Blogs

  • Becoming a toddler in the world of social enterprise


    By Cecilia Crossley, founder of from babies with love, celebrates her social enterprise’s 1st birthday, and gives advice on the best support available to start-ups.

    This month we at from babies with love are celebrating our first birthday.  Sticking with our baby theme, I’ve been reflecting on our first year, and who has helped us in our journey to toddlerhood.  If I was starting a new social enterprise today, these are the top 5 connections I would create right from the start – even when writing the business plan.

    Of course I must begin with Social Enterprise UK.  Membership is fantastic value, for information, events, support and connections.  As with much in the social enterprise world it’s difficult to get your story in front of a mainstream audience, so my most priceless example is an introduction to a journalist at Good Housekeeping magazine, which led to a feature we would never have achieved alone.

    from babies with love is accredited by the Social Enterprise Mark.  Not only have we received marketing support from the team there, holding the Mark has created opportunities for us.  For example a professional PR staff member of a large advertising company selected us, because we are a Mark holder, for an academic assignment, and we have a new PR strategy as a result.

    The PwC Social Entrepreneurs Club has been a wealth of information and fun.  There are many opportunities to apply for; so far we’ve received digital marketing support and were selected to have a new video produced (out soon!).  Our video involved filming lots of babies in PwC’s office for the afternoon – which was unusual for many of their team to say the least. It’s free to apply to, so really it’s a valuable thing to do from the word go.

    I remember seeing social enterprise adverts sponsored by the Business in the Community ARC programme during the Olympics and thinking to myself – I must get involved in that programme.  Time flew, but we’re now a member, making great connections, and are starting a project we wouldn’t have capacity for if we went it alone.  Applying to ARC is also free; another great membership you can apply for as soon as you’ve got a business plan.

    The from babies with love foundation is a registered charity, so we’ve been able to apply to The Media Trust for professional support.  They matched us to a fantastic volunteer who has increased our communications capacity and helped us achieve much more than we would have otherwise.  In addition, the Media Trust has great support services such as a press release service and their community TV station, where we’re able to submit our latest news.

    We’ve been learning about these social enterprise networks and resources as we go; in our first year we’ve gained so much from them.  So if you’re starting up a social enterprise, my golden piece of advice is to get connected.

    To celebrate our first birthday, we’re offering Social Enterprise UK members a special 10% discount until 31 May 2013, just shop at www.frombabieswithlove.org and enter CHC35 during checkout.

  • Accessing quality business support for your social enterprise

     

    Craig Carey, Social Enterprise UK’s Head of Operations, gives advice on working with business support suppliers. 

    Whether you’re a small, medium or large social enterprise – or similarly even from the commercial world, your organisation will require business support at some stage of your lifecycle.

    There is certainly not a lack of choice out there when it comes to business support. A quick search on Google will tell you as much – there are individual consultants, SMEs and large support organisations. But given so much choice, how do you know if you are getting the kind of support that will really add value to your business?

    Most social enterprises need help, at some point, in the areas of IT, HR, legal, accountancy, marketing, impact measurement and business planning. As you grow and develop you may need to call on experts in replication, mergers, leadership development and intellectual property, amongst other things.

    So how do you choose who to give your money to and who to put your faith in? There are lots of factors you can base your decision on, including price, experience, availability and references. While these are all very important, the relationship you strike up with any provider or supplier is key. At the end of the day you are going to invest your resource and time, and in return you need to be sure that the organisation or individual is going to be reliable and help you to make your social enterprise a success.

    Do they actually understand social enterprise, do they understand your market, what is their added value, do you get a sense that you can work with them closely? Use that initial meeting or telephone call to check them out, be ready with a list of questions and be clear about what it is you’re looking for. They’ll be asking you questions in order to put together a work proposal for you – from that you’ll know if they listened carefully and really took the time to understand your needs.

    One of SEUK’s objectives (that sits in our own business plan) is to try and develop the market for social enterprises. One of the ways to do this is by ensuring that our social enterprise members can access quality support which will enable them to grow. And if it is really good support, it will also build capacity of the organisation rather than just feeling part of the consultancy treadmill. This is why we launched our preferred suppliers  programme – we wanted to give our members a range of organisations to choose from who (a) know the sector and (b) have tailored their products and services to suit the sector’s needs and requirements. There is also the opportunity to get access to valuable discounts and in some cases free initial consultations. More than half the preferred suppliers are social enterprises themselves, which ties into our Buy Social campaign, which seeks to drive more business in the direction of social enterprises.

    If you’ve used the services listed, let me know if you have any feedback so that we can monitor quality. Also let me know if there are areas of business support that you would welcome that we’re not currently providing access to.

    Craig Carey  (craig.carey@socialenterprise.org.uk)

  • The rise of the social enterprise movement

     

    This article first appeared in the Entrepreneur Handbook.

    By Charlotte Chung, Social Enterprise UK, Policy & Research Officer.

    Everyone likes to think that they are living in the most exciting period in history – scientific marvels, giant technological advances, changes which redefine modernity. For me, whilst I may be persuaded to concede that the stretch of time from the mid-80s to our current twitter-era is not one of the apexes of historical significance, I am much less willing to concede, that in the history of social enterprise, I am not in the right place at the right time witnessing something great.

    I work for Social Enterprise UK (SEUK) – the national body representing social enterprises (think, Jamie Oliver’s Fifteen, Divine Chocolate and The Big Issue to name a few) – of which there are an estimated 68,000, contributing £24 billion to the economy, and most importantly, achieve fantastic social and environmental goals through doing good business.

    The UK is widely recognized as a trailblazer in social enterprise – SEUK used to host the odd two or three international delegations a year, we now host two or three a month. These delegations range from government departments to civil society organizations and universities, all wanting to learn from the UK’s experience with social enterprise.

    More people are setting up social enterprises than ever before – in a national survey conducted in 2011, 14% of social enterprises stated they were two years old or younger. This is more than three times the percentage of traditional small and medium sized enterprises (SMEs) where only 4% of them were two years old or younger. At SEUK, we are bombarded with queries about how to set up a social enterprise so we created a guide specifically to address this, available free to download from our website.

    This impressive start up figure, depicting a youthful and growing sector, is driven by various factors. The past decade has seen huge changes in consumer expectations, wanting greater transparency and integrity from the business they buy from (hello, horsemeat scandal!) And more than that, a desire to make a positive impact from something as simple as a purchase – fair trade coffee, chocolate and bananas are just the tip of the iceberg.

    In a recession, the world of those in need and those successfully getting by are pushed closer together; people are drawn to social enterprise as a vehicle to meet societal needs, but crucially, in a sustainable way and not relying on handouts. It is clear that this approach to business resonates with young people, who are often at the forefront of the movement, setting up and working in social enterprises that engage their generation and tackle problems such as youth unemployment and crime. Setting up a social enterprise gives people the opportunity to work hard for themselves and their communities – 39% of social enterprises work in 20% of the UK’s most deprived communities and create more jobs relative to turnover than mainstream SMEs. Social enterprises are also much more likely to be run by women and black and minority ethnic groups than traditional businesses.

    Big business has sat up and taken note of all things social enterprise and are moving their CSR efforts away from classic philanthropy to more innovative, or dare I say, more enterprising ways of investing into their communities and society. All of the ‘Big 4’ audit firms have launched social enterprise support programmes in the last year.

    The unique position that social enterprises hold in the UK economy has not gone unnoticed by Government which has come out strongly to support the growth of the sector. Initiatives such as Big Society Capital, the world’s first wholesale social investment bank investing £600m into the social enterprise sector has sent a clear positive signal encouraging more social entrepreneurs to take action.

    There has never been a better time to set up a social enterprise, joining a growing sector where society profits and that the rest of the business sector is playing catch-up with.

  • Social Value Act: Is it being embraced by the private sector?

    By Nick Temple, Director of Business and Enterprise, Social Enterprise UK.

    The arrival of the Social Value Act has created a number of different outcomes thus far: we have seen some thought-through strategic work from local authorities like East Sussex and Knowsley, some fascinating integration of social value by housing providers such as Bolton At Home, Aspire Group and Selwood, and growing awareness of the Act’s potential across the social sector. We’ve also seen questioning, challenge and confusion, though that is also to be expected at this early stage.

    One area that has been interesting to view is the response of parts of the private sector. Some industry areas were already pushing ahead, such as construction, where Wates have been pioneers – getting social enterprises into their local supply chains. Others have shown a clear interest, such as SITA and Veolia in the waste and recycling field: thinking in-depth about what it means for their field of work. And we are also beginning to see the major public outsourcers (the likes of Amey, Mitie, Interserve etc) consider what the Act means for their business.

    Given there are countless areas of public service where social enterprises and charities cannot deliver, these are important developments. What we need to ensure is that, when commissioners include social value in their tenders, that the responses from the private sector mean something: creating one apprenticeship on a £10m contract isn’t enough. We need to push for high standards, and for social value to be achieved, where possible, through getting social enterprises and charities procured and in supply chains – where the social value they create locally can be measured and communicated.

    One organisation taking exactly this approach is Landmarc, who SEUK have been working with for the past 9 months. Landmarc currently manage much of the Ministry of Defence training estate, making them the third biggest land manager in the country – ensuring pieces of land like Salisbury Plain and Dartmoor are fit for use in training by the armed forces. What makes them particularly interesting is that they are national in scale, but local and rural in reach, and have a significant environmental and social remit. They came to us, motivated by the arrival of the Act, to think about how they could incorporate social value into the heart of their business.

    That work has led to a series of actions: Landmarc will be seeking to procure more from social enterprises across their various geographical locations (and are changing their procurement guidance & training to reflect that), they are starting an initiative aimed at working with the communities surrounding them (to be launched in May), and they are seeking to increase their apprenticeship programme. Also on the recruitment side, they are committing to employing more ex-military personnel.

    In pursuing this work, Landmarc are demonstrating that putting social value at the heart of the business (even one in the defence field) really means looking at people, profit and planet: using spend to achieve social impact; recruiting (where possible) to do the same; and taking its environmental stewardship role beyond compliance to something much more proactive. If more companies follow suit in genuinely embedding the social, we really will begin to see a change in public service delivery – and one that creates opportunities for social enterprises to partner, to get commissioned and to grow their impact across the board.

    Find out more about SEUK’s partnerships with the private sector.

  • Getting media coverage is important for your social enterprise, but it’s important for the sector too

    Fran Gorman, Head of Media & Communications at SEUK

    A survey recently published by the Key Fund found that social enterprise was not on many people’s radars. There are reasons for this lack of awareness, of course. ‘Social enterprise’ as an umbrella term has not been kicking around for that long, only since the late 1990s. Plus, from talking to our members, lots of social enterprises don’t have communications/marketing/press people in their teams, promoting what they do, because they’re too small to justify the hire.

    There’s also the fact that some social enterprises simply don’t call themselves a social enterprise. There are numerous descriptions kicking around so while a charity is a charity, a social enterprise could be a CIC, co-op, social business, trading charity or not-for-profit – and the list goes on. But without a collective term to cut through the white noise, reaching the mainstream and growing people’s understanding of social enterprise is going to be a something of a slow burn.

    These problems aren’t going to disappear overnight so what can we do? Well, I don’t believe the media has yet had the very best of what the social enterprise sector has to offer. There are lots of good stories out there but only some are getting through. I took a call from a national newspaper journalist recently who was frustrated – I’d go so far as to say annoyed – that social enterprises weren’t approaching him with their stories, their motivations and their impact. A first for me I have to admit. Anyway, the point I want to make is that our sector has much to offer and isn’t, well, offering it as much as it could.

    Tips

    I thought to share some ideas that might be helpful if you’re thinking of approaching the media, but not quite sure how to go about it. They’re written bearing in mind that lots of social enterprises are small and without PR agencies or in-house communications teams.

    Your time is precious

    Don’t waste your time seeking coverage unless there’s a good business reason for it. What is it that you want – to announce your launch, sell a new product, promote a new service, invite your local community to get involved in a project?

    If you’re sure it’s what you need, think about the media you need to approach. Who is the audience you’re trying to reach? What newspapers/magazines do they read; what programmes do they watch and listen to? Is it national or local profile you’re after?

    Interesting means different things to different people

    What you think is interesting about your social enterprise might not be to a journalist so road test your idea – this could be with your mates in the pub, or with a friend who works in PR or journalism.

    Hooks for a story can include: your social enterprise opening its doors / starting to trade; being shortlisted for – or winning – an award; a Mayor or MP visiting your organisation; celebrity support; the winning of a new piece of business / contract – might be with another local business or a local authority (check they’re happy first); the reaching of a milestone or ‘record number’ – this could be the number of customers through your door and the number of people you’ve been able to employ / support as a result; an anniversary – use this to publicising the results you’ve achieved in that time.

    One journalist > the conduit between you and thousands, if not millions

    So do your research. Don’t pick up the phone or send an email to a journalist without checking out what they’ve written or covered recently – you risk annoying them. 

    Journalists like it when the story you’re giving them is only for them – commonly known as an ‘exclusive’. Choose your top 5 journalists and go from there. If the 1st says no, move onto the next. This might not be what you want of course, you might want to be in your local newspaper, on your local radio station and regional news programme – and there’s nothing to stop you from approaching multiple journalists with the same story.

    Get to the point quickly – and play to your strengths

    Don’t say in 10 words what you can say in five. And if you’re drafting an email or press release remember that your first paragraph needs to include the 5 w’s – who, what, why, when and where.

    An email or press release will need to be followed up with a phone call. But if you’re not confident in your writing abilities start by picking up the phone (morning is preferable). You can put some bullet points into an email afterwards if a journalist wants more information. And always check that a journalist can spare a couple of minutes to talk. If they’re rude it’s probably because they’re on deadline and have less than an hour to file their copy with an editor breathing down their neck. Apologise and call them back.

    Cut the jargon

    Say the words ‘business model’ and a journalist might nod off. If you’re pitching to the mainstream media, the same goes for ‘sustainability’ and ‘innovative’. Who are you pitching you story to? Look at how they write and the tone of the publication – and match it. The Sun, love it or loathe it, has a team of some of the most skilled writers going – they break down stories so that a 10 year old can understand them. Your writing needs to be accessible. And stay away from words like ‘fabulous, amazing, wonderful’ in your media materials unless you want to sound like Edina or Pats from Ab Fab.

    Be nice, and don’t necessarily approach editors

    An editor is busier than busy. The rest of the team take their story ideas along to a daily morning meeting where the editor will say yes or no. So approach reporters and researchers. They’ll be higher up the ranks one day too, so be nice…

    Timing really is everything

    If you’re holding an event or opening your shop doors, don’t tell a journalist about it the day before. They need time – at least a week, ideally more. They’re churning out stories every day and won’t be able to cover your story if you leave it too late.

    To give you an idea of how far ahead some journalists need to file their stories: women’s glossy magazines that are published monthly work as far ahead as six months. So they’ll be putting their Christmas editions to bed in June. As a general rule, the more frequent the newspaper / magazine / programme, the less lead-in time they need.

    Numbers matter, but so do the stories

    The figures are important: A rise in the number of customers buying from you or in the number of people needing your service? Are you expanding, hiring more people? Journalists will ask you difficult questions so be prepared. Unless you’re just starting out they’ll want proof of your success.

    However, human beings are a nosy lot and other people’s stories and experiences bring news to life. So if a journalist asks for a ‘case study’ that’s what they mean. Who are the people benefitting from your social enterprise? In this article about Unseen Tours, two of the guides were interviewed.

    If you’re a social enterprise, say you are

    I still read pieces of coverage about social enterprises yet the articles don’t say it. Awareness will only grow if journalists start using the term, and they’ll only start using the term if it’s made clear in conversations and press materials by social enterprises. So put it in your opening gambit and first paragraph, please!

    Don’t be offended

    If a journalist says they’re not interested in your story don’t take it to heart. They get hundreds of calls and emails every day. But learn from it and don’t be afraid to ask what they might be interested in hearing from you about in the future. It can take time to build a relationship – and more than one go at it.

    Until the time comes when you can hire a PR there’s no harm in starting slowly – lots of journalists would much rather talk to an entrepreneur occasionally than a press officer regularly.

    This isn’t Mad Men

    PR isn’t advertising so you won’t have control over the final edit. If you don’t want it written in print or aired or the radio, don’t say it. Some journalists may make an exception if the interviewee is a vulnerable service user or a young person, for example. And if you’re invited to say something ‘off-the-record’, think twice – this is normally saved for journalists you’ve worked with for years.

    Media coverage is no longer yesterday’s fish & chip paper

    Much of its online now and will be for quite some time so in an interview don’t say anything that could come back and bite you – even if a journalist is asking you leading questions. Try and steer clear from making generalisations, and stick to the facts. And make any interview you do count: be prepared and know the top three messages you want to get across.

    Don’t forget the detail

    If you secure yourself an interview or article, ask for your organisation’s website address/telephone number/twitter handle to be included. People need to be able to find you. And remember to go back to the journalist and say thank you – it goes a long way.

    I hope this was this helpful. Let me know either way. And if you’re a social enterprise with a story to tell do get in touch: fran.gorman@socialenterprise.org.uk

     

  • Tips to start your social value journey

    By Ian Bancroft, Area Relationship Director (Delivery & Innovation), Knowsley Metropolitan Borough Council

    It’s now been nearly four months since Social Enterprise UK’s first national social value conference in November and one month since full implementation of the Public Services (Social Value Act) 2012. Awareness about the potential use of social value within procurement, asset transfers, lease agreements is definitely increasing. Public Services are beginning to get to grips with social value, although there is still much to do across the public sector to ensure social value is being used consistently and its potential to support growth of the social sector is maximised.

    Social Enterprises are already delivering social value on a daily basis. However it is essential that social enterprises understand how to incorporate social value within tender submissions. This is something commissioners, procurement and providers need to work together on so there is a clear understanding of practically how it is used.

    My own tips for people starting this journey either as commissioners or providers are as follows

    - Define social value locally with commissioners, procurement and providers and identify clear outcomes and measures that can then be applied in processes such as procurement and asset transfer.

    - Write a clear and transparent public document that can be used by public bodies to state how they are applying public value as commissioners.

    - In each individual process, e.g. individual tender processes, be specific about how you will apply social value. Discuss social value prior to formal tender processes so that both commissioner and provider are clear.

    - Evaluate the impact social value has made.

    - Keep a sustained focus on ensuring everyone has the same understanding of how you are using social value in your area and that it is being applied consistently.

    From my own experience we have started the social value journey and are making good progress. But will need to keep applying these 5 tips to ensure we maximise the impact social value can make to communities and the social sector. I am really looking forward to hearing about other peoples experiences of applying social value at the upcoming Social Value Conference.

    Ian Bancroft will be speaking at the Social Value Conference on 06 March in Liverpool.

    This blog represents the personal views of the contributor and not that of Knowsley Metropolitan Borough Council.

  • A tough year ahead in public services

    By Peter Holbrook, Social Enterprise UK’s CEO

    It’s been a sobering start to the year, detoxes aside. As our researchers take to the field to conduct the third state of social enterprise survey (we’ll be publishing the findings early summer) I’m filled, for the first time in years, with a genuine sense of fear about how the sector is fairing in public service markets. Many social enterprises started their journeys in public services and it feels only right to acknowledge and share what some of you are feeling.

    As 2012 drew to a close I think we all knew 2013 was going to be tough year: I’ve seen many valuable social enterprises close or contract to mere shadows of their previous selves; I’ve seen frown lines deepen on the foreheads of many managers and leaders; community services shut up shop and collective community action dissipate. There’s only so much people can take before their appetites are disabled, before their energy dwindles or before they’re forced to focus on very personal challenges like simply getting food on the family table.

    It’s the small social enterprises that are often the anchors within their communities that are perhaps experiencing the greatest challenges as contracts for services simply disappear – the only ray of hope in finding a grant funder willing to step in and plug the holes left by a shrinking state. There are wins like the occupation of Friern Barnet Library where the residents have been given a very modest £25,000 grant to run their library and save it from closure, but these few victories run against the current grain. Even larger, more established social enterprises are feeling the pinch, or punch. Even Turning Point has had to put its employees on new contracts in response to cuts in local authority and health budgets – and they’ve been open in saying that the cuts are only really just beginning to bite. Despite most of our members portraying stalwart positivity, the trademark of our sector, some are facing uncertain futures as margins are further squeezed, quality and integrity potentially compromised and cash flow and finance become critically tight.

    While the jury’s out on the Work Programme until we see more long-term results, anecdotally I think the majority of social enterprises and charities believe the current arrangements with their primes to be unsustainable. A number have been forced to drop out, others are hanging on, doing their best to make it work with the large private providers at the helm. With such major policy changes come teething problems, but when the urgency is so great, when unemployment figures are so high, when people are losing their benefits with no substitute, when social enterprises and charities – who have been doing this for years and getting results – are being replaced by shareholder driven firms, it can feel painfully slow when those problems aren’t remedied.

    The best entrepreneurs are innovative, so it’s important not be down on policy that is trying to do something different. But it’s also important to be honest about when something’s not working, to change tack – and to learn from what’s gone before. That’s why there’s anxiety about the MoJ’s plans: our sector wants political leaders to learn what it can from the Work Programme, and to be given the opportunity to input to improve on what there is, including that contracts need to be differently designed as we move forward. The current consultation (which closes on the 22nd of Feb) is of vital importance. We must propose alternatives, not just identify the weaknesses and threats within the architecture that’s been proposed by the new Secretary of State.

    I was invited to give evidence to the Public Administration Select Committee last week – an opportunity to relay the problems being experienced on the ground by our members. The government’s ideology has created a tug of war between localism on one hand, and centralised control and the continued up-scaling of contracts on the other. How many are willing to bet on localism winning that war? With payment by results gaining in popularity and the current cost of social investment being so high, the growth of social enterprise in public service markets is looking very uncertain.

    Welfare to work, criminal justice, health and social care – these are new worlds and new markets in which we’re seeing the needless driving down of service quality, wages and morale – and the driving up of profit for shareholders who are getting rich on the NHS, rich on welfare, rich on crime and rich on the taxpayer. We’ve outlined what we think needs to happen to remedy the growing toxicity of public sector markets in our report, The Shadow State, and we’ll be pushing these recommendations at every relevant opportunity.

    We’ll also be rolling up our sleeves and doing all we can through our members and networks to practically support social enterprises and mutuals survive this new world of public service delivery.

    Peter

    The recommendations in The Shadow State report include:

    - The Public Services (Social Value) Act should be strengthened in the following ways:

    1.Public bodies should be obliged to include social value in its commissioning and procurement and account for how this is generated.

    2.The Act should be extended to apply to the purchasing of goods and works and the management of assets as well as services.

    3.The Act should be supported with Statutory Guidance.

    - The Freedom of Information (FOI) Act should be extended to companies delivering public services – but these should be revised to take account of proportional cost burdens on smaller providers.

    - Performance under previous contracts should be explicitly weighed up as part of the decision-making process in procurement decisions. At present, when evaluating tenders public authorities rarely have information on whether bidders have previously breached their commitments in other tenders with other public authorities.

    - Open book accounting should be rolled out with supportive guidance for all public sector contracts worth more than £250,000. When adopted effectively, open book accounting can mitigate against excessive profiteering, increase transparency, and improve the sharing of risk.

    Click here to read them in full in The Shadow State. 

  • ‘Spin-outs’: Setting your organisation apart from the rest

    By Michelle Livingston, Managing Director at Real Partners CIC.

    As public sector reform continues, it’s critical that those leading mutual or social enterprise ‘spin-out’ organisations are equipped with excellent commercial skills to enable them to compete against larger, more established providers.  Extensive conversations with sector leaders have told us (here at Real Partners CIC) that that the biggest challenges that face spin-outs right now are developing an effective growth and investment strategy, building more effective business models and creating a culture where everyone feels empowered to seize the opportunities that exist for spin-outs.

    With increasing pressure on time and resources, leaders need to allow sufficient time and energy to developing a plan to confront these issues head on. Developing management teams who can tune into and understand the wider commercial environment and innovate even when there is increasing pressure to deal with critical day-to-day issues, is all part of creating organisations that will go on to have long and successful business lives.

    We asked the leaders from organisations who attended our first Liberate Programme which key attributes do spin-out leaders most need to develop. There was agreement on those which are a priority:

    Agility: this is all about the ability to mobilise an organisation quickly and effectively to respond to the changing environment. The pace of today’s market means that leaders need to be good at change management so that their organisation grows in line with wider trends.

    Imagination and questioning: being able to spot business opportunities is critical to growth. Leaders who remain open and curious, who are able to challenge the status quo and not get caught in traditional paradigms are the most like to lead innovation in the sector.

    Commercial acumen: entrepreneurial leaders who have a breadth of business knowledge and skills are able to create, build and maintain marketable products and viable organisations.

    Inspiration: Powerful organisations are not built by individuals, therefore the ability to inspire others and provide clear direction is essential. Rousing hearts and minds to step outside of comfort zones and act in extraordinary ways is key to changing the business culture right through every vein of an organisation.

    Leadership development is worth investing in, it differentiates an organisation with non-financial factors, like reputation, performance management, exceptional strategies and effective change management; traits which have become increasingly important in determining value, return on investment and the lifespan of a business.

    And statistics show that organisations who invest in leadership development outperform other businesses. Within increasingly crowded markets brimming with competitors, it is great leaders that can help your organisation set itself apart from the rest.

    Michelle Livingston is Managing Director of Real Partners CIC, a social enterprise that deliver leadership training developed for the social enterprise sector, including SEUK’s Liberate Leadership Programme .

    Find out more about SEUK’s Liberate Leadership Programme which starts on 27 February 2013.

     

  • 5 answers to 5 tough questions


    By Nick Temple, SEUK’s Director of Business and Enterprise

    It’s been a busy start to the year for SEUK, as for its members, and I’ve been struggling to keep pace with the speed of developments and initiatives across the sector. One of the many things I’ve been belated in reading was the Pioneer Post’s 5 Tough Questions for Social Enterprise in 2013, and so while I’m on the train (back from the Beyond the Bottom Line event at Warwick: kudos to Student Hubs + the team at Warwick Uni), I thought I’d try and have a stab at answering them – after all, social enterprise is meant to be about addressing problems, not just identifying them.

    1) Can social enterprises survive the economic gloom?

    Social enterprises are mostly SMEs, so it seems likely that they will perform broadly in line with the wider business sector: the economic climate is tough, whether your customers are the general public, other businesses or the public sector. So some will close; others will survive; and others still will thrive – as one social enterprise leader in the health sector said to me recently, “where this is chaos, there is also opportunity”. In what proportion? We will be analysing the findings from the next iteration of our ‘State of Social Enterprise’ survey, the successor to Fightback Britain, (due summer 2013) closely for any trends in this area.

    2) Can Big Society Capital deliver?

    This is probably a question for Big Society Capital, rather than the social enterprise sector. A different, broader question might be, ‘can the social investment marketplace work better for social enterprise?‘ or even ‘where will social enterprises get access to the finance they need?‘. For BSC is not a panacea, and we need to beware unreal expectations for an institution in the first years of operations with restrictive parameters. It is also only part of the picture – while the sector rightly has a laser eye on BSC, huge opportunities (EU structural funds of £6bn from 2014, for example) are potentially scooting by relatively unnoticed.

    For social investment more broadly to work, we have to tackle the disconnect between the local, risky, smaller social enterprises, the type of finance that suits their models, and the scale of most deals, as well as the gulfs of perception, understanding and culture on both sides. ‘Investment relevance’ is my new piece of buzzword jargon here. SEUK will be trying to play its part in achieving this via our plain English, practical Social Investment Explained events (next one March 18th), and through chairing the Social Investment Forum.

    3) Can social enterprises, mutuals and the voluntary sector deliver where the state has receded?

    There are obviously plenty of social enterprises who already do, have done and will do so in future (from bigger organisations like GLL, P3, Sandwell CCT, SCA Group, Big Llife Group, PM Training to those with excellent local delivery relationships and reputations). But without significant commissioning reform alongside appropriate financing, an open public services agenda does risk being dominated by large private companies, as our Shadow State report made clear.

    What can be done?

    - raise awareness of the potential + implementation (case studies) of the Social Value Act
    - ensure public service contracts take performance track record into account
    - push for open-book accounting process in the procurement process (retaining commercial confidentiality, but increasing transparency)
    - appointing community non-execs

    and much more besides.

    4) Can brand ‘Social Enterprise’ keep clean?

    The Pioneers Post piece primarily identifies this as a problem in public service delivery, as social enterprises are viewed as a route to privatisation or ‘pseudo-privatisation’ themselves. SEUK pushes for an asset lock with public sector spin-outs to allay (some) fears, along with proper community consultation + involvement in governance (+ design) and so on. But there is also a continuing communication job here – making clear the difference between a social enterprise that reinvests its profits in the local community, employs locally, has local governance and so forth, against a multinational doing boilerplate stuff in every region. The more we can make the case about where the money / profits flow, and articulate the tangible differences between, the stronger the brand is – and that making the case + articulation needs to come from all of us.

    5) Will the definition debate be settled once and for all?

    I was tempted to just mirror the original article’s answer here: “Nope”. To expand on that, I’m not sure it will (or should?) ever be settled, because the movement is a diverse one – the ‘impact’ camp will always disagree with the ‘ownership’ camp on some things; new entrants to the sector will always challenge the boundaries anew, and ask the question.

    SEUK has made clear its criteria, and I’m struck by how little difference there is between, for example, SENScot’s criteria / code, the Mark’s and so on. Which is not to gloss over those differences (see what I say on asset locks being used in some contexts above, for example), but merely to emphasise the many similarities. And while purists and academics conduct an inward debate over details, the outward job of communicating social enterprise, encouraging people to buy from them, and articulating the benefits of them remains too neglected. We continue to underestimate what we can achieve as a movement in this.

    If we are going to debate definitions, perhaps we should push for clarity on ‘social ventures’ and ’social business’ (both of which include profit-distributing commercial businesses with a social mission) or the difference between ‘social investment’ and ‘impact investment’ (are they analogous to social enterprise and CSR respectively?). At least it would vary it a bit for grizzled sector veterans.

    Nick Temple will be speaking at SEUK’s Social Investment Explained event.

  • Social investment – getting back to what matters


    By Charlotte Chung, Policy & Research Officer at Social Enterprise UK.

    I find this topic really interesting. I know that sounds like a ‘duh’ moment given that I work on social investment policy, but it has really taken me by surprise. The debates around social investment are particularly fascinating, posing some big questions that err into the realms of political philosophy – who should it helpwho should drive the agendawhat is it evolving into - it’s all very exciting and also…a little bit Star Wars (the number of times I have heard an ex-banker referring to their transition into social investment as from the ‘dark side’ to ‘seeing the light’).

    Recently, there has been a noticeable change in tone in how we regard social investment.  Like most runaway trends it seems to be plateauing. There is growing recognition, and at times tension, around the significance of social investment and the attention it should receive – you can see this in the now ubiquitous and clearly marked out caveat in any guide/report/ article that ‘social investment is not for everyone and should not be’.

    Far from seeing this as a negative though, I really think it’s a big positive. This slight deflation in the social investment balloon allows us to re-focus and bring clarity to our role. Social investment as a hot topic did at times feel too unwieldy – with so many different expectations projected onto it, it was difficult get our heads around  and clouding our judgement on what support was really needed.

    Finance has always been important to our members and even before social investment really took off we have tried to increase our support via the Social Investment Forum. But as a support organisation – an intermediary – we too need to take stock of ourselves and the role we can play. Whilst the social investment debates go on, and it remains important that they should and we should be part of these, we need to keep grounded about what social enterprises really need in the here and now. There are symptoms of fatigue and frustration from members about a topic that people have heard a great deal about but have not been able to engage with. Realising this, here at SE UK, for 2013 (New Year resolutions and all) we will try to provide support which adheres to a few simple principles:

    - Remember that social investment is a means to an end
    - Support should be as holistic as possible and be put in context of what stage of development the social enterprise is in
    - Don’t get carried away with being ‘sexy’
    - Focus on equipping social enterprises with the tools to make independent and informed choices (we don’t want to be the ‘power that controls the processes of change’)
    - No scaremongering with jargon, talking heads, overly complicated presentations etc
    - Be proportionate to need

    The majority of social enterprises, in reality, do not need finance for the type of big risky ventures that make the headlines. That is not to say that risk capital is not needed – many of the big reports have identified its importance for the sector’s growth.  It is to say though, that attention needs to be given to the various types and models of finance that offer real accessible and affordable solutions to a social enterprise’s needs. Many which embody the spirit of social enterprise – democratising finance through crowdfunding, community shares, community investment etc. Hopefully, this is something that we can contribute to in our first finance focused event of the year: Social Investment Explained. I’m sure all of this is nothing new and sounds like commons sense, but I guess that’s the point, isn’t it.

    Social Enterprise UK is hosting Social Investment Explained on 18th March 2013.