SOCIAL ENTERPRISE - BUSINESS BUT NOT AS WE KNOW IT
19 November 2003
In 2002, the Department of Trade and Industry (DTI) launched its National
Strategy "Social Enterprise: A Strategy for Success." It reinforced
the key issues behind the barriers to the development of Social Enterprise
and crystallised the need for regional action.
Social Enterprise really is 'business but not as we know it'. It is more
than a business model and one which the South East England Development
Agency (SEEDA) tackles in its newly launched strategy - 'Providing
An Enabling Framework For Social Enterprise In The South East'. SEEDA
believes that Social Enterprise has the ability to embed economic growth
in the local communities of the region, generating new types of jobs and
provide services to otherwise unserved markets.
An effective regional Social Enterprise movement can provide many benefits
such as job creation and improved employability, the equitable distribution
of resources to specific communities and innovative business practice
and maximised productivity.
In a region like the South East, often so wrongly assumed to be universally
affluent, Social Enterprise particularly has a part to play in enabling
greater equity in the redistribution of resources to excluded communities.
In fact, the social economy now accounts an average of one in every 20
jobs in Britain. The rate of growth of jobs in the social economy is also
currently growing approximately five times faster than other organisational
types. This rate of growth can be sustained through a participatory culture
that enables social enterprises to offer greater resilience to economic
downturns.
Many categories of business operation can fall within the Social Enterprise
fold and can include; consumer co-operatives, mutuals, housing associations,
trading arms of charities, workers co-operatives, community businesses,
development trusts, social firms, intermediate labour market projects,
and social businesses.
In terms of the South East, this represents an opportunity for growth,
with SEEDA research estimating that the region currently has a growing
base of approximately 1,000 social enterprises. These enterprises are
estimated to generate £498 million of mean annual turnover in a
year, employ approximately 21,000 people and provide 35,000 volunteering
opportunities.
Social Enterprise development has accelerated in the last five years
with 34% of those organisations interviewed having been established since
1998.
Much of this growth has originated through the creation of relatively
small, geographically focused community enterprises, rather than the creation
of larger organisational forms. Much of this activity can be attributed
to the 'demand' for sustainable community economic development
programmes stimulated by the provision and then exit of government regeneration
finance.
As a result, much of the recent growth in the South East social economy
is focused on training, housing and regeneration services within deprived
areas, largely as a result of original grant finance.
There are increasing numbers of social enterprise support organisations
operating at both the regional and local level. Specific clusters of social
enterprises and support organisations across the region include Brighton
and Hove, Oxfordshire and Portsmouth. Some mainstream business support
providers are also beginning to focus some of their activities on social
enterprise with Business Links across the region now having a number of
specialised social enterprise advisors.
SEEDA has formalised the regional approach to maximise the Social Enterprise
opportunity in its strategy intended to guide the actions of partners
and stakeholders throughout the region.
Implementation is planned through the commitment and co-operation of
all stakeholders in the social economy including SEEDA, the Voluntary & Community
Sector, Business Link, the Small Business Service, Specialist Social Enterprise
Support Providers and the Private Sector.
The effective engagement of all of these stakeholders will be a key priority
for the three year timescale of this strategy which began with extensive
consultation where research findings were shared with stakeholder and
key partner organisations.
As a result of the consultation process a clear vision has been defined
and a number of key principles established regarding the development and
implementation of activities that will help attain that vision.
SEEDA Economic Inclusion Policy Manager, Kate Annison, explains: "The
approach that we are suggesting for the region recognises some important
facts. Firstly, the social economy in the South East is dislocated with
limited information known about the contribution social enterprise is
currently making. We need to ensure that we fully understand gaps in supply
and support before investing in large scale targeted projects.
"Secondly, the South East is a huge region with limited resources.
We need to ensure that we make the most of what we have by not wasting
effort and investment by duplicating activities but rather building economies
of scale and using existing tools more effectively. Thirdly, the relatively
limited number and size of social enterprises currently engaged in the
social economy in the region means that we need to set a realistic development
plan in place. Social Enterprise needs to build an identity and reputation
in order to stimulate growth and demand over a longer period of time."
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