The UK landscape for social

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Nov 17, 2013 (3 years and 6 months ago)

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The UK landscape for social
enterprise


Ólöf

Jónsdóttir

Policy and Public Affairs Manager, SEUK

Four things...

1.
The history of social enterprise in the UK

2.
Major initiatives in the UK

3.
Challenges and opportunities

4.
Lessons learned


What is social enterprise?






Businesses driven by social and/or
environmental purpose, as set out in
their governing documents


Trading organisations


Reinvest at least half their profits
towards their social mission


Are accountable and transparent


Inclusive governance structures


Assets are often locked for community
benefit





The Big Issue:

A
magazine supporting
homeless people



Divine Chocolate:
A
chocolate company
working with worker co
-
ops in Ghana



Hill Holt Wood:
Preserving an ancient
woodland and providing
education programmes



Sandwell Community
Caring Trust:
a social
enterprise delivering adult
social care





Social Enterprise in the UK


a short history


1844

Rochdale Pioneers


….growth of whole variety of models and business types…


1960s/70s

Fair trade movement emerges


1980s

Growing number of organisations emerge during the



recession, ‘social enterprise’ begins to be used (by co
-
op
movt
)


2001

Social Enterprise Unit founded by the government


2002

Social Enterprise Coalition founded (now SEUK)


2005


Community Interest Company structure created


2006


Office of Third Sector created (now Office of Civil Society)

Social enterprise in the UK today


68,000 social enterprises in the UK (5% of all businesses)



Contributing £24 billion to the UK economy and employing over
800,000 people.



Operate in almost every sector: from health and social care, to
renewable energy, transport, retail and housing



There are many routes to becoming a social enterprise including:


spinning out of parts of the public sector


entrepreneur
-
led organisations


charities becoming more business
-
orientated

Major initiatives



1.
Voice and recognition:



Social Enterprise UK


Social Enterprise Unit/Office for Civil Society


New legal forms


CIC and CIO

Social Enterprise UK



Established in 2001
-
2 as the national body for social enterprise



Membership organisation: over 600 members; reach to over 10,000



Bring together all the different forms of social enterprise under one
umbrella



Main purposes:


Influencing government and the political parties


Raising awareness and showcasing


Broker, facilitator, market builder

Office for Civil Society



Social Enterprise Unit established in Department for Trade and
Industry 2001



Subsumed into new Office for the Third Sector



Social Enterprise Action Plan 2006 launched by Ed
Miliband
, Minister
for the Third Sector



Social Enterprise Ambassadors Programme



Re
-
named Office for Civil Society 2010

New legal forms




CIC launched 2005 as first new legal form for UK
organisations

in over
100 years



Two options


limited by guarantee and by shares



Around 7500 CICs now created



CIO launched 2012 as new legal form for charities


Major initiatives



2.
Public services and social enterprise:



Trend towards outsourcing


Public sector spin outs


The Social Value Act 2012

Public service outsourcing and spin outs



Growing trend towards outsourcing services, goods
and works over the last few decades


Currently driven by Open Public Services agenda


Accompanied by trend in spinning out services


Given impetus by the Department for Health’s Right
to Request initiative in 2008


Boosted by current focus on mutualisation





The

Public Services (Social Value) Act




The social enterprise sector has long called for
social value to be factored into commissioning


Social Enterprise UK included this in our 2010
General Election manifesto


In July 2010, Chris White MP tabled the Public
Services (Social Enterprise and Social Value) Bill


The Act applies to :


contracts over the EU thresholds


public services contracts (not goods and
works)




Major initiatives



3.
Consumer and business to business buying from
social enterprise:



Social Enterprise Mark


Buy Social campaign

Social Enterprise Mark



Lack of UK legal definition led to calls for a social
enterprise “identifier”


Certification scheme for social enterprises, akin to
Fairtrade mark


National roll out in 2010



Buy Social campaign






Major initiatives



4.
Social finance and investment:



Big Society Capital


Social Impact Bonds


Big Society Capital



Initiated in 2008 as the Social Investment Wholesale
Bank


Launched in 2012 as Big Society Capital


Resourced by funds from dormant bank accounts


Aims to lever in private sector capital and has an
estimated £600m in currently committed funding




Social Impact Bonds



A form of outcomes
-
based contract for public services


First social impact bond launched in September 2010
-

One* SIB


at Peterborough Prison


New bonds being launched in:


Criminal Justice


Vulnerable Children


Health


Unemployment


Rough Sleeping





Opportunities and challenges




Government


Open Public Services


Localism agenda


Social value


Consumer


Ethical consumerism



Government


Cuts


tighter budgets


Aggregation of contracts


Pace of change


Consumer


Lack of awareness of SE



Lessons learned



Power of collective voice


Importance of cross
-
party support


Positivity of the sector


Collaboration with other sectors


Any questions?


olof.jonsdottir@socialenterprise.org.uk


www.socialenterprise.org.uk