Nigel Griffiths MP

SOCIAL ENTERPRISE WORKSHOP

I very much welcome the participation here today of the RDAs and 4 of our Business Links and I especially welcome out recent SE Award winners, Dai Powell from Hackney Community Transport and Suzanna Jacoby from Community Foster Care and Nigel Lowthorpe of Hill Holt Wood – all of whom I had the pleasure of meeting on 19th October.

As you know, I am committed to ensuring that out SBS promotes both SE in Principal and in practice promote a full range of SE models and both in the country and in Whitehall across government.

And the Government is committed to seeing Social Enterprise expand in numbers and in size and is keen to see Social Enterprises operating in every part of our country.

I am pleased that councils increasingly see the value of Social Enterprises – the latest is £70m contract Ealing borough council has given to ECT Recycling for refuse collection and street cleaning environmental services. They already work for 16 councils. I am very pleased Steve Sears is with us today.

But there is so much more to be done.

It is critical that the RDAs have models in place before April, when they take over SBS delivery functions.

Many social enterprises are currently finding it very difficult to get the support that they need because, whilst there are many strategies and policies that make mention of social enterprise, too often there is a lack of funding and or will to support them in spite of the excellent examples I have mentioned.

I don’t want to see this sector stifled by policy initiatives. Social Enterprise as a term appears in a wide range of guises – ranging form Futurebuilders, to Tackling Health Opportunities to Twenty first Century Skills to our Support for Enterprising Communities Programme.

It is also suggested that in this overplay, Social Enterprise has become synonymous with creating ‘the enabling environment’ which perhaps blurs the issue and some would suggest, helps fuel the confusion and inconsistency at regional and local levels.

The confusion, I am told is aided by a lack of consistency in application or availability of funds flowing via Regeneration Zones.

By the needs of those outside Regeneration Zones not being adequately addressed.

By the danger of the overemphasis on structures rather than supporting service delivery.

By delay action in areas of moving work forward on investment readiness and modelling support and development services.

By over complex, unachievable, unrealistic strategies.

By inconsistency in the way that RDAs allocate resources to Social Enterprise.

By the erosion of overall Local Authority support for Social Enterprises again in spite of the great examples I’ve given.

By a not wholly consistent approach by Business Links to Social Enterprise.

Social enterprises are often at the very heart of communities and therefore have an important role to play in the regeneration of communities – economically, socially and sustainability. They are more likely than many other enterprises to be very locally focused in terms of employment and by their very nature are usually making huge contributions to their communities.

By their nature, they are often started up by, or employ, or work with people from the more disadvantaged sectors of their communities and accordingly do need reliable, accessible support.

I believe that social enterprise for many of these people provide their introduction and step into the mainstream economy.

Brian Tannerhill, an examiner who set up Mc Sense, the 2003 Social Enterprise of the Year – is a classic example.

Involvement with Social enterprise, whose nature and local identity offer a ‘safe environment’ can also offer the first steps into work or training for some of the more disadvantaged within our potential workforce. Like Mc Sense and others here today, many of these social enterprises can become substantial employers.

What else, I am told stifles Social Enterprises? They are subject to rafts of regulation depending on the sector within which they operate – but they seem to fall through the loop in many places in terms of support available.

Umbrella groups such as Co-enterprise in Birmingham and many others provide what support they can within the funding they can acquire. One difficulty is that the Business Link can only deliver services that fit within the remit of its funding. This currently needs more focus on social enterprises.

Advisory groups and organisations are key to survival of many social enterprises – they have spent years working with, understanding and building up trust and respect and considerable expertise to support Social Enterprise.
Alongside micro-businesses, Social Enterprises are most likely to need business support in order to meet their legal and regulatory obligations. Alongside micro-businesses, Social Enterprises are most likely to need business support in order to meet their legal and regulatory obligations.

I am told that in some regions, funding does not appear to follow strategies and policies in an effective manner. That there appears to be no senior level buy-in, no clear steer for future engagement and the lack of consistency caused by sticking rigidly to regeneration zones gives considerable cause for concern in the non-zone areas.

Whilst additional monies have undeniably been available in time limited projects through areas such as BL, Regeneration Zones and Phoenix funding, I am worried that this has split rather than joined up services by making their environment more competitive in the funding filed.

The short-term nature of this two to three year funding threatens consistency and sustainability.

An emphasis on awareness raising, partnership and networking has been prevalent, however this cannot be at the expense of the follow through necessary to make Social enterprise sustainable i.e. the delivery of business support and development.

So today, I have given you the flavour of the challenges we face. But I have also showcased some of the great social enterprise examples.

Let us focus on these success stories and dedicate ourselves to building on them for the benefit of every community.