 0%Social Firm

35

London Third Sector Mailing Ltd £300,000 £0 £300,000 100% 0% 9 6 67%

Social Firm

London Lambeth Accord £301,000 £0 £301,000 100% 0% 4.5 4.5 100%Social Firm

London Bikeworks CIC £409,600 £102,400 £512,000 80% 20% 8 6 75%Social Firm

London First Fruit Furniture Warehouse(3xE) £916,000 £0 £916,000 100% 0% 6 3 50%

Social Firm

London GWB Products Ltd £3,400,000 £0 £3,400,000 100% 0% 78 46 59%Social Firm

London Newco Products £5,250,000 £1,750,000 £7,000,000 75% 25% 85 46.2 54%Social Firm

Subtotal London £11,293,492 £1,859,400 £13,152,892 86% 14% 217.8 132.2 61%

N East Green Box £21,000 £0 £21,000 100% 0% 0.8 0 0% Emerging

N East Addictions UK £100,000 £0 £100,000 100% 0% 0 0 0%Social Firm

N East Busy Bodies £130,000 £0 £130,000 100% 0% 4.2 3 71%Social Firm

N East Ayresome Industries £2,600,000 £20,000 £2,620,000 99% 1% 91.5 61.5 67%Social Firm

Subtotal N East £2,851,000 £20,000 £2,871,000 93% 1% 96.5 64.5 67%

N West NMC Design+Print £130,000 £45,000 £175,000 74% 26% 16 12 75%Social Firm

N West Brighter Future Mobility And Training £214,500 £115,500 £330,000 65% 35% 6 4.4 73%

Social Firm

N West CREATE UK £2,200,000 £0 £2,200,000 100% 0% 0 0 0%Social Firm

N West Benchmark £81,515 £0 £81,515 100% 0% 2 1 50% Emerging

N West The Soap Co. (Keswick) C.I.C. £83,000 £0 £83,000 100% 0% 2 1 50%

Social Firm

Subtotal N West £2,709,015 £160,500 £2,869,515 94% 6% 26 18.4 71%

S East wood@aldingbourne £54,000 £0 £54,000 100% 0% 2 2 100% EmergingS East Decoda £60,000 £12,000 £72,000 83% 17% 2 0 0% EmergingS East Furniture NOW! £405,000 £135,000 £540,000 75% 25% 25 12 48% Emerging

S East Frame Of Mind CIC £51,410 £45,590 £97,000 53% 47% 3.2 1.98 62%Social Firm

S East Furniture Link Bedford £132,000 £0 £132,000 100% 0% 6 4 67%

Social Firm

36

S East Oxford Wood Recycling Ltd £134,000 £0 £134,000 100% 0% 4.5 3.5 78%

Social Firm

S East Travel Matters £169,600 £42,400 £212,000 80% 20% 3 2 67%Social Firm

S East Sunlight Design Print & Publishing £170,750 £0 £170,750 100% 0% 0 0 0%

Social Firm

S East Sunlight People £170,750 £0 £170,750 100% 0% 0 0 0%Social Firm

S East The Living Room £170,750 £0 £170,750 100% 0% 0 0 0%Social Firm

S East Sunlight Studios £170,750 £0 £170,750 100% 0% 0 0 0%Social Firm

S East Netherne Printing Services £270,000 £40,000 £310,000 87% 13% 5 2 40%

Social Firm

S East Able Types Ltd £491,000 £0 £491,000 100% 0% 12 12 100%Social Firm

S East

Blue Sky Development + Regeneration £600,000 £500,000 £1,100,000 55% 45% 18 12 67%

Social Firm

S East Riverside Centre £680,000 £120,000 £800,000 85% 15% 40 40 100%Social Firm

Subtotal S East £3,730,010 £894,990 £4,625,000 81% 19% 120.7 91.48 76%

S West Hillcrest Branch £124,950 £0 £124,950 100% 0% 5 2.3 46%Social Firm

S West The Vassall Centre £435,000 £30,000 £465,000 94% 6% 6 2 33%Social Firm

S West The Pluss Organisation £23,530,000 £0 £23,530,000 100% 0% 450 226 50%

Social Firm

S West Clean Slate Training £70,613 £0 £70,613 100% 0% 43 26 60% Emerging

Subtotal S West £24,160,563 £30,000 £24,190,563 100% 0% 504 256.3 51%

West Mids

COGS - Cherry Orchard Garden Services £25,000 £0 £25,000 100% 0% 3.6 0.5 14% Emerging

West Mids Textiles by St Annes £30,000 £0 £30,000 100% 0% 12 9 75% Emerging

West Mids Oak Farm Tea Rooms £33,000 £0 £33,000 100% 0% 1 0 0% Emerging

West Mids Benedicts Coffee Room (Newpath) £202,500 £0 £202,500 100% 0% 5.8 0 0% Emerging

West Mids

Kings Hill Nursery (Newpath Services Ltd) £202,500 £0 £202,500 100% 0% 1.25 0 0% Emerging

37

West Mids

Newpath Contract Packers (Newpath Services Ltd) £202,500 £0 £202,500 100% 0% 7 0 0% Emerging

West Mids

Four Seasons Functions Rooms (Newpath Ventures) £202,500 £0 £202,500 100% 0% 0 0 0% Emerging

West Mids Pack IT Hereford £26,860 £83,931 £110,791 24% 76% 3.8 1.8 47%Social Firm

West Mids Green Horizons (Pathways) £29,000 £0 £29,000 100% 0% 3 3 100%

Social Firm

West Mids The Frogmeadow Community Café £52,250 £0 £52,250 100% 0% 2.3 0.75 33%

Social Firm

West Mids Packaging Link £90,000 £15,000 £105,000 86% 14% 7 4 57%Social Firm

West Mids

all formats transcription (QAC Enterprises) £110,000 £0 £110,000 100% 0% 2.5 1 40%

Social Firm

West Mids Concept Conference Centre £120,000 £0 £120,000 100% 0% 6 4 67%

Social Firm

West Mids icycle (QAC Enterprises) £120,000 £0 £120,000 100% 0% 3 1 33%

Social Firm

West Mids Manufacturing Links £150,000 £30,000 £180,000 83% 17% 6 5 83%Social Firm

Subtotal W Mids £1,596,110 £128,931 £1,725,041 93% 7% 64.25 30.05 47%

Y&H Busters Coffee Co £35,000 £25,000 £60,000 58% 42% 1.12 0.6 54%Social Firm

Y&H B2G Diner £45,000 £16,600 £61,600 73% 27% 2 2 100%Social Firm

Y&H Viewpoint CIC (Sheffield Branch) £48,000 £8,000 £56,000 86% 14% 2.4 0.64 27%

Social Firm

Y&H Viewpoint CIC (Leeds Branch) £48,000 £8,000 £56,000 86% 14% 1.8 1 56%

Social Firm

Y&H People Matters (Leeds) CIC £61,000 £110,000 £171,000 36% 64% 9.3 5.6 60%

Social Firm

Y&H Busters Café Leeds (Becklin Centre) £93,600 £0 £93,600 100% 0% 3.5 3 86%

Social Firm

Y&H Lippy People £100,000 £0 £100,000 100% 0% 6.5 4 62%Social Firm

Y&H Cream Catering £188,000 £0 £188,000 100% 0% 7 2 29%Social Firm

38

Y&H Electroville £207,000 £77,900 £284,900 73% 27% 8 4 50%Social Firm

Y&H Catering Plus Ltd £323,000 £0 £323,000 100% 0% 11.32 9 80%Social Firm

Subtotal Y&H £1,148,600 £245,500 £1,394,100 82% 18% 52.94 31.84 60%

Subtotal English Regions £50,351,359 £3,618,955 £53,970,314 93% 7% 1214.79 703.97 58%

N Ireland Edgecumbe Catering Services £118,000 £28,000 £146,000 81% 19% 3 1 33% Emerging

N Ireland Enterprise (Larne) Ltd £180,000 £60,000 £240,000 75% 25% 11 3 27%

Social Firm

Acceptable

N Ireland The Orchardville Company £230,000 £40,000 £270,000 85% 15% 15 6.5 43%

Social Firm

Subtotal N Ireland £528,000 £128,000 £656,000 80% 20% 29 10.5 36% Scotland Ness Soaps (MDV) £18,500 £60,000 £78,500 24% 76% 2.45 0 0% Emerging

Scotland Kingsmeadow Catering £38,000 £47,000 £85,000 45% 55% 1.8 0.2 11% Emerging

Scotland Nursery Needs @Watch Us Grow £41,483 £103,406 £144,889 29% 71% 0 0 0% Emerging

Scotland Hebridean Chocolates £50,000 £80,000 £130,000 38% 62% 6.8 2.9 43% Emerging

Scotland Rosie's Café £60,000 £113,000 £173,000 35% 65% 2.6 0 0% Emerging Scotland Foyer Works £85,000 £75,000 £160,000 53% 47% 5.31 2.31 44% Emerging Scotland The Bread Maker £156,000 £230,000 £386,000 40% 60% 8.16 0.34 4% Emerging

Scotland Unity Dinner £45,858 £25,280 £71,138 64% 36% 2 2 100% Social Firm

Scotland Edinburgh Embroidery Services £47,193 £30,581 £77,774 61% 39% 1.8 1.8 100%

Social Firm

Scotland Candies Cuisine £48,931 £31,097 £80,028 61% 39% 5.89 3 51% Social Firm

Scotland Touchwood Recycling Ltd £54,000 £32,000 £86,000 63% 37% 5 4 80%

Social Firm

Scotland The Soap Co (Edinburgh) £70,287 £60,965 £131,252 54% 46% 3.4 0.4 12%

Social Firm

Scotland Solstice Nurseries £80,000 £60,000 £140,000 57% 43% 6.04 2.04 34% Social Firm

Scotland Parkview Laundry £101,399 £64,817 £166,216 61% 39% 4 2 50% Social Firm

39

Scotland Spoon (Citizens Theatre) £123,752 £3,098 £126,850 98% 2% 6 1.5 25%

Social Firm

Scotland Six Mary`s Place - Guest House £131,190 £60,784 £191,974 68% 32% 4 1 25%

Social Firm

Scotland LAMH Recycle £223,509 £30,000 £253,509 88% 12% 4.8 2.8 58% Social Firm

Scotland Upkeep £305,694 £5,818 £311,512 98% 2% 11.9 3 25% Social Firm

Scotland Bookdonors CIC £387,900 £52,900 £440,800 88% 12% 23.8 20 84% Social Firm

Scotland Grangemouth Enterprises Ltd. £440,000 £0 £440,000 100% 0% 16 5 31%

Social Firm

Scotland Watch us Grow in the Community £440,000 £0 £440,000 100% 0% 18 14 78%

Social Firm

Scotland Haven Products Ltd £1,700,000 £600,000 £2,300,000 74% 26% 88.5 63.5 72% Social Firm

Scotland Green Tracks £63,995 £69,330 £133,325 48% 52% 2.1 0% Social Firm

Subtotal Scotland £4,712,691 £1,835,076 £6,547,767 72% 28% 230.35 131.79 57%

Wales Beacons Creative Wales Ltd £9,000 £80,000 £89,000 10% 90% 4.5 1.3 29% Emerging

Wales Not Just Nuts £10,000 £0 £10,000 100% 0% 1.4 0.4 29% Emerging Wales EB`s Coffee Shop £11,000 £80,000 £91,000 12% 88% 5 1 20% Emerging

Wales 10 Green Bottles Powys CIC £24,500 £25,500 £50,000 49% 51% 8.9 8.5 96% Emerging

Wales Park View Café £30,000 £50,000 £80,000 38% 63% 5 0 0% Emerging

Wales Green Shoots Catering £111,000 £50,000 £161,000 69% 31% 3 1 33% Emerging

Wales Your Pets Warehouse Ltd £140,000 £30,000 £170,000 82% 18% 4.6 2.6 57%

Social Firm

Wales Pembrokeshire Frame Limited £411,690 £0 £411,690 100% 0% 24 9.6 40%

Social Firm

Wales Cae Post Ltd £1,060,000 £0 £1,060,000 100% 0% 25 10 40% Social Firm

Wales Pack-IT Group £1,100,000 £0 £1,100,000 100% 0% 15 7 47% Social Firm

Wales Suresprung Furnishings £840,000 £210,000 £1,050,000 80% 20% 54 37 69%

Social Firm

Subtotal Wales 3,747,190 525,500 4,272,690 88% 12% 150.4 78.4 52%

40

English Regions

regions Commercial Income

Non Commercial Income Total Income

Percentage Commercial

Income

Percentage Non

Commercial Income

total FTE Staff

Severe Disadvanta

ged FTE

Percentage Disadvantaged

Staff East Mids £134,569 £9,634 £144,203 93% 7% 7 5 71% Eastern £2,728,000 £270,000 £2,998,000 91% 9% 126 74 59% London £11,293,492 £1,859,400 £13,152,892 86% 14% 218 132 61% N East £2,851,000 £20,000 £2,871,000 99% 1% 97 65 67% N West £2,709,015 £160,500 £2,869,515 94% 6% 26 18 71% S East £3,730,010 £894,990 £4,625,000 81% 19% 121 91 76% S West £24,160,563 £30,000 £24,190,563 100% 0% 504 256 51% W Mids £1,596,110 £128,931 £1,725,041 93% 7% 64 30 47% Y&H £1,148,600 £245,500 £1,394,100 82% 18% 53 32 60% Total English regions £50,351,359 £3,618,955 £53,970,314 93% 7% 1215 704 58%

Nations

Nations Commercial

Income

Non Commercial

Income Total Income

Percentage Commercial

Income

Percentage Non

Commercial Income

total FTE Staff

Severe Disadvanta

ged FTE Percentage

Disadvantaged Staff

N Ireland £528,000 £128,000 £656,000 80% 20% 29 11 36% Scotland £4,712,691 £1,835,076 £6,547,767 72% 28% 230 132 57% Wales £3,747,190 £525,500 £4,272,690 88% 12% 150 78 52%

Total Nations £8,987,881 £2,488,576 £11,476,457 78% 22% 410 221 54%

Total English regions £50,351,359 £3,618,955 £53,970,314 93% 7% 1215 704 58%

Total Nations £8,987,881 £2,488,576 £11,476,457 93% 22% 410 221 54%

Grand Total £59,339,240 £6,107,531 £65,446,771 91% 9% 1624 925 57%

Please Note: Those firms marked with an * are ones that started life as supported factories. Historically supported factories were provided with a great deal of support via government programmes. This enabled firms to develop and invest in expensive manufacturing equipment and is the reason why their income levels are, in the main, higher than other Social Firms. All these businesses have developed into ones in which the workforce is actively empowered and the company works to the Social Firms UK Values-Based Checklist.

41

42

Appendix 6

Summary of Trading in the Social Firms Sector 2010

Eastern East Mids London

North East N West S East S West

West Mids

Yorks & Humber England

N Ireland Scotland Wales

Grand Total

Art and Design 1 0 0 0 1 1 1 0 4 8 0 0 1 9 Catering 3 1 4 1 0 2 0 4 8 23 3 8 3 37

Cleaning/Maintenance 0 0 1 1 0 0 0 0 1 3 0 4 0 7 Clothing/Soft Furnishings 0 0 0 0 0 0 0 1 0 1 0 1 0 2 Consultancy 0 0 1 1 0 0 0 0 2 4 0 0 0 4 Contracts (Govt) 0 0 0 0 0 0 0 0 1 1 0 0 0 1

Employment Agency 0 0 0 0 0 0 1 0 0 1 0 0 0 1

Facilities management 0 0 0 0 0 1 0 0 0 1 0 0 0 1 Film & DVD 0 0 0 0 0 0 0 0 2 2 0 0 0 2 Fulfilment 0 0 2 1 0 1 1 4 0 9 1 1 1 12

Furniture Manufacture 0 0 0 0 1 0 0 0 0 1 0 2 1 4

Furniture Restoration 0 0 0 0 0 1 0 0 0 1 0 0 1 2

Horticulture/Gardening 0 0 1 1 0 0 1 2 0 5 0 3 0 8 Hospitality 0 1 1 0 0 0 0 1 0 3 0 1 0 4 IT Services 1 0 0 0 0 0 0 1 1 3 0 1 0 4 Light Engineering 1 0 1 1 1 0 0 2 0 6 0 0 1 7 Manufacturing 1 0 1 0 0 0 1 0 0 3 0 0 1 4 Office Services 0 0 0 1 0 0 0 1 0 2 0 0 1 3

Printing/Print Finishing 1 0 0 1 0 1 0 0 1 4 1 1 0 6

Recycling - furniture/white goods 1 0 1 0 1 1 0 0 1 5 0 2 1 8 Recycling - IT 1 0 0 0 0 0 0 0 0 1 0 3 0 4 Recycling - waste 2 0 2 0 0 2 1 1 0 8 2 6 3 19 Retail 1 0 2 0 1 1 0 2 0 7 0 7 3 17 Training 3 1 3 0 1 5 1 3 3 20 0 7 5 32

TOTAL 16 3 20 8 6 16 7 22 24 122 7 47 22 199 Base 111

Appendix 7

Please Note: Those firms marked with an * are ones that started life as supported factories. Historically supported factories were provided with a great deal of support via government programmes. This enabled firms to develop and invest in expensive manufacturing equipment and is the reason why their income levels are, in the main, higher than other Social Firms. All these businesses have developed into ones in which the workforce is actively empowered and the company works to the Social Firms UK Values-Based Checklist.

The Top 20 Income Earners in the Social Firm Sector 2010

Organisation Name Trading Sector Commercial Income

1. The Pluss Organisation* Multiple - manufacturing/equip contracts/other £23,530,000

2. Newco Products* Light Engineering £5,250,0003. GWB Products Ltd* Manufacturing £3,400,0004. Ayresome Industries* Light Engineering £2,600,000

5. CREATE UK Recycling -White goods, furniture, retail £2,200,000

6. Haven Products Ltd* Fulfilment/mailing/packaging/manu/other £1,700,000

7. Pack-IT Group Fulfilment/mailing/storage/packaging £1,100,0008. Cae Post Ltd Recycling - waste £1,060,0009. First Fruit Furniture Warehouse Recycling - furniture £916,00010. Daily Bread Co-operative (Cambridge) Ltd Retail £887,00011. Suresprung Furnishings* Furniture Manufacture £840,000

12. Riverside Centre Facilities management/includes catering/conference etc £681,000

13. Whitehouse Enterprises* Production, packaging, assembly, catering £619,000

14. Blue Sky Development + Regeneration Contract grounds maintenance £600,00015. MillRace IT IT Recycling & training £515,00016. Able Types Ltd Fulfilment/mailing/packaging £491,00017. Norfolk Industries For The Blind*

Light Engineering wire products. Pet bedding £482,000

18. Grangemouth Enterprises Ltd*. IT Services £440,00019. Watch us Grow in the Community

Horticulture/Gardening/waste recycling £440,000

20. Pembrokeshire Frame Limited Recycling £412,000

Total Commercial Income £48,162,000

43

Appendix 8 Business Management 2010

Mapping Q. 25. Our constitution demonstrates a strong commitment to the employment of severely disadvantaged people within our business.

Strongly Agree Agree

Neither Agree nor Disagree

Disagree Strongly Disagree Total responses %age that 'strongly

agree' or 'agree'

54 12 2 2 3 73 90%

Mapping Q 26 Our Business Plan is in place, up to date and actively used.

Strongly Agree Agree

Neither Agree nor Disagree

Disagree Strongly Disagree Total responses %age that 'strongly

agree' or 'agree'

31 21 4 13 2 71 73%

Mapping Q 27. Our Marketing Plan is in place, up to date and actively used.

Strongly Agree Agree

Neither Agree nor Disagree

Disagree Strongly Disagree Total responses %age that 'strongly

agree' or 'agree'

10 30 11 15 4 70 57%

Mapping Q 28. There is a management structure that supports trading as the primary means of achieving our social purpose.

Strongly Agree Agree

Neither Agree nor Disagree

Disagree Strongly Disagree Total responses %age that 'strongly

agree' or 'agree'

48 16 3 1 1 69 93% Mapping Q 29. Our Board fully understands the Social Firm model and fully supports our development as a Social Firm.

Strongly Agree Agree

Neither Agree nor Disagree

Disagree Strongly Disagree Total responses %age that 'strongly

agree' or 'agree'

38 11 12 8 0 69 71%

44

Appendix 9

Financial Management

Mapping Q.35. Our Contracts/ Service Level Agreements recover all costs and generate a surplus.

Strongly Agree Agree

Neither Agree nor Disagree

Disagree Strongly Disagree

Total responses

%age that 'strongly agree' or 'agree'

3 8 5 8 4 28 39%

Mapping Q.36. Our cash flow situation is healthy.

Strongly Agree Agree

Neither Agree nor Disagree

Disagree Strongly Disagree

Total responses

%age that 'strongly agree' or 'agree'

13 10 5 9 1 38 61%

Mapping Q.37. Our financial situation is healthy.

Strongly Agree Agree

Neither Agree nor Disagree

Disagree Strongly Disagree

Total responses

%age that 'strongly agree' or 'agree'

8 15 6 8 1 38 61%

Mapping Q.38. We have excellent access to accurate & timely financial information.

Strongly Agree Agree

Neither Agree nor Disagree

Disagree Strongly Disagree

Total responses

%age that 'strongly agree' or 'agree'

24 13 1 0 0 38 97% Mapping Q.39. We have excellent access to financial expertise to assist us in growing our business.

Strongly Agree Agree

Neither Agree nor Disagree

Disagree Strongly Disagree

Total responses

%age that 'strongly agree' or 'agree'

19 11 3 5 0 38 79%

45

Appendix 10

Staff Management

Mapping Q.42. Our staff support systems are excellent.

Strongly Agree Agree

Neither Agree nor Disagree

Disagree Strongly Disagree

Total responses

%age that 'strongly agree' or 'agree'

24 14 8 2 0 48 79%

Mapping Q.43. The emphasis placed on training is excellent.

Strongly Agree Agree

Neither Agree nor Disagree

Disagree Strongly Disagree

Total responses

%age that 'strongly agree' or 'agree'

25 16 5 2 0 48 85%

Mapping Q.44. We have good Volunteer Agreements in place.

Strongly Agree Agree

Neither Agree nor Disagree

Disagree Strongly Disagree

Total responses

%age that 'strongly agree' or 'agree'

16 7 3 3 0 29 79%

Mapping Q. 45. Our Health and Safety policy and implementation is excellent.

Strongly Agree Agree

Neither Agree nor Disagree

Disagree Strongly Disagree

Total responses

%age that 'strongly agree' or 'agree'

30 17 1 0 0 48 99% Mapping Q.46. Our Equal Opportunities policy and implementation is excellent.

Strongly Agree Agree

Neither Agree nor Disagree

Disagree Strongly Disagree

Total responses

%age that 'strongly agree' or 'agree'

11 21 12 4 0 48 67%

Mapping Q.47. Our policies and procedures on environmental sustainability are excellent.

Strongly Agree Agree

Neither Agree nor Disagree

Disagree Strongly Disagree

Total responses

%age that 'strongly agree' or 'agree'

32 13 3 0 0 48 94%

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Appendix 11

What was the greatest change in your business in the last year

Social Firms

Emerging Social Firms

The increased demand for the services we offer. We have learnt the lessons of retail. We are operating to our charitable objectives but now function in a businesslike way

Developing a growth mentality. The recession has woken us up to reality of what we are here to do. Now going to diversify and generate more income streams. We have now put together a strong plan which is working well.

Demonstrating that we can be successful in obtaining income through trade.

Changing the staffing structure – much more efficient but difficult making two staff redundant.

Becoming profitable for the first time and expanding to 4 shifts a week.

Growing very fast – trebled the staff size. We have an identity and we are able to roll out what we set out to do. Have got to the point where we need more workspace.

Having to introduce VAT

We have scaled up. The level of activity since opening has nearly doubled. We have built a team – it’s a good team that really functions well together.

Because we are at start-up the business change has been from buying equipment to achieving regular income and hiring staff.

Confidence. We now have proof that we can run a successful business. We are more professional.

Switch from a focus on a delivery service to one of increasing the number of facilities around - licensing, training, sales of equipment.

Nothing. We went in with a plan and the plan worked. On change is attitudinal. People trust us to provide a good service. We want to build on that to gain more clients.

We started up in a difficult economic climate.

Winning the 2012 contract has opened huge doors.

Appointing a middle manager has enabled the Director to give more time to look for new business and give more attention to the marketing needs. Some processes have been able to be devolved which makes us more efficient and gives more balance to the organisation.

Review of the Management Structure

Recruitment and development of the board

Moving Premises Rapid and large growth - income increased by 200%

Not able to make planned move of premises.

Purchase of new machines and increase in sales

The recession has resulted in lower average room rates and significant reduction in advanced bookings.

Huge. Moved from a day centre to being a real business where people have to turn up to work at the right time in less than a year

We have become more professional, customer focused and commercially minded.

Managing cash flow

47

Appendix 12

What are the two most significant issues you face in expanding your enterprise?”

Social Firms

Emerging Social Firms

1. Finding/moving/obtaining the finance to move to new

premises to new premises [furniture recycling] 2. Getting effective marketing and promoting the

organisation.

1. Board of Trustees 2. Finance/staffing. Inability to spend because of the

board.

1. Funding. Have £170K in the bank and the next step is an issue. Could employ 3 more staff to cope with expanding business but reserves would be shattered.

2. Obtaining funding for capital growth

1. Finance 2. Need one or two new members of staff. With more

money this would be possible.

1. Cash flow - need to look at diversifying and creating new income streams.

2. Finding appropriately qualified staff to bring into the

business.

1. The development of retail sales. 2. Obtaining capital funding for further developments

1. With the rapid expansion the director’s role needs to become more strategic and there will be a need to appropriately fill the operational gap left. Very similarly as we grow we want to ensure we continue to support our staff so will need to look our HR.

2. Looking forward and, at the same time, consolidating

what we have.

1. Workflow - maintaining jobs coming in and ensuring quality service

2. 2. Cash flow - ensuring payment for completed work is sufficiently captured

1. Level of sales. We need more market penetration. Can’t survive on wood sales alone. We’re doomed if we can’t get more wood collection contracts.

2. Plan to develop by growing within the recycling sector.

Considering the possibility of opening another branch and looking at other types of recycling

1 Benefits system 2. Sustainability

1. Finding funding to get into new ventures. 2. Starting a community and training café which is costing

£20k to kit out.

1. Funding access 2. Capacity

1. Staff Recruitment

2. Changes within the industry - electronic publishing

1. Lack of capacity 2. Lack of experience

1. Competition 2. Customer confidence.

1. Turning the site into a year round business 2. Continuation funding

1 Purchasing our own premises 2. Developing our administration system, getting staff to support admin and devolving management.

1. Managing Change. 2. Cash Flow.

1. Expensive terms and conditions of employment [owned by County Council]

2. 2. Lack of general investment over last 10 years and costly machinery repairs and breakdown

1. Getting good contacts to market our service to. 2. Finding enough time to spend on marketing.

1. Financial security

2. Marketing and PR - raising our profile.

1. Getting people off benefit 2. Building up the business to be sustainable and having

time to do this.

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Email: info@socialfirms.co.uk Website: www.socialfirmsuk.co.uk