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SEC chief: “Neither fair trade nor organic alone = social enterprise”

Further to Mark Ellerby’s post on the Cadbury buy-out, I was interested to see today, in Peter Holbrook’s blog — he’s the new CEO at the Social Enterprise Coalition — these comments. Holbrook is referring to a recent piece in the Financial Times:

I love that the FT is writing about social enterprise, but I don’t love it when they call Green and Black’s a social enterprise.  They’re tasty and organic, but only one bar was ever fair trade and that was Maya Gold. Neither fair trade nor organic alone = social enterprise.

Holbrook goes on to make the point that for social enterprises the purpose of social change cannot be ‘discretionary’ — something that owners may choose to contribute to: “they should be fundamentally about social change”.

Speaking about the Social Enterprise Mark, which has just been relaunched as a national (rather than regional) Mark at Voice10, Holbrook says: “What I want the Mark to do is cut through the confusion and the misinformation”. It’s up to social enterprises, he concludes, to say what they are and what they believe.

Given the recent debates we have been engaged in — not least in the context of Call Britannia, in this post — I think a new leader at SEC who is setting out from day-one to establish some clarity regarding the aims, purpose and parameters of social enterprise is to be warmly welcomed.

Anatomy of Economic Inequality in the UK

The recent report of the National Equality Panel, An Anatomy of Economic Inequality in the UK (published by the Government Equality Office and produced by a team co-ordinated by The Centre for Analysis of Social Exclusion — CASE — at the London School of Economics) is now available to download free of charge from the CASE website here. You can download the whole thing (470pp), a summary (50pp), or an executive summary (6pp).

The sheer scale and complexity of the data makes it pretty hard to digest, but the analysis (here in the Guardian and elsewhere) is clear. Inequality begins with social origins — class; is compounded by education;  perpetuated by employment and income; and widens over the course of a lifetime.

Who knew?

It’s true that that’s a very tempting — almost irresistible — response, but make no mistake, in terms of public policy this will be a hugely influential report, not least in reinforcing the new legal duty on local authorities (introduced in the Equality Bill) to address socio-economic inequality.

And certainly some of the facts and figures do emerge powerfully. For instance, the researchers analysed the total wealth accrued by households over a lifetime. By the time they draw close to retirement (aged 55-64), the top 10% —  higher professionals —  have amassed wealth of £2.2m, including property and pension assets. The bottom 10% of households, however, led by routine manual workers, will amass less than £8,000.

New Colebridge Bus

The Colebridge Trust has just been informed by Capacitybuilders that it has been successful in securing funds to replace its mobile exhibition cum office cum consultation vehicle. The new Community Bus will replace the previous vehicle which was taken out of service last year after 23 years of service as a mobile library and community space.

The new bus should be on the road in April and is available to hire, complete with driver, by any charity, voluntary, community, social enterprise, public or private sector organisation. The bus is a highly effective way of taking your service or cause directly to the community.

Call Charles Rapson on 0121 770 8222 or email charlesr@colebridge.org if you are interested in taking advantage of this.

ART starts the year with twice as much to lend to social enterprises & small businesses

BSSEC member ART (Aston Reinvestment Trust) — one of the longest-established community finance providers in the UK — is starting the new year with over £2m to lend to businesses in Birmingham and Solihull that cannot get finance from conventional sources. This includes lending to social enterprises.

We’re in a position to lend twice as much in the coming year as we did last year thanks to new support from Birmingham City Council and Be Birmingham — together with continued funding and support from a host of other private and public investors.

ART is an independent mutual organisation — like an old-fashioned building society — which lends between £10,000 and £50,000 to businesses in Birmingham and Solihull unable to secure any, or all, of the finance they need from a bank. We’ve seen a massive jump in its lending as banks have taken a risk-averse attitude to small enterprises.

ART loans can be used alone or as part of a package of finance and can be unsecured or secured, with repayment periods of up to five years. They can be used for any business purpose, including supporting cashflow.

The Trust is a member of the Fair Finance Consortium, a group of independent lenders who — with the support of AWM and in some cases their local councils and other private sector investors — collectively ensure that small businesses and social enterprises across the West Midlands can access loan support of up to £50,000.

SEWM calls for all key players in the region to rally to social enterprise

Social entrepreneurs, business support agencies, local authorities and other key public sector partners will be gathering at Birmingham’s ICC on the 27th January for a major launch of a new regional vision for social enterprise, organised by SEWM.

The half-day event will see the launch of The Time is Now, a social enterprise prospectus for the West Midlands, that calls for greater understanding, support and innovation to make social enterprise the first choice in the region. More than 100 delegates will discuss the challenges and opportunities facing one of the economy’s fastest growing sectors.

Kevin Maton, Network Director of SEWsays, “The prospectus aims to galvanise everyone who operates in the sector from the social entrepreneurs who make it happen, to the consumer who benefits, the public sector who procure services and business support agencies who are there to facilitate growth… In order to achieve this we need everyone to be on board and respond to the calls to action we will be setting out.”

There may still be a few places left — if you want to be part of ‘The Time is Now’ call Sandra Crowder at SEWM on 02476 633911.

Will the planned buyout of Cadbury have any lessons for Social Enterprise?

I know it’s a bid odd to be talking about a major PLC on the BSSEC blog but when you look back at the origins of Cadbury and its early development there are a great deal of similarities with modern day Social Enterprise: the community theme, the environment and the social aims for the workforce and families.

It could be argued that as Cadburys has got bigger and more commercial it has moved away from some of their original values, but maybe the recent decision to buy organic chocolate Green and Blacks and the swap to use Fair-trade ingredients for Dairy Milk showed a return to them?

However, the recent news that Kraft is to purchase Cadbury is maybe not such good news. As the price of the shares go up the temptation to sell (or sell-out) increases – ultimately only the share holders win. What happens next will probably be a cycle of decline as Kraft seeks to get an ever increasingly profitable return on the investment made.

Over the next few years we may well be seeing the end of any further fair-trade development and an end of the not so profitable ranges; break ups will be on the cards, as will redundancies and closures – all for the sake of more profit for Kraft (or whichever company eventually buys Cadburys). A move so far away from Cadburys beginnings and so far away from Social Enterprise.

So what’s the lesson for Social Enterprise? Get your legal structure right? Don’t get too big? Maybe there’s nothing at all…it’s just a very sad day for Birmingham and the region. Of course, there’s always a silver lining as today may well be the time to start a Social Enterprise manufacturing and selling chocolate!

iSE — spreading the gospel of social marketing

iSE recently held a staff team building day with the help of Ignite Creative. We donned our creative hats to produce a short film reflecting the values and services of iSE. The day was intended not just to bring everyone together but also to help us embrace the kind of social marketing techniques that are increasingly available and offer really cost-effective tools for social enterprises.

And here is the result of our creative efforts!

Do take a look — we really enjoyed making it and want to explore the use of self-created videos much more in our marketing.

“The State has a terrible potency to kill the thing it loves…”

I like and admire Matthew Parris. He writes wonderfully, is genuinely self-deprecating and modest, and has a marvellous broadcasting voice. It’s a shame he’s a Tory, really.

Anyway, he has a very interesting piece in the Times Online about Cameron’s declaration for voluntary action and social enterprise as alternatives to the ‘big state’.

In just a few hundred words Parris manages to set this new philosophy in its wider context of Conservatism, Darwinism, social philanthropy, and Christianity.

It presents some practical difficulties, Parris acknowledges, “not least [that] of delivering state-sponsored help via non-state agencies” and goes on to warn: “The State has a terrible potency to kill the thing it loves: just look at the arts.”

I disagree with virtually everything else in the piece but he’s dead right on that point about the arts.

Ethical spending triples in past decade, says Co-op Bank

The Co-op Bank has just published its ninth Ethical Consumerism Report. This story in yesterday’s Guardian also covers the key facts and figures.

Despite the economic downturn, ethical spending by consumers continues to rise, according to the report, with overall ethical spending rising from £13.5bn in 1995 to almost £35.5bn at the end of 2007. In 2008, on average, every household in the UK spent £707 in line with their ethical values. Are social enterprises that operate in the consumer marketplace doing everything they can to capture a bigger share of this spending?

While ethical spending remains a small part of overall consumer spending (over £600bn), the report reveals that generally speaking ethical markets have proven more resilient throughout the recession.

The greatest growth in ethical spending between 2006 and 2007 has been in:

  • Free range & ‘freedom’ foods, up from £18m to £28m (+56%).
  • Energy-efficient lightbulbs, up from £26m to £41m (+58%).
  • Fairtrade, up from £285m in 2006 to £458m in 2007 (+61%).
  • Ethical clothing, up from £52m to £89m (+71%).
  • Green cars, up from £96m to £223m (+132%).

Farmers’ markets and charity shops have been amongst the few ethical sectors to see a downturn.

The resilience of ethical markets, especially Fairtrade, should come as good news to social enterprises — if only the sector could find a successful way of building up the kind of goodwill and ‘brand identity’ the Fairtrade movement has.

But I wonder why the report includes no figures at all for spending with social enterprises? True, many social enterprises, perhaps the majority, are providing business-to-business and institutional services rather than consumer products, but this is by no means universally the case. Certainly, these figures would look dramatically different if social enterprise turnover was included.

As this is the last post for 2009, it’s time to wish our friends, colleagues and readers everywhere a happy, prosperous and peaceful New Year.

iSE — first business support specialist in WM to gain Social Enterprise Mark

iSE has become the first business support specialist in the region to have its application for the Social Enterprise Mark approved.

SEs seeking to gain the kitemark scheme are assessed by an independent panel using strict qualifying criteria. Applicants must show through their Constitution that a sufficient proportion of the profit made by the business is spent on socially beneficial purposes. They must also show by their activities and their accounts that trading is a key driver and that profit generated is used for social or community benefit. The Mark is intended to enable social enterprises to promote their values-driven business and demonstrate their social outcomes

iSE will be formally awarded the kitemark on 2nd February at the Voice10 social enterprise conference when the SE Mark — originally begun by RISE in the south-west — is officially relaunched as a national scheme.

iSE is only the second social enterprise in Birmingham to acquire the Mark. The first, Gateway Family Services (CIC), received theirs on Social Enterprise Day.

Sarah Crawley, iSE’s CEO, says, “It’s still relatively rare for a business support organisation to be itself an independent social enterprise as iSE is and the SE Mark will really help us get across the message that we practise what we preach. Andy Beaton has done a fantastic job of steering us through the assessment process and I can’t think of a better way of ending our tenth anniversary year.

Smarter, cheaper government?

In a major speech prior to the budget Gordon Brown has outlined plans for a ‘third generation’ of public services tailored to and informed by their users, with the third sector and wider civic society playing a crucial role in shaping and delivering services, reports Third Sector Online.

The PM’s speech marks the publication of a major policy document for radical government reform, Putting the frontline first: smarter Government.

As well as a major cull of quangos and other cost-saving measures to reduce the cost of public borrowing, the action plan means “a bigger role for groups of residents, parents and patients, and third sector providers in shaping services in their local communities”.

Amongst the specific actions identified for strengthening civic society and third sector involvement are:

  • Production of a regularly updated Civic Health Index from early 2010 to enable people to assess how well civic society is faring and how it can be enabled to thrive.
  • Piloting Social Impact Bonds as a new way of funding the third sector to provide services. Social Impact Bonds will reward social investors for work which reduces future social costs.
  • Finalising the model for the Investment Wholesale Bank, which has been subject to discussion/consultation for over a year now.
  • Strengthening support for community asset transfer and ownership by promoting wider use of community shares from early 2010.
  • Develop criteria on social assets by Budget 2010, to determine whether alternative delivery structures such as co-operatives or third sector entities would offer the greatest value for public assets.
  • Provide financial support to innovative programmes that bring public services together with civic society — this includes the Young Foundation pilot programme of social entrepreneurs in residence in PCTs and an ‘innovation exchange’ to help the most innovative third sector organisations work more closely with public service commissioners.

More on Call Britannia — when is a social enterprise not a social enterprise?

I wouldn’t normally single out readers’ comments for specific mention, but Sebastien, in commenting on the post on Call Britannia here has raised a really important issue.

He says in his comment:

Sorry to rain on the parade but from what I know about this venture, this isn’t a social enterprise at all. Yes, it is great that an “enterprise” is being set up in an area of deprivation. But merely setting up a business in an area of deprivation should not, and does not make a social enterprise.

I think we have to be clear here – while this organisation may want to do “good” by employing people, the fact that it employs people does not automatically make it a social enterprise.

Essentially Karen is setting up a similar business that she sold off to the Daily Mail a number of years ago called Simply Switch – which employed people in Croydon. Perhaps using the social enterprise tag makes business sense for her now….

I wish this private enterprise well, but please use the correct labels…

So, when is a social enterprise not a social enterprise? Sebastien is probably right to be at least sceptical in this instance — but on the other hand, is it a bit too easy (or a bit too categorical) to simply say “this isn’t a social enterprise at all”? It has a social mission. A proportion of profits are gifted to a foundation to provide employment support to those who need it. It focuses its activities in areas of greatest deprivation. It has received investment from two specialist investment funds targeting businesses that make a financial and social return — Big Invest and Bridges Ventures.

Yet on the other hand, a Companies House search confirms that Call Britannia is indeed a Private Limited Company, and Big Invest’s Nigel Kershaw, quoted in an article in the Guardian recently said, “We spent time with Karen thinking what do we have to commit to, to make this a proper social enterprise, rather than just a business with some other stuff tagged on,” which seems to suggest that at least one of the investors recognises that Call Britannia is a hybrid form…

Of course, one might take the line that what would determine the real social enterprise nature of the business beyond doubt is whether it is operated on a non-profit distributing basis — i.e. is “not for personal profit”. This doesn’t appear to be the case.

But does that prevent it being a form of social enterprise? Or is there only one true form — not-for-personal-profit? Personally, I feel quite ambivalent about this. I know plenty of people in the sector who hold the latter view — that the only true form of social enterprise is not-for-personal-profit. But equally I know others who say “what matters is the social impact the enterprise achieves”.

One thing I am sure of — partly because policy and investment models are driving things in this direction — is that we will see more of these kind of private/social hybrids.

To my mind this strengthens the argument that social enterprise is a way of doing business rather than a specific, single ‘model’. But it would also suggest that some social enterprises may be “more social” than others….or, to put it another way, that some social enterprises are “more commercial” than others. Perhaps we need a new category — “private business with a social mission”?

While it might be more comfortable to simply say “this isn’t a social enterprise at all” this is to close one’s eyes to a distinct trend emerging in the social business sector. Denying the social enterprise status of such ventures doesn’t make them go away — and nor does it help us understand an increasingly grey area in the sector.

Sebastien has started a debate I hope others will join.

New social enterprise call centre aims to create 10,000 jobs

Thanks to Deanne at iSE for this snippet. Call Britannia, a new UK social enterprise call centre has become the first business to secure funding from the Bridges Social Entrepreneurs Fund, according to Social Enterprise magazine.

The new business, which is headed by Karen Darby, the founder of price comparison site Simply Switch, has secured a total of almost £1.3m in investment and funding to help it set up work training call centres in some of the most deprived neighbourhoods.

The Bridges Social Entrepreneurs Fund has invested £500,000, Big Issue Invest has invested £350,000 and the management team of Call Britannia has itself invested £150,000.

Call Britannia’s strapline says “talking jobs for Britain” and its Mission — with equal, elegant simplicity, reads: “Our aim is simple: To create 10,000 jobs.”

I love the clarity of those messages. Watch with interest!

Gateway Family Services becomes first Birmingham SE to be awarded Social Enterprise Mark

At a drinks reception last night to celebrate Social Enterprise Day, Gateway Family Services (GFS) announced that it has become the first Birmingham-based winner of the Social Enterprise Mark, an independently evaluated ‘kitemark’ scheme  which started in the south-west and has now gone national.

GFS, a Community Interest Company, was  born out of a Primary Care Trust just over three years ago and is one of the fastest growing social enterprises in the region, currently employing over 140 staff.

It is a new kind of community health business and believes in putting health to work in local communities in order to address inequalities and deliver employment opportunities. By recruiting, training and accrediting people from disadvantaged communities to take up local employment opportunities in community health, GFS delivers health benefits as well as creating social and economic opportunities.

Cllr Sue Anderson, Cabinet Member for Adults & Communities, spoke glowingly about GFS’s work and said the award was a “fantastic achievement”.

Gateway CEO Vicki Fitzgerald said the award recognised the shared values and efforts of the whole GFS team.  “It will give Gateway a competitive edge but we will also use the Mark to help promote the social enterprise movement in general,” she added.

The award is great news for Gateway, great news for Birmingham and great news for the  sector and congratulations are due to Vicki, to Liz Carroll her deputy, and to the whole team at GFS. It will be fascinating to see how they utilise the Mark in their marketing and key messages in the coming months.

Social Enterprise in Action

Action for Blind People is set to work with social enterprises throughout England to offer work experience placements to blind and partially sighted people looking for employment.

Thanks to funding by the National Lottery through Big Lottery Fund, Action for Blind People has developed a Social Enterprise and Employment Development (SEED) Project dedicated to finding work experience placements for blind and partially sighted people within social enterprises.

‘Host’ social enterprises will be offered a full package of support tailored to their needs, including advice on Health and Safety issues, access to specialist adapted equipment and Visual Awareness training. The majority of work placements will last between one day and two weeks and could provide a perfect lead-in ‘working interview’ for the DWP’s Future Jobs Fund six month placements.

The aim of the SEED project is to open the eyes of employers to the abilities of blind and partially sighted people within the workplace. 81% of employers rated the performance of disabled employees as ‘the same or higher’ than non disabled people. If this is the case then why is it estimated that 66% of blind and partially sighted people of working age in the UK remain unemployed. Through the SEED Project, with the support of social enterprises, blind and partially sighted people can develop the skills and confidence they need to progress into employment.

Yorkshire based social firm, Viewpoint employs a team of blind and partially sighted research assistants and has also offered work experience placements, in partnership with Action for Blind People.

Alistair Ponton, Managing Director of Viewpoint said: “The team we have recruited through Action have been enormously beneficial to Viewpoint. Their customer service and IT skills have pushed the boundaries of what services our business can offer and their attitude to helping Viewpoint succeed has reinvigorated our entire staff team.”

If you are interested in becoming a ‘Host’ organisation for the SEED Project or you would just like some more information, please contact the SEED team on 0113 386 2800.

SEC publishes first “state of the sector” survey on Social Enterprise Day

Social Enterprise Day greetings! The Social Enterprise Coalition has just announced publication of its first ever ‘state of the sector’ survey (opens PDF in new window).

Sponsored by the Office of the Third Sector, its findings make encouraging reading. Almost a  thousand SEs were sampled and the survey found that:

  • Social enterprises are twice as confident of future growth as  typical small to medium enterprises (SMEs), with 48% of social enterprises responding positively as opposed to just 24% of SMEs.
  • Over half (56%) have increased their turnover from the previous year while less than 20% have seen it go down. This is a considerably better performance than SMEs in the UK, where only 28% increased their turnover and 43% saw it go down.
  • Two-thirds of those polled are making a profit, and around 20% are breaking even.

This suggests that SEs are performing better during the current economic downturn than conventional SMEs.

I’ve only skimmed the report but it looks as if it contains just the kind of national-level sector intelligence we can all make use of. Well done, SEC!

Loaf — a new social enterprise in Brum

Loaf is a new social enterprise in Birmingham — and appropriately enough is the brainchild of…Tom Baker (no, you couldn’t make it up), NHS dietician, cook, baker, advocate of real food, artisan produce, local produce etc.

As well as knowing how to build and fire a traditional wood-burning oven in which he bakes traditional sourdough breads, Tom also clearly knows how to use the media — Loaf is all over the Birmingham Post.

Paul Hanna is going to an event at Loaf HQ next week so we’ll get him to blog more for us.

You can read more about Loaf’s services here.

Crisis pioneers SROI-based ‘share offer’ in new Skylight Centres — a model for others pursuing philanthropic investment?

Crisis, the homelessness charity, is currently promoting accredited education, training and employment centres called Crisis Skylight Services. The charity already has Skylight Centres in London and Newcastle and is planning a new Skylight development in Birmingham, where it has already been consulting with other providers and investigating potential sites.

What’s interesting about this story — covered recently in Third Sector Online and elsewhere — is the investment and fund-raising model that Crisis has adopted for these centres.

In partnership with the Financial Times, Crisis has issued a SROI-based investment prospectus, similar to a company share offering — the first such prospectus ever issued by a UK charity. This follows research carried out for the charity by independent specialists Oxford Economics, whose report and SROI formula are available here.

This is not, of course, the first time that UK not-for-personal-profit organisations have sought to use SROI to encourage ‘philanthropic investment’ — but the Crisis offer has an additional innovative angle. Because it revolves around similar Skylight centres, it offers comparability and thus enables investors to base their investment decisions not just on location but on the comparable levels of social return these locations generate.

Being a major, national charity ‘brand’ has clearly been of immense assistance to Crisis in this, as has its undoubted media savvy and ability to strike powerful national partnerships, but I reckon many other smaller organisations will also be watching closely to see how this works and whether it offers a model that they too might capitalise on.

Social enterprise slot machines?

There’s a fascinating and thought-provoking article in today’s Guardian Society about a social business that has turned to gaming and bars to offer jobs to the hard to employ in great Yarmouth.

Hospitality and Grow is a partnership venture between Towering Leisure — Great Yarmouth-based leisure and gaming company — and the award-winning training and employment social enterprise, the Grow Organisation.

At first glance it seems that the ‘products’ offered by Hospitality and Grow – gaming arcades and slots – could not be more at variance with its mission… But as Daryn Ferguson, the former croupier and casino manager  brought in to run the project, says in the piece,  this is “Yarmouth’s relevant employment” and the hardest to employ — ex-offenders, those with mental health problems and recovering drug  and alcohol addicts — “shouldn’t be excluded from that”.

Live from the Social Enterprise World Forum — Day 3

Another excellent day! I am never sure about study tours – over the years I seem to have visited many social enterprises which are in reality projects and bear little resemblance to anything enterprising! Top of my list of things to do was to visit the Bonsai Social Firm – famous because it began a series of development work in Scotland on acquisitions which is now spreading southwards.

‘Bonsai – the imagination tree’ became a social firm 3 years ago, bought from a family looking to retire – last month it merged with another garden centre [this I hadn’t known] and the new garden centre provides paid employment both for people with learning disabilities and people with mental ill health. What really was interesting was that this is a business of scale, it owns its own land and doesn’t receive payments from the government. What interested me more was that the merged company has been operating a garden centre for 20 years and originally financed the move from day activities to business start up by borrowing the money from a bank against some property they had. I thought it was a great business and didn’t disappoint!

The second visit was to Prahran Mission – a well established agency for homeless, long term unemployed and those with mental ill health. They have just opened a ‘vintage clothes shop’ – not especially exciting but what was interesting was the decision-making process that has led them down the road of social enterprise and how they plan to manage 2 staff teams, one providing traditional support/care and the other operating a social firm.

The final visit was to Tjanabi [Boonwurrung Foundation] – a fantastic restaurant in the heart of Melbourne serving food based on the native food of the reflecting the six seasons of the area. They took this approach so not to over hunt, fish or pick food and to respect it. We met Auntie Carolyn the elder of the tribe who has a considerable reputation as a social entrepreneur. She established the restaurant to resource her work with her community. She has played a significant role in the struggle for recognition and rights for the Boonwurrung people – which ended up with the first indigenous land use agreement for the Melbourne area.

The other elder I met was from the Woiwurrung Tribe [at the opening of the conference] and these two tribes share the land of Melbourne. I have met some amazing and very strong women on this trip! It’s unusual for women to be leaders but apparently many of the men die young and there are real problems with alcoholism.

By the way – the menu today had crocodile and kangaroo – guess what I had – and the plates were dressed with local berries and herbal leaves – it was superb! One of the leaves made my mouth go numb and then when I drank water there was sweetness in my mouth – explain that one if you can!

Tomorrow an eco centre!