A new edition of Social Enterprises and their Eco-systems in Europe is now available on the Europa web pages.
This cross-national look at social enterprise is a profoundly useful narrative for individuals, or community actors, who are interested in exploring, not only the deployment of governance forms, but also to understand the philosophical approach to social enterprise development, across time and geography.
You can download the UK analysis here. It provides the diligent reader with definitions of a SocEnt, and the governance forms currently used by UK enterprises with a social mission.
The work is strong on the historical context of SocEnt development in the UK, as well as offering a critique of the fiscal, governance and research frameworks that do, and will, affect the development of community focused enterprise in the future.
The document also contains a useful set of appendices, that offer insights into stakeholders at national level, a governance form comparison and quick reference guide, as well as a set of references for the text that are an ideal for ‘more reading’.
This ‘Country Document’ from Europa.eu is written by Fergus Lyon, Bianca Stumbitz and Ian Vickers. It deserves to be in your SocEnt development tool kit, we think.
MRA Associates, in their freely available knowledge base, have an interesting and informing article about registered societies, which those exploring new governance forms for social business may find useful.
In our last post we reflected on time passed and have turned our attention to the future, thinking about organisational development in our social business for 2020.
We read a post on Medium recently, from an executive guru which decried, as a management technique, the announcing of your plans…lest you stumble and they all come to nought. (All business is risk, even a ‘social’ one!…Ed)
We have thought about this too, and have come to the decision, given the ubiquity of the internet and new media, that laying out plans, even those not fully ready for complex delivery yet, is a sound way to make contact with like-minded community actors and organisations. Our own motives and action plan are below…
We have attended this year ((2019) a number of events organised by the Centre for Local Economic Strategies (CLES), in both Liverpool and London. Designed to create awareness of, and engagement with, the Community Wealth Building (CWB) agenda. In this aim Neil McInroy and his highly skilled team, have been highly effective.
This engagement has started us thinking about how CWB can be energised to reach the micro and small community facing social businesses or organisations across our region.
It is clear from the recently published documents below, that this community mercantile sector is clearly woven into the multivariate practice, target segments and policy focus of the CWB change matrix.
Key Documents for Strategic Development
CLES have recently published both Community Wealth Building 2019 – theory practice and next steps, as well as a Manifesto for Local Economies. you can view, print or download both these key documents below…
Community Wealth Building 2019is a profoundly important document in contextualising local action, policy change and in illuminating the tried and tested, as well as emerging methodologies of change in CWB practice.
Whilst recognising that the new (CLES) Centre for Excellence, funded by the Barrow Cadbury Trust, has a primary focus on Local Authority/governmental policy issues for securing the largest change and development ‘hit’ possible, we think that the same concepts of CWB and the intellectual change mechanisms involved can equally be applied to the small marginalised communities and, importantly, rural England.
The Manifesto for Local Economies contains the building blocks of an exciting new CWB landscape. We do not see any of its elements as revolutionary, but rather see the policy and delivery skein exposed in the document as a progressive, moral and inclusive agenda for the individual, the company/charity, the region and government to embrace.
What The Manifesto calls for is an inclusive, fair and ownership diverting programme of change. It does not decry or deny capital, the market or the organisation – it refocuses them to broad community benefit.
We subscribe to the vision.
The action plan – the micro-contribution
To maintain and continue to consolidate activity with our clients for SocEntEastMids in the six counties region of its published focus – free delivery of support, advice and resources for the creation of socially useful enterprise.
A new brand and energy for change
To create a new brand/web site of focus and delivery mechanism, based in Cambridge UK, to engage with rural communities in England around some key elements of the CWB agenda.
To scope and deliver this rural enterprise support across The Midlands, East Anglia, Lincolnshire etc., where rural enterprise is, arguably, remote from the national policy debate and one to one encouragement is thinly spread.
To develop a programme of work, addressing community facing organisations – developing focused CWB agenda items to the unique, particular and social landscapes of our chosen geography.
To develop a cost recovery mechanism for external speakers and critical advice, event attendance etc., whilst still delivering our core elements of free advice, web and communication services – with any surplus created directed to support our sister delivery at SocEntEastMids, as is normal for our Partnership. To help maintain the sustainability of the programme.
To focus our Muntjac energy initially on a Enterprise Change Hub, development of Community Banking networks, and Employee Ownership advice and change support. This latter may well spill over into help in creating partnerships, employee owned businesses, co-operatives, measuring impacts for baseline and business plans etc.
To make Cambridge a ‘go to’ place for CWB in the rural environment. (We have large car parks…Ed).
The Muntjac is a persistent, pervasive and spiky creature in the rural environment. We like them.
Our strategy and delivery for the CWB programme, although modest, will hopefully develop the same profile.
If you would like to be part of a new CWB initiative in the rural East, do use our site contact facilities and have an opening conversation with Tim.
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Yunus Social Business – humanising the enterprise…
We have attended a number of events and meetings recently, across the six counties of the East Midlands, where the nature of our business has been, occasionally, in focus. We have returned and sought to reflect on our engagement with clients, partners and our own team.
We define our core Partnership in Cambridge as a Social Business, and cleave to the seven principles delineated in the book Building Social Business – the prime mover for us is to try and do things ‘…with joy’. (We also underscore the Nolan Principles in our work too…Ed.)
Of course, there are more significant enterprise impacting elements to the theories of Professor Muhammad Yunus, whose book defines our work. For our Partners the energy we expend is not for creating vast personal wealth – we use, we believe, enterprise skills and good governance to foster enough revenue to maintain our infrastructure, our tool-kits, human and technical, and then seek to deploy any surpluses to fund the delivery of pro-bono support to individuals and community organisations and actors where we can.
What has struck us is how our conversations have changed so little in the last twenty years or so. We talk in the office still of humanity, warmth, empathy, understanding and transparent process – all emotional responses to business propositions perhaps, but never forgetting that it is the business process and back office that fosters and provides for the projects that seek to develop our Social Business aims and achievements. No matter how modest they may be in the grand scheme of things.
The short video above, from Yunus socialbusiness, is, in effect, a declaration for system change and the humanising of the enterprise, we believe. A moderation of raw capitalism that is perhaps seeing the emergence of ‘its time’. It is not isolated by geography or place, the same principles should apply in a remote rural area or the heart of a city, whatever the continent.
Whether we define it as emergent social enterprise, social business, a co-operative or a genuinely employee owned business – the Yunus principles should all be in play, within this context of understanding and change.
We were challenged recently, in our twitter feed, by a member of the ‘twitterati’ that our position was hopelessly idealistic. Perhaps this is true, but as is made clear in the video exposition above, it is better to aspire to selflessness than to selfishness we would argue.
I was elected recently to join the Board of a regional charity, and was able to accept the onerous duty with delight. As part of the process I attended a staff workshop on Loneliness and Isolation. The stats indicating the demand for this service were challenging.
None the less, part of the group tasks were to develop an understanding of ‘the five ways to well-being’. They are Connect | Be Active | Take Notice | Keep Learning | Give.
Not a bad five point mantra for socio-economic change actors in communities too – we thought. Hopelessly idealistic or not…
This article is a personal reflection by Tim Smith MA, FRSA – A Managing Partner at SmithMartin LLP, custodian of SocEntEastMids interests.
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‘We are such spendthrifts with our lives, the trick of living is to slip on and off the planet with the least fuss you can muster. I’m not running for sainthood. I just happen to think that in life we need to be a little like the farmer, who puts back into the soil what he takes out.’ ― Paul Newman : Actor
Sustainability, going green, recycling, food waste, ethical business, community, evironmentally friendly, food labelling, consumer responsibility – Google any keyword from the above and acres of electronic landscape will open up on your screen and tantalise you with calls for their individual priority.
But to make the world sustainable, right down to the house on the corner, or the single desk at your child’s school, we need a new narrative. One that is, effectively, a moderated form of capitalism…Social Enterprise is it.
Attempting to break completely the bio-rhythms of a capitalist system, arguably embedded in this country from 1750 and the start of the Industrial Revolution, is a very hard thing. To moderate behaviour, or flex direction of travel, is much easier.
If Social Enterprise is the deployment of business enterprise, not for gross personal profit, but to serve up a solution to a community need, then Social Procurement should be the keyword search to trump all others.
“Our entire system, in an economic sense, is based on restriction. Scarcity and inefficiency are the movers of money; the more there is of any resource the less you can charge for it. The more problems there are, the more opportunities there are to make money.
This reality is a social disease, for people can actually gain off the misery of others and the destruction of the environment. Efficiency, abundance and sustainability are enemies of our economic structure, for they are inverse to the mechanics required to perpetuate consumption.’ – Peter Joseph
‘Simply put, social procurement means buying regular goods and services directly or indirectly from social enterprises’.
In her article, Rebecca is rightly keen to focus on the high value SocEnt’s place on innovation and risk depletion. At the heart of a SocEnt lies not only care for community, not personal profit, but for also maximising community benefit .
This is the tipping point in the established supply chain, that can flex traditional corporate procurement policy and action to favour the SocEnt supplier.
In doing so, the vast corporate spend on Corporate Responsibility and Risk Mitigation can be resolved to a SocEnt procurement locus that presents the rationalisation and delivery of an agenda which guarantees ethical supply and community safety at a stroke.
As Dray would have it ‘…By nature of their social and environmental mission they also reduce environmental impact, avoid modern slavery, tackle water scarcity and so much more‘.
We can now, perhaps, slightly shade the Dray definition for Social Enterprise to read…
A social enterprise is a legal and social entity of moderated capitalism, that seeks through Social Procurement, to temper and dissolve the social ills of profit pursuit for damaging personal gain.
Not so fluid, perhaps, but effective none the less, we would argue.
The embrace of a telling argument and practical philosophy, Social Enterprise, must however be matched by the equally telling embrace of traditional business. To moderate or flex, as a goal, will always be more effective that outright revolution.
We also need to convince the non-SocEnt market of the need to join forces with our new movement.
Pat Villaceran, in a recent article on LinkedIn, entitled ‘5 Reasons Business Executives Stray Away From Social Movements‘, nicely frames the arguments corporate procurement specialists use to deflect social procurement innovation. Arguing, in the article, that the unwritten message from corporate institutions is that social entrepreneurship is somehow a less effective, minority and part-time project.
The Villaceran thesis debunks these arguments and presents evidence, very useful if you are pitching to a procurement team, just why the SocEnt supply decision is the right one. We recommend it to our readers.
Taking place on May 21st, 2019 at Mary Ward House in London, the organisers aim to delve ‘…into different practical support that can allow all organisations to progress towards a healthy and sustainable future, while also making sure that we don’t forget about our own well-being and the human behind the social entrepreneur‘.
Early bird tickets are just now available and you can see the range of ticket types available for this significant SocEnt event here.
You can see the key themes of this year’s conference, and review the speakers of note from last year’s event on the BGB web pages. See more: https://beyondgoodbusiness.co.uk/
Perhaps we’ll see you there?
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Hatch, a South London charity, design their peer accelerator programme to ‘…facilitate learning experiences with successful social entrepreneurs (those who have come before), where they can share their wisdom, knowledge and network with those who need it next‘.
Designed for existing social enterprises, keen to grow, with a small number of staff, but who are aiming to seek social investment or crowdfunding resources in the next year or two.
Their programme of support centres around the following thematic deliveries…
Peer-to-peer learning environment
Pro-bono legal consulting
Here at SocEntEastMids we specialise in pro-bono support to the micro-enterprise or the nascent, yet to be connected, social entrepreneur.
However, we recognise that the Hatch Accelerator model offers professional and profound structural advancement for social entrepreneurs and social enterprises who are approaching critical mass.
‘TV architect and Big Issue cover star George Clarke’s petition, aimed at persuading the government to build 100,000 council houses a year, wins massive approval on its first day…’ Source: Big Issue
Working in communities, for us, involves delivering free support and resources to the nascent individual social entrepreneur or the community group, incorporated or not, involved in the transition to an active community focused business.
The nature of developing community business, or individual entrepreneurship, often involves a wider dialogue about social policy and the quality of life for residents in the broadest terms. Housing is often part of that narrative.
SocEntEast Mids does not offer advice on matters concerning investment, banking or legality. We freely collaborate with community players to share our decades of aggregate experience in community development and enterprise engagement.
That said, as the conversation in the meeting room, or community centre eddies and swirls towards a conclusion, it is useful to be able to tender some broad signposting around themes of concern, as part of that engagement process.
The narratives, data and contacts below, all freely available in the public domain, are an attempt to provide such a signpost.
A really useful place to start is the Power to Change: Business in Community Hands pages. here you can find grants that ‘…support projects that build of refurbish affordable homes’.
Homes in Community Hands ‘…are focusing on community groups in the early stages of their community-led housing development to support feasibility and predevelopment work, leading up to submitting a planning application. Our research has shown that is where funds are needed most to get projects moving’.
Community-led housing schemes empower people, enrich local communities and improve the lives of residents. They can breathe new life into a village by offering affordable homes below market rate to families that are priced out of the area they live and work in.
The authors argue that CLT’s are a currently under deployed tool for community social enrichment, but non the less, this paper highlights the context of the mechanism and is, in our opinion, particularly honest and useful in making an assessment of obstacles and pinch points in any community housing scheme.
CAF and Power to Change also have a useful web article on a new source of funding available – Blended Finance Available for CLT’s. Authored by Anne-Helene Sinha, it is a new and pioneering offer in the marketplace.
Johnson’s argument is, essentially, that investors with a conscience can all help to alleviate the current housing crisis by investing in the sector. He is also strong on the weakness and re-directions of central government in the housing mix over time…
…blame can be laid at the door of government. In 2009 (the last full year of Gordon Brown’s administration), Whitehall provided £11.4bn towards the cost of building homes. By 2015 (under David Cameron’s Conservative-led coalition), this had over halved to £5.3bn. More pertinently, perhaps, in terms of GDP, the fall is even more dramatic – it has dropped from 0.7 per cent to 0.2 per cent.
A depressing tale, well told with numbers to underscore the disparity of supply versus demand.
More useful links for data and context:
The Plan to End Homelessness, by Crisis, is also another salutory lesson in how housing and welfare policies have failed to work effectively, either with each other, or with the homeless to create sustainable and affordable solutions to the present crisis.
SocEntEastMids does not offer banking, finance or legal advice. Our free resources and support is dedicated to sharing our decades of community enterprise experience collaboratively with the nascent social entrepreneur or ethical business minded community group.
We are happy to have a ‘social enterprise’ conversation at any time, and to donate free resources, to foster the aims of the sector.
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To Nottingham, on Friday 15th February 2019 – to attend the launch of a new programme of support for budding social entrepreneurs from OLMEC.
Olmec’s mission is ‘...race equality through economic and social justice‘, and we are delighted, at SocEntEastMids to be able to support the work.
First Steps In Social Enterprise is free and open to existing and aspiring social entrepreneurs from BME (Black and Ethnic Minority) backgrounds – across the Nottingham and Derby area.
Are you a sole trader, or have a skill and want to develop a business that benefits the community?
Have a social enterprise idea / social enterprise at an early stage?
Want to develop a social enterprise model from an existing community organisation?
Are an entrepreneur that wants to develop a social enterprise?
Are a working and/or living in Nottingham or Derby?
‘The programme is designed to support aspiring social entrepreneurs’ ideas through a structured 12-week programme and 9 months online support including access to a moderated FaceBook group with online training.’ Source: OLMEC web pages
Applications Open February 15th
Applications close March 15th
Interviews March 19th to 21st
3-month programme runs March 23rd to June 15th
Online support runs to March 31st 2020
You can view, print or download the application form and details below…
We convened in the performance space at New Art Exchange on Gregory Boulevard, an ideal setting for an entrepreneurial engagement. Inspirational speakers, good food and coffee and an opportunity to discuss early ideas in an encouraging and non-critical atmosphere.
‘Languages are for everyone! Enjoy learning two or more languages with our products, games and guides.
Lil’ollo is for young learners from birth onwards, whether you are speaking several languages fluently at home or just getting started. Join our free club to receive free products, guides and more’. (A beautifully designed resource…Ed.) See more here...
‘Created by family history historian, founder of Every Generation Media and Windrush Generation campaigner Patrick Vernon OBE, this storytelling board game is designed to keep the stories and history of the Windrush Generation alive. It helps families, friends and communities share their heritage, family history, identity and culture through the sharing of stories.’ See more here… ( A great resource to keep oral history and family knowledge alive and resonant…Ed.)
A great day, a great community and an important programme for the early social business man or woman. Apply today, we recommend it!
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The Office for National Statistics has just released updated estimates of the value of human capital. For ONS ‘… the stock of human capital accounts for what skills people have and how much they earn and what qualifications they have, as well as estimating how much longer they will continue to work’.
As such, ONS argues, the value of human capital is often higher in younger workers, which have more years in the labour market ahead of them.
We can look to the historical writings of Adam Smith for the source of the concept for Human Capital, but we owe the the modern Chicago School of economists for this contemporary application of the theory, we would argue.
This modern theory was popularized by Gary Becker, an economist and Nobel Laureate from the University of Chicago, Jacob Mincer, and Theodore Schultz. However, more recently the new concept of task-specific human capital was coined in 2004 by Robert Gibbon, an economist at MIT, and Michael Waldman, an economist at Cornell. The concept emphasises that in many cases, human capital is accumulated specific to the nature of the task (or, skills required for the task), and the human capital accumulated for the task are valuable to many firms requiring the transferable skills.
The new ONS report delineates the following key estimates…
In cash terms the stock of human capital in the UK grew 1.8%. However, once the effects of inflation were removed human capital actually fell by 0.8%. This was the first fall in human capital stocks since 2012, reflecting slower growth in earnings relative to inflation.
In 2017, the UK’s ‘real’ full human capital stock was £20.4 trillion, more than 10 times the size of UK GDP.
The estimates highlight that in 2004 the pay premium for obtaining a degree was 41% but by 2017 this had fallen to 24%.
The ONS analysis also shows that between 2011 to 2017 the average stock of individuals over 35 grew by 7.0%, while the stock of those between 16 and 35 only grew by 3.6%.
We recently published The Size of the UK Social Enterprise in 2018 – if we believe, as we do, that the social economy is now a significant influencer of UK trade and business development – then it is pertinent to note that the value of ‘real’ gross human capital is ten times more than GDP.
The social economy must, therefore be a contributor to this value.
Also of note, is the fact that in terms of human capital, according to ONS, … the average stock of individuals over 35 grew by 7.0%, while the stock of those between 16 and 35 only grew by 3.6% over the focus period.
Social Enterprise East MIdlands is a UK registered Limited Company Company No: 10862936 Our mission is to foster grass-roots interest in the Social Economy - supporting community enterprise development in our six counties region.
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