Thought Leadership

By Andrew O'Brien - Director of External Affairs at Social Enterprise UK Given all the uncertainty in Westminster these days, social enterprises would be forgiven for missing the Procurement Bill which is currently making its way through the House of Lords. The Procurement Bill seeks to create a new legal framework for procurement in the UK following our exit from the European Union. The Bill is long and complex, but at its core is the idea of creating greater flexibility for the UK in how it spends public money. Welcome changes For social enterprises, the Bill has several important changes. Firstly, the procurement system is going to move away from “Most Economically Advantageous Tender” to “Most Advantageous Tender”. At a basic level, this means that procurement decisions can be based on more than just price. This is a positive move in the right direction. Ultimately, the goal of any public sector procurement is to make society and our planet better. Price is a factor, but not the only factor. The shift away from narrow consideration on price towards a broader range of factors is a vindication for the years of campaigning by the social enterprise sector and other organisations which have pointed out the flaws in the previous system. There is also a requirement for public sector organisations to consider breaking out contracts into lots. We hear regularly from smaller social enterprises that they struggle to bid for contracts because they are too big. One of the lessons learnt from the collapse of Carillion was the need to spread risk more evenly throughout the system rather than contracts being dominated by one or two large providers. Cuts to procurement teams mean that this provision may still struggle to be used but encouraging breaking up contracts into smaller chunks should help increase the diversity of suppliers, including social enterprises. The Bill will also make market engagement before a contract is put out to tender easier by clarifying that this engagement is legal and specifying the process. Again, this is a welcome move as most social enterprises want to work in partnership, and we know that the best services are designed in collaboration with experts and service users. Where is social value? The biggest area of concern in this Bill is the absence of any reference to social value. Despite central government creating its own Social Value Model and championing social value across the public sector over the past few years, there are no references to social value in the Bill itself. Ministers have said that the duty to “maximise public benefit” covers social value and the National Procurement Policy Statement (guidance which lays out the government’s approach to procurement) does include references to social value, but this is far from ideal. Public benefit itself is not a term used regularly in procurement, it is something from charity law. Social value, by contrast, is clearly defined in law and is far better understood by public bodies given the ten years that have elapsed since the Social Value Act was passed by Parliament. Importantly, we need to give certainty and clarity to public sector bodies about what it is expected of them. A hokey-cokey where social value is in one minute and then out the next is not conducive to long term planning and engagement. Our Social Value 2032 programme, in partnership with Jacobs, PwC, Siemens, Shaw Trust and Suez recycling and recovery UK has found that there are huge opportunities to maximise the impact of public spending through social value. There is a £56bn “social value gap” that we need to close and this Bill will not help to address this. We have been working with members of the House of Lords from across all parties to table amendments to put social value into the Bill and these have received widespread support. Unfortunately, Minister’s are not budging. We will keep campaigning to set this right and hopefully fresh leadership will provide a renewed focus on how we maximise public money through greater use of social value. Next steps Social value is not the only area that we are working on, and we have worked with peers to put down amendments to encourage “open book accounting”, so that there is greater transparency on profits and surpluses in public sector contracting, as well as putting a duty on public bodies to consider the impact of their decisions on the social enterprise sector and SMEs so that we have a range of suppliers in the future. We will keep pushing for a procurement system which maximises social, economic and environmental impact and enables social enterprises to win contracts given the excellent track record of our sector. The Bill will be coming back to the House of Lords in September after the summer recess for further discussion of amendments and SEUK will keep working with peers to improve the Bill. Once it has passed through the House of Lords it will turn to the House of Commons and we can expect the Bill to be passed into law some time in early 2023. We’ll keep social enterprises updated about the passage of the Bill as it makes it way through Parliament.   If you have any question or would like to find out more about the Bill, feel free to email me at andrew.obrien@socialenterprise.org.uk.

We are proud to partner with Social Enterprise UK on the Social Value 2032 programme, which we joined to raise awareness of the benefits social value can create and ultimately to encourage wider adoption of social value in procurement by both central and local government. Social value is an approach that considers the holistic impact of a product or service, looking not only at value for money but also at social and environmental benefits and consequences. We believe that wider adoption of social value can unlock billions of pounds’ worth of value for individuals and communities, and help to support an evolution of our economy that considers both people and planet. In Social Value 2032: Creating a Social Value Economy, we set out, along with fellow partners PwC, Siemens and Shaw Trust, a collective vision for social value over the coming decade. We include a case study about our work with Greater Manchester Combined Authority to develop a reuse hub for the city. The purpose of this was to bring reuse to Greater Manchester on a scale not seen before, through a hub for upcyling, repair and distribution that feeds a network of shops for pre-loved items. Together these provide work opportunities and prevent hundreds of thousands of items from being thrown away, conserving resources and cutting carbon emissions – all the while helping people in Manchester with the cost of living crisis and enabling them to access items that don’t cost the earth. This is the kind of exciting development that can happen through partnership between local authorities and service providers with a shared ambition for social value. Local and national government, as key investors in public services, have an important role to play in unlocking the benefits of social value. In the environmental services sector, we have seen a trend towards social value in procurement, with increased importance placed on outcomes for society and the environment in the competitive tender process by forward-looking authorities. Social and environmental issues typically used to account for around 2% of the weighting for supplier decisions. Now, in a growing number of Invitations To Tender, we see that figure at 10 or 15%. This puts an onus on all of us to respond to our customers’ changing needs to meet the growing public appetite for social value in the services they use. But this is only one way of thinking about social value. Social value is much more than a public sector issue, and should run far deeper within businesses than simply adapting to keep up with demand. At SUEZ, our adoption of a ‘triple bottom line’ approach – where we strive to consider and balance people, planet and profit throughout our business – has driven improvements that go beyond whether we can meet the brief for a given project. Our journey towards social value began about 13 years ago. At the time, the environmental services industry was dominated by landfill, with far less emphasis on reuse and recycling than today. We recognised this and were determined to take a leading role in addressing the wider impacts of the services we provide. Partly this stemmed from the personal convictions of our leadership team, who were committed to looking for ways to improve our business practices. Early forays into social value took a project-based approach, which revealed the potential impact we could have, but flagged to us the need to be more joined up and think about how we could make changes across the business. Our CEO, John Scanlon, took up his post in November 2019 and, having worked across many parts of the business, had seen first-hand how we could optimise the benefits arising from our work delivering essential services to local communities the length and breadth of the country, whilst remaining a profitable enterprise. He led efforts to develop a more strategic approach, putting together a team including leads for environment and sustainable development, and sustainability and social value. The resulting strategy, which is best summarised as our ‘triple bottom line’, is now embedded in all parts of the business and continues to evolve how we operate. The approach, while governed from the top of the organisation, is owned by everyone in the business. We have built social value into all our work. Our bonus structure requires senior colleagues to deliver on social and environmental success measures, and staff are closely involved with implementing the strategy in the most appropriate ways for their part of the business by developing local initiatives. We operate across about 280 sites and each of these has a sustainability champion, who is tasked with thinking about how we can make operational changes at ground level to benefit the environment and our local communities. This is guided by our ten Sustainability Principles, developed using staff feedback on where they see the greatest opportunities to make a difference at a local level.  Examples include one site where our staff repurposed a wind turbine to generate energy for the site, removed single use plastic cups and helped a local school with their biodiversity projects. We’ve found that these small changes add up to a big overall impact – for our environmental and social impact, and our bottom line. Social value is increasingly an area of interest for new recruits joining the business. We are much more frequently asked by candidates about what we are doing in this area. We recognise the importance to employee engagement of helping our people to live up to their personal values through the work they do. Our social value story points to a virtuous cycle. In building our strategy to maximise the social and environmental benefits of our work, we are helping to meet the demands of our employees and customers. This in turn makes us a better partner and strengthens our business. For more information about the Social Value 2032 programme click here. Social Value 2032 partners:

Loneliness, living alone and poor social connections are as bad for your health as smoking 15 cigarettes a day. Half a million older people go at least five or six days a week without seeing or speaking to anyone and since the beginning of the Covid-19 pandemic, these problems have increased drastically. In society we are also faced with the ongoing cost of living rises, and younger people are being priced out of towns and villages when looking for an affordable place to live. In 2021 house prices rose again with the average house price in September 2021 at a record high of £270,000; £28,000 (11.8%) higher than September 2020, making it even harder for young people to save towards purchasing their first home. At Homeshare UK we are working with our network of providers to tackle these two key issues by bringing together people with spare rooms with people who are happy to chat and lend a hand around the house in return for accommodation. Together, householders and homesharers share home life, time, skills and experience. Typically, an older householder with a room to spare will be carefully matched with a younger person who will provide around 10 hours of support in exchange for affordable and sociable accommodation. Daily living tasks are part of this support, such as cooking, cleaning, shopping and providing companionship. “Due to the ongoing housing crisis in many locations across the UK, the majority of our homesharers are now aged between 26-35 (67%), including young professionals, university students as well as public sector workers, all of who need affordable accommodation and a place to call home.” – Deborah Fox, Head of Homeshare UK “Perfect catch, perfect match!” Each and every Homeshare match is very different from the next. For many people, it is their concerns about becoming isolated or lonely that lead them to Homeshare. For others, still socially connected and very much valuing their own space, it is the reassurance of having someone else around that is key to them welcoming someone new into their home. In Valerie’s case it is the latter; she is 84, friendly, sociable and values her independence and time alone. At the same time, she recognises that the presence of someone else in the house, particularly at night, is most reassuring, not just to herself but to her brother Bill, who lives a couple of hours drive away. Tomi, 24, a Film Studies Masters student from Slovenia, has been welcomed into Valerie’s home and is described by her as “the perfect catch!” Valerie says, “Tomi is such a lovely person to have around. I really enjoy our conversations. I actually see Homeshare as a way of keeping in touch with today’s fast-moving modern world too.” Reflecting on his Homeshare experience, Tomi describes Homeshare as being a way to learn as well as teach, to help and be helped; in short, an enriching reciprocity. “To be honest”, he says, “it’s like a dream come true. Living in a lovely home with a lovely person and within my limited budget. Being of help to someone is also a really important part of it for me”. Tomi and Valerie – Photo Courtesy of Homeshare Oxfordshire Bill, Valerie’s brother, continues to visit on a regular basis, but with a Homeshare arrangement in place he knows Tomi is there and is more than happy to help with the small things that inevitably crop up. “I don’t need to worry if I can’t get hold of Valerie on the phone. A quick call to Tomi puts my mind at rest”, Bill says. “Homeshare, to me, is reassurance”.   The expansion of Homeshare UK Homeshare UK is part of Shared Lives Plus – the UK membership charity for more than 6,000 Shared Lives carers, 150 Shared Lives programmes, and a growing network of over 20 Homeshare providers. Our vision is for a kinder, stronger society built around people sharing their lives, skills, and homes. We are currently driving forward an ambitious five-year growth strategy that will bring Homeshare to key towns and cities across the UK. “Gabby has been living with me for over a year and Homesharing is working really well. She is a super cook and great company. I enjoy our chats together over a meal in the evenings and she’s very helpful with things I can’t manage around the house.”– Margaret Householder, Novus Homeshare Your next business could change lives Working with socially-minded individuals, community and voluntary organisations as well as existing social care providers we are aiming to establish 40 new Homeshare franchise opportunities in locations currently not serviced. “To reflect our passion for growth, the cost of our social franchise is among the very lowest in the franchise sector. Our franchisees will be provided with the support, training, and resources to set up and operate a successful Homeshare social business.” – John Wilberforce, Homeshare UK Social Franchise Manager For more information on Homeshare UK and our franchising opportunities, visit  https://homeshareuk.org/

Doughnut Economics is a vision for human prosperity – meeting the needs of all people within the means of the living planet. This session aimed to help social enterprises explore and articulate their enterprise design and how this distinguishes them from ‘traditional’ businesses, allowing them to transform the broader economy. The session was led by Erinch Sahan, Business & Enterprise lead at the Doughnut Economics Action Lab, who is the former CEO of the World Fair Trade Organisation and previously spent 7 years at Oxfam leading work on global business innovation. 11 July 2022 https://www.youtube.com/watch?v=E84ON8_GrWE

7 July 2022 Statement from Peter Holbrook CBE, Chief Executive Officer, Social Enterprise UK “The Prime Minister has resigned and we will now see a contest to replace him.” “The country faces significant challenges from the cost-of-living crisis to the climate emergency. We need the next Prime Minister to be someone who understands that we cannot go on with business as usual. We need bold leadership if we are going to get Britain back on track.” “The present situation has shown the importance of integrity and why all our institutions, not just our politics, need to be governed with a sense of social responsibility. Government and business must put people and planet first.” “Social enterprises have a huge role to play in our future. There is no route to levelling up and bringing prosperity to all parts of our country that does not involve growing the social enterprise sector.” “SEUK will work with all Conservative leadership candidates to help them to understand the potential of our sector and we look forward to working with the next Prime Minister.”

July the 1st 2022 saw Leading Lives mark its 10-year anniversary as an employee-owned social enterprise, with a combined birthday celebration and awards event in Bury St Edmunds.  It also acknowledged the contribution of Tony Carr, who retires as Managing Director after 41 years in the Suffolk care sector. Leading Lives has grown significantly since it was established as an employee-owned social enterprise in 2012 and is now an award-winning social enterprise that delivers innovative high-quality care services to over a thousand people, with an annual turnover that has increased to £10.7m. Social care provision includes 24 hr supported housing, overnight stays to give family carers a break, bespoke 1-1 care in the community and in people’s homes across Suffolk.  Their community hubs provide a range of skills development and leisure activities as part of a county wide daytime, evening, and weekend offer. They have an expanding offer bespoke to young people with learning disabilities and autistic people 13-25yrs that is grant funded by Activities Unlimited. They have embraced new ways of working and used technology to support people during the pandemic through their Digital Lifeline Project, which won Innovative Practice at the 2021 Suffolk Care Awards. Leading Lives put much of their success down to their business model of employee ownership and not for profit. The board of directors is made up entirely of employee elected directors, voted for by their colleagues.  Leading Lives invests heavily in the wellbeing of employees and involves them in the running of the business, employees feel valued and that their ideas and opinions matter.  All profits go back into the organisation and to the local community. This year Leading Lives gave away £25k to local charities and third sector organisations in Suffolk.  Strong on values and always putting the person at the heart of what they do, Leading Lives is well respected nationally and locally within the care sector winning numerous awards including Health & Social Care Enterprise of the year 2015 at the SEUK national awards (and finalists in 2021), winners at the Suffolk Care awards in 2021 and named in the top 50 Employee-Owned businesses in the UK.    Tony says “I have thoroughly enjoyed working in these services over the years with so many fantastic people. I feel fortunate to have had the opportunity to help create Leading Lives and am extremely proud of where it is today and how well positioned it is for achieving even more in the future.” - Tony Carr. Lucy Humphrey formerly Director of Operations at Leading Lives and non-executive director at Care Development East has been appointed as new Managing Director to succeed Tony.  Lucy said “This is an exciting time for Leading Lives and despite the challenges in social care we have a wonderfully loyal and committed workforce. I am positive we will work together to make the leading lives difference over the next ten years.” - Lucy Humphrey. leadinglives.org.uk

GLL case study is on its way...

For so many of us, the pandemic was a chance to revisit our passions, ambitions and dreams for the future.  For me, it was also a chance to try starting my own enterprise – a social impact venture in the education sector.  Here are three things all early-stage social entrepreneurs should know. Uncertainty actually brings opportunity As entrepreneurs (and as humans!), we’re often not a fan of uncertainty.  We want to be sure about things, with our next steps planned out and a set of predictable consequences.  Life, of course, is never this simple – but the last year or so has delivered much more uncertainty than normal.  So, how should we respond?  How can we plan for all the possible eventualities of a pandemic year? The invitation for all entrepreneurs – and especially those starting new ventures during this time – is to see pandemic challenges as bringing new opportunities.  Every major industry has been impacted by the events of 2020-2021, and it’s clear that some are more willing to capitalise on this change than others.  As social impact entrepreneurs, we’re uniquely placed to listen carefully to the market, and respond with a solution that is timely, relevant and important.  We can ask ourselves: what’s the real need that I’m trying to address with my business solution?  How has this need been impacted by the pandemic?  And then, armed with the answer to those questions, we can craft a creative, relevant solution. The next normal awaits It’s clear that the theme of uncertainty will continue to be prominent as we move into the ‘next normal’, but there will also be a lot of other important themes coming into view.  For example, themes of innovation, or disruption, or creative rebuilding.  We’ve been given a unique opportunity to play a part in constructing the post-pandemic world, and it’s up to us – collectively – to decide what comes next. As entrepreneurs, we’re perfectly placed to think creatively about the systems, markets and industries we’re working within.  What will the ‘next normal’ look like for your particular sector?  How will behaviours and preferences change?  How can we shape our actions to create a world we actually want to live in? And on a personal level, as individual entrepreneurs, we’re given a chance to redefine our own working lives.  Many of us will have experienced remote work, and decided not to return to the office.  Perhaps you’re part of the ‘great resignation’ – the movement away from the work you previously did, and towards something different; more exciting.  Either way, we have the option to see ourselves as creators of our own working lives.  How do we want our days to be structured?  When are we most productive, and how can we support this with our schedules?  What do we most enjoy doing, and how can we do more of it?  These are questions about the ‘next normal’ that every entrepreneur has the ability to determine for themselves. It can be a lonely journey, but it doesn’t have to be One of the biggest things that struck me, shortly after leaving my corporate job, was the isolation of being a solo founder.  Without a network of colleagues, supervisors and mentors, entrepreneurs can end up feeling alone.  It can be difficult to explain your exact feelings about your business, or the challenges faced in a start-up, to someone who doesn’t have any knowledge of what you’re talking about. But it doesn’t have to be that way.  The shift to digital work has opened up endless opportunities for networking, connection and interaction.  Joining networks (like Social Enterprise UK) can be a huge support as you begin the process of building something new – use them to your advantage! And finally, as you go about your entrepreneurial journey – noticing the opportunities amongst the uncertainty, finding your feet in the ‘next normal’, and building up those connections around you – remember that you might just be part of a new wave of entrepreneurs who are stepping up during this time, to rebuild the world in a better way. AUTHOR BIO Eloise Skinner is a social impact entrepreneur, author and teacher.  She is the founder of The Purpose Workshop, a social impact consultancy, and One Typical Day, an ed-tech start-up.  Eloise’s book, The Purpose Handbook, was published in 2021.  You can find out more about Eloise on her website, or on LinkedIn. The Purpose Workshop The Purpose Workshop is a social impact consultancy, helping individuals and businesses navigate a sense of purpose, mission and values. We believe that purpose-focused work should be available to everyone, regardless of background or experience. As a business, our social mission is to channel profits into creating educational resources, shared with our network of schools free of charge. thepurposeworkshop.uk