Professional Documents
Culture Documents
Encouragingsuccessinsocialandcommunity
enterpriseindeprivedcommunities
EdCoxandKatieSchmuecker
June2010
InstituteforPublicPolicyResearch
Challengingideas– Changingpolicy
1 ipprnorth|GrowingtheBigSociety
Contents
Aboutipprnorth........................................................................................................................2
AboutNorthWestTogetherWeCan.........................................................................................2
Acknowledgements....................................................................................................................2
Executivesummary.....................................................................................................................3
Introduction................................................................................................................................7
1.Policyandliteraturereview....................................................................................................9
2.Casestudies..........................................................................................................................15
3.Resultsfromtheonlinesurvey............................................................................................31
4.Theviewfromsupportprovidersandlocalauthorities........................................................39
5.Conclusionsandrecommendations......................................................................................44
References................................................................................................................................50
2 ipprnorth|GrowingtheBigSociety
Aboutipprnorth
ipprnorth,theNewcastle-basedofficeoftheInstituteforPublicPolicyResearch,produces
far-reachingpolicyideas,stimulatingsolutionsthatworknationallyaswellaslocally.These
areshapedfromourresearch,whichspanseconomicdevelopment,regeneration,public
servicesanddevolutionaswellasastrongdemocraticengagementstrandwhichinvolvesa
widerangeofaudiencesinpoliticaldebates.
ipprnorth,2ndFloor,20CollingwoodStreet,NewcastleUponTyneNE11JF
Tel+44(0)1912339050|www.ippr.org/north
RegisteredCharityNo.800065
ThispaperwasfirstpublishedinJune2010.©ipprnorth2010
AboutNorthWestTogetherWeCan
NorthWestTogetherWeCanistheempowermentpartnershipfortheNorthWestof
England.Itencouragescollaborativelearning,practiceandresearchaboutcommunity
empowermentandengagementintheregion.
Contact:EveDavidson,NWTWCProgrammeManager:
eve.davidson@nwtwc.org.uk/01612181789
www.nwtwc.org.uk
Acknowledgements
ThisreporthasbeencompiledbytheInstituteforPublicPolicyResearchNorth(ipprnorth)
andManchesterBusinessSchoolIncubatorforNorthWestTogetherWeCan,the
EmpowermentPartnershipintheNorthWest.
ipprnorthwouldliketothankNorthWestTogetherWeCan,aswithouttheirfundingthis
timelypieceofresearchwouldnothavehappened.Wewouldalsoliketopayspecialthanks
NickalaTorkingtonSnapeandAlexanderLesbirelfromManchesterBusinessSchoolIncubator
fortheirdiligentworktogatherthecasestudymaterialforthisreport,andtheorganisations
thatagreedtoparticipateintheresearchascasestudies.Theirwillingnesstogiveuptheir
valuabletimetospeaktous,andtheircandidapproachtoourquestionsmadethisresearch
possible.
Wewouldalsoliketothankalloftheorganisationsthattookthetimetocompleteour
onlinesurvey,andtheorganisationsthathelpedustodistributeit,inparticularCheshire&
WarringtonSocialEnterprisePartnership,CoopsNorthWest,CumbriaSocialEnterprise
Partnership,DevelopmentTrustAssociation(DTA),GreaterManchesterCouncilforVoluntary
Organisations(GMCVO),SocialEnterpriseinLancashireNetwork(SELNET),SocialEnterprise
Network(SEN),SocialEnterpriseNorthWest(SENW),theSocialEnterpriseCoalitionand
TogetherWorks.
Finally,wewouldliketothankallthosewhocontributedtotheideascontainedinthisreport
throughtheworkshopandinformaldiscussions.Inparticular:JoBird,JoBowenJones,
RichardCaulfield,EveDavidson,ValJones,HelenaKettleboroughandJeffScales.Wewould
alsoliketothankthefollowingindividualsfromwithinippr:TamsinCrimmens,TimFinch,
GeorginaKyriacou,EvelynTehraniandJoThomas.
Thefindingsofourresearchare,however,theresponsibilityoftheauthorsaloneanddonot
necessarilyrepresenttheviewofthefundersoranyotherindividualsororganisations
involvedwiththeresearch.
3 ipprnorth|GrowingtheBigSociety
Executivesummary
Thethirdsector,particularlysocialenterprise,hasmovedintothepolicymainstreamin
recentyears.UndertheLabourgovernmentsocialenterpriseswereregardedasapotential
delivererofpublicservicesandfacilitatorsofcivicactivism,communitycapacityand
cohesion.Thenewcoalitiongovernmentiscontinuingonthispath,withthe‘BigSociety’
emergingasanimportantearlytheme.
TheCoalition’splansincludegivingcommunitiesmorepowersandrightstomanagelocal
assetsandservices,trainingagenerationofcommunityorganisers,supportingphilanthropy,
andgrowingthesizeofthethirdsector.Earlypolicystatementsemphasisetheroleofsocial
enterpriseparticularly,settingoutmeasurestosupportthegrowthofexistingsocial
enterprisesandtheestablishmentofnewones.
ThenewregionalstrategycurrentlybeingdevelopedfortheNorthWestalsomakessocial
enterpriseapriority.NorthWestTogetherWeCancommissionedipprnorthtoidentifythe
criticalsuccessfactorsforsocialandcommunityenterprisesandinformthewiderdebate.
Thisisthesummaryofareportthatdrawstogethertheresultsofcasestudyresearch,a
surveyofsocialandcommunityenterprisesintheNorthWest,asmallnumberofinterviews
withsupportprovidersandlocalauthorities,andacross-sectorworkshop.
Positivefindingsbutchallengesremain
Ourworkfindsthatallinall,therearemanyreasonsforcommunityandsocialenterprisesto
becheerful.Themessagescomingfromthenewgovernmentareverypositivetowardsthe
thirdsector,andthisresearchshowslocalauthoritiestootobeincreasinglyawareand
supportiveofsocialandcommunityenterprise,andanumberoforganisationstobedoing
excellentworkinandwiththeircommunities.
Buttherearesomesignificantchallengesonthehorizon.Inparticular:
•Theimplicationsofthepublicsectorspendingcuts
•ThefundingcliffedgeloominginMarch2011asmanygrants,serviceagreementsand
contractsareduetoend
•Fearsthatthedriveforpublicsectorefficiencywillresultineverlargercontracts,pushing
commissioningandprocurementfurtheroutofreachformoreandmoresocialand
communityenterprises.
Perhapsmostchallengingofall,thisresearchfindsthatfull-blownsocialandcommunity
enterprisesarefewandfarbetween.Inrealitytherearemanymoreaspiringsocialand
communityenterprises–currentlylargelydependentongrants–thantherearefully
operationalenterprises.Itwouldseemthereissomethingofagapbetweentheexpectations
oftheBigSocietyandrealityonthegroundintheNorthWest.
Criticalsuccessfactors
Inordertoliveuptotheexpectationsofpolicymakers,itiscrucialthatthesocialand
communityenterprisesectorissupportedtobestrongandvibrant.Inconsideringthecritical
successfactorsfortheseenterprisesintheNorthWestofEngland,particularlythosein
deprivedcommunities,ipprnorthasked:
•Whathelpsmakethemsuccessful?
•Whatimpactdotheyhaveontheirarea?
•Whatsupportdotheyrequire?
•Wheredotheyaccesssupport?
Mostofourcasestudyorganisations’storiesofsuccessrevealcommonthemes,suchasthe
qualityofrelationshipsandnetworks,havingtherightpeopletorelyon,andtheneedto
4 ipprnorth|GrowingtheBigSociety
buildastrongprofileandgoodreputation.Mostoftheorganisationsalsoregarded
undergoinganorganisationalreviewandsecuringasignificantcontracttobekeyturning
points.Thesemomentscatalysedtheirdevelopmentasenterprises,andchangedtheir
organisationalmindset.
Keypointsidentifiedthroughthisresearchprojectaresummarisedbelow.
Enablersofsuccess
Astrongteam:Theimportanceofcommittedandenthusiasticpeoplewiththerightskills–
oraccesstootherswiththerightskills–washighlightedrepeatedly.Thisextendednotonly
tostaffandvolunteers,buttoboardmembersandmentorstoo.Astrongleaderwithaclear
visionisalsoveryimportant.
Networksandprofile:Havingstrongnetworkswithotherorganisationsabletoofferpeer-
to-peersupportandmentoringishighlyvalued.Sotooisparticipatinginmixednetworks
thatofferopportunitiestobuildprofile,learnaboutbusinessopportunitiesandform
consortia.
Serviceprovisionandidentifyinganiche:Socialandcommunityenterprisesneednotonly
tounderstandthecommunitythattheyserve,butalsohowtoaccessmarketsand–where
relevant–developnewmarkets.Evidencetodemonstratecommunityneedandgapsin
servicesisessential,whichrequiresgoodqualitymarketresearchandprofessionalmarketing
oftheresultingservice.
Thevalueoforganisationalreview: Mostofourcasestudieshighlightedanorganisational
reviewasakeyturningpointontheirjourneytobecomingasuccessfulenterprise,bringing
greaterclarityabouttheirmissionandhowtoachieveit.Oftenthisinvolvedstoppingsome
activitiesandembracingamoreenterprisingmindset.
Barrierstosuccess
Fundingandfinance: Unsurprisingly,fundingrecurredasachallengeforthesector,with
considerableanxietyexpressedaboutthefuture.Theresearchrevealsastrongpreferencefor
fundingintheformofgrants,withveryfewofthesurveyrespondentstryingtoaccessloans
orotherformsofbusinessfinance.
Publicsectorprocurementandcommissioning:Thisshouldbearoutetogreater
sustainability,butanumberofsignificantbarrierswerehighlighted,including:restrictive
specificationsthatsetouthowdeliveryshouldoccur,ratherthanfocusingontheoutcomes
sought;overlycomplexprocesses;tighttimescales;largecontractsthatarebeyondthereach
ofsmallerorganisations.
Accessingrelevantsupport:Findingandaccessingrelevantsupportisakeyenablerofsocial
andcommunityenterprises,butalackofcoordination,informationsharingandsignposting
createsbarriers.
Generally,organisationswerepositiveaboutthesupportprovidedbyothervoluntarysector
agencies,butwantedtoseemorespecialistsupportdirectlyrelevanttotheirorganisation.
Thesurveyfindingssuggestsocialandcommunityenterprisesseeksupportindifferent
places,withcommunityenterprisesmorelikelytoturntootherthirdsectororganisationsor
localauthorities,butthosenotidentifyingthemselvesascommunityenterprisesmorelikely
toturntospecialistsocialenterprisesupportprovidersandorganisationslikeBusinessLink.
Theywerealsomorelikelytohighlightbusinesssupportandprocurementskillsand
knowledgeasareaswheretheyaredissatisfiedwiththesupportavailable.
Developingcoreorganisationalinfrastructure: Successfulorganisationsarebuiltongood
processes.Financialmanagementandhumanresourcesthatfunctioneffectivelyenablethe
restoftheorganisationtooperatesmoothly.Fundingthisactivityremainsasignificant
barriertomanyorganisations.
5 ipprnorth|GrowingtheBigSociety
Recommendations
1)MakingBigSocietyflourish
Thenewimpetusgeneratedbythecoalitiongovernment’semphasisontheroleofsocial
enterpriseincreatingtheBigSocietyistobewelcomed.However,itwouldseemthat–in
theNorthWestatleast–thereisasignificantgapbetweentheexpectationsfortheBig
Societyandthecurrentcapacityofthesector.Ambitionstobuildcapacityalsolook
dangerouslyconstrainedbytheMarch2011fundingcliff-edge.
Inordertobridgethegapandaddressconcernsaboutcapacityandfunding, werecommend
anurgentneedforrobustandfrequentdialoguebetweennationalpolicymakers,
regionally-basedrepresentativesofthevoluntaryandcommunitysectorandsocial
enterprise,localauthoritiesandothersupportagencies.
Whilefinancesaretight,themoneythatdoescometothesectorthroughtheBigSociety
Bank,theCommunitiesFirstFundandanylocalauthoritydiscretionaryspendshouldbe
targetedattheareasofgreatestneed.Investmentshouldfocusonsecuringsustainability
andsupportingstart-uporganisationsinareaswheretheyareabsent.Someofthisfunding
shouldtaketheformofseed-corngrants,givenspecificallytosupportorganisationstomove
ontoamoreenterprisingfooting.
2)Makingthetransitiontoenterprise
CommunityandsocialenterprisesintheNorthWestareplayingacriticalroleinthevitality
andwell-beingofmanycommunitiesacrosstheregion,notleastinsomeofthemost
deprivedneighbourhoodswheretheyactasasocialglueenhancingresilienceandqualityof
life.However,itwouldappearthatasubstantialproportionoforganisationscalling
themselvessocialorcommunityenterprisesstillhavesomedistancetotraveltoachieve
sustainability.Organisationsneedsupportiftheyaretoreducetheirrelianceongrantsand
movetomoreenterprisingactivity.
Werecommendthatleaders,Boardmembersandtrusteesoforganisationsaspiringtobe
communityorsocialenterprisescarryoutanorganisationalreview,focusingoncore
missionandfuturefinancialsustainabilityinordertofacilitateagenuinetransitiontoa
moreenterprisingapproach.
Supportingthistransitionshouldbeakeyfocusofnationalpolicymakers,regionally-based
representativesofthevoluntaryandcommunitysectorandsocialenterprise,localauthorities
andothersupportagencies.
3)Commissioningandprocurement
Bothprocurementandcommissioningofferaroutetosustainabilityformanysocialand
communityenterprises,andyetourresearchshowsthatmostcommunityandsocial
enterprisesexperiencesignificantbarriersinaccessingsuchfunding.
Werecommendthatlocalauthoritiesandotherlocalserviceprovidersshouldreview
commissioningandprocurementprocessestobetterunderstandtheneedsandbenefits
ofthesocialandcommunityenterprisesectorandshouldthenmovequicklyfrom
developingstrategiesandplanningtoconcreteaction.
Reviewsshouldfocusonremovingunnecessarycomplexityandbureaucracy.Toensurethe
usersperspectiveisattheheartoftheprocess,localsocialandcommunityenterprises
shouldbeinvolvedinthereviewtoensureanynewprocessesareaccessible.Contractsize
shouldalsobeconsidered,withlocalauthoritiesandtheirpartnersconsciousthatas
contractsincreaseinsizetheybecomemoredifficultforlocally-basedsocialandcommunity
enterprisestodeliver,favouringinsteadlargernationalorinternationalorganisationsand
businesses.Thereisdissonancebetweeneconomiesofscaleontheonehand,and
supportingsustainablelocalcommunityandsocialenterprisesontheother.
6 ipprnorth|GrowingtheBigSociety
Partoftheanswerliesincontinuingtodevelopcapacityforconsortiaworkinginthe
voluntarysector,butanotherpartislikelytorelyonafundamentalreassessmentofwhatwe
meanby‘value’.Valueshouldincorporateideasofplace-shapingandpromotingsocial,
economicandenvironmentalsustainability.
4)Coordinatingsupport
Awiderangeoforganisationsandindividualsacrossthepublic,privateandvoluntarysectors
areofferingsupporttosocialandcommunityenterprises.Fromprovidersofgeneric
voluntarysectorsupport,toorganisationsofferingspecialistsupport,businesssupport
providersandlocalauthorities,thepictureiscomplex,confusingandunhelpfully
competitive.
Organisationstendtoneeddifferenttypesofsupportatdifferentstagesoftheir
development.Thefocusshouldbefirmlyontheneedsoftheclientastheyareguided
throughdifferentstagesofdevelopmentandhandedontothenextlevelofsupportwhen
(andif)relevant.Generallyspeaking,communitydevelopmentsupportislikelytobeneeded
intheveryearlystagesofthelifecycle,genericvoluntarysectorsupportasanorganisation
becomesmoreestablished,andbusinessand/orspecialistsupportasanorganisationmoves
ontoafirmenterpriseorseekstogrow.Supportshouldthereforebelinkedintoa‘lifecycle
framework’,withprovidersspecialisingindifferentpartsofthelifecycleandreferring
enterprisestootherproviderswhereandwhentheyarebetterabletomeettheirneeds.
Werecommendthat,ininterestsofthewidersector,thewiderangeofsupportagencies
operatingintheNorthWestworktogethertobettercoordinatetheireffortsandpresent
amorecoherentsupportoffertoexistingandaspiringcommunityandsocialenterprises
intheregion,basedona‘lifecycleframework’.
Takingthisagendaforward
Thekeymessagesofthisresearchshouldformthestartingpointforaconversationwithin
theregion,andbetweentheregionandgovernment.Throughpartnerorganisations,we
hopethisresearchwillbewidelycirculated,viewsfedback,andadialogueonthebestways
torespondtothesechallengesbegun.Socialandcommunityenterprises,theirrepresentative
organisationsandthewiderthirdsectorhavetheopportunitytoshapetheGovernment’sBig
Societyagendaasitemerges.Wehopethisresearchwillhelpinthistask.
7 ipprnorth|GrowingtheBigSociety
Introduction
Socialenterprisehasbeenclimbingthepolicyagendainrecentyears,andlookssettotake
centrestageunderthecoalitiongovernment.The‘BigSociety’hasemergedasakeytheme
forthenewgovernment,placingthevoluntarysectorattheheartofpublicpolicymaking,
withacentralroletoplayinpublicservicedeliveryandcivilsociety.Earlypolicystatements
emphasiseinparticulartheroleofsocialenterprise,settingoutmeasurestosupportthe
growthofexistingsocialenterprisesandtheestablishmentofnewones.
Asocialenterpriseisabusinesswithprimarilysocialobjectives,whosesurplusesare
principallyreinvestedforthatpurposeinthebusinessorcommunity,ratherthansurpluses
beingusedtomaximiseprofitforshareholdersorowners.WithintheNorthWestregion,this
kindofenterprisehasbeenidentifiedasoneoffivekeyprioritiesinreleasingpotentialand
tacklingpovertyintheregioninRS2010,thedraftregionalstrategy.Thestrategyargues
thatsocialenterprisehasbeenattheheartoftheregion’screativeandradicaltradition,and
thata‘strongsenseofcollectiveactionandcollaborationhasalsocharacterisedtheNorth
WestandisreflectedinthisregionbeingthebirthplaceoftheCo-operativemovementand
GroundworkTrust’(RS2010,p27).
Aswellassocialenterprise,thisreportlooksat communityenterprise.Communityenterprise
isaslightlynewertermtothepolicylexicon,whichwasdefinedbyarecentDepartmentfor
CommunitiesandLocalGovernment(CLG)strategy:
Communityenterpriseshaveexactlythesameprinciplesassocial
enterprises.However,theyaredifferentinthattheyseektobenefita
particulargeographicareaorcommunityofinterestandareoftenrun
bypeoplefromwithinthecommunitytheyserve.(CLG2010)
Likesocialenterprisestheyreinvestsurplusesbackintotheircommunities,buttheyalsoactas:
‘…afocalpointforlocalpeopletoidentifytheunmetneedsoftheir
communitiesandtorespondtothoseneedswiththehelpoftheirown
income-generatingactivities.Communityenterprisesprovidelocal
employmentandtrainingopportunities,helpcreateandretain
communitywealthandcanmakearealdifferencetolocalpeople,
particularlyduringtheeconomicdownturn. (ibid)
Thisdefinitionfitsanumberofdifferenttypesoforganisations,mostobviouslycommunity
anchororganisations,substantialmulti-purposeorganisationsthatprovidearangeof
servicestoacommunityandownormanagealocalasset,suchasacommunitycentre.
Howevercommunityanchorsandcommunitycentresarenottheonlyformofcommunity
enterprise.Theycanalsobemuchsmallerorganisations,operatingwherethefreemarket
doesnotprovideasufficientreturnforprivateenterprise.Forexample,childcareprovidersin
deprivedcommunitiesareoftencommunityenterprises,asarecreditunionsandcommunity
cooperatives.Indeed,communityenterprisecanplayaparticularlyimportantpartindeprived
areas,supportingcommunitiestocometogethertoimprovetheirarea,anddelivering
servicesthatwouldnotexistotherwise.
Thenewcoalitiongovernmentlookssettocontinuethiscommitmenttosocialand
communityenterprise.ItsBigSocietyagendahighlightstheroleofneighbourhoodworking,
andidentifiessocialenterprise,charitiesandcooperativesashavingavaluablerolein
runningpublicservices.
Aimsandstructureofthereport
Thisreportconsidersthecriticalsuccessfactorsforsocialandcommunityenterprisesinthe
NorthWestofEngland,particularlythoseindeprivedcommunities.Itasks:
8 ipprnorth|GrowingtheBigSociety
•Whathelpsmakethemsuccessful?
•Whatimpactdotheyhaveontheirarea?
•Whatsupportdotheyrequire?
•Wheredotheyaccessthatsupport?
Italsolooksatwhetherthesupportneedsofsocialandcommunityenterprisesdiffer,and
whatroleregionalandlocalgovernmentcanandshouldbeplayingtoensureastrongand
vibrantsocialandcommunityenterprisesectorthatisabletoliveuptothehigh
expectationsofpolicymakers.
Section1providesanoverviewofthepolicycontextforcommunityandsocialenterprise,
andareviewoftherelevantliterature.
Thesecondsectionpresentsthefindingsofdetailedcasestudyresearchconductedwithfive
socialandcommunityenterprisesintheNorthWest,chartingthejourneytheyhavebeenon
andidentifyingkeyturningpoints,criticalsuccessfactorsandsupportneedsatdifferent
stagesoforganisationaldevelopment.
Thethirdsectionprovidestheresultsofanonlinesurveyconductedwithsocialand
communityenterprisesintheNorthWest,whichprovidedanopportunityforawiderrange
oforganisationstogivetheirviewsonthecriticalsuccessfactorsandsupportneedsofsocial
andcommunityenterprise.
Section4drawsonasmallnumberofinterviewswithkeydecision-makersandsupport
providersattheregionalandlocallevelandaworkshopheldwithindividualsworkingin
socialandcommunityenterprise,infrastructureorganisationsandrepresentativesoflocaland
regionalgovernmentintheNorthWest.
Thefinalsectionofferssomeconclusionsandrecommendations.
9 ipprnorth|GrowingtheBigSociety
1.Policyandliteraturereview
Thevoluntarysectorgenerally,andsocialenterprisesinparticular,havemovedintothe
policymainstreaminrecentyears.UndertheLabourgovernmentstheywereregardedasa
potentialdelivererofpublicservices,afacilitatorofcivicactivismandabuilderofcommunity
capacityandcohesion.Thisdirectionoftravellookssettocontinueunderthenew
Conservative-LiberalDemocratcoalition,withthejobofrebuildingaresponsiblesociety
beingaddedtothelist.Thispolicyinterestinsocialenterprisehasledtoagrowingbodyof
researchintothesectoranditssupportneeds.
Thissectiongivesashortoverviewofthedevelopmentofsocialenterprisepolicyunderthe
Labourgovernments,andtheplansofthenewgovernment,beforegoingontoreviewthe
literatureonthesupportneedsofsocialandcommunityenterprises.
Policycontext
TheLabouryears
TheLabourgovernmentsrecognisedthepotentialofthevoluntarysectortoplayarolein
helpinggovernmenttoachievesomeofitsdesiredoutcomes,includingpublicservice
deliveryandactiveandcohesivecommunities.However,italsorecognisedtheneedtobuild
thecapacityofthesectortomakethiscontribution.Akeyfocusofpolicybecamethe
provisionofsupporttofrontlineorganisationstobuildtheircapacityandprofessionalismand
toinfrastructureorganisationstoaidtheminthetaskofsupportingfrontlineorganisations.
SomeofthekeyinitiativesdesignedtodothisaresetoutinBox1.1.
Box1.1.KeyinitiativesundertheLabourgovernment
Futurebuildersfund:EstablishedfollowingtheTreasury’scross-cuttingreviewin2002,
providesloansgrantsandprofessionalsupporttothirdsectororganisationstobidforand
deliverpublicservicecontracts.Theprojectedvalueofitsloans,grantsandloan
guaranteesupto2011is£65million.
Capacitybuildersfund: Establishedtobuildthecapacityofthirdsectorinfrastructure
organisationstodeliverservicesmoreeffectivelytofrontlinethirdsectororganisations.
Thefundhasprovidedover£85million.
Communitybuildersfund: A£70millioninvestmentfundformulti-purpose,inclusive,
community-ledorganisations,or‘communityanchors’,tobuildmoreactiveand
empoweredcommunities.
SocialEnterpriseActionPlan: Setsoutfourkeyareasofsupportforsocialenterprise:
1.Improvethebusinessadvice,informationandsupport
2.Tacklethebarrierstoaccesstofinance
3.Enablesocialenterprisestoworkeffectivelywithgovernment
4.Fosteracultureofsocialenterprise.(CabinetOffice2006)
Assettransfer: TheQuirkReview,publishedin2007,madethecaseforlocalgroups
owningandmanagingcommunityassetssuchascommunitycentresorvillagehalls,with
assetsofferingasourceofrevenuetoorganisations(QuirkReview2007).Anasset-based
approachtocommunitydevelopmentsubsequentlybecamepartofgovernmentpolicy,
withtheEmpowermentWhitePaper(CLG2008)establishinganAssetTransferUnitto
supportcommunitiestotakeonassetmanagement.
10 ipprnorth|GrowingtheBigSociety
Duringthisperiodtheabilityofthethirdsectortodeliverservicesthatarebettersuitedto
specificcommunityneedsandtoreachouttothemostmarginalisedgroupswasestablished
(HMTreasury2004).Thiswaspartofabroadercommissioningandprocurementagenda,
whichhasseenthepublicsectorincreasinglycontractoutservicestoamixedeconomyof
suppliers,includingthethirdsector.Thistrendissettocontinueunderthecoalition
government.
AnotherenduringthemefortheLabourgovernmentswastheroleofthevoluntarysectorin
enablingcommunitiestoflourish.TheCommunityEnterpriseStrategicFrameworkpublished
atthebeginningof2010madeclearthespecificroleforcommunity-basedsocialenterprises
inreinvigoratingdeprivedcommunities.Ithighlightedtheroletheyplayinlocal
regeneration,employmentandtraining,aswellaskeepingresourceswithinthecommunity
byemployinglocalpeopleandusinglocalsuppliers.Communityenterpriseswithanasset
suchasabuildingwereseentoprovideakeyfocusforthecommunity,creatingspacefor
communitiestocometogetherandmobilisearoundsharedconcerns,buildingcohesionand
socialcapital.Suchorganisationsfrequentlyalsoprovidemeetingspaceforotherlocal
voluntaryandcommunitygroups.Again,itislikelythatthisthemewillcontinueunderthe
newcoalitiongovernment.
Thecoalitiongovernment:fleshingouttheBigSociety
ThisearlyoninthelifeoftheCoalitionitisnotyetclearwhattheapproachofthenew
governmentwillbe.However,theConservativeParty’sBigSociety,NotBigGovernment
document,publishedjustbeforethegeneralelection,setoutanumberofcommitments,
suggestingsocialandcommunityenterprisewillremaincentraltotheirapproach,asoutlined
inBox1.2.
Box1.2.Conservativecommitments
• CreateaBigSocietyBank toinvest£75millionfromunclaimedbankassetstofinance
thesectorplayingalargerroleintheprovisionofpublicservicesandprovidefundsto
intermediarybodiesprovidingsupporttosocialenterprises.
• EstablishNationalCentresforCommunityOrganisingtotrain5000independent
communityorganisers.
• Newpowersandrightsforneighbourhoodgroups totakeoverrunningcommunity
assets,startschools,getlocalinformationanddata,createLocalHousingTrusts,and
soon.
• RedirectFuturebuildersrevenuesintoaneighbourhoodgrantsprogramme.
BigSociety,NotBigGovernment particularlyemphasisestheroleofsocialenterprise,with
theBigSocietyInvestmentBanktofocusitsresourcesonsupportingorganisationsto
becomesocialenterprisesanddeliverpublicservices(ConservativeParty2010).Interestingly
thedocumentaddsanexplicitresponsibilitydimensiontothevalueofthevoluntarysector,
seeingthesectorashavinganimportantparttoplayinmovingawayfromwhatisperceived
tobeanexcessivefocusonentitlements,andaninsufficientfocusonresponsibilities.
Voluntaryactionisseenasaroutetoamoreresponsibleandmutualsocietywithastrong
cultureofobligation.Socialandcommunityenterpriseareseenashavingafundamentalpart
toplayinmendingour‘brokensociety’.
FrancisMaudeMP,MinisterfortheCabinetOffice,setoutanumberofcommitmentsinhis
firstmajorspeechontheBigSociety,including:
•Theopeningupofservices,enablingvoluntarysectorandsocialenterprise
organisationstocompeteonalevelplayingfieldwiththepublicandprivatesectors
11 ipprnorth|GrowingtheBigSociety
•Makingiteasiertosetupandrunneworganisationsandenterprisesbyreducing
regulationandredtape
•Increasingtheamountofresourcesflowingintothesector,althoughthesearenot
likelytocomethroughpublicspendingotherthanthroughmorecontracting.
Maudedid,however,outlinesomespendingcommitments,includingaCommunitiesFirst
Fund,providingstart-upfundstargetedatdeprivedcommunitiesandreiteratingthe
commitmenttoestablishingtheBigSocietyBank(Maude2010).
WhilethecommitmenttosetuptheBigSocietyBankusingmoneyfromdormantbank
accountswillprovidesomenewmoney(butonlywithprivatecontributionsinthemix)there
issomeconcernabouttheleveloffundingavailabletosupportthesectortostepuptothe
challengeoftheBigSociety(Coxetal2010).
Reviewingsupportneedsandcriticalsuccessfactors
Thepolicyinterestinsocialandcommunityenterprisehascatalysedconsiderableresearch
interestinthedevelopmentandsupportneedsofsocialandcommunityenterprise.This
sectionsummarisessomeofthekeyfindingsofthatresearch,andbrieflyconsiderswhatwe
knowaboutthelifecycleofsocialenterprises,whattheresearchtellsusabouthowthe
supportneedsofsocialandcommunityenterprisedifferandthecriticalsuccessfactorsfor
socialandcommunityenterprise.
Understandingsocialenterprise:alifecycleapproach
ResearchfortheWelshAssemblyGovernment(2003)hasdevelopedalifecycleapproachto
understandingsocialenterprises.Thisisahelpfulwayofthinkingaboutthesupportneeds
ofcommunityandsocialenterprises,asitenablessupporttobemoreeffectivelytargeted.
Thefivestagesofthelifecyclearesetoutbelow,althoughitshouldbeacknowledgedthat
notallorganisationswillgothrougheachstage.
1.Aninitialidea: Communitydevelopmentandcapacitybuildingneededtodevelopthe
idea
2.Voluntaryactivity:Adviceandsupportlikelytobeneededtosupportthe
organisationandfinancingofactivities
3.Apotentialsocialenterprise:Asanorganisationmovesintobecomingasocial
enterprise,morespecialistsupport,forexamplearoundthespecificlegalandfinancial
issues,islikelytoberequired
4.Expandingbusinesses:Issuesarelikelytobecommontootherbusinesses,for
exampledevelopingITsystemsandneedingmarketingadvice.Somespecialistadvice
mayalsoberequired,forexample,howtoreconcilesocialandbusinessaims
5.Amaturebusiness: Anyadvicerequiredatthisstageislikelytobeforgeneral
businessissues.
Theauthorsconcludethatthemorematureanorganisationbecomes,themoremainstream
supportisappropriate,apointofviewthathasbeenwidelyaccepted.
Whatarethecriticalsuccessfactors?
Areviewoftheliteratureandresearchintosocialandcommunityenterpriseidentifiesa
numberofcriticalsuccessfactorsfororganisations,whichindicatekeyareastoprovide
supportinordertoincreasethenumberofsuccessfulsocialandcommunityenterprises.
Someofthesearemorecriticalatdifferentstagesofanorganisation’slifecyclethanothers.
•Pre-start-upandearlystartupsupport: Manyorganisationsneedagreatdealof
intensivesupportinthepre-start-upandearlystart-upphase,withoutwhichtheywill
notgetoffthegroundassocialorcommunityenterprises.Thesupportrequiredis
12 ipprnorth|GrowingtheBigSociety
likelytobeparticularlyacuteindeprivedcommunities,wheretherearelikelytobe
fewerassetsandresourcesforentrepreneurstodrawon.
•Financeandfunding: Boththeliteratureandsurveyswiththesectoroftenidentify
fundingandfinanceasthegreatestenablerandinhibitortothesuccessofsocial
enterprises.Aswithanysmallbusiness,accesstocapitalisvitalforgrowth,but
mainstreambanks’lackofunderstandingofsocialenterpriseisanenduringbarrierin
somecases(seeforexampleSocialEnterpriseCoalition2009).Engagingwithpublic
sectorcommissioningandprocurementcanbeakeymeansofachievingfinancial
sustainability,butamajorchallengeforsocialenterprises–andparticularlycommunity
enterprises–isoftenthesizeofcontracts,whichoftencoveranentirelocalauthority
area(CLES2009).
•Mixofskillsontheboard:Oftensocialandcommunityenterprises’boardmembers
reflecttheirsocialmission,meaningtheydonotalwayshaveanappropriatemixof
skillsandexperience.Boardmemberswithexperienceofacommercialbusiness
environmentcanbecrucial(GMCVO2007).
•Gettingthebasicsright:Aclearandsharedstrategicvisionisessentialtoasmooth
runningorganisation.Withoutthis,anyorganisationislikelytostruggle(GMCVO
2007).
•Succession: Oftenorganisationsarefoundedbyasmallnumberofkeyindividuals.A
keytestofsuccessisputtinginplaceaneffectivesuccessionstrategysotheenterprise
outlivesitsfounders(CoopsNorthWest2008).
•Mindset: Forsocialandcommunityenterprisesthathavetheirrootsinavoluntaryor
communitysectororganisations,takingthedecisiontomoveawayfromseekinggrants
totradingisregardedasakeyturningpointthatrequiresachangeinmindset.
Providingsupport–dosocialandcommunityenterpriseneedsdiffer?
Adiverserangeofprovidersexisttodeliversupporttosocialandcommunityenterprises.
Thisrangesfromgenericandspecialisedsupportprovidedfromwithinthevoluntarysector
toconsultantsspecialisinginsocialenterprisetomainstreambusinesssupportservicessuch
asBusinessLink.Thelatteristhekeygovernmentproviderofbusinessadviceandsupport,
providingaservicetosocialenterprisesaswellasprivatesectorbusinesses.
Inresponsetocriticismofthefragmentednatureofbusinesssupport,theLabour
governmentintroducedaBusinessSupportSimplificationProgramme.Asaresultthe
BusinessLinkservicehasbeenstreamlinedtoprovideaninformation,diagnosticsand
brokerageservice,theideabeingtoofferajoined-up‘frontofhouse’thatcanrefer
businessesandsocialenterprisesontorelevantsupportproviders.Inthecaseofsocial
enterprise,thatshouldincludereferringclientsontorelevantspecialistsocialenterprise
supportproviderswhererelevant.However,researchcarriedoutfortheOfficeoftheThird
Sector(OTS)in2007founddespitethissimplification,acomplex,fragmentedinfrastructure
ofsupportstillexistedforsocialenterprises,resultingininconsistentcoverageandquality,
lackofsustainabilityandsometimesinadequatebusinessexpertise(RocketScience2007).
ThefocusondeliveringsocialenterprisesupportthroughthemainstreamBusinessLink
servicereflectstheviewthatthesupportneedsofsocialenterprisesaregenerallythesame
asthoseofprivatesectorbusinesses,withsomeexceptions:
•Optionsforgovernance: Amultitudeoflegalandgoverningstructuresareavailableto
socialandcommunityenterprises,andselectingtherightoneiscriticaltosuccess.This
isakeyareawheresocialandcommunityenterpriseshavespecificneeds(Social
EnterpriseCoalitionandtheGovernanceHub2007).
•Gettingtherightexpertiseontheboard:Asthemainmotivationforestablishingan
enterpriseisthesocialorenvironmentalmission,akeydifficultycanbegettingthe
13 ipprnorth|GrowingtheBigSociety
rightbalanceofskillsontheboard,includingboardmemberswithbusinessorstrategic
skills(SocialEnterpriseCoalitionandtheGovernanceHub2007).Thisproblemisoften
particularlyacuteindeprivedcommunities,suggestingthisisaproblemcommunity
enterprisesareparticularlylikelytoencounter.
•Language: Whilemuchofthesupportrequiredmaybethesameasforother
businesses,usingadifferentvocabularytodeliveritisthoughttobeimportantfor
socialenterprises.Thereisaneedforadvisersto‘speakthelanguage’ofsocial
enterprise,andempathisewiththesocialorenvironmentalmissionofsocialand
communityenterprises(CabinetOffice2009).Thismaybeparticularlyimportantfor
communityenterprisesthatemergefromthevoluntaryandcommunitysector,which
tendstouseadifferentvocabularytothatoftheprivatesector.
•Time,patienceandsympathy:Thereisalsoevidencethatsocialenterprisesrequire
more‘handholding’intheearlyphasesofstartingupcomparedwithother
entrepreneurs(RocketScience2007)
•Abilitytopay: Socialenterprisesareregardedaslesslikelytobeabletopayfor
businesssupportcomparedtootherbusinesses.Inabilitytopayislikelytobeaneven
morecommonproblemamongcommunityenterprisesservingdisadvantaged
communities.Asaresult,avarietyofgrantsandvoucherschemeshavebeentrialled,
althoughisitdifficulttosettherightvalueandanticipatedemand.Thisisnotan
approachthathasbeentriedintheNorthWest(CabinetOffice2009).
•Mentoring,networkingandpeer-to-peersupport: Theseareallapproachesthattendto
befavouredbysocialenterprises,withpeoplekeentohearfromothersthathavebeen
onasimilarjourneytotheonetheyareundertaking(CabinetOffice2009,Social
EnterpriseCoalition2009).Thissortofsupportmaybeparticularlyimportantfor
communityenterprisesservingdeprivedcommunitiesinordertoprove‘someonelike
them’canbesuccessfulincommunityenterprise.
BusinessLinkNorthWesthasrecognisedthesechallengesbytrainingaround40ofits
universalstaffandadviserstobe‘socialenterprisechampions’,ensuringacrosssectionof
staffareabletoprovidesensitivesupporttobuddingsocialentrepreneursandsocial
enterpriseslookingtogrow.ThishasbeendoneinpartnershipwithSocialEnterpriseNorth
Westandthesub-regionalsocialenterprisepartnershipsCo-opsNorthWestandthe
DevelopmentTrustAssociation.Thisinteractionisthoughttobehelpingtobuildbetter
relationshipsbetweentheseorganisations.
BusinessLinkNorthWestisalsopilotinganoutreachserviceinMerseysidetopromote
enterpriseandBusinessLinkservicestosocialandcommunityenterprises.Similarpilotsare
alsobeingundertakentoincreasetake-upofBusinessLinkservicesamongother‘hardto
reach’groups.Thesocialenterprisepilotisledbyanindividualwithabackgroundinsocial
enterprise,andtheroleinvolvesoutreachinthesocialandcommunityenterprisesector,
buildingrelationshipsandtrust,andsupportingorganisationstoreachthepointofbeing
readytoparticipateinmainstreamBusinessLinkservices.Thepilotiscurrentlybeing
evaluated,andlastyearBusinessLinkNorthWestoverachieveditsengagementtargetsfor
socialenterprise(engagingwith1,573organisations,againstatargetof1,500).Italsocame
closetoitstargetof300forintensiveassistance,providingsupportto293socialenterprises.
Theapproachusedinthepilottouchesonakeydifficultyhighlightedbytheevaluationof
theOTSSocialEnterpriseBusinessSupportImprovementProgramme,whichishowfaritis
thejobofamainstreamsupportproviderlikeBusinessLinktoreachouttopre-start-ups.
Thepre-start-upcategorypotentiallyincludesaverylargenumberoforganisations,manyof
whichdonotwishto–orinpracticewillnotbeableto–developaviabletradingarm
(CabinetOffice2009).Thisislikelytobeaparticularissueforcommunityenterprisesthat
havetheirrootsinthevoluntaryandcommunitysectororganisations,whichoftenhavea
14 ipprnorth|GrowingtheBigSociety
longwaytotraveltomoveintoenterprisingactivity.Theseorganisationsareparticularly
likelytoexperiencebarriersrelatedtofindingtherightskills,beputoffbythevocabularyof
thebusinessworldandneedamoreintensivelevelofsupportinordertodevelopinto
communityenterprises.Otherorganisationswithacommunitydevelopmentremitmaybe
betterplacedtoreachouttotheseorganisationsandbringthemtothestageofbeing
‘enterpriseready’.Thismaysuggestakeyroleforlocalauthorities,orthehostof
consultants,advisersandothervoluntarysectorsupportprovidersincludingtheSub-
RegionalSocialEnterpriseNetworks,allofwhichareactiveinthisarea.Gettingthesystem
workingsothateffectivereferralstakeplacebetweenBusinessLink,SocialEnterprise
Networksandthevoluntaryandcommunitysectorremainsakeychallenge(CabinetOffice
2009).
TheregionaldevelopmentagencyfortheNorthWest,theNWDA,hasalsobeensupporting
socialenterpriseinanumberofways:
•Awareness-raisingandpromotion:throughsupportforSocialEnterpriseNorthWest
anditssub-regionalpartnershipsandthrougheventsliketradefairs(althoughthis
programmecametoanendattheendofMarch).
•UsingEuropeanRegionalDevelopmentFund(ERDF)andNWDAsingleprogramme
fundingtorunworkshopsandproducenewsletterstosharegoodpractice.Seven
masterclasseswerealsoheldtobuildskillsinthesocialenterprisesector,including
marketingandPR,strategicplanningandimpactassessment.
•Thereisanongoingnetworkandcollaborationprojectwhichwillpickuptradefair
activities.
•NWDAisalsointhefinalstagesofdevelopingaSocialEnterprisegrowthsupport
programme,tosupportorganisationswithaspirationsandpotentialtogrow.Thiswill
includeonetooneconsultancysupport(brokeredbyBusinessLink),continuingthe
masterclassseries,pickinguppeer-to-peermentoringbegununderaCapacityBuilders
projectthatisending,andprocurementsupport.
NWDAalsorunsanIntensiveStartUpService(ISUS)providingpre-andpost-start-up
supportforthreeyears,targetingunder-performinggroupsincludingsocialenterprises.This
supportisdeliveredflexiblyatthelocallevel.Aregionalhighgrowthstart-upprogrammeis
anotherNWDAventure,whichsomesocialenterpriseshavebenefitedfrom.
15 ipprnorth|GrowingtheBigSociety
2.Casestudies
Toexploreinmoredetailthecriticalsuccessfactorsforsocialandcommunityenterprise,
theirsupportneedsandtheeventsthatcanprovetobekeyturningpointsinthelifeofan
organisation,casestudyresearchwascarriedoutwithfivesocialandcommunityenterprises
intheNorthWest1.Theparticipatingorganisationscoveredarangeofdifferentsettingsin
theNorthWestregion,fromthecoreurbanareatoaruralvillagesetting.Theorganisations
were:
•StPeter’sPartnershipandStPeter’sTradingpartnership,AshtonunderLyne,Tameside
•FiveChildrenandFamiliesTrust,Speke,Liverpool
•ClaytonBrookCommunityHouse,ClaytonBrook,Clayton-le-Woods,Lancashire
•BubbleEnterprises,basedinManchester,workingacrosstheNorthWest
•Nentheadvillageshopandpostoffice,Nenthead,Cumbria
Fouroftheorganisationsarecommunityenterprises,servingdefinedgeographic
communities.BubbleEnterprisesincontrastworksacrosstheNorthWest–withpeoplewith
experienceofmentalhealthproblems.
Ineachcase,researchersspenttimewiththeorganisationsduringMarch2010,observing
howtheyoperateandinterviewingkeystaff.Thecasestudyinterviewscovered:
•Howtheorganisationhasadaptedtochallengesandmanagedchange
•Thefactorsthathavecontributedtotheorganisation’ssuccesses
•Theorganisation’skeysupportneedsatdifferentstages
•Theorganisations,individualsandtoolsthathaveprovidedvaluablesupporttothe
developmentoftheorganisation
•Barrierstothedevelopmentoftheorganisation
•Thesupportthatwouldideallybeavailableandwhoshoulddeliverit.
Anoverviewofeachcasestudyorganisationisprovidedinthefollowingpages.
1.ipprnorthwouldliketothankNickalaTorkingtonSnapeandAlexanderLesbirelfromManchesterBusinessSchoolIncubatorfor
carryingouttheresearchforthesecasestudies.
16 ipprnorth|GrowingtheBigSociety
CaseStudy1:StPeter’sPartnerships
Location: Ashton-Under-Lyne,GreaterManchester
Ageoforganisation: 9years
Legalstructure:Twocompanystructures–StPeter’sCommunityPartnership(company
limitedbyguaranteewithcharitablestatus)andStPeter’sTradingPartnership(company
limitedbyguarantee,actingasatradingarm)
Annualturnover:£2millionacrossthetwoorganisations
Staff: 70staffandcommunityvolunteers
Boardmembers:12places,currently10boardmembers
Background
StPeter’sPartnershipsbegantoevolvein1998asalegacytotheworkinitiatedbythe
AshtonRegenerationProject,aTamesideBoroughCouncilpartnershipfundedby
NeighbourhoodRenewalandSingleRegenerationBudgetplusEuropeanfunding.Asmall
numberofactiveresidentsofStPeter’swardworkedinpartnershipwiththeprojectteamto
lookathowacommunity-ledapproachcouldaddresstherangeofenvironmentalandsocial
issuesaffectingtheareawhileofferinghope,skillsandopportunity.Anumberof
community-basedprojectswerelaunchedaddressing:health,housing,theenvironmentand
communitysafety.StPeter’sPartnershipswasregisteredasacharityin2001.
Thebeneficiariesoftheorganisationsarelocalresidents,thosepeoplelivingandworking
withintheAshton-under-LynewardofStPeter’s.Groupssuchasyoungpeople,olderpeople
andthoseatparticulardisadvantagebecamethefocusofattention.Theareaishighly
deprived;accordingtotheIndexforMultipleDeprivation2007itisamongthebottom5per
centLowerLayerSuperOutputAreas(LSOAs)forEngland.Itisethnicallymixed:
Bangladeshi,IndianandPakistaniresidentsconstituteover20percentofthepopulation.
Thewardsuffersfromhighlevelsofeconomicinactivity.
Howdoestheorganisationlooktoday?
In2003,theorganisationwasrestructured StPeter’sPartnerships’proudest
withafocusonbringing‘unityintothe achievements
community’andacompanylimitedby • Developingandretainingthe
guaranteewithcharitablestatuswassetup community-ledboard
toruncharitableactivitiesunderthe • Keepingcommunityfocusand
followingthemes: involvementinspiteofrapidgrowth
•Strengtheningcommunities • Commitmentanddriveofstaffandlow
•Childrenandyoungpeople staffturnover
•Employmentandtraining • WinningaBURA(BritishUrban
RegenerationAssociation)bestpractice
Aseparatetradingcompany(StPeter’s award
TradingPartnership)wasestablishedto
generateanincomeforthecharity,aiming • BecomingISO9000compliant
toeventuallymakeitself-sufficient.Three
enterprises(allcompanieslimitedby
guarantee)operatewithinStPeter’sTradingPartnership:
•Greenscape –aprofessionallandscaping,gardeningandprojectmanagementservice,
whichofferson-the-jobtrainingopportunitiestolocalunemployedpeople
•EnterprisePlus –providingtrainingtoincreaseresidents’skillstogetthembackto
work,andfurtherdevelopingandpreparingthemforworkbybuildingconfidenceand
providingexperiencethroughvolunteeringandworkplacements.Tailoredpre-
17 ipprnorth|GrowingtheBigSociety
recruitmentservicesandarangeofspecialistcoursesarealsoprovidedtosupportboth
employersandprospectiveemployees.
•Safeguardit–anaward-winningcommunitysafetyandsecurityserviceinpartnership
withGreaterManchesterFireandRescueService,whichalsoprovidesvolunteeringand
employmentopportunitiesforlocalpeople
InadditiontoClydeHouseBusinessCentre,StPeter’sPartnershipsalsomanagesthe
followingassets:theRichmondSuite,CavendishMillResourceCentre,HolyTrinity
CommunityCentre,AshtonWestEndDoorstepGreen,theBlandfordCentre,TrinityMoss
MillenniumGreen,OxfordParkPavilionandWestEndhockey/cricketfacility.
Whathavebeenthekeyturningpoints?
Reviewingtheorganisation’saimsandobjectivesin2006wasakeyturningpoint,whichled
toarestructuringoftheorganisationandbusinessmodel.Inturnthisresultedin:
•Thecreationofmorestructuredoperations
•Aredefinedfocusleadingtothecreationofaclearandsharedvisionforthefuture
•Changefrombeinganorganisationrunningprojectstoanorganisationdelivering
services
•Windingdownofprojectsandservicesthatwererunningatalossdespiteappearing
successful
•Achangeofstaffingandleadershipandtheestablishmentofapoolofemployeesthat
canbedrawnintoworkflexiblyacrossarangeofservices,ratherthanasspecific
projectmanagers.
Winningaseriesofawardsalsohelpedtoraisetheorganisation’sprofilelocally,regionally,
andnationally.
StPeter’sPartnershipshashadtoadapttoandmanagechange,ataskithasbeenassisted
inby:
•Havingahighlycommittedteam,manyofwhomhavebeenpartoftheorganisation
foralongtime.Theyhavegrownanddevelopedarangeofrelevantskillsandhave
gainedsignificantexperienceofcommunityenterprise
•Havingstrongleadershipatboardandseniormanagementlevel
•Buildingasolidreputationandanoutstandingprofilelocally,regionallyandnationally
•Remainingambitiousforthelocalareaandbeingseentobecompetitiveonprice,
qualityandtimescale
•Awillingnesstotakerisks
•Renewingandrefocusingtheorganisation’sactivitiesatregularintervals.
Whathavebeenthekeyenablersandbarrierstosuccess?
Havingstrongleadershipandanumberoftheoriginaltrusteesstillontheboardwas
consideredcriticaltotheorganisation’ssuccess.Thesewerethekeydrivingforcesbehindthe
initialmissionandwiththeirstronglocallinksthepeopleinvolvedhaveaclear
understandingofcommunitydevelopment.Havingalocalstaffandvolunteershasgivenan
additionalsenseofpurposeandenablespeopletoseeandfeeltheimmediatebenefitofthe
organisation’sactivities.Movingawayfromgrantsasacoresourceofincomeandbecoming
moreindependentfromthelocalauthoritywereseenastheessentialelementssupporting
theorganisation’ssuccess.
Whilenon-financialresources,suchasknowledge,financialmanagement,community
engagementandpartnershipdevelopmentwereratedhighly,alackofcoreinfrastructure
18 ipprnorth|GrowingtheBigSociety
andstafftodeveloptheorganisation’soperationswasconsideredamajorbarrier.Onestaff
membersaid:‘Wearespreadtoothinly,withtoomuchwork,withtoolittlefinancialresource
overtooshortatimescale’.
Aneedforfundingtocovercoreinfrastructuredevelopmentwashighlighted–eitherfrom
grantsorbyamendingtermsofcontracts,sothattheyincludeinfrastructurecostsrather
thanprojectdeliveryalone.Thetermsofcontractswereseenasbarrierspreventingsocial
enterprisesfromestablishingastrongerfoothold,whichleavesStPeter’sPartnershipswith
considerablefinancialchallengesdespitehavinga£2millionturnover.StPeter’sis
disappointedthatinspiteofitssuccess,itisstillnotfullycoveringthecorecostsofthe
organisation.Thismeansitdoesnothavethetimeorcapacityforactivitiessuchasfinding
itsowntheme-specificmentors.
Assessingsupportneedsandaccess
ThekeyareaswhereStPeter’sPartnershipshasneededsupporthavebeen:
•Organisationaldevelopment
•Operationalsystems
•Financialmanagementprocedures
•ITsystemandinfrastructure
•Understandingscale
•Gettingaclearpictureandasenseofplace
•Networkingandmentoringopportunities,includingknowledgetransfer.
Ithasmixedexperienceofworkingwithlocal,regionalandnationalsupportagenciesand
funders,oftenfindingthesestakeholderstohaveapoorlevelofskillsandknowledgeofkey
topicsandthemesandofthecommunityandsocialenterprisesectoringeneral.The
experienceofinteractingwiththemwasoftenfrustrating:‘Agenciesseesignpostingasa
formofsupport,whenoftenthiscanturnouttobeinappropriateandtimeconsuming.’
Morepositively,StPeter’sfeltthatsomeorganisationshad‘steppeduptothechallengeof
providingsupport’.TheseincludedthelocalCouncilforVoluntaryService,SocialEnterprise
NorthWestandtheDevelopmentTrustsAssociation.Inspiteofsomeusefulsupporton
offer,ithighlightedthatfindingthetimetoengagecanbedifficultwhentherearemore
pressingpriorities.ToolsandprogrammesithadengagedwithincludedTheSparkChallenge,
whichitthought‘hadausefulbusinessdevelopmentprogramme,pitchedattherightlevel
withgoodtools’.Also,neuro-linguisticprogramming(NLP)traininghadbeendeliveredand
foundtobeavaluabletoolforstaffdevelopment.
Asignificantproportionofitsservicedeliverycomesthroughrelationshipsandcontractswith
thelocalauthority.StPeter’sconsiderslocalauthoritiesaretooboundbytargetsand
outputs.Theymayalsolacktheambitionandentrepreneurialflairorexperiencetobeable
todevelopsuccessfulcontractingopportunitiesforvoluntarysectororganisations.Itfeltlocal
authorityprocessesoftenhinderthedevelopmentofsocialenterprisesandthatitiswrong
toexpectcommunitygroupsandorganisationstorunservicesandmanagesignificant
amountsofmoneywithouttheexperienceorappropriateinfrastructuretofullydeliveror
understandtheirresponsibilities.However,itfoundthatitslocalauthorityhadgreatly
improvedovertime,wasstartingtolistenandhaddevelopedgoodprinciplesforpartnership
working.
StPeter’sfeltithadabroadnetworkofmentors,themajorityofwhomithadfoundand
developedrelationshipswithindependently.Mentorscamefromarangeofbackgrounds,
includingacademic,thematicmentors,andpeer-to-peermentors.Italsoclassedsomeofthe
consultantsithaddevelopedstrongworkingrelationshipswithasmentors.However,itwas
19 ipprnorth|GrowingtheBigSociety
consideredhardtogetthetimeandresourcestoaccessmentorsandinformationabout
otherrelevantsupport.
Areaswhereitwouldliketoseesupportimprovedincluded:
•Bettertrainingforthesupportsectorandlocalauthorities: Supportagencies,funders
andlocalauthorityofficialsmustbeproperlytrainedandunderstandcommunityand
socialenterprisedevelopmentandthistrainingneedstobemaintained.
•Fundingthecore:Buildingfullcostrecoveryintocontracts,enablingcommunityand
socialenterprisestogeneratesurplusesorofferinggrantsforoperationaldevelopment
wereallseentobewaystoputorganisationsonamorestablefooting.
• Improvecontracting: Procurementteamsshouldbeencouragedtosimplifytendering
processessothatcontractopportunitiesaremoreaccessible.Thiswouldhelptobring
newmoneyintothesector.StPeter’sPartnershipswaskeentoemphasisethatmonies
thatusedtogotothesectorasgrants–butwhicharenowdistributedascontracts–
havenotbroughtnewincomestreams.Stepsshouldalsobetakentoensurecontracts
gototheorganisationofferingthebestoutcomesforthe
beneficiaries/communities/serviceusers,whichshouldbeevidencedthrough
appropriateevaluationandreview.
•Consistent,qualitysupportfornewandestablishedcommunityandsocialenterprises:
Meaningfulsupportisneeded,tocreatecontinuityandsustainability,ratherthan
simplyfocusingonhittingtargetsandoutputs.Practicalbusinessdevelopment
knowledgemustbedeliveredbypeoplewhounderstandthevarietyoftrades
operatingunderthebannerofsocialenterpriseandhavepracticalenterprise
experience.Thisway,supportisaimedatdevelopingsocialenterprisestoapoint
wheretheycancreateasurplustocovercorestaff.
Casestudy2:FiveChildrenandFamiliesTrust
Location: Speke,GreaterMerseyside
Ageoforganisation: 10years,althoughFiveChildrenandFamiliesTrustachieved
charitablestatusin2006asSureStartSpeke,rebrandingin2008toreflectthewider
rangeofservicesbeingdeliveredbythecharitabletrust.
Legalstructure: Onecompanystructurewithasecondsoontobeformed(company
limitedbyguaranteewithcharitablestatus,thesecondwillbeacompanylimitedby
guarantee)
Annualturnover: £1.2million
Staff:43
Boardmembers: 6
Background
FiveChildrenandFamiliesTrustisthelegacyofSpekeSureStartProgrammewhichwas
developedthroughSpekeGarstonSingleRegenerationBudget(SRB)partnership.Thechief
executiveinitiatedanddevelopedtheforerunnertothisventurein1999whentheSureStart
LocalProgrammeestablishedin2000operatedfromStAmbrosePresbyteryintheunused
housekeeper’sflat.Itformedasacompanylimitedbyguaranteein2001andrelocatedin
2004toanewfamilycentrefundedbySureStart,ERDFandtheNewOpportunitiesFund.
Theaimsoftheorganisationhavealwaysbeentoworkwithchildrenandfamiliestoimprove
healthandwellbeing,educationalactivitiesandaspirationsandtoimprovetheemployability
ofthelocalpopulation.IthasbeenworkingtomeettheneedsoutlinedintheDepartment
forChildren,SchoolsandFamilies’EveryChildMattersframeworktoimprovequalityoflife
20 ipprnorth|GrowingtheBigSociety
andopportunitiesforall,focusingspecificallyonthethemesofeducationwithcare,family
support,teenagepregnancy,nutrition,domesticabuseandviolenceinthehomefromyoung
people.
SpekeGarstonisanisolatedareaontheedgeofLiverpool.Theareasuffershighlevelsof
unemploymentandworklessness;alltheLSOAsintheareaareinthebottom10percentfor
England,andmostareinthebottom1and2percent(accordingtotheIndexofMultiple
Deprivation2007).Thepopulationispredominantlywhite.
Howdoestheorganisationlooktoday?
In2006acompany-widereviewtookplace
andsome‘painful’decisionsweretakento FiveChildrenandFamiliesTrust’s
restructuretheorganisationasitmoved proudestachievements
awayfromanaccountablebody • Beingindependent
arrangementwithitslocalRegisteredSocial
• Maintainingapostforafull-time
Landlord.Atthispointthecompany
midwifetotackleteenagepregnancy
becamecharitableandrebrandedin2008
asFiveChildrenandFamiliesTrust,a • Beingabletodeliverhospitalservices
companylimitedbyguaranteewith locally
charitablestatusdeliveringchildcare • EnablingJobCentrePlusandthelocal
services,employabilityservices,health JobsEducationandTrainingServiceto
services,youngpeople’sservicesandacafe. doubletheirestimatedtargetsto
TheTrustisalsolandlordtocompatible supportpeoplebacktotrainingand
serviceswhichincludeSpekeAdviceService employment
(CAB),LiverpoolWomen’sHospitalTrust
andLiverpoolPrimaryCareTrust,Health • Continuouslyprovidingvalueformoney.
VisitingService.
Inadditionasuccessfulcookeryandnutritionprojecthasevolvedintoacommercialcookery
schoolfroma£15,000grantin2007toanorganisationwithapredicted£320,000turnover.
TheCanCookStudiowillbecomeacompanylimitedbyguaranteewhichwillreinvestsurplus
profitsbacktoFiveChildrenandFamiliesTrust.Ithashadsignificantsponsorshipfrom
BellingandendorsementfromcelebritychefSimonRimmer.
ThemainactivityoftheTrustismanaginganddevelopingtheChildrenandFamilies’Centre
andservices.Awiderangeofevents,activitiesandservicesarerun.Thecentreiscommunity
ownedandledandistheonlyfullyindependentcentreinLiverpoolofferingservicesfor
ages0–19.Servicesinclude:
•Managementofa74-placechildcarefacility
•Youthpoint,acomprehensiveyouthserviceworkingwithyoungpeopletopromoteand
supporttheirpersonaldevelopment,socialeducation,healthandwellbeing
•FiveParentPlus,committedtoempoweringparentstoimprovetheirlivesandthelives
oftheirchildrenbyenablingpeopletoachieveeconomicwellbeing.
Whathavebeenthekeyturningpoints?
Theorganisationidentifiedthreemajorturningpoints:
•SecuringtheSureStartcontractcreatedamajorstepchangefromrunningaseriesof
communityactivitiestomanaginganddevelopinganewcentre.
•Acompany-widereviewin2006forcedtheteamtolookindepthattheability,
effectivenessandsustainabilityoftheorganisationandenabledsomedifficultchanges
tobemade.Thisincludedsignificantchangesatboardlevel,andashifttoamore
enterprisingbusinessmodelandawayfromgrantdependency.
•ThedevelopmentoftheCanCookStudiohasstartedtobringinsignificantrevenue
andhelpedtocreateahighprofilefortheorganisation.
21 ipprnorth|GrowingtheBigSociety
Therehavebeenanumberofkeychallengesthathavefacedtheorganisation,including:
•Overcomingtheisolatingnatureofthelocalgeography,tocreatestrongpartnerships
andstronginternalandexternalnetworks.
•Developingproductsandserviceswhichcanbetakenoutoftheareatoearn
additionalincome,giventhehighlydeprivednatureofthelocalcommunity.
•Evidencingimpact;FiveChildrenandFamiliesTrusthaveputinplacearangeof
measurestodemonstrateimpact,includingindependentauditors,academicresearch,
communityresearchanddatacapturerequiredforgrantsandcontracts.TheTrustis
notwhollyinfavourofSocialReturnonInvestment(SROI)measuresandtools.
Whathavebeenthekeyenablersandbarrierstosuccess?
Keydriversoftheorganisation’ssuccesswereidentifiedas:
•Creatingahighprofileandnotholdingbackonpublicationsandmarketing
•Havingsurvivedlongenoughforpeopletotakeaninterest
•Runningtheorganisationasabusiness
•Notbeingafraidtochallengeorbechallenged
•Reallyknowingandunderstandingthelocalcommunity.
Themostimportantenablerswereregardedas:
•Reshapingtheorganisationinresponsetothecompany-widereviewandboardrestructure
•Movingtoamoreenterprisingbusinessmodel
•Retainingapassionformeetingtheneedsofthecommunityandcontinuous
communitydevelopment.
SomesignificantbarrierstotheTrust’sdevelopmentwereidentified.Inaway,itssuccesswas
sometimesregardedasabarrier,withonepersoncommenting:‘Iffundersseeorganisations
beingtooenterprisingtheywonderwhytheyneedtheirmoney.’
Ithasalsofeltheldbackbythepublicsectorlackingentrepreneurialspirit,visionandbeing
overlyrisk-averse.Decisionmakers,theTrustfound,sometimeslacktheinformationand
abilitytodotheirjobs,which‘resultsinpeoplebecomingagitatorsratherthanactivists’.
ForanumberofyearsFiveChildrenandFamiliesTrustlackedsufficientcorestafftosupport
thechiefexecutive.Thissituationhasimproved,butoverstretchingcommitted,capable
leadersandmanagersremainsakeybarriertoorganisationalsuccess,andonethatcan
damagethephysicalandmentalhealthofstaff.
Assessingsupportneedsandaccess
FiveChildrenandFamiliesTrustidentifiedkeyareasforsupportas:
•Needingmoreinfrastructureandoperationalstaff
•Learningtounderstandthesectorandthematicareasitworksacross,including
legislation(e.g.aroundyoungpeople,healthandsafeguarding)
•Uncoveringandapplyingstaff’sentrepreneurialabilities.
IntheTrust’sexperience,thesupportonofferisnotofsufficientquality.Itfoundlocal
authorityofficerssometimeslackunderstandingofthesituationontheground,andofthe
localcontextandthechallengescommunityandsocialenterprisesface.Ithasoftenfound
fundersandlocalauthoritiestobeoverlybureaucraticandresistanttochallenge.
Itdid,however,seeimprovementinthepracticesandlevelofsupportfromthelocal
authority.Butthefeelingwasthatwhilewhatusedtobecalledgrantsarenowincreasingly
22 ipprnorth|GrowingtheBigSociety
beingreferredtoas‘contracts’,inpractice Whatdothetermscommunityand
thisisjustachangeinterminologyandhas
socialenterprisemeantotheTrust?
notbroughtnewmoneyintothesector.
‘Webelievewestraddlethedefinitions.We
TheTrusthasactivelysoughtout areanenterprising,community-led
opportunitiesforsupportanddevelopment, organisationcreatingwide-rangingsocial
linkinginwitharangeoflocalnetworks impact.However,wewillalwayslookfor
includingtheSocialEnterpriseNetworkand grantswhereappropriate–giventhelevel
SocialEnterpriseNorthWestandhas ofdeprivationofourclientgroupwewould
highlightedtheworkoftheDevelopment bedaftnotto.’
TrustAssociation,which,itsays,‘has
providedusefulresourcesandnetworking
opportunities.Theirrigorousmembership TheTrust’sthreetoptipstohelp
processfeelsasthoughitmeanssomething communityandsocialenterprises
andtheymakeadonationorcontribution 1)Neverlosesightofyouroverallgoaland
foryourtimewhenpeoplevisitforlearning aims
anddevelopmentpurposes.’
2)Surroundyourselfwithcriticalfriends
TheTrusthasalsosoughtoutarangeof
thematicinformation,hasreceivedsupport 3)Makesurethecommunitywantswhat
fromChildAdolescentMentalHealth youareoffering.
Services,andhasattendedthematic
conferences.Mentorsfeaturehighlyinits
supportstructure;theseincludelocalpeersandpeopleworkinginthehealth,youth,
regenerationandcommunitysectors.Usefulmentorshavealsobeenfoundthroughthe
SchoolforSocialEntrepreneurs.
TheTrustisfortunatetohavewhatitconsidersstrongboardmemberswitharangeof
expertiseincludingstrategicdevelopment,enterpriseandfinancialplanningaswellasan
independentauditorwhohasbecomea‘criticalfriend’,atrustedsourcethatcanofferadvice
andfeedbackontheworkoftheorganisation,andaskdifficultquestions.
FiveChildrenandFamiliesTrusthighlightedthreeareasfordevelopingthesupportonoffer
tosocialandcommunityenterprises:
• Sector-specificandthematicmentoring: Developingabankofwellqualifiedthematic
mentorsandadvisers(forexamplepeoplefromsocialandcommunityenterprises
workinginparticularfields,suchashealth,environment,childrenandyoungpeople)
andpaidbuddies/advisorstohelppeopleunderstandhowtodeveloptheir
organisationmorequicklythroughknowledgetransfer.
• Developamoreentrepreneuriallymindedpublicsector: Throughthedeliveryof
supportandtrainingtothepublicsector,enablethemtobetterunderstandcommunity
andsocialenterprise,businessmodelsandriskmanagement.
•Accessiblefundersandcommissioners:Fundersandcommissionersneedtobeless
bureaucraticandunderstand,aswellasrespondto,theneedsofcommunityandsocial
enterprises.
23 ipprnorth|GrowingtheBigSociety
Casestudy3:ClaytonBrookCommunityHouse
Location: ClaytonBrook,Preston
Ageoforganisation: 13years
Legalstructure: registeredcharity
Annualturnover: £10,000
Staff:nonepaid;20volunteers
Boardmembers: 14
Background
Amotorwaydevelopmentprotestin1994createdtheimpetusforthisproject.Arangeof
communityideasstartedtoemergetoimprovethelocalareaandafoodco-opwas
establishedsellingfruitandvegetables.ClaytonBrookCommunityHousewasformedin
1997,inresponsetoalackofcommunityfacilitiesandaccessibleservicesinthearea.A
numberoforganisations,includingafamilycentre,psychiatriccareworkers,thefoodco-op
andacommunitygroupinitiatedtheprojectwithsupportfromalocalhousingassociation,
PlacesforPeople.Theinitialprojecttookoverthreeadjoiningpropertiesbetween1997and
1999,allowingtheprojecttoexpandtodelivercounsellingandvarioustrainingcourses.The
projectdevelopedthroughsponsorshipand
supportinkind,aswellsomesmall-scale ClaytonBrookCommunityHouse’s
charitablefunding.Trainingprogrammeswere proudestachievements
deliveredthroughaEuropeanSocialFund • Havingcommittedvolunteers,some
grant. ofwhomhavebeenwiththe
ClaytonBrookCommunityHouseislocatedin organisationfor10years
Clayton-le-Woods,avillageinbetween • Individualachievementsofmembers
ChorleyandPreston.Thevastmajorityofthe ofthecommunity
populationiswhiteandoverhalfareaged
over45.AlthoughClaytonleWoodsisnot • Havingagoodreputationforhelping
rankedamongthemostdeprivedwards,ithas peoplewhohavenoqualificationsto
poorlevelsofhealthservicesandahighcrime startlearninginasafeand
rate.Theaimoftheorganisationisto‘offera convenientlocallocation,with60
helpinghanduptheladderoflife’,improving percentgoingontofurther
communitywellbeingandproviding educationorfull-timeemployment.
communitysupportanddevelopment.
Howdoestheorganisationlooktoday?
ClaytonBrookCommunityHouseprovidesavenueforlocalpeopleandgroupstomeet,
givesassistancetostart-uporganisationsandactsasaresourceforthewholecommunity.It
isopenfivedaysaweek,andcontinuestoexpanditsopeninghours.Theservicesrely
entirelyonvolunteersandinclude:
•Ateaandcoffeebar
•Aresourcecentreprovidingatelephone,photocopier,fax,andhelpwithform
completion,CVwritingandlettertyping
•Weeklyactivitiesandevents
•Afreecounsellingservice
•Outreachdrop-inservices.
Itiscurrentlydevelopingofficeservicesforlocalbusinessestoo.
Theorganisationissustainedbykeepingoverheadslow,havingnoemployeesandbringing
inanumberofsmallgrantstocoverrunningandprojectcosts.Additionalrevenueisraised
throughlocalactivities,roomrental,beveragesalesandofficeservices.
24 ipprnorth|GrowingtheBigSociety
Whathavebeenthekeyturningpoints?
Turningpointsfortheorganisationincludesecuringsignificantfundingandotherresources,
andachangetotheorganisation’smindset:
•Securinginkindsupportforpremises
•SecuringEuropeanSocialFundmoneyforarangeofcommunitytraining,although
provisionhassubsequentlybeenscaledback
•Introducingcounsellingserviceswithlow-levelfundingfromthelocalhealthauthority
•Decidingtomaketheorganisationmoreenterprising,includingplansfortheprinting
enterprise.Enterprisewillalsobeatthecoreofotherfutureserviceexpansions,such
asdeliveringtrainingcourses(paidandsubsidised)aswellasplanstotakeoveran
adjacentbuildingandconvertitintoamorecommercialorientatedfacilityoffering
holisticcounsellingandacraft/healthfoodshop.
Therehavebeenanumberofchallengesthattheorganisationhashadtoovercomealong
theway,including:
•Havingnopaidstaff,althoughthathasresultedinflexibilitywhichhasmadevarious
transitionspossible
•Havingtodeveloprelationshipstoenablethemtochangetrainingdeliveryproviders
•Securinggrantfundingtodeveloptherightmixoffreeandnotfreeservices
•Volunteernumbersbeingaffectedbyaloneparentsback-to-workprogramme.
Whathavebeenthekeyenablersandbarrierstosuccess?
ClaytonBrookCommunityHouseidentifiedthekeyenablersofitssuccessas:
•Effectiveteamwork
•Consistentleadershipcentredonapassionforpeople,withactivelocalpeopledriving
theorganisationforward
•Strongrelationshipsforlong-termassistanceandin-kindsupport.
Itconsideredthecommitmentofitsgeneralmanagertogrowandsustaintheservicestothe
communitythemostcriticalfactorinitssuccess.
Theorganisationhasalsofacedanumberofbarriers,including:
•Timecommitmentsofvolunteersandvolunteer-ledleadership,whichresultsin
constraintsinsomeareas
•Lackoffinancestogrowandlackoftimetofindfinancialresources
•Aninsufficientlevelofoperationalandbusinessacumenandrequiredtrainingto
createatrulysustainablebusinessmodel.
Assessingsupportneedsandaccess
ClaytonBrookCommunityHouseidentifieditskeysupportneedsas:
•Fundingforexpansionofassetsandservices
•Financialplanning
•Businessdevelopmentsupport
•Howtorecruit,manageandmaintainvolunteers
Itconsidersthesetohaveremainedthesameovertime,althoughtheneedbecomesgreater
withgrowth.Itexpectsfinancialplanningandstrategicdevelopmenttobeskillsgapsasthe
organisationgrows.
25 ipprnorth|GrowingtheBigSociety
Theorganisationhasreceivedsupportfrom Whatdothetermscommunityand
local,regionalandnationalorganisations.It
socialenterprisemeantoClayton
hasparticipatedincommunitydevelopment
Brook?
trainingandsupportaswellasleadership
training,butthiswasnotlinkedintolocal ‘Anorganisationwithinacommunity,run
socialenterprisesupport.Ithasalsosought bythatcommunity,tofulfilthe
adviceandbackingfromlocalbusinesses. communities’holisticneeds.’
Developingtheserelationshipsand
partnershipshasresultedinpro-bonoandinkindsupportaswellassignificantsponsorship.
ClaytonBrookhashadmixedexperienceofworkingwiththelocalauthorities,andhasfound
consistencyandcontinuityaproblemwithstaffchanges.
Traininginhowtosustainandgrowasocialenterprise,providedbysuccessfulsocial
entrepreneurs,wasthoughttobeausefulmeansofsupport.Italsothoughtthatsupportto
conductareviewofitsoperations,toidentifyareasofweaknessandgrowthpotential,would
helptoshapetheorganisation’sdevelopment.Ahands-onapproachwasdeemedmost
appropriate,wheresupportisbasedondirectknowledgeofthecommunityandenterprise
needs.Itshouldbeactionorientedandincludeone-on-onementoringfromsuccessfulsocial
entrepreneurs.
Casestudy4:Nentheadvillageshopandpostoffice
Location: Nenthead,nearAlston,Cumbria
Ageoforganisation: 5years
Legalstructure: IndustrialandProvidentSociety
Annualturnover: £150,000
Staff:4.5full-timeequivalents
Boardmembers: 104shareholdersandsixrotatingcommitteemembers
Background
Nentheadvillageshopandpostoffice’s
TheNentheadvillageshopandpostoffice
proudestachievements
wasinitiatedinAugust2006followingthe
closureoftheonlyshopinthevillage.A • Fromasocialperspectivetheshopis
smallgroupofcommunitymemberssaw wellusedbytheelderlyresidents,
theneedtoreducepeople’sisolation, offeringaplacetomeet,peopletochat
maintainaretailoutletforfoodand withandassistandareasontoleave
provisions,andcreateafocalpointand theirhomes.
gatheringplaceforthecommunity.Atthe • Thefactthatthebusinessisstillgoing
timetheonlyotherplaceforpeopleto strong,issupportedbythecommunity,
meetwasthepuborinthenearesttown hasincreaseditsproductandservice
whichisfivemilesaway. deliveryandturnedasurplusinonly
Theintentionfromtheoutsetwasforthe oneyearhasshownexceptional
shopandpostofficetobeasocial management.
enterprise,andaCooperativeSocietyfor
theBenefitoftheCommunity(‘Bencom’)wasestablished.ItcameintobeinginNovember
2007andhasgrownintermsoftheproductsandservicesitofferseversince.Theoriginal
projectwasfundedbyCumbriaCountyCouncil,aloanfromVersaandthemoneyraisedby
theCooperativeshareoffer.Thistotalledaround£70,000andenabledthefoundersto
procurea99yearleaseandbeginrefurbishmentofthepremises.Theshopbuildinghasa
historyofbeingacornerstoneofthecommunity:itwastheoriginallendinglibrary,
developedbytheLondonLeadCompanyformedbyQuakerindustrialistsin1704.
26 ipprnorth|GrowingtheBigSociety
Nentheadwasoneofthefirstpurpose-builtindustrialvillagesinEngland.Itisarural,
isolatedvillageintheEdenareaofCumbria.Thepopulationispredominantlywhiteandolder
inage.Nentheadisnotadeprivedcommunityalthoughitdoesfacebarriersintermsof
accesstohousing,transportandservices.
Howdoestheorganisationlooktoday?
Thevillageshopaddedthepostofficeandnowoffersawidearrayoffoodandconsumable
goodstothecommunityatpricesthatareoftencompetitivewiththesuperstores.Itoffers
variousservices,includingspacetosimplymeet,chatorread.
Movingforward,theshophopestoraiseaquarterofamillionpoundstopurchasethe
disusedchurchoppositeandofferaffordablehousing,trainingfacilitiesandacafé,tobuild
uponthelocalamenitiesavailable.
Whathavebeenthekeyturningpoints?
IncreasingthescaleofitsambitionwasidentifiedasakeyturningpointforNentheadvillage
shopandpostoffice:
•Theshoprealiseditwaslimitedbythesizeofthebuilding,notbythepopulation.This
resultedinplansforgrowth,includingdevelopingnewservicesatanewsite,a
proposeddeliveryserviceandthepotentialtosellonline.
•Itenabledtherangeofservicesonoffertogrowinlinewiththeneedsofthe
community,inspiteofdifficultiesitcanfaceasasmallretailoutlet.
Theshophasbecomefinanciallysustainableveryquickly,buttheorganisationhashadto
overcomeanumberofchallengesandadapttochange:
•Thebusiness,whichwasinitiallygrantfunded,isnowsustainable,soonlyrequires
additionalfundingformorepremisesandincreasedservicedelivery.Thishasrequired
hardworkanddedicationfromtheteam.
•Initially,itwasdifficulttofindsuppliersofgoods,butasturnoverincreasedthiswas
nolongeranissue.Currentlygoodscomefromlocalandnationalsuppliers.
Whathavebeenthekeyenablersandbarrierstosuccess?
Nentheadvillageshopidentifiedanumberofenablerstoitssuccess,including:
•Settingfinancialtargets
•Businessadvicefromvarioussources
•Ensuringtransparencyandaccountability
•Havingcleargoals.
Itregardstransparencyandaccountabilityasmostcriticaltoitssuccess.Theseareseento
haveledtotheestablishmentoftrustwithinthecommunityandregularusebythe
residents.Themanagementstructureenablesdaytodayoperationaldecisionstobemade
quicklywiththemanagementcommitteeconsultedonmajorstrategicissues,andpeople
involvedintheventurearewellknownandrespectedwithinthecommunity.
Barrierstheshophashadtoovercomealongthewayinclude:
•Thereluctanceoflargesupplierstoworkwithcommunityconcerns;building
appropriaterelationshipsandatrackrecordhastakentime
•Lackofstoragespace
•Tryingtofindcashforexpansion,whichhasheldupplans.
27 ipprnorth|GrowingtheBigSociety
Assessingsupportneedsandaccess
Nentheadvillageshopandpostofficeidentifiedtwokeysupportneeds:
•Sourcingandapplyingforgrantsandloans
•Findingbusinessmentorsfromoutsidethecommunity.
Theorganisationhaslinkeduptoawiderangeoflocalsupportwithinboththevoluntary
sectorandlocalauthoritiesandhashadapositiveexperience.Ithasalsohadsignificant
supportfromthePlunkettFoundationbywayofgrants,mentoringandinformationon
governanceandsocialauditing.Supportorganisationswerehelpfulduringstart-upandwith
generalbusinessprinciplesandidentificationofpotentialconstraints.However,theneedfor
quality,practicalbusinessadvicehasincreasedastheorganisationandturnoverhavegrown.
Ithasalsosoughttonetworkwithandlearnfromlocalsocialenterprises.Itsboardhas
broughtarangeofpracticalskillstothetableincludingintheassistanceinrefurbishmentof
theoriginalpremisesanditsongoingmaintenance.
Nentheadvillageshopandpostofficethinksakeysupportareafordevelopmentisaround
mentoringforcommunitysocialenterprisesinsitubySMEbusinessownersandsocial
entrepreneurs,toenabledirectknowledgetransferandpracticaladvice.
Itwouldalsoliketoencourage:
•Fundingforstart-upswithmoresimpleaccountingandreportingprocedures
•Mentorsthatunderstandthesectorandthecommunityissueswhicharemobileand,
wherepossible,local
•Thedevelopmentofgrantstosustaingrowth.
Casestudy5:BubbleEnterprises
Location: Stockport,GreaterManchester
Ageoforganisation: 3years
Legalstructure: Communityinterestcompanylimitedbyshares–maximum£1share
profitperyear
Annualturnover: £350,000
Staff:6
Boardmembers: 3
Background
BubbleEnterprisesisaservice-user-ledcommunityinterestcompany,establishedin2008to
providebusinessexpertiseandsupporttoindividualsandorganisationsinthementalhealth
field.ItemergedinpartnershipwithWTP(amanagementconsultancythatspecialisesin
supportingnewventures),asaresultofthesuccessoftheLaughingBuddhaBubble
Incubator,aPhoenixFundprojectbackedbytheDepartmentofHealthandtheformer
DepartmentofTradeandIndustrytoexplorehowenterprisecouldbenefitmentalhealth.
BubbleEnterprisesworkslocally,regionallyandnationally,butthemajorityofitsactivity
takesplaceintheNorthWest.Itskeybeneficiariesarepeoplewithmentalhealthissuesand
theircarers.Itaimstocreatesustainableinitiativesandtraining,employmentand
volunteeringopportunitiesledbyserviceusers.
Itusesenterpriseasawayofreconnectingpeoplewiththeirskills,experienceandpassions
aspartoftheirrecovery.Italsoaimstohelphealthprofessionalsandsupportstafftobetter
understandthepositiveimpactthatenterpriseandemploymentcanhaveaspartofa
person’srecoveryfrommentaldistress.
28 ipprnorth|GrowingtheBigSociety
Howdoestheorganisationlooktoday? BubbleEnterprises’proudest
BubbleEnterprisesworksinpartnershipto achievements
createsocialenterprisesinaprofessional
•Creatingpaidworkforsixcore
andlong-term,sustainableway.Itsrangeof
membersofstaffwithintheBubble
servicesincludes:
teamandsevenpaidstaffatthe
•Enterpriseengagementandtraining,to OasisBubbleCafé:‘Overhalfofour
improvebusinessskillsandpersonal staffareserviceusersorcarers’.
developmentofmentalhealthpatients,
•Creatingover20volunteering
carersandprofessionals
opportunitiesandenabling
•Consultancyservicesinenterpriseand unemployedvolunteerstomoveinto
socialenterprisedevelopment paidemploymentbothwithinOasis
BubbleCaféandbeyond.
•Enterprisecreation,whichprovides
hands-onsupporttodevelopnew •Developinganexcellentreputation
businessopportunitiesthrough withclientsandbeneficiaries
partnership resultinginarangeofreferralsand
repeatbusiness.
•Cafédevelopment,deliveryand
management.ForexampletheOasis •Punchingaboveitsweightasaresult
BubbleCafélocatedinSteppingHill ofstrategicpartnerships,
MentalHealthHospitalwasdeveloped commitmentandapassionforthe
inpartnershipwithStockportCouncil sector.
andPennineCare.OasisBubbleCaféis
•Beingtheserviceproviderofchoice
acommunityinterestcompany,
formanyorganisationswithinthe
providingemploymentforsevenpeople
community.
withmentalhealthproblemsand
putting40percentofitsturnoverback
intothementalhealthcommunitythroughitsstaffingandsupplychain.
•SupporttothestrategicdevelopmentofthementalhealtharenaintheNorthWest,
throughresearch,consultationandanannualconference.
Whathavebeenthekeyturningpoints?
TheprincipleturningpointwaswhenBubblelaunchedarevenue-producing,sustainable
business,allowingacommunityinterestcompanytobeformed.Thatgrewaservice-user-led
board,actedasacatalysttonewbusinessandenhancedthecompany’scredibilityand
sustainability.Otherturningpointswereidentifiedas:
•Governmentpolicyaroundmentalhealthservices,theworklessnessagendaand
procurementhaveofferedopportunitiesandcontractsforthegrowthofthe
organisation.
•GainingfundingandsupportfromtheTudorTrustin2009enabledtheorganisationto
growtheteamtodevelopnewbusinessanddevelopmultipleincomestreams,
includinglargecontracts,small-scaleconsultancy,managementfeesandeventfees.
•GainingasignificantcontractwiththeStrategicHealthAuthorityenabledittodevelop
initiativeswith10healthandsocialcareorganisationsacrosstheNorthWest.
•Anoperationsmanagerpostwascreatedin2010,enablingtheorganisationtotighten
itsprocessesandstrengthenitscoreinfrastructure.
Thesmallsizeoftheteam,itsexpertiseandflexibilityhasenabledtheorganisationtobe
opentonewworkandprojectsandtorespondquicklytochange.
Whathavebeenthekeyenablersandbarrierstosuccess?
Anin-depthknowledgeofthesectorandthecommunity,aclearlyarticulatedvisionand
formingstrategicpartnershipsareseenaskeyenablersofsuccessforBubble.The
29 ipprnorth|GrowingtheBigSociety
organisationidentifiedthreefactorsasmostimportant:
•Havingastrongentrepreneurialteamwithbroadnetworks
•Keepingsmallandefficient,tobeabletoadaptquicklyandbereactivetoneed
•Havingserviceuserinvolvementfromboardtostafftovolunteerlevelmeansthey
‘walkthetalk’.
BubbleEnterpriseshasalsoencounteredanumberofbarrierstoitsgrowth,mostnotablythe
lackofhumanresourcesandfinanceneededforoperationalexpansion.Thishasprovedto
beaparticularstrainwhenBubblehastenderedforandwoncontracts,duetothe
monitoringandreportingprocessesthatarefrequentlyinvolved.
Ithasalsofoundthelackofenterpriseculture,awarenessandabilityinthewidersectorand
thepublicsectorhasbeenadouble-edgedsword.Ononehandithascreatedworkand
partnershipopportunitiesfortheorganisation,butontheother,publicandvoluntarysector
organisationshaveoftenneededagreatdealofsupportandnurturingtoengagethemin
enterprisecreationanddelivery.Bubble’senterprisingnaturehasalsocausedsuspicionin
somequarters,despitetheorganisation’ssocialcommitmentbeingclearandaccountable.
Assessingsupportneedsandaccess
Bubbleidentifiedanumberofkeysupportneeds:
•Financialbackingandresource
•Businessadvice
•Team-buildingandthesharingofindividualskillsets
•Understandingandimplementingappropriatelegalstructures.
Bubblehasacquiredmuchofthesupportithasneededtooperateandgrowfromitsboard,
whichincludesexperiencedentrepreneursandmentalhealthprofessionals.Asaresultithas
notoftenengagedexternaltrainingandsupportagencies.Ofthetrainingandsupport
opportunitiesithasused,itfoundtheinformationtobepitchedtoolow.Theyhave,
however,providedusefulnetworkingopportunities.
BubblehashadapositiveexperienceofworkingwiththeTudorTrust,whoitfeelshadalight
touchapproachtomonitoringandreportingbackonfunding.However,theexperienceof
applyingforfundingforsignificantcapitalexpansionhasprovedverytime-consumingand
frustratingasaresultofslippingtimescales,alackoffeedbackandlackofclarityonthe
specificsofwhatfundersarelookingfor.
Itfoundlocalauthoritiestobeusefulsourcesofinformationandpartners,although
accessingtherightpeoplehasbeencrucialinordertogetdecisionsmadeandfindout
aboutopportunities.ThishasrequiredBubbletosearchoutmoreenterprisingofficersand
directorsasunderstanding,supportandapproachabilityhavenotbeenwidespread.
TheBubbleEnterprisesteamhasarangeofmentors,primarilydrawnfromitsboard
members,partnersandanetworkofassociatesworkingacrossenterprise,socialenterprise,
health,regenerationandcommunitydevelopment.Astheorganisationhasgrown,itbelieves
itsneedforexternalsupporthasdecreased,andtherenowexistsaninternalabilityto
managegrowthandcompetewiththelargerplayersinthesector.
BubbleEnterprisesthinkstherearethreeareasfordevelopingthesupportavailabletosocial
andcommunityenterprises:
•Businessdevelopment:Througharrangingbusinessintroductionsintoorganisations
andagenciesthatcanbenefitfromtheservicesofsocialandcommunityenterprise,
alongwithregularnetworkingeventsbringingtogetherpublicsectororganisationsand
socialentrepreneurs.Itwasalsothoughtthatpracticalsupportonhowbusinesses
growandsessionstohelpsocialenterprisesunderstandtheirtradewouldbehelpful.
30 ipprnorth|GrowingtheBigSociety
•Coreinfrastructuredevelopment:Akeyissueiforganisationsaretohavethe
organisationalcapacityrequiredtoenablethemtogrowandmanagelargecontracts.
Pumpprimingfundingtosupportcoreinfrastructuredevelopmentwasthoughtuseful.
Improvedlocalisedbudgethandlingmightalsohelptoensureagreaterunderstanding
ofneedsatalocallevel.Thiscouldalsobesupportedthroughcollaborationwithinthe
sector,withmoreestablishedorganisationsprovidingbackofficesupporttoother
organisations,includingHR,payrollandadministration.
•Improvementofprocurementprocesses: Contractscanprovideakeyrouteto
sustainability,buttheprocurementprocessneedstobereviewedtoensurethresholds
arenotexcludingpotentialbiddersandtenderdocumentsandreportingprocessesare
simple.Allowingaproportionofthemoneytobepaidupfrontandcoveringcostslike
holidayandsickleavetoensuresocialandcommunityenterprisesarenotsubsidising
thepublicsectorarebothimportant.
Sectionsummary
Anumberofcommonthemescanbeidentifiedfromthesecasestudies:
•Thevalueoforganisationalreview: Mostofourcasestudieshighlightedan
organisationalreviewasakeyturningpointontheirjourneytobecomingasuccessful
enterprise,andenablingthemtofulfiltheirambition.
•Transitiontoenterprise:Securingasignificantcontractwasacatalysttomostofour
casestudiesmakingthetransitionfromacharitableorganisationtoanenterprising
organisation.
•Astrongteam: Allourcasestudiesemphasisedtheimportanceofthepeoplearound
themtothesuccessoftheirenterprise.Thisextendednotonlytostaffandvolunteers,
buttoboardmembersandmentorstoo.Astrongleaderwithaclearvisionwas
consideredveryimportant.
•Networking,marketingandprofile: Havingstrongnetworkswithotherorganisations
andapositiveprofilewithkeystakeholderswasimportantforalltheseorganisations.
Formanythisinvolvedaproactiveapproachtomarketingbothservicesandthe
organisation.
•Supportneeds:Ourcasestudyintervieweestendedtobenegativeaboutthesupport
providedbyorganisationslikeBusinessLink,regardingitasnotfororganisationslike
theirs.Theyweremorepositiveaboutsupportprovidedbyothervoluntarysector
agencies,butwantedtoseemorespecialistsupport,forexampletargetedata
particularsector,suchaschildcare.
•Localauthorities: Havingagoodrelationshipwithalocalauthoritywasregardedas
veryimportant,althoughaperceivedlackofentrepreneurialspiritandahighdegreeof
riskaversionamonglocalauthoritieswasseenasabarriertosupportingenterprise.
•Procurementandcommissioning: Mostofourcasestudiesregardedprocurementand
commissioningasessentialtotheirsustainability,butproblemswereexperiencedwith
publicsectorprocurementpractices.
31 ipprnorth|GrowingtheBigSociety
3.Resultsfromtheonlinesurvey
Tosetthiscasestudyresearchinabroadercontext,wealsocarriedoutanelectronicsurvey,
whichwasopentoallsocialandcommunityenterprisesintheNorthWestofEngland.Over
100respondentsfilledinthesurvey.Whilethereisnoeasywayofdetermininghowfar
surveyrespondentsarerepresentativeofthewidersocialandcommunityenterprisesector,
thisisagoodsamplesizeandsomeinterestingpatternsandtrendscanbedetected.In
particular,theresultsindicatesomeinterestingfindingsaboutthenatureandoriginsof
communityenterpriseorganisationsintheNorthWest,andraisesomechallengingquestions
aboutthediversityoffundingandsupportaccessedbyrespondents.
Beforeexploringtheseissuesinmoredetail,weprovideaquickoverviewoftherespondents
tothesurvey.
Profileoftherespondents
Thesurveywasdistributedbyanumberoforganisations,includingumbrellaorganisations
forsocialenterpriseandcooperativesintheNorthWestofEngland.Respondentscamefrom
101differentorganisations,94percentofwhich,whengiventhefollowing,standard
definitionofasocialenterprise,identifiedthemselvesassuch:
Socialenterprisesarebusinesseswithprimarilysocialobjectiveswhose
surplusesareprincipallyreinvestedforthatpurposeinthebusinessor
community.
Mostorganisationsalsodefinedthemselvesasacommunityenterprise,agreeingthatthe
followingdefinitiondescribedtheirorganisation:
Acommunityenterprise[is]atypeofsocialenterprisethatservesa
particulargeographiccommunity.
Seventy-onepercentofourrespondentsagreedthisstatementdescribedtheirorganisation,
while21percentansweredsaiditdidnotand6percentthattheydidnotknow.
Figure3.1.
Legalstructure 80%
oforganisation 70%
respondingto
60%
thesurvey
50%
Note:morethan
oneoptioncould 40%
beselected 30%
20%
10%
0%
Industrial & Provident Society for
limited by shares
Community Interest Company
Sole trader
Company Limited by Guarantee
Friendly society
Registered charity
Unincorporated association
as a cooperative
benefit of the community
32 ipprnorth|GrowingtheBigSociety
Organisationswereoverwhelminglycharitiesandcompanieslimitedbyguarantee,withfew
organisationswithotherlegalstructuresresponding.Anyspecificsupportneedsofthose
organisationswillnotbereflectedinthefindingsofthissurvey.
Therespondentswerequitediverseintermsofthesizeoftheirturnoverandage,
suggestingagoodcrosssectionoforganisationsrespondedtothesurvey–seeFigures3.2
and3.3.
Left:Figure3.2.
Howmanyyears More than More than No income (0)
theorganisations 20 years Less than 1 £500,000 £1 – £10,000
year
havebeen
running 1-2 years
Right:Figure3.3.
Approximate £10,001 -
£25,000
annualturnover 11-20
fromallsources years £100,001 - £25,001 -
3-5 years £500,000 £50,000
£50,001 -
6-10 years £100,000
AfurtheraspectofCLG’sdefinitionofcommunityenterpriseisthattheyareoftenrunby
thepeoplethattheyserve.Weaskedourrespondentshowtheyinvolvedthecommunityin
theworkoftheirorganisation.Onlyoneorganisationdidnotinvolvethecommunityintheir
work.Themostcommonwaytoinvolvethecommunitywastoprovidevolunteering
opportunities,closelyfollowedbyhavingrepresentativesfromthecommunityontheboard
andconsultingwiththecommunityoruserstoestablishneeds.Overall,overhalfof
respondentssaidtheyinvolvedtheircommunityinthedesignanddeliveryofservices,
althoughthiswassomethingthoseidentifyingthemselvesascommunityenterpriseswere
morelikelytodowhencomparedtothosenotidentifyingthemselvesasacommunity
enterprise.
Figure3.4.How 90%
respondents 80%
involvethe 70%
communityin 60%
theirwork 50%
40%
30%
20%
10%
0%
Representatives of the community
on the Board
None
Other
Provide volunteering opportunities for
Employee ownership
Consult with community / users to
establish needs
Criticalfactorsforsuccess
Weaskedrespondentstoidentifytheirtopthreeenablersandbarrierstosocialand
communityenterprises.Therewasconsiderableagreementthatpeoplewerethemost
importantenabler,alongwithgrants.Figure3.5splitstheresponsesintothosefrom
respondentswhoidentifiedthemselvesascommunityenterprisesspecificallyandthosethat
didnot.Overallthereisconsiderablesimilaritybetweentheanswers.However,thosesocial
enterprisesnotidentifyingthemselvesascommunityenterprisesweremorelikelytohighlight
cashflow/liquidity,businesssupportandprocurementskillsandknowledgeaskeyenablers.
Figure3.5.
C o m m u n ity e n te rp ris e s N o t co m m u n ity e n te rp ris e s
Topthree 50
enablersto
45
socialand
community 40
enterprise
35
% 30
25
20
15
10
0
and volunteers)
Investment finance
Grant for revenue
opportunities
Local authorities
knowledge
Beneficiaries /client /
Accommodation
Consumer understanding
Government regulation
knowledge
and policy
Procurement
advice)
community
of social enterprise
Figure3.6.
Community enterprise Not community enterprise
Topthree 35
barrierstosocial
andcommunity 30
enterprises
25
20
%
15
10
0
knowledge
board
volunteers)
Management committee or
Grants for capital
Local authorities
Procurement opportunities
Cash flow / liquidity
Beneficiaries/client/community
PR / marketing skills and
Accommodation
People (e.g. employees and
Skills/training and
Government regulation and
knowledge
development
policy
social enterprise
34 ipprnorth|GrowingtheBigSociety
Thesurveyalsoaskedresponentsaboutthebarrierstheyfaced(seeFigure3.6above).Again
therewasconsiderableagreement,withfinancialissuesinoneformoranother(eithercash
flow/liquidity,grantsforrevenueorgrantsforcapital)chosenmostfrequentlyasthemain
barrier.Butagain,whenthefiguresarebrokendownaccordingtowhetherornot
respondentsidentifiedthemselvesasacommunityenterprise,someinterestingdifferences
emerge,withbusinesssupportandprocurementskillsandknowlegdefarmorelikelytobe
selectedbyorganisationsthatdonotidentifythemselvesascommunityenterprises.Thismay
indicatethattherespondentsidentifyingthemselvesascommunityenterprisesarelesslikely
tobeengagingintradingactivities,somethingthatisreinforcedwhenwelookattheresults
ofthequestionsabouthoworganisationsarefinanced.
Financeandothersupport
Nearlyallofoursurveyrespondents(93percent)hadsoughtfundinginthelast12months,
withmostseekinggrantfunding,donationsorresourcesfrompublicsectorsources,suchas
localgovernment,quangosorthroughtheBigLotteryFund.Fewhadusedloans,overdrafts
orcommunitydevelopmentfinancialinstitutions(CDFIs),asFigure3.7shows.Nosignificant
differencesemergewhenthesefiguresarebrokendownintothoseorganisationsthat
identifiedthemselvesascommunityenterprisesandthosethatdidnot,suggestingthateven
thesmallnumberofnon-communitysocialenterprisesthatrespondedtothesurveywere
notaccessing‘usual’businessfinance.Indeed,theformofsupportallorganisationswere
mostlikelytoseekisgrantfunding.Itwouldappearthatoursurveyrespondentsareheavily
dependentonthepublicsectorfortheirincome,andhaveapreferenceforgrantfunding,
whichcouldplacetheminaprecarioussituationinthenextfewyears.
Thesurveyalsoaskedabouttheformsofsupport(advice,guidance,signposting,training
andsoon)thathadbeensought.Overall,peopleweremostlikelytoturntoother
individualsworkinginthevoluntarysectorforadviceandsupport,closelyfollowedbyalocal
socialenterprisenetwork,localauthorityorcouncilforvoluntaryservices(CVS)or
equivalent.(Figure3.8below.)
Figure3.7. 80%
Typeoffinancial
supportsought 70%
byrespondents
inthelast12
60%
months
50%
40%
30%
20%
10%
0%
Loan from a Community
Don’t know
Grant
Bank overdraft
Funding from local government
Share issue
Haven’t sought finance in the
Other
Donations
Selling land/buildings
Bank loan
partner/directors
last year
35 ipprnorth|GrowingtheBigSociety
Figure3.8. 70%
Wheresupport
60%
hasbeensought
50%
40%
30%
20%
10%
0%
Individuals working for other third
Service or equivalent
Community Matters
Consultants
Local authority
service providers
Figure3.9. Community enterprise Not community enterprise
Wheresupport 40
hasbeensought 35
–community
andnon- 30
community 25
enterprises
% 20
15
10
0
Other business advice
Consultants
Community Matters
Local authority
Service or equivalent
However,someconsiderabledifferencesemergewhentheresultsarebrokendownby
communityenterprisesandnon-communitysocialenterprises,asFigure3.9shows.
Respondentsthatdidnotidentifythemselvesasacommunityenterprisewerefarmorelikely
toseeksupportfromBusinessLinkandothersupportproviders,ororganisationslikethe
DevelopmentTrustsAssociatationorSocialEnterpriseCoalition.Organisationsthatidentified
themselvesascommunityenterprseswerefarmorelikelytoturntovoluntarysectorsources
ofsupportorlocalauthorities,suggestingtheseorganisationsmayhaveaparticularly
importantroletoplayinsupportingcommunityenterprises.
Respondentsweregenerallyfairlysatisfiedwiththesupportavailabletotheirorganisation,
particularlywithregardtohavingopportunitiestonetworkwithotherorganisations,share
relevantinformationandaccesstraining.Areashighlightedaslesssatisfactoryincluded
accesstolegaladvice,marketingandPRadvice,opportunitiestoworkwithother
organisationstoinfluencelocaldecision-makingandsupporttobidsforcontracts.(Figure
3.10below.)
36 ipprnorth|GrowingtheBigSociety
Figure3.10.
Howsatisfied Network with other
respondentsare organisations
Financial management
Find trustees/management
committee
Identifying efficiencies/savings
0 20 40 60 80 100
Figure3.11.
Organisational 45%
rootsof 40%
respondents’
35%
organisations
30%
25%
20%
15%
10%
5%
0%
enterprise
Public sector
An individual
Another social
Co-operative
Community
Charity
trading
organisation
business
Don’t know
Private
group
New
37 ipprnorth|GrowingtheBigSociety
Organisationalorigins
Someofthedifferencesbetweenthegroupsofrespondentsmaybeexplainedbydifferences
inorganisationalorigins.Themajorityofourrespondents’organisationshadtheirrootsina
communitygroup(42percent)and/orwereneworganisations(31percent).(Figure3.11
above.)
However,whentheseresponsesarebrokendownbycommunityandnon-community
organisations,thedominanceofcommunitygroupsgrows,asFigure3.12shows.Non-
communityenterprisesweremorespreadacrosstherangeofoptions.
Figure3.12.
Organisational Community enterprise Not community enterprise
40
rootsof
respondents’ 35
organisations–
communityand 30
non-community 25
enterprises
% 20
15
10
Public sector
An individual
Another social
Co-operative
Community group
Charity trading
Private business
Don’t know
New organisation
enterprise
Thesurveyalsoaskedwheretheorganisations’start-upfinancehadcomefrom.Forthevast
majority(60percent),agranthadprovidedthestart-upfinance,whichwasthecasefor
communityenterprisesandothersalike.(Figure3.13.)
Figure3.13.
70%
Whenyour
60%
organisation
began,where 50%
didtheinitial 40%
resourcecome 30%
from? 20%
10%
0%
Donations
Guaranteed contract
Grant
Loan
Don’t know
Seed-corn funding
from another organisation
Thisunderlinestheimportanceofgrantfinance,asindicatedintheresponsestothe
questionsaboutwhereorganisationshadsoughtfinance,andwhatrespondentsconsidered
themostimportantenablersandbarrierstosocialandcommunityenterprise.
Sectionsummary
Althoughwecannotdeterminehowfarsurveyrespondentsarerepresentativeofthewider
socialandcommunityenterprisesector,the101responsesrevealsomeinterestinginsights:
•People(humancapital)andaccesstofinancewerehighlightedaskeyenablersof
socialandcommunityenterprises,althoughthoseorganisationsthatdidnotidentify
themselvesascommunityenterprisesweremorelikelytohighlightcashflowand
liquidity,businesssupportandprocurementskillsandknowledgeasbeingimportant.
•Organisationsweremostlikelytoseekfundingthroughgrantsandthroughthepublic
sector,withthemajorityofrespondentshavingsoughtfinancialsupportfromthese
sourcesinthelast12months.Veryfewhadsoughtloansorotherformsofbusiness
finance.
•Socialandcommunityenterprisessoughtsupportindifferentplaces.Community
enterprisesweremorelikelytoseeksupportfromotherthirdsectororganisationsor
localauthorities;thosenotidentifyingthemselvesascommunityenterpriseswere
muchmorelikelytoseeksupportfromspecialistsocialenterprisesupportproviders
andorganisationslikeBusinessLink.
39 ipprnorth|GrowingtheBigSociety
4.Theviewfromsupportprovidersandlocalauthorities
AswellasengagingwiththevoluntarysectorintheNorthWest,wealsosoughttheviewsof
asmallnumberofstakeholderswithresponsibilityforsupportingsocialandcommunity
enterprises.Theseincludedleadlocalauthorityofficers,regionalagenciesandinfrastructure
organisationsprovidingsupporttosocialandcommunityenterprises.Theinterviewswere
semi-structuredandconductedonthebasisofanonymity,toenablepeopletobecandid.
Theyexploredanumberofkeyissues:
•Interviewees’understandingoftheterm‘communityenterprise’
•Theplaceofsocialandcommunityenterpriseinlocalandregionalpolicies
•Thecriticalsuccessfactorsforcommunityandsocialenterprise
•Supportavailabletosocialandcommunityenterprises,andanygapsinprovision.
Understandingcommunityenterprises
Intervieweeswerefamiliarwiththeterm‘communityenterprise’,althoughprecisedefinitions
varied.Mostregardedcommunityenterprisesasorganisationsthatservedparticular
geographicalcommunities(ratherthancommunitiesofinterest),andmanysawthemas
synonymouswithcommunitydevelopmenttrusts.
However,therewasasensefromsomethatcommunityenterprisesweresomehowless
‘professionalised’thanothersocialenterprises.Ifacontinuumisimaginedwiththevoluntary
andcommunitysectoratoneendandprivatesectorenterprisesattheother,community
enterpriseswereregardedasbeingnearertovoluntaryandcommunitysectororganisations,
whilesocialenterpriseswereseenasclosertoprivatesectorenterprises.Oneinterviewee
capturedthisideainthefollowingway:
Ifsocialenterprisesarecommercialorganisationswithasocialmission,
thencommunityenterprisesarecommunityorganisationswithasocial
missionthathastoadapttoacommercialmodelinordertosurvive.
Anumberofintervieweesconsideredcommunityenterprisetobearelativelyrecentaddition
tothelexiconofthevoluntarysector,andexpresseddoubtathowhelpfulitistointroduce
anothernewtermintowhatisalreadyregardedasapoorlyunderstoodarea.
Theplaceofsocialandcommunityenterpriseinlocalandregionalpolicies
Intervieweesfromboththeregionalandlocallevelswerekeentohighlighttheimportance
to,andtheirgrowingawarenessof,socialandcommunityenterpriseintheirwork.
SocialenterprisehasbeenhighlightedbytheNorthWestRegionalStrategy(RS2010)asa
priorityareainordertoreleasepotentialandtacklepovertyintheregion.Thedraftstrategy
proposesdevelopingaworldclasssocialenterprisesector;supportingparticipationinpublic
sectorprocurementandcommissioningbyensuringthevoluntarysectorcompactisadhered
to,andadoptingapositiveapproachtosocialenterprise,especiallymutualsand
cooperatives,throughsupportmechanismssuchasthoseprovidedbyBusinessLink.
AsoutlinedinSection1,anumberofprojectsandpilotsareinplacetoprovidesupportto
thesocialenterprisesectorintheNorthWest,drawinginfundingfromtheRegional
DevelopmentAgency,Capacitybuilders,theOfficeoftheThirdSector(nowtheOfficefor
CivilSociety)andtheEuropeanRegionalDevelopmentFund(ERDF).Importantamong
theseistheoutreachworkbeingpilotedbyBusinessLinkinMerseyside,whichisparticularly
focusedoncommunityenterprise,andthetrainingof‘socialenterprisechampions’within
BusinessLink.TheNorthWestDevelopmentAgencyhasalsosignalledaninterestin
providingtargetedsupporttosocialenterpriseswithgrowthpotential,andtheprogrammeis
inthefinalstagesofdevelopment.
40 ipprnorth|GrowingtheBigSociety
Atthelocallevel,intervieweeswereawareofsocialandcommunityenterprisesandvalued
theirwork,particularlyinareaslikehealthandsocialcare,socialhousing,community
regenerationandtacklingclimatechange.Therewas,however,somevariationinpoliciesand
strategiestosupportenterprises,withsomeauthoritiesdevelopingspecificvoluntarysector
orsocialenterprisestrategies(seeBoxes4.1and4.2,belowandnextpage).Butevenin
localauthoritieswherestrategieswereinplace,awarenessofsocialenterprisediffered
betweencouncildepartments,withsomemoreawareofandsigneduptostrategiesthan
others.Itwasdescribedasaslowprocessofwinningpeopleover.
Foronelocalauthority,thecentralfocusofitseconomicdevelopmentworkisboosting
enterprise,withsocialandcommunityenterpriseexplicitlyrecognisedashavingaroleto
play.Supportonofferincludedidentifyingaspirantentrepreneursanddeliveringenterprise
(socialorotherwise)start-upgrantsofupto£500tospecificdeprivedcommunities.
Anotherlocalauthorityhadidentifiedassettransferasakeymeansofdeveloping
communityenterprises.Ithaddevelopedaprogrammeofcommunityfacilityassettransfer
withcommunitydevelopmentactivities,inordertobuildthecapacityofcommunity
organisationstomanageassetsandusethemtogenerateincome.Theauthorityregarded
thetransferassetswithoutbuildingincommunitydevelopmentasunsustainable.
Box4.1.Liverpool–understandingandsupportingsocialenterprise
InLiverpoolresearchhasbeenconductedtoassessthesizeofthesocialenterprisesector,
withanestimated280socialenterprisesidentified,ofwhich170havesignificantlevelsof
trading(theaverageleveloftradingincomeis45percentofturnoverandrising).The
turnoverwithinthesesocialenterprisesisaround£75mannually,andtheyemploy2000-
pluspeople.
Thecitycouncilhasauditeditscommissioningandprocurement,andfounditspends
around£11mannuallypurchasinggoodsandservicesfromsocialenterprisesviaaround
70separatecontracts.Thefigureof£11mrepresentsaround0.6percentofthecouncil’s
budget.Amajorinitiative,theMerseysideSingleProcurementVision,istryingtoincrease
levelsofcontractingwithsocialenterprisesinthemunicipal,healthandhousingsectors.
Therehavebeenexamplesofcontractsbeingsplitinordertomakethemmoreobtainable
forsmallbusinessandsocialenterprise.
Socialenterpriseplaysanimportantroleinthecouncil’seconomicdevelopmentactivities,
andenterprisestart-upgrantsareavailabletoentrepreneursintargeteddeprived
communities.
Someotherlocalsupportprojectsinclude:
• TheLiverpoolSchoolforSocialEntrepreneurs,whichinitsinitialphasewillassist45
aspiringsocialentrepreneursandcreate15fullytradingsocialenterprises
• TheLiverpoolAcademyofSustainableEnterprise,assisting240peoplemanaging
socialenterprisestowinmorecontractsandimproveoperations.
Thecriticalsuccessfactorsforcommunityandsocialenterprise
Interviewees’viewofthecriticalsuccessfactorsfororganisationstendedtofocuslessonthe
organisationalissueshighlightedbythesocialandcommunityenterprisesthatparticipatedin
ourresearch.Theissuethatsupportprovidersandlocalauthoritiesregardedasbyfarthe
mostimportantwasfinancialsustainabilityandhavingdiversesourcesofincome.For
intervieweesthismeantastrongfocusondevelopingabusinesscaseandincomestreams.
Manyvoicedfrustrationattheideathatsocialandcommunityenterprisesshouldbe‘notfor
profit’,arguingthattheyshouldbeaimingtomakeaprofitinordertobesustainable.What
41 ipprnorth|GrowingtheBigSociety
Box4.2.TamesideMetropolitanBoroughCouncildraftsocialenterprisestrategy
–identifyingandfillinggapsinsupport
Theobjectivesofthestrategyare:
• Topromoteanddevelopawiderunderstandingofsocialenterpriseanditsbenefits
acrosstheborough
• Toincreasethenumber,size,andsustainabilityofsocialenterprisesinTameside
• Todesignandprovidesuitablesupportinterventionsasrequiredbysocialenterprises
inTameside.
Keygapsinsupportpriortostart-upareidentifiedas:
• Notenoughcommunitydevelopmentsupporttobuildawarenessofsocialand
communityenterprise
• Alackofinformationabouttradingandincomegenerationalternativesand
opportunities
• Alackofadviceandguidanceoncorporatestructures
• Limitedavailabilityofpre-start-upfunding
• Lowlevelsofcapacityandself-confidenceinthelocalcommunity
Supportgapsintheearlydaysofabusinessare:
• Insufficientintensive,long-term,businessdevelopmentsupport
• Insufficientspecialistsocialenterprisebusinesssupport
• Insufficientrevenuefundingtosupportthefirsttwoyearsofoperation
• Lackofflexibleandcredibletrainingprovision.
ThestrategyproposesthedevelopmentofaSocialEnterprisePartnershiptobring
togetherthelocalauthoritywithsupportprovidersinordertoreduceduplicationand
increasecoordinationofsupport.
differentiatessocialandcommunityenterprisesfromotherenterpriseswaswhattheydowith
theirprofit.
Beingbusinessmindedwasseenascentraltosuccess,andthiswasinterpretedasbeing
hard-headedaboutwhatanenterprisedoes,includingceasingactivitiesthatarebeing
deliveredataloss,unlesstheyaredeliberatelyandconsciouslybeingcross-subsidised.
Goodcoreorganisationalfunctionswerehighlightedascriticalforsuccessbysome
interviewees,withaparticularfocusonfinancialmanagement,marketing,procurement
andnetworking.Liketheorganisationsthatcontributedtothisresearch,interviewees
emphasisedtheissuewasaccesstoskillsratherthannecessarilyholdingalltheseskillsin
house.Thisextendsthequestionofskillsbeyondjustanorganisation’semployeesand
volunteers,toincludetheirboardmembers.Theimportanceofhavingaclearvisionand
missionthatiswidelyunderstoodandconfidentlycommunicatedwasalsohighlightedas
criticalforsuccess.
Finally,owningorbeingabletomanageanassetinawaythatgeneratesprofitwas
highlightedascrucialbysomeinterviewees.However,oneexpressedconcernthattoooften
localauthoritiesweretryingtooffloadliabilitiesratherthanassets,andpassingthemto
organisationsthatdonothavesufficientcapacitytomanagethem,anddonotinvolvethe
widercommunityintheiractivities.
42 ipprnorth|GrowingtheBigSociety
Supportingsocialandcommunityenterprises
Evidencesuggeststhatthesupportneedsofsocialenterprisesdonotdiffergreatlyfrom
thoseofprivatebusiness.However,thelanguageusedinthedeliveryofsupportisdifferent
andadvisersneedtobesympathetictothesocialorenvironmentalaimoftheorganisation.
Ifthisistrueforsocialenterprises,intervieweesconsideredittobedoublysoforcommunity
enterprises.Thiswasthoughttobeparticularlyimportantinthestart-upphaseandearlylife
ofanenterprise.Atthisstage,supportmightbemoreappropriatelydeliveredbyvoluntary
sectororganisations,ratherthanmainstreambusinesssupport.
Theinterventionsrequiredtohelpindividualsororganisationspriortostart-up,andthe
assistancerequiredbyyoungcommunityenterprisesinordertomoveon,wereconsidered
relativelysimple.Forexample,opportunitiestonetwork,adviceondevelopingstrong
organisationalproceduresandadviceonissueslikemarketingandbuildingapublicprofile
werehighlighted.Mostintervieweeswereoftheviewthatthereissufficientsupportand
fundingavailabletosocialandcommunityenterprises;thekeyissueisensuringpeopleare
awareofwhatisavailableandhowtoaccessit.Themultiplicityofprovisionwasseento
resultinalackofcoordinationandcomplexity,andthisisanareawheremoreworkneedsto
bedone.
Anumberofsuggestionsweremadeforincreasingthenumberofsocialandcommunity
enterprises.Targetedpre-start-upsupportforindividualentrepreneursandgroupsof
entrepreneurswasthoughttobeimportant,alongwithproactivelypromotingsocialand
communityenterpriseasavehicleforimprovinglifeindeprivedcommunities.Toachievethis,
aprogrammeofcapacitybuildingandcommunitydevelopmentwasthoughtnecessary,
particularlyinareasthatare‘socialenterprisedeserts’.Itwassuggestedthatinsomecases
groupsofindividualswiththeskillstoleadtheestablishmentofsocialandcommunity
enterprisesshouldbetargeted,suchasretiredprofessionalslivinginorneartodeprived
communities.
Somespecificsupportneedsofsocialandcommunityenterprisesindeprivedcommunities
werehighlighted.Gettingpeoplewiththerightskillsontheboardandthemanagement
teamwasconsideredtobeaparticularchallengeinsomeoftheseareas.Accesstofinance
canalsobeanissue,giventhebarrierstodevelopingastrongbusinesscase,and
organisationsmayneedtofindwaysofsellingservicesorproductstootherareastoo.
Exampleswereofferedoforganisationsstrugglingtosecurebankingservices,creditand
accessingbigsuppliers.
Onthepositiveside,enterprisesindeprivedcommunitieswerethoughttobenefitfromreal
passionandadesiretoseechange.However,thiscanbebeatenoutofpeopleiftheyare
notgivensupporttodevelopintotherole.
Accordingtoallourinterviewees,thekeyareawheresocialandcommunityenterprisesneed
supportisinachievingsustainability,whichwasregardedasstillbeingsomewayofffor
someaspiringsocialandcommunityenterprises.Akeychallengeishowtogetorganisations
intoapositionofbeing‘enterpriseready’.Morespecialistsocialenterprisesupport,training
andmentoringopportunitieswereallhighlightedasareasfordevelopment.
Anumberofintervieweesrecommendedseed-cornfundingavailableateitherthepre-start-
upstage,orwhenanorganisationismakingthetransitionfromcommunityorganisationto
enterprise.Itwasthoughtthisfundingshouldbeintheformoftime-limited,one-offgrants,
andspecificallyusedtomoveorganisationsontoanenterprisefooting.Thiswasseenasa
wayofgettinganenterpriseoffthegroundwhileitkeptitseyefirmlyonenterpriseactivity.
Onceanorganisationisestablished,localauthorityprocurementandcommissioningwere
regardedaspivotaltosecuringsustainablesocialandcommunityenterprises.But
intervieweeswereawareofanumberofbarriers,includingtheneedtosplitcontractsto
makethemmoreaccessibletosocialandcommunityenterprisesthatarenotlargeenoughto
43 ipprnorth|GrowingtheBigSociety
delivertoanentirelocalauthorityarea,andtheneedtosimplifyprocesses.Providing
trainingtocommissionerssotheybetterunderstandsocialandcommunityenterprise,and
makinguseofsocialbenefitclauses,werethoughttobeofpotentialbenefit.
Sectionsummary
Whilelocalauthoritiesandotherpublicsectorbodiesareoftencriticisedfornot
understandingsocialandcommunityenterprise,ourintervieweesdemonstratedagrowing
levelofunderstandingandcommitment.Anumberoflocalauthoritiesandotherpublic
sectororganisationshaveundertakenworktobetterunderstandsocialandcommunity
enterprisesintheirareaandhaveidentifiedstepstodevelopandworkwiththem.
Intervieweeshighlightedsomekeyissuesfacingsocialandcommunityenterprisesandsome
potentialareasformoreaction:
•Diversifyingincomestreamsandsecuringsustainableenterpriseswasseenasthemost
pressingchallenge.Beingmoreenterprise-minded,andstrivingtomakeaprofit(in
ordertoreinvestit)wasviewedascritical.
•Intervieweesgenerallythoughttherewasalotofsupportavailabletosocialand
communityenterprises–thechallengeisknowinghowtoaccessit.
•Targetedsupportandproactiveinterventionstogrowthenumberofsocialand
communityenterpriseswereseenaskeyareasfordevelopment.
•Localauthoritiescanplayakeyroleinthisthroughtheprovisionofseed-corngrant
fundingtohelporganisationsbecome‘enterpriseready’.Simplecommissioningand
procurementprocesseswereconsideredvitalonceenterprisesareestablished,toopen
upcommissioningtomoresocialandcommunityenterprises.Theincreasingsizeof
contracts,andknowledgeandunderstandingofcommissioningofficerswere
highlightedaschallengesinthiscontext.
44 ipprnorth|GrowingtheBigSociety
5.Conclusionsandrecommendations
Therearemoresimilaritiesthandifferencesbetweencommunityandsocialenterprises;
nonetheless,thisresearchprojecthasidentifiedsomeimportantareasofdivergence.
Communityenterprisesarewidelyregardedashavingrootsin–andmeetingtheneedsof–
aparticular,identifiablegeographicalcommunity.Theyarelikelytobemulti-purpose
organisations,meetingavarietyofneedsinonearea.Whilethisisalsotrueofsomesocial
enterprises,itisadefiningfeatureofcommunityenterprise.
Communityenterprisesalsooftenhavetheirrootsinthevoluntaryandcommunitysector,
andseemtobemorelikevoluntaryandcommunitysectororganisationsincharacter.Social
enterprisesontheotherhandweregenerallyconsideredbyparticipantsinthisprojecttobe
larger,morespecialistorganisationsthatareclosertotheprivatesectorinthewaythey
operate.Thisdistinctionisnotinkeepingwiththeofficialdefinitionsofcommunityand
socialenterprise.However,itseemstobeonethatcarriesrealmeaningformostofthe
organisationsengagedwiththisresearch.
Theideathatcommunityenterprisesaremorelikevoluntarysectororganisationsis
reinforcedbythefindingsofthesurvey,withorganisationsidentifyingthemselvesas
communityenterprisesmorelikelytohavetheirorganisationaloriginsinavoluntaryor
communitysectororganisation,ortobeaneworganisation.Perhapsevenmoretellingis
whereorganisationshavesoughtfinanceinthelast12months.Thisquestionrevealsan
inconvenienttruthforpolicymakerslookingtooutsourcemoretothevoluntarysector:it
showsthevastmajorityofsurveyrespondentssoughtfinanceintheformofgrants,anda
tinyminoritysoughtwhatmightbeconsidered‘mainstream’businessfinance,loansor
contracts.Itseemsenterprise-readyorganisationsthatarelookingtocontractwiththepublic
sectorareinshortsupply.
Forsomeorganisations,beingacommunityenterprisemayprovetobeatransitionalpoint
onajourneytobecomingasocialenterprise.Butthisisnotthecaseforallorganisations,
andformany,theirgrowthpotentialisconstrainedasaresultofservingahighlydeprived
community.Thislimitstheirrevenueearningpotential,althoughasourcasestudies
demonstrate,aninnovativeapproachcanbringinrevenuefromoutsidetheimmediatearea.
Whataretheprospectsforcommunityandsocialenterprise?
Therearemanyreasonsforsocialandcommunityenterprisestobecheerful.Firstand
foremost,asourcasestudiesdemonstrate,therearesomeexcellentsocialandcommunity
enterprisesintheNorthWestdeliveringhighqualityservicestotheircommunities.
Furthermore,socialandcommunityenterpriseissquarelyonthenewgovernment’sagenda,
withtheCoalitionAgreementplacingparticularemphasisonsocialenterprise,
neighbourhoodworking,mutualsandcooperatives.TheprecisedetailsoftheGovernment’s
‘BigSociety’willbecomeclearerastimegoeson,butthemessagessofarsoundpositivefor
socialandcommunityenterprise.Thisresearchalsoshowslocalauthoritiesareincreasingly
awareandsupportiveofsocialandcommunityenterprise.Mostofourcasestudies
highlightedimprovementintheirrelationshipwiththeirlocalauthority(althoughsometimes
fromalowbase),andourlocalauthorityintervieweesemphasisedthegrowingrecognition
oftheimportanceofsocialandcommunityenterpriseinmanylocalauthoritiesacrossthe
NorthWest.
Thatsaid,therearesomechallengesclearlyvisibleonthehorizon.Onekeyobstacleisthe
cutstopublicsectorbudgets.Manyofoursurveyrespondentsarereliantonthepublic
sectorfortheirincome,oftenintheformofgrants.Evensomeofourcasestudy
organisationswouldfinditdifficulttofulfilsomeoftheirfunctionswithoutgrantaid.There
isrealconcernthatsupporttosocialandcommunityenterprise–andthevoluntarysector
morebroadly–willbeanareaforcuts,aslocalgovernmentdiscretionaryspendingis
45 ipprnorth|GrowingtheBigSociety
reduced.Alreadythereisconcernedtalkwithinthesectorabouttheimplicationsof‘3/11’–
March2011–whenmanyexistinggrants,serviceagreementsandcontractsaresettoexpire,
creatingsomethingofafundingcliffedge(Coxetal2010).Untilmorefleshisputonthe
bonesoftheBigSocietyandthefundingstreamsthatwillsupportit,thisremainsan
uncertaintimeforsomecommunityandsocialenterprisesandthevoluntarysectormore
broadly.
Thereareproblemstoofororganisationsthatarecontractingwiththepublicsector,asthe
driveforefficiencycreatespressureforeverlargercontractsinordertoachieveeconomiesof
scale.Thisisaseriouschallengeformanyvoluntarysectororganisationslookingtodiversify
intopublicsectorcontractingastheyarelesslikelytohavethecapacitytocompeteforsuch
contracts.Furthermore,thereisariskthatsocialandcommunityenterprisesareseenasa
cheapalternative,whenwhatisneededisadefinitionofavaluethatencompassessocial
benefitandsustainableinvestment.
So,itwouldseemthereissomethingofagapbetweentheexpectationsofthe‘BigSociety’
andrealityontheground.Nonetheless,thismomentoffersarealopportunityforthethird
sectortoembeditselfasavitalpartofthemainstreameconomy.
Criticalsuccessfactorsforsocialandcommunityenterprise
Throughoutthisresearchanumberofkeyfactorscriticaltosuccesshaverecurred.Often
thesehavebeensharedbybothsocialandcommunityenterprisesandpublicsectorofficials.
People
Thehardworkandcommitmentofstaffarecentraltotheworkofsuccessfulenterprises.
Strongleadershipthatcanofferaclearlyarticulatedvisionisvital,andcanactasacheckon
missiondriftbroughtaboutbychasingfunding.However,inkeepingwithotherresearch,
thisprojecthashighlightedthatmanyorganisationsareheavilyreliantonasmallnumberof
keystaff,puttingthemunderenormouspressure.Whetheranorganisationisledbyan
individualentrepreneurorateamofcommunityactivists,ensuringtheseindividualsare
supportedisakeyareafordevelopment.
Afurthercriticalissueishavingrelevantskills–oraccesstootherpeoplethatdo–suchas
businessplanning,marketingandpublicrelations.Thisisaparticularlytrickyissueformany
socialandcommunityenterprisesservingdeprivedcommunities,wheresuchskillscanbein
shortsupply.Fearofbeingliableforthefailureofanenterprisecanalsobeabiggerbarrier
indeprivedcommunities,alongwithalackofenterprisingcapacity.
Networksandprofile
Beingactiveintherightnetworksisakeyenablerofsocialandcommunityenterprise,
offeringavitalmechanismforraisingtheprofileofenterprises.Networkingwithother
voluntaryandcommunitysectororganisationsisseenasvaluable,particularlypeer-to-peer
supportandmentoring.However,thebenefitsofmixednetworksarealsorecognised.
Bringingtogetherpublic,privateandvoluntarysectororganisationsoffersopportunitiesfor
hearingaboutcontractingopportunitiesandbuildingconsortiatobidforcontracts.
Serviceprovisionandidentifyinganiche
Socialandcommunityenterprisesneednotonlytounderstandthecommunitythatthey
serve,butalsohowtoaccessmarketsand–whererelevant–developnewmarkets.Partof
thischallengeistofindanichetofill,andgatherevidencetodemonstratecommunityneed
andgapsinservices.Thisrequiresgoodqualitymarketresearchandprofessionalmarketing
oftheresultingservice.
46 ipprnorth| GrowingtheBigSociety
Box5.1.Developingapictureofsuccess
Weaskedourworkshopparticipantstoidentifythekeycharacteristicsofahighly
successfulcommunityenterprise.Intheirviewitwould:
•Havetherightpeopleinvolved,whohaveappropriateskills,arecreativeand
innovativeandseechangeaspositive.Therewouldbeastrongcultureoflearning
andstrongleadershipfromapersonwhocatalysesactivityandempowersthose
aroundthemaswellasthewidercommunity.
•Bestronglyrootedandwellknowninthelocalarea,ownedandcontrolledbythe
communityandaccountabletoit,withagoodunderstandingofcommunityneed.
Goodorganisationsshouldalsobuildthelocalcommunity,developingandutilising
positiveformsofsocialcapital.
•Knowwhatsupportisavailableandmakeuseofit.
•Beenterprisingandactivelytrytogeneratesustainablerevenueandensureadiverse
fundingbase.Astrongorganisationwillbechoosyinwhatitdoes,andnotsimply
drivenbyavailablefunding.
• Haveaclearvisionandplanforthefuture,includingHRandbusinessplanning.
• Identifyeconomicopportunitiesandusequalitymarketresearchtoensureitsservices
meetlocalneeds.
•Useitssuccesstoinspirefurthersuccessinthecommunity,sharingknowledge,ideas
andspacewithothers.
•Buildstrongpartnershipsandrelationships.
Barrierstosocialandcommunityenterprise
Theresearchalsofoundconsiderableagreementaboutthekeybarriersthatsocialand
communityenterprisesface.
Fundingandfinance
Asever,fundingaroseasakeyissueinanumberofways.Manyidentifiedaccesstofunding,
particularlycapitalfinance,asakeyissue,andarticulatedfearthattheavailabilityoffunding
isgoingtobecomemoreratherthanlessofaproblemaspublicsectorspendingiscut.Our
surveyrespondentsdemonstratedahighlevelofdependencyonthepublicsectorfor
income,andastrongpreferenceforgrantfunding.Somewouldarguethatthese
organisations(thevastmajorityinoursurvey)arenotthereforeenterprises,whichmaybe
true.Inreality,theyareprobablyaspiringenterprisesororganisationsintransition,working
towardsbecomingafullyfledgedsocialorcommunityenterprise.Thescaleofthischallenge
shouldnotbeunderestimated.Fortheseorganisationssomelow-level,short-termgrant
fundinggivenspecificallytosupportthetransitiontoenterprisecouldhelptocatalyse
change.
Publicsectorcommissioningandprocurement
Fororganisationsthatarefullyfledgedsocialandcommunityenterprises,publicsector
commissioningisamainstay,andthefortunesofmostofourcasestudyorganisationshad
turnedwhentheysecuredamajorpublicsectorcontract.Nonetheless,gainingaccessto
contractsremainsabarriertothesuccessofmanyenterprisesoraspiringenterprises.There
areanumberofareaswherecommissioningandprocurementcouldbeimproved,including
endingrestrictivespecificationsthatsetouthowdeliveryshouldoccur,ratherthanfocusing
ontheoutcomessought;overlycomplexprocesses;tighttimescales;andlargecontractsthat
areoutofthereachofsmallerorganisations.
47 ipprnorth| GrowingtheBigSociety
Goodqualitysupport
Accessinggoodqualitysupportinatimelyandaffordablefashionisessential.Theresearch
identifiedalargenumberoforganisationsofferingavarietyofformsofsupporttosocialand
communityenterprises,frommainstreambusinesssupportproviders,togeneralvoluntary
sectorandsocialenterprisesupportorganisations,tospecialistsprovidingnicheadvice.
Coordination,sharinginformationandpropersignpostingremaincrucialchallenges.
Mostimportantisforthesystemtobegearedtotheneedsoftheorganisationseeking
support,andappropriatetotheirstageofdevelopment,suggestinga‘lifecycleapproach’to
theprovisionofsupportisneeded.Thiswasreflectedinourcasestudies,withsomewanting
generalorganisationaldevelopmentsupport,whileothershighlightedaneedforsectoral
support.Bysectoralsupporttheymeantsupporttailoredtoorganisationsworkingina
particularfield,bethatchildrenandyoungpeople,educationorhealth.Respondentstoour
survey,aswellasourcasestudies,highlightedthatvoluntarysectororganisationstendtobe
thefavouredsourceofsupport,andmentoringstoodoutasbeingparticularlyvalued.
Mainstreambusinesssupportserviceswerecriticisedforaperceivedemphasisongrowthasa
primarygoal,whenthisisnotalwaysdesirableforsocialandcommunityenterprises.
Developingcoreorganisationalinfrastructure
Asharedcharacteristicthatemergesstronglyfromthecasestudyresearchistheneedfor
goodorganisationalstructureandplanningandsupportforcoreinfrastructure.Successful
organisationsarebuiltongoodprocesses.Goodfinancialmanagementandhumanresources
managementenabletherestoftheorganisationtooperatesmoothly.Mostofourcase
studieshadatsomepointundergoneafullorganisationalreview,whichinsomecaseshad
resultedindifficultdecisionshavingtobetaken.Ineachcasethisstreamliningand
refocusingoftheorganisationwasregardedasacriticalturningpointinmakingthemthe
enterprisetheyaretoday.Havingthespaceandfinancetoundertakesuchareviewto
ensurethecoreinfrastructureisinplacecanprovecriticaltosuccess,andwithoutit
organisationsmaynotreachtheirfullpotential.Afurtherbarrier,however,ishowtofund
coreinfrastructureonanongoingbasis.Thismakesthequestionoffullcostrecoverycentral,
whichmustbeaddressedintherefreshmentofthecompact.
Recommendations
1)MakingBigSocietyflourish
Thenewimpetusgeneratedbythecoalitiongovernment’semphasisontheroleofsocial
enterpriseincreatingtheBigSocietyistobewelcomed.However,itwouldseemthat–in
theNorthWestatleast–thereisasignificantgapbetweenexpectationsfortheBigSociety
andthecurrentcapacityofthesectortofulfilthem.Ambitionstobuildcapacityalsolook
dangerouslyconstrainedbytheMarch2011fundingcliff-edge.
Inordertobridgethegapandaddressconcernsaboutcapacityandfunding,werecommend
anurgentneedforrobustandfrequentdialoguebetweennationalpolicymakers,
regionally-basedrepresentativesofthevoluntaryandcommunitysectorandsocial
enterprise,localauthoritiesandothersupportagencies.
Whilefinancesaretight,themoneythatdoescometothesectorthroughtheBigSociety
Bank,theCommunitiesFirstFundandanylocalauthoritydiscretionaryspendshouldbe
targetedattheareasofgreatestneed.Investmentshouldfocusonsecuringsustainability
andsupportingstart-uporganisationsinareaswheretheyareabsent.Someofthisfunding
shouldtaketheformofseed-corngrants,givenspecificallytosupportorganisationstomove
ontoamoreenterprisingfooting.
2)Makingthetransitiontoenterprise
CommunityandsocialenterprisesintheNorthWestareplayingacriticalroleinthevitality
andwellbeingofmanycommunitiesacrosstheregion,notleastinsomeofthemost
48 ipprnorth| GrowingtheBigSociety
deprivedneighbourhoodswheretheyactasasocialglueenhancingresilienceandqualityof
life.However,itwouldappearthatasubstantialproportionoforganisationscalling
themselvessocialorcommunityenterprisesstillhavesomedistancetotraveltoachieve
sustainability.Organisationsneedsupportiftheyaretoreducetheirrelianceongrantsand
movetomoreenterprisingactivity.
Werecommendthatleaders,boardmembersandtrusteesoforganisationsaspiringtobe
communityorsocialenterprisescarryoutanorganisationalreview,focusingoncore
missionandfuturefinancialsustainabilityinordertofacilitateagenuinetransitiontoa
moreenterprisingapproach.
Supportingthistransitionshouldbeakeyfocusfornationalpolicymakers,regionally-based
representativesofthevoluntaryandcommunitysectorandsocialenterprise,localauthorities
andothersupportagencies.
3)Commissioningandprocurement
Bothprocurementandcommissioningofferaroutetosustainabilityformanysocialand
communityenterprises,andyetourresearchshowsthatmostcommunityandsocial
enterprisesexperiencesignificantbarriersinaccessingsuchfunding.
Werecommendthatlocalauthoritiesandotherlocalserviceprovidersshouldreview
commissioningandprocurementprocessestobetterunderstandtheneedsandbenefits
ofthesocialandcommunityenterprisesector.Theyshouldthenmovequicklyfrom
developingstrategiesandplanningtoconcreteaction.
Reviewsshouldfocusonremovingunnecessarycomplexityandbureaucracy.Toensurethe
users’perspectiveisattheheartoftheprocess,localsocialandcommunityenterprises
shouldbeinvolvedinthereviewtoensureanynewprocessesareaccessible.Contractsize
shouldalsobeconsidered,withlocalauthoritiesandtheirpartnersconsciousthatas
contractsincreaseinsizetheybecomemoredifficultforlocally-basedsocialandcommunity
enterprisestodeliver,favouringinsteadlargernationalorinternationalorganisationsand
businesses.Thereisdissonancebetweeneconomiesofscaleontheonehand,and
supportingsustainablelocalcommunityandsocialenterprisesontheother.Partofthe
answerliesincontinuingtodevelopcapacityforconsortiaworkinginthevoluntarysector,
butpartoftheanswerisalsolikelytorelyonafundamentalreassessmentofwhatwemean
by‘value’.Valueshouldincorporateideasofplaceshaping,andpromotingsocial,economic
andenvironmentalsustainability.
4)Coordinatingsupport
Awiderangeoforganisationsandindividualsacrossthepublic,privateandvoluntarysectors
areofferingsupporttosocialandcommunityenterprises.Fromprovidersofgeneric
voluntarysectorsupporttoorganisationsofferingspecialistsupport,businesssupport
providersandlocalauthorities,thepictureiscomplex,confusingandunhelpfully
competitive.
Organisationstendtoneeddifferenttypesofsupportatdifferentstagesoftheir
development.Thefocusshouldbefirmlyontheneedsoftheclient,astheyareguided
throughdifferentstagesofdevelopmentandhandedontothenextlevelofsupportwhen
(andif)relevant.Generallyspeaking,communitydevelopmentsupportislikelytobeneeded
intheveryearlystagesofthelifecycle,genericvoluntarysectorsupportasanorganisation
becomesmoreestablished,andbusinessand/orspecialistsupportasanorganisation
becomesanestablishedenterpriseorseekstogrow.Supportshouldthereforebelinkedinto
a‘lifecycleframework’,withprovidersspecialisingindifferentpartsofthelifecycleand
referringenterprisestootherproviderswhereandwhentheyarebetterabletomeettheir
needs.
Werecommendthat,ininterestsofthewidersector,thewiderangeofsupportagencies
operatingintheNorthWestworktogethertobettercoordinatetheireffortsandpresent
49 ipprnorth| GrowingtheBigSociety
amorecoherentsupportoffertoexistingandaspiringcommunityandsocialenterprises
intheregion,basedona‘life-cycleframework’.
Werecommendthatsomeofthekeyelementsofthesupportpackagethatisneededmight
include:
Supportingindividualsandcollectives: Peer-to-peersupportandmentoringopportunities
havebeenhighlightedashighlyvaluedbythisresearch.Ensuringpeoplecanlinkinto
networksandfindappropriatementorsisessentialtogrowingsocialandcommunity
enterprises.
Marketing:AccesstomarketingandPRadvicehasbeenhighlightedasagapinsupport
provision.Thisisakeyareaforsupport,particularlyasenterpriseslooktoraisetheirprofile
andpromotetheiractivitiesinaprofessionalandpersuasivewayinordertobuildtheir
businessactivity.
Engagingincommissioningandprocurement: Thereisclearlyaneedforserviceprovidersto
reviewprocurementandcommissioningprocesses(assetoutinRecommendation3above),
butcommunityandsocialenterprisesmustalsobebetterequippedtobidforcontracts.
Trainingtotakeonassets: Buildingtheassetbaseofsocialandcommunityenterpriseis
anotherimportantroutetogreatersustainability.Thepressureonthepublicsectortomake
savingscouldsignalawaveofassettransfers,whichcouldbeverypositiveforthesector.
However,thisshouldbedonehandinhandwithcommunitydevelopmentworktoensure
localorganisationshavethecapacitytoreceiveassets,andinvolvethelocalcommunityin
therunningofthem.
Supporttoconductorganisationalreviews:Organisationalreviewsprovedtobevitaltoolsfor
ourcasestudiesontheirjourneytobecomingenterprises.Providingfundingtoenable
organisationalreviewscouldbeakeyareaforinvestmenttoincreasethenumberof
organisationsthatare‘enterpriseready’.
Takingthisagendaforward
Thekeymessagesofthisresearchshouldformthestartingpointforaconversationwithin
theregion,andbetweentheregionandgovernment.Throughpartnerorganisations,we
hopethisresearchwillbewidelycirculated,viewsfedback,andadialogueonthebestways
torespondtothesechallengesbegun.Socialandcommunityenterprises,theirrepresentative
organisationsandthewiderthirdsectorhavetheopportunitytoshapetheGovernment’sBig
Societyagendaasitemerges.Wehopethisresearchwillhelpinthistask.
50 ipprnorth| GrowingtheBigSociety
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