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InstituteforPublicPolicyResearchChallengingideas– Changingpolicy

GrowingtheBigSocietyEncouragingsuccessinsocialandcommunity

enterpriseindeprivedcommunities

EdCoxandKatieSchmuecker

June2010

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ipprnorth|GrowingtheBigSociety1

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

Contents

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ipprnorth|GrowingtheBigSociety2

ipprnorth,theNewcastle-basedofficeoftheInstituteforPublicPolicyResearch,produces

far-reachingpolicyideas,stimulatingsolutionsthatworknationallyaswellaslocally.These

areshapedfromourresearch,whichspanseconomicdevelopment,regeneration,publicservicesanddevolutionaswellasastrongdemocraticengagementstrandwhichinvolvesa

widerangeofaudiencesinpoliticaldebates.

ipprnorth,2ndFloor,20CollingwoodStreet,NewcastleUponTyneNE11JF

Tel+44(0)1912339050|www.ippr.org/north

RegisteredCharityNo.800065

ThispaperwasfirstpublishedinJune2010.©ipprnorth2010

Aboutipprnorth

ThisreporthasbeencompiledbytheInstituteforPublicPolicyResearchNorth(ipprnorth)

andManchesterBusinessSchoolIncubatorforNorthWestTogetherWeCan,theEmpowermentPartnershipintheNorthWest.

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,theresponsibilityoftheauthorsaloneanddonotnecessarilyrepresenttheviewofthefundersoranyotherindividualsororganisations

involvedwiththeresearch.

Acknowledgements

NorthWestTogetherWeCanistheempowermentpartnershipfortheNorthWestof 

England.Itencouragescollaborativelearning,practiceandresearchaboutcommunity

empowermentandengagementintheregion.

Contact:EveDavidson,NWTWCProgrammeManager:

eve.davidson@nwtwc.org.uk/01612181789

www.nwtwc.org.uk

AboutNorthWestTogetherWeCan

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ipprnorth|GrowingtheBigSociety3

Thethirdsector,particularlysocialenterprise,hasmovedintothepolicymainstreamin

recentyears.UndertheLabourgovernmentsocialenterpriseswereregardedasapotential

delivererofpublicservicesandfacilitatorsofcivicactivism,communitycapacityandcohesion.Thenewcoalitiongovernmentiscontinuingonthispath,withthe‘BigSociety’

emergingasanimportantearlytheme.

TheCoalition’splansincludegivingcommunitiesmorepowersandrightstomanagelocal

assetsandservices,trainingagenerationofcommunityorganisers,supportingphilanthropy,

andgrowingthesizeofthethirdsector.Earlypolicystatementsemphasisetheroleofsocial

enterpriseparticularly,settingoutmeasurestosupportthegrowthofexistingsocial

enterprisesandtheestablishmentofnewones.

ThenewregionalstrategycurrentlybeingdevelopedfortheNorthWestalsomakessocial

enterpriseapriority.NorthWestTogetherWeCancommissionedipprnorthtoidentifythe

criticalsuccessfactorsforsocialandcommunityenterprisesandinformthewiderdebate.

Thisisthesummaryofareportthatdrawstogethertheresultsofcasestudyresearch,asurveyofsocialandcommunityenterprisesintheNorthWest,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.ItwouldseemthereissomethingofagapbetweentheexpectationsoftheBigSocietyandrealityonthegroundintheNorthWest.

Criticalsuccessfactors

Inordertoliveuptotheexpectationsofpolicymakers,itiscrucialthatthesocialand

communityenterprisesectorissupportedtobestrongandvibrant.Inconsideringthecritical

successfactorsfortheseenterprisesintheNorthWestofEngland,particularlythosein

deprivedcommunities,ipprnorthasked:

•Whathelpsmakethemsuccessful?

•Whatimpactdotheyhaveontheirarea?

•Whatsupportdotheyrequire?•Wheredotheyaccesssupport?

Mostofourcasestudyorganisations’storiesofsuccessrevealcommonthemes,suchasthe

qualityofrelationshipsandnetworks,havingtherightpeopletorelyon,andtheneedto

Executivesummary

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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:Socialandcommunityenterprisesneednotonlytounderstandthecommunitythattheyserve,butalsohowtoaccessmarketsand–where

relevant–developnewmarkets.Evidencetodemonstratecommunityneedandgapsin

servicesisessential,whichrequiresgoodqualitymarketresearchandprofessionalmarketing

oftheresultingservice.

Thevalueoforganisationalreview:Mostofourcasestudieshighlightedanorganisational

reviewasakeyturningpointontheirjourneytobecomingasuccessfulenterprise,bringing

greaterclarityabouttheirmissionandhowtoachieveit.Oftenthisinvolvedstoppingsome

activitiesandembracingamoreenterprisingmindset.

Barrierstosuccess

Fundingandfinance: Unsurprisingly,fundingrecurredasachallengeforthesector,withconsiderableanxietyexpressedaboutthefuture.Theresearchrevealsastrongpreferencefor

fundingintheformofgrants,withveryfewofthesurveyrespondentstryingtoaccessloans

orotherformsofbusinessfinance.

Publicsectorprocurementandcommissioning:Thisshouldbearoutetogreater

sustainability,butanumberofsignificantbarrierswerehighlighted,including:restrictive

specificationsthatsetouthowdeliveryshouldoccur,ratherthanfocusingontheoutcomes

sought;overlycomplexprocesses;tighttimescales;largecontractsthatarebeyondthereach

ofsmallerorganisations.

Accessingrelevantsupport:Findingandaccessingrelevantsupportisakeyenablerofsocial

andcommunityenterprises,butalackofcoordination,informationsharingandsignpostingcreatesbarriers.

Generally,organisationswerepositiveaboutthesupportprovidedbyothervoluntarysector

agencies,butwantedtoseemorespecialistsupportdirectlyrelevanttotheirorganisation.

Thesurveyfindingssuggestsocialandcommunityenterprisesseeksupportindifferent

places,withcommunityenterprisesmorelikelytoturntootherthirdsectororganisationsor

localauthorities,butthosenotidentifyingthemselvesascommunityenterprisesmorelikely

toturntospecialistsocialenterprisesupportprovidersandorganisationslikeBusinessLink.

Theywerealsomorelikelytohighlightbusinesssupportandprocurementskillsand

knowledgeasareaswheretheyaredissatisfiedwiththesupportavailable.

Developingcoreorganisationalinfrastructure:Successfulorganisationsarebuiltongood

processes.Financialmanagementandhumanresourcesthatfunctioneffectivelyenabletherestoftheorganisationtooperatesmoothly.Fundingthisactivityremainsasignificant

barriertomanyorganisations.

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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.Someofthisfundingshouldtaketheformofseed-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,favouringinsteadlargernationalorinternationalorganisationsandbusinesses.Thereisdissonancebetweeneconomiesofscaleontheonehand,and

supportingsustainablelocalcommunityandsocialenterprisesontheother.

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Partoftheanswerliesincontinuingtodevelopcapacityforconsortiaworkinginthe

voluntarysector,butanotherpartislikelytorelyonafundamentalreassessmentofwhatwe

meanby‘value’.Valueshouldincorporateideasofplace-shapingandpromotingsocial,

economicandenvironmentalsustainability.

4)CoordinatingsupportAwiderangeoforganisationsandindividualsacrossthepublic,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.

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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-operativemovementandGroundworkTrust’(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,operatingwherethefreemarketdoesnotprovideasufficientreturnforprivateenterprise.Forexample,childcareprovidersin

deprivedcommunitiesareoftencommunityenterprises,asarecreditunionsandcommunity

cooperatives.Indeed,communityenterprisecanplayaparticularlyimportantpartindeprived

areas,supportingcommunitiestocometogethertoimprovetheirarea,anddelivering

servicesthatwouldnotexistotherwise.

Thenewcoalitiongovernmentlookssettocontinuethiscommitmenttosocialand

communityenterprise.ItsBigSocietyagendahighlightstheroleofneighbourhoodworking,

andidentifiessocialenterprise,charitiesandcooperativesashavingavaluablerolein

runningpublicservices.

AimsandstructureofthereportThisreportconsidersthecriticalsuccessfactorsforsocialandcommunityenterprisesinthe

NorthWestofEngland,particularlythoseindeprivedcommunities.Itasks:

Introduction

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•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.

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Thevoluntarysectorgenerally,andsocialenterprisesinparticular,havemovedintothe

policymainstreaminrecentyears.UndertheLabourgovernmentstheywereregardedasa

potentialdelivererofpublicservices,afacilitatorofcivicactivismandabuilderofcommunitycapacityandcohesion.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.

1.Policyandliteraturereview

Box1.1.KeyinitiativesundertheLabourgovernment

Futurebuildersfund:EstablishedfollowingtheTreasury’scross-cuttingreviewin2002,

providesloansgrantsandprofessionalsupporttothirdsectororganisationstobidforanddeliverpublicservicecontracts.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.

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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,itislikelythatthisthemewillcontinueunderthenewcoalitiongovernment.

Thecoalitiongovernment:fleshingouttheBigSociety

ThisearlyoninthelifeoftheCoalitionitisnotyetclearwhattheapproachofthenew

governmentwillbe.However,theConservativeParty’sBigSociety,NotBigGovernment 

document,publishedjustbeforethegeneralelection,setoutanumberofcommitments,

suggestingsocialandcommunityenterprisewillremaincentraltotheirapproach,asoutlined

inBox1.2.

BigSociety,NotBigGovernment particularlyemphasisestheroleofsocialenterprise,withtheBigSocietyInvestmentBanktofocusitsresourcesonsupportingorganisationsto

becomesocialenterprisesanddeliverpublicservices(ConservativeParty2010).Interestingly

thedocumentaddsanexplicitresponsibilitydimensiontothevalueofthevoluntarysector,

seeingthesectorashavinganimportantparttoplayinmovingawayfromwhatisperceived

tobeanexcessivefocusonentitlements,andaninsufficientfocusonresponsibilities.

Voluntaryactionisseenasaroutetoamoreresponsibleandmutualsocietywithastrong

cultureofobligation.Socialandcommunityenterpriseareseenashavingafundamentalpart

toplayinmendingour‘brokensociety’.

FrancisMaudeMP,MinisterfortheCabinetOffice,setoutanumberofcommitmentsinhis

firstmajorspeechontheBigSociety,including:

•Theopeningupofservices,enablingvoluntarysectorandsocialenterprise

organisationstocompeteonalevelplayingfieldwiththepublicandprivatesectors

Box1.2.Conservativecommitments

• CreateaBigSocietyBank toinvest£75millionfromunclaimedbankassetstofinancethesectorplayingalargerroleintheprovisionofpublicservicesandprovidefundsto

intermediarybodiesprovidingsupporttosocialenterprises.

• EstablishNationalCentresforCommunityOrganisingtotrain5000independent

communityorganisers.

• Newpowersandrightsforneighbourhoodgroups totakeoverrunningcommunity

assets,startschools,getlocalinformationanddata,createLocalHousingTrusts,and

soon.

• RedirectFuturebuildersrevenuesintoaneighbourhoodgrantsprogramme.

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•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: Communitydevelopmentandcapacitybuildingneededtodeveloptheidea

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

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likelytobeparticularlyacuteindeprivedcommunities,wheretherearelikelytobe

fewerassetsandresourcesforentrepreneurstodrawon.

•Financeandfunding: Boththeliteratureandsurveyswiththesectoroftenidentify

fundingandfinanceasthegreatestenablerandinhibitortothesuccessofsocial

enterprises.Aswithanysmallbusiness,accesstocapitalisvitalforgrowth,butmainstreambanks’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,thatshouldincludereferringclientsontorelevantspecialistsocialenterprisesupportproviderswhererelevant.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

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rightbalanceofskillsontheboard,includingboardmemberswithbusinessorstrategic

skills(SocialEnterpriseCoalitionandtheGovernanceHub2007).Thisproblemisoften

particularlyacuteindeprivedcommunities,suggestingthisisaproblemcommunity

enterprisesareparticularlylikelytoencounter.

•Language: Whilemuchofthesupportrequiredmaybethesameasforotherbusinesses,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.Thesocialenterprisepilotisledbyanindividualwithabackgroundinsocialenterprise,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

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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-peermentoringbegununderaCapacityBuildersprojectthatisending,andprocurementsupport.

NWDAalsorunsanIntensiveStartUpService(ISUS)providingpre-andpost-start-up

supportforthreeyears,targetingunder-performinggroupsincludingsocialenterprises.This

supportisdeliveredflexiblyatthelocallevel.Aregionalhighgrowthstart-upprogrammeis

anotherNWDAventure,whichsomesocialenterpriseshavebenefitedfrom.

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Toexploreinmoredetailthecriticalsuccessfactorsforsocialandcommunityenterprise,

theirsupportneedsandtheeventsthatcanprovetobekeyturningpointsinthelifeofan

organisation,casestudyresearchwascarriedoutwithfivesocialandcommunityenterprisesintheNorthWest1.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,servingdefinedgeographiccommunities.BubbleEnterprisesincontrastworksacrosstheNorthWest–withpeoplewith

experienceofmentalhealthproblems.

Ineachcase,researchersspenttimewiththeorganisationsduringMarch2010,observing

howtheyoperateandinterviewingkeystaff.Thecasestudyinterviewscovered:

•Howtheorganisationhasadaptedtochallengesandmanagedchange

•Thefactorsthathavecontributedtotheorganisation’ssuccesses

•Theorganisation’skeysupportneedsatdifferentstages

•Theorganisations,individualsandtoolsthathaveprovidedvaluablesupporttothe

developmentoftheorganisation

•Barrierstothedevelopmentoftheorganisation

•Thesupportthatwouldideallybeavailableandwhoshoulddeliverit.

Anoverviewofeachcasestudyorganisationisprovidedinthefollowingpages.

2.Casestudies

1.ipprnorthwouldliketothankNickalaTorkingtonSnapeandAlexanderLesbirelfromManchesterBusinessSchoolIncubatorfor

carryingouttheresearchforthesecasestudies.

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CaseStudy1:StPeter’sPartnerships

Background

StPeter’sPartnershipsbegantoevolvein1998asalegacytotheworkinitiatedbythe

AshtonRegenerationProject,aTamesideBoroughCouncilpartnershipfundedby

NeighbourhoodRenewalandSingleRegenerationBudgetplusEuropeanfunding.Asmall

numberofactiveresidentsofStPeter’swardworkedinpartnershipwiththeprojectteamtolookathowacommunity-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

withafocusonbringing‘unityintothe

community’andacompanylimitedby

guaranteewithcharitablestatuswassetup

toruncharitableactivitiesunderthe

followingthemes:

•Strengtheningcommunities

•Childrenandyoungpeople

•Employmentandtraining

Aseparatetradingcompany(StPeter’s

TradingPartnership)wasestablishedto

generateanincomeforthecharity,aiming

toeventuallymakeitself-sufficient.Three

enterprises(allcompanieslimitedby

guarantee)operatewithinStPeter’sTradingPartnership:

•Greenscape –aprofessionallandscaping,gardeningandprojectmanagementservice,

whichofferson-the-jobtrainingopportunitiestolocalunemployedpeople

•EnterprisePlus –providingtrainingtoincreaseresidents’skillstogetthembacktowork,andfurtherdevelopingandpreparingthemforworkbybuildingconfidenceand

providingexperiencethroughvolunteeringandworkplacements.Tailoredpre-

Location:Ashton-Under-Lyne,GreaterManchester

Ageoforganisation: 9years

Legalstructure:Twocompanystructures–StPeter’sCommunityPartnership(companylimitedbyguaranteewithcharitablestatus)andStPeter’sTradingPartnership(company

limitedbyguarantee,actingasatradingarm)

Annualturnover:£2millionacrossthetwoorganisations

Staff: 70staffandcommunityvolunteers

Boardmembers:12places,currently10boardmembers

StPeter’sPartnerships’proudest

achievements

• Developingandretainingthe

community-ledboard

• Keepingcommunityfocusand

involvementinspiteofrapidgrowth

• Commitmentanddriveofstaffandlow

staffturnover

• WinningaBURA(BritishUrban

RegenerationAssociation)bestpractice

award

• BecomingISO9000compliant

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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

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andstafftodeveloptheorganisation’soperationswasconsideredamajorbarrier.Onestaff 

membersaid:‘Wearespreadtoothinly,withtoomuchwork,withtoolittlefinancialresource

overtooshortatimescale’.

Aneedforfundingtocovercoreinfrastructuredevelopmentwashighlighted–eitherfrom

grantsorbyamendingtermsofcontracts,sothattheyincludeinfrastructurecostsratherthanprojectdeliveryalone.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.Theexperienceofinteractingwiththemwasoftenfrustrating:‘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.

Asignificantproportionofitsservicedeliverycomesthroughrelationshipsandcontractswiththelocalauthority.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

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consideredhardtogetthetimeandresourcestoaccessmentorsandinformationabout

otherrelevantsupport.

Areaswhereitwouldliketoseesupportimprovedincluded:

•Bettertrainingforthesupportsectorandlocalauthorities: Supportagencies,funders

andlocalauthorityofficialsmustbeproperlytrainedandunderstandcommunityand

socialenterprisedevelopmentandthistrainingneedstobemaintained.

•Fundingthecore:Buildingfullcostrecoveryintocontracts,enablingcommunityand

socialenterprisestogeneratesurplusesorofferinggrantsforoperationaldevelopment

wereallseentobewaystoputorganisationsonamorestablefooting.

• Improvecontracting: Procurementteamsshouldbeencouragedtosimplifytendering

processessothatcontractopportunitiesaremoreaccessible.Thiswouldhelptobring

newmoneyintothesector.StPeter’sPartnershipswaskeentoemphasisethatmonies

thatusedtogotothesectorasgrants–butwhicharenowdistributedascontracts–

havenotbroughtnewincomestreams.Stepsshouldalsobetakentoensurecontracts

gototheorganisationofferingthebestoutcomesforthebeneficiaries/communities/serviceusers,whichshouldbeevidencedthrough

appropriateevaluationandreview.

•Consistent,qualitysupportfornewandestablishedcommunityandsocialenterprises:

Meaningfulsupportisneeded,tocreatecontinuityandsustainability,ratherthan

simplyfocusingonhittingtargetsandoutputs.Practicalbusinessdevelopment

knowledgemustbedeliveredbypeoplewhounderstandthevarietyoftrades

operatingunderthebannerofsocialenterpriseandhavepracticalenterprise

experience.Thisway,supportisaimedatdevelopingsocialenterprisestoapoint

wheretheycancreateasurplustocovercorestaff.

Casestudy2:FiveChildrenandFamiliesTrust

Background

FiveChildrenandFamiliesTrustisthelegacyofSpekeSureStartProgrammewhichwas

developedthroughSpekeGarstonSingleRegenerationBudget(SRB)partnership.Thechief 

executiveinitiatedanddevelopedtheforerunnertothisventurein1999whentheSureStart

LocalProgrammeestablishedin2000operatedfromStAmbrosePresbyteryintheunused

housekeeper’sflat.Itformedasacompanylimitedbyguaranteein2001andrelocatedin

2004toanewfamilycentrefundedbySureStart,ERDFandtheNewOpportunitiesFund.

Theaimsoftheorganisationhavealwaysbeentoworkwithchildrenandfamiliestoimprovehealthandwellbeing,educationalactivitiesandaspirationsandtoimprovetheemployability

ofthelocalpopulation.IthasbeenworkingtomeettheneedsoutlinedintheDepartment

forChildren,SchoolsandFamilies’EveryChildMattersframeworktoimprovequalityoflife

Location: Speke,GreaterMerseyside

Ageoforganisation: 10years,althoughFiveChildrenandFamiliesTrustachieved

charitablestatusin2006asSureStartSpeke,rebrandingin2008toreflectthewider

rangeofservicesbeingdeliveredbythecharitabletrust.

Legalstructure:Onecompanystructurewithasecondsoontobeformed(company

limitedbyguaranteewithcharitablestatus,thesecondwillbeacompanylimitedby

guarantee)

Annualturnover: £1.2million

Staff:43Boardmembers: 6

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andopportunitiesforall,focusingspecificallyonthethemesofeducationwithcare,family

support,teenagepregnancy,nutrition,domesticabuseandviolenceinthehomefromyoung

people.

SpekeGarstonisanisolatedareaontheedgeofLiverpool.Theareasuffershighlevelsof 

unemploymentandworklessness;alltheLSOAsintheareaareinthebottom10percentforEngland,andmostareinthebottom1and2percent(accordingtotheIndexofMultiple

Deprivation2007).Thepopulationispredominantlywhite.

Howdoestheorganisationlooktoday?

In2006acompany-widereviewtookplace

andsome‘painful’decisionsweretakento

restructuretheorganisationasitmoved

awayfromanaccountablebody

arrangementwithitslocalRegisteredSocial

Landlord.Atthispointthecompany

becamecharitableandrebrandedin2008

asFiveChildrenandFamiliesTrust,a

companylimitedbyguaranteewith

charitablestatusdeliveringchildcare

services,employabilityservices,health

services,youngpeople’sservicesandacafe.

TheTrustisalsolandlordtocompatible

serviceswhichincludeSpekeAdviceService

(CAB),LiverpoolWomen’sHospitalTrust

andLiverpoolPrimaryCareTrust,Health

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,andashifttoamoreenterprisingbusinessmodelandawayfromgrantdependency.

•ThedevelopmentoftheCanCookStudiohasstartedtobringinsignificantrevenue

andhelpedtocreateahighprofilefortheorganisation.

FiveChildrenandFamiliesTrust’s

proudestachievements

• Beingindependent

• Maintainingapostforafull-time

midwifetotackleteenagepregnancy

• Beingabletodeliverhospitalserviceslocally

• EnablingJobCentrePlusandthelocal

JobsEducationandTrainingServiceto

doubletheirestimatedtargetsto

supportpeoplebacktotrainingand

employment

• Continuouslyprovidingvalueformoney.

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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

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beingreferredtoas‘contracts’,inpractice

thisisjustachangeinterminologyandhas

notbroughtnewmoneyintothesector.

TheTrusthasactivelysoughtout

opportunitiesforsupportanddevelopment,linkinginwitharangeoflocalnetworks

includingtheSocialEnterpriseNetworkand

SocialEnterpriseNorthWestandhas

highlightedtheworkoftheDevelopment

TrustAssociation,which,itsays,‘has

providedusefulresourcesandnetworking

opportunities.Theirrigorousmembership

processfeelsasthoughitmeanssomething

andtheymakeadonationorcontribution

foryourtimewhenpeoplevisitforlearning

anddevelopmentpurposes.’TheTrusthasalsosoughtoutarangeof 

thematicinformation,hasreceivedsupport

fromChildAdolescentMentalHealth

Services,andhasattendedthematic

conferences.Mentorsfeaturehighlyinits

supportstructure;theseincludelocalpeersandpeopleworkinginthehealth,youth,

regenerationandcommunitysectors.Usefulmentorshavealsobeenfoundthroughthe

SchoolforSocialEntrepreneurs.

TheTrustisfortunatetohavewhatitconsidersstrongboardmemberswitharangeof 

expertiseincludingstrategicdevelopment,enterpriseandfinancialplanningaswellasan

independentauditorwhohasbecomea‘criticalfriend’,atrustedsourcethatcanofferadviceandfeedbackontheworkoftheorganisation,andaskdifficultquestions.

FiveChildrenandFamiliesTrusthighlightedthreeareasfordevelopingthesupportonoffer

tosocialandcommunityenterprises:

• Sector-specificandthematicmentoring: Developingabankofwellqualifiedthematic

mentorsandadvisers(forexamplepeoplefromsocialandcommunityenterprises

workinginparticularfields,suchashealth,environment,childrenandyoungpeople)

andpaidbuddies/advisorstohelppeopleunderstandhowtodeveloptheir

organisationmorequicklythroughknowledgetransfer.

• Developamoreentrepreneuriallymindedpublicsector:Throughthedeliveryof 

supportandtrainingtothepublicsector,enablethemtobetterunderstandcommunityandsocialenterprise,businessmodelsandriskmanagement.

• Accessiblefundersandcommissioners:Fundersandcommissionersneedtobeless

bureaucraticandunderstand,aswellasrespondto,theneedsofcommunityandsocial

enterprises.

Whatdothetermscommunityand

socialenterprisemeantotheTrust?

‘Webelievewestraddlethedefinitions.We

areanenterprising,community-led

organisationcreatingwide-rangingsocialimpact.However,wewillalwayslookfor

grantswhereappropriate–giventhelevel

ofdeprivationofourclientgroupwewould

bedaftnotto.’

TheTrust’sthreetoptipstohelp

communityandsocialenterprises

1)Neverlosesightofyouroverallgoaland

aims

2)Surroundyourselfwithcriticalfriends

3)Makesurethecommunitywantswhat

youareoffering.

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Casestudy3:ClaytonBrookCommunityHouse

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

charitablefunding.Trainingprogrammeswere

deliveredthroughaEuropeanSocialFund

grant.

ClaytonBrookCommunityHouseislocatedin

Clayton-le-Woods,avillageinbetween

ChorleyandPreston.Thevastmajorityofthe

populationiswhiteandoverhalfareagedover45.AlthoughClaytonleWoodsisnot

rankedamongthemostdeprivedwards,ithas

poorlevelsofhealthservicesandahighcrime

rate.Theaimoftheorganisationisto‘offera

helpinghanduptheladderoflife’,improving

communitywellbeingandproviding

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.

Location: ClaytonBrook,Preston

Ageoforganisation: 13years

Legalstructure: registeredcharityAnnualturnover: £10,000

Staff:nonepaid;20volunteers

Boardmembers: 14

ClaytonBrookCommunityHouse’s

proudestachievements

• Havingcommittedvolunteers,some

ofwhomhavebeenwiththe

organisationfor10years

• Individualachievementsofmembers

ofthecommunity• Havingagoodreputationforhelping

peoplewhohavenoqualificationsto

startlearninginasafeand

convenientlocallocation,with60

percentgoingontofurther

educationorfull-timeemployment.

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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.

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Theorganisationhasreceivedsupportfrom

local,regionalandnationalorganisations.It

hasparticipatedincommunitydevelopment

trainingandsupportaswellasleadership

training,butthiswasnotlinkedintolocal

socialenterprisesupport.Ithasalsosought

adviceandbackingfromlocalbusinesses.

Developingtheserelationshipsand

partnershipshasresultedinpro-bonoandinkindsupportaswellassignificantsponsorship.

ClaytonBrookhashadmixedexperienceofworkingwiththelocalauthorities,andhasfound

consistencyandcontinuityaproblemwithstaffchanges.

Traininginhowtosustainandgrowasocialenterprise,providedbysuccessfulsocial

entrepreneurs,wasthoughttobeausefulmeansofsupport.Italsothoughtthatsupportto

conductareviewofitsoperations,toidentifyareasofweaknessandgrowthpotential,would

helptoshapetheorganisation’sdevelopment.Ahands-onapproachwasdeemedmost

appropriate,wheresupportisbasedondirectknowledgeofthecommunityandenterpriseneeds.Itshouldbeactionorientedandincludeone-on-onementoringfromsuccessfulsocial

entrepreneurs.

Casestudy4:Nentheadvillageshopandpostoffice

Background

TheNentheadvillageshopandpostoffice

wasinitiatedinAugust2006followingthe

closureoftheonlyshopinthevillage.A

smallgroupofcommunitymemberssaw

theneedtoreducepeople’sisolation,

maintainaretailoutletforfoodand

provisions,andcreateafocalpointand

gatheringplaceforthecommunity.Atthetimetheonlyotherplaceforpeopleto

meetwasthepuborinthenearesttown

whichisfivemilesaway.

Theintentionfromtheoutsetwasforthe

shopandpostofficetobeasocial

enterprise,andaCooperativeSocietyfor

theBenefitoftheCommunity(‘Bencom’)wasestablished.ItcameintobeinginNovember

2007andhasgrownintermsoftheproductsandservicesitofferseversince.Theoriginal

projectwasfundedbyCumbriaCountyCouncil,aloanfromVersaandthemoneyraisedby

theCooperativeshareoffer.Thistotalledaround£70,000andenabledthefoundersto

procurea99yearleaseandbeginrefurbishmentofthepremises.Theshopbuildinghasa

historyofbeingacornerstoneofthecommunity:itwastheoriginallendinglibrary,

developedbytheLondonLeadCompanyformedbyQuakerindustrialistsin1704.

Whatdothetermscommunityand

socialenterprisemeantoClayton

Brook?

‘Anorganisationwithinacommunity,run

bythatcommunity,tofulfilthecommunities’holisticneeds.’

Location: Nenthead,nearAlston,Cumbria

Ageoforganisation: 5years

Legalstructure: IndustrialandProvidentSociety

Annualturnover: £150,000

Staff:4.5full-timeequivalentsBoardmembers: 104shareholdersandsixrotatingcommitteemembers

Nentheadvillageshopandpostoffice’s

proudestachievements

• Fromasocialperspectivetheshopis

wellusedbytheelderlyresidents,

offeringaplacetomeet,peopletochat

withandassistandareasontoleave

theirhomes.

• Thefactthatthebusinessisstillgoing

strong,issupportedbythecommunity,

hasincreaseditsproductandservice

deliveryandturnedasurplusinonly

oneyearhasshownexceptional

management.

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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.

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Assessingsupportneedsandaccess

Nentheadvillageshopandpostofficeidentifiedtwokeysupportneeds:

•Sourcingandapplyingforgrantsandloans

•Findingbusinessmentorsfromoutsidethecommunity.Theorganisationhaslinkeduptoawiderangeoflocalsupportwithinboththevoluntary

sectorandlocalauthoritiesandhashadapositiveexperience.Ithasalsohadsignificant

supportfromthePlunkettFoundationbywayofgrants,mentoringandinformationon

governanceandsocialauditing.Supportorganisationswerehelpfulduringstart-upandwith

generalbusinessprinciplesandidentificationofpotentialconstraints.However,theneedfor

quality,practicalbusinessadvicehasincreasedastheorganisationandturnoverhavegrown.

Ithasalsosoughttonetworkwithandlearnfromlocalsocialenterprises.Itsboardhas

broughtarangeofpracticalskillstothetableincludingintheassistanceinrefurbishmentof 

theoriginalpremisesanditsongoingmaintenance.

NentheadvillageshopandpostofficethinksakeysupportareafordevelopmentisaroundmentoringforcommunitysocialenterprisesinsitubySMEbusinessownersandsocial

entrepreneurs,toenabledirectknowledgetransferandpracticaladvice.

Itwouldalsoliketoencourage:

•Fundingforstart-upswithmoresimpleaccountingandreportingprocedures

•Mentorsthatunderstandthesectorandthecommunityissueswhicharemobileand,

wherepossible,local

•Thedevelopmentofgrantstosustaingrowth.

Casestudy5:BubbleEnterprises

Background

BubbleEnterprisesisaservice-user-ledcommunityinterestcompany,establishedin2008to

providebusinessexpertiseandsupporttoindividualsandorganisationsinthementalhealth

field.ItemergedinpartnershipwithWTP(amanagementconsultancythatspecialisesin

supportingnewventures),asaresultofthesuccessoftheLaughingBuddhaBubble

Incubator,aPhoenixFundprojectbackedbytheDepartmentofHealthandtheformer

DepartmentofTradeandIndustrytoexplorehowenterprisecouldbenefitmentalhealth.

BubbleEnterprisesworkslocally,regionallyandnationally,butthemajorityofitsactivity

takesplaceintheNorthWest.Itskeybeneficiariesarepeoplewithmentalhealthissuesand

theircarers.Itaimstocreatesustainableinitiativesandtraining,employmentand

volunteeringopportunitiesledbyserviceusers.

Itusesenterpriseasawayofreconnectingpeoplewiththeirskills,experienceandpassionsaspartoftheirrecovery.Italsoaimstohelphealthprofessionalsandsupportstafftobetter

understandthepositiveimpactthatenterpriseandemploymentcanhaveaspartofa

person’srecoveryfrommentaldistress.

Location: Stockport,GreaterManchester

Ageoforganisation: 3years

Legalstructure: Communityinterestcompanylimitedbyshares–maximum£1share

profitperyear

Annualturnover: £350,000

Staff:6

Boardmembers: 3

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Howdoestheorganisationlooktoday?

BubbleEnterprisesworksinpartnershipto

createsocialenterprisesinaprofessional

andlong-term,sustainableway.Itsrangeof 

servicesincludes:•Enterpriseengagementandtraining,to

improvebusinessskillsandpersonal

developmentofmentalhealthpatients,

carersandprofessionals

•Consultancyservicesinenterpriseand

socialenterprisedevelopment

•Enterprisecreation,whichprovides

hands-onsupporttodevelopnew

businessopportunitiesthrough

partnership•Cafédevelopment,deliveryand

management.ForexampletheOasis

BubbleCafélocatedinSteppingHill

MentalHealthHospitalwasdeveloped

inpartnershipwithStockportCouncil

andPennineCare.OasisBubbleCaféis

acommunityinterestcompany,

providingemploymentforsevenpeople

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

BubbleEnterprises’proudest

achievements

•Creatingpaidworkforsixcore

membersofstaffwithintheBubble

teamandsevenpaidstaffattheOasisBubbleCafé:‘Overhalfofour

staffareserviceusersorcarers’.

•Creatingover20volunteering

opportunitiesandenabling

unemployedvolunteerstomoveinto

paidemploymentbothwithinOasis

BubbleCaféandbeyond.

•Developinganexcellentreputation

withclientsandbeneficiaries

resultinginarangeofreferralsandrepeatbusiness.

•Punchingaboveitsweightasaresult

ofstrategicpartnerships,

commitmentandapassionforthe

sector.

•Beingtheserviceproviderofchoice

formanyorganisationswithinthe

community.

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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.Asaresultithasnotoftenengagedexternaltrainingandsupportagencies.Ofthetrainingandsupport

opportunitiesithasused,itfoundtheinformationtobepitchedtoolow.Theyhave,

however,providedusefulnetworkingopportunities.

BubblehashadapositiveexperienceofworkingwiththeTudorTrust,whoitfeelshadalight

touchapproachtomonitoringandreportingbackonfunding.However,theexperienceof 

applyingforfundingforsignificantcapitalexpansionhasprovedverytime-consumingand

frustratingasaresultofslippingtimescales,alackoffeedbackandlackofclarityonthe

specificsofwhatfundersarelookingfor.

Itfoundlocalauthoritiestobeusefulsourcesofinformationandpartners,although

accessingtherightpeoplehasbeencrucialinordertogetdecisionsmadeandfindoutaboutopportunities.ThishasrequiredBubbletosearchoutmoreenterprisingofficersand

directorsasunderstanding,supportandapproachabilityhavenotbeenwidespread.

TheBubbleEnterprisesteamhasarangeofmentors,primarilydrawnfromitsboard

members,partnersandanetworkofassociatesworkingacrossenterprise,socialenterprise,

health,regenerationandcommunitydevelopment.Astheorganisationhasgrown,itbelieves

itsneedforexternalsupporthasdecreased,andtherenowexistsaninternalabilityto

managegrowthandcompetewiththelargerplayersinthesector.

BubbleEnterprisesthinkstherearethreeareasfordevelopingthesupportavailabletosocial

andcommunityenterprises:

•Businessdevelopment:Througharrangingbusinessintroductionsintoorganisations

andagenciesthatcanbenefitfromtheservicesofsocialandcommunityenterprise,

alongwithregularnetworkingeventsbringingtogetherpublicsectororganisationsand

socialentrepreneurs.Itwasalsothoughtthatpracticalsupportonhowbusinesses

growandsessionstohelpsocialenterprisesunderstandtheirtradewouldbehelpful.

8/8/2019 Growing the Big Society: Encouraging success in social and community enterprise in deprived communities

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•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.Astrongleaderwithaclearvisionwasconsideredveryimportant.

•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.

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Tosetthiscasestudyresearchinabroadercontext,wealsocarriedoutanelectronicsurvey,

whichwasopentoallsocialandcommunityenterprisesintheNorthWestofEngland.Over

100respondentsfilledinthesurvey.Whilethereisnoeasywayofdetermininghowfarsurveyrespondentsarerepresentativeofthewidersocialandcommunityenterprisesector,

thisisagoodsamplesizeandsomeinterestingpatternsandtrendscanbedetected.In

particular,theresultsindicatesomeinterestingfindingsaboutthenatureandoriginsof 

communityenterpriseorganisationsintheNorthWest,andraisesomechallengingquestions

aboutthediversityoffundingandsupportaccessedbyrespondents.

Beforeexploringtheseissuesinmoredetail,weprovideaquickoverviewoftherespondents

tothesurvey.

Profileoftherespondents

Thesurveywasdistributedbyanumberoforganisations,includingumbrellaorganisations

forsocialenterpriseandcooperativesintheNorthWestofEngland.Respondentscamefrom101differentorganisations,94percentofwhich,whengiventhefollowing,standard

definitionofasocialenterprise,identifiedthemselvesassuch:

 Socialenterprisesarebusinesseswithprimarilysocialobjectiveswhose

 surplusesareprincipallyreinvestedforthatpurposeinthebusinessor 

community.

Mostorganisationsalsodefinedthemselvesasacommunityenterprise,agreeingthatthe

followingdefinitiondescribedtheirorganisation:

 Acommunityenterprise[is]atypeofsocialenterprisethatservesa

 particulargeographiccommunity.

Seventy-onepercentofourrespondentsagreedthisstatementdescribedtheirorganisation,

while21percentansweredsaiditdidnotand6percentthattheydidnotknow.

3.Resultsfromtheonlinesurvey

0%

10%

20%

30%

40%

50%

60%

70%

80%

   C  o

  m  p  a  n  y   L   i  m   i   t  e   d   b  y   G  u  a  r  a  n   t  e  e

   R  e  g   i  s   t  e  r  e   d  c   h  a  r   i   t  y

 

   C

  o  m  m  u  n   i   t  y   I  n   t  e  r  e  s   t   C  o  m  p  a  n  y

 

   l   i  m   i   t  e   d   b  y  g  u  a  r  a  n   t  e  e

   U  n   i  n  c  o  r  p  o  r  a   t  e   d  a  s  s  o  c   i  a   t   i  o  n

   I  n   d  u

  s   t  r   i  a   l   &   P  r  o  v   i   d  e  n   t   S  o  c   i  e   t  y   f  o  r

 

   b  e  n  e   f   i   t  o   f   t   h  e  c  o  m  m  u  n   i   t  y

 

   C

  o  m  m  u  n   i   t  y   I  n   t  e  r  e  s   t   C  o  m  p  a  n  y

 

   l   i  m   i   t  e   d   b  y  s   h  a  r  e  s

   C  o  m  p  a  n  y   L   i  m   i   t  e   d   b  y   S   h  a  r  e  s

 

   I  n   d  u  s   t  r   i  a   l   &   P  r  o  v   i   d  e  n   t   S  o  c   i  e   t  y

 

  a  s  a  c  o  o  p  e  r  a   t   i  v  e

   S  o   l  e   t  r  a   d  e  r

   F  r   i  e  n   d   l  y  s  o  c   i  e   t  y

Figure3.1.

Legalstructure

oforganisation

respondingto

thesurvey

Note:morethan

oneoptioncould

beselected

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Organisationswereoverwhelminglycharitiesandcompanieslimitedbyguarantee,withfew

organisationswithotherlegalstructuresresponding.Anyspecificsupportneedsofthose

organisationswillnotbereflectedinthefindingsofthissurvey.

Therespondentswerequitediverseintermsofthesizeoftheirturnoverandage,

suggestingagoodcrosssectionoforganisationsrespondedtothesurvey–seeFigures3.2and3.3.

AfurtheraspectofCLG’sdefinitionofcommunityenterpriseisthattheyareoftenrunby

thepeoplethattheyserve.Weaskedourrespondentshowtheyinvolvedthecommunityin

theworkoftheirorganisation.Onlyoneorganisationdidnotinvolvethecommunityintheir

work.Themostcommonwaytoinvolvethecommunitywastoprovidevolunteering

opportunities,closelyfollowedbyhavingrepresentativesfromthecommunityontheboard

andconsultingwiththecommunityoruserstoestablishneeds.Overall,overhalfof 

respondentssaidtheyinvolvedtheircommunityinthedesignanddeliveryofservices,althoughthiswassomethingthoseidentifyingthemselvesascommunityenterpriseswere

morelikelytodowhencomparedtothosenotidentifyingthemselvesasacommunity

enterprise.

1-2 years

3-5 years

6-10 years

11-20

years

More than

20 years Less than 1

year

Left :Figure3.2.

Howmanyyears

theorganisations

havebeen

running

Right:Figure3.3.

Approximate

annualturnover

fromallsources

No income (0)

£1 – £10,000

£10,001 -

£25,000

£25,001 -

£50,000

£50,001 -

£100,000

£100,001 -£500,000

More than

£500,000

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

   P

  r  o  v   i   d  e  v  o   l  u  n   t  e  e  r   i  n  g  o  p  p  o  r   t  u  n   i   t   i  e  s   f  o  r

 

  c  o  m  m  u  n   i   t  y  m  e  m   b  e  r  s   /  u  s  e  r  s

 

   R  e  p  r  e  s  e  n   t  a   t   i  v  e  s  o   f   t   h  e  c  o  m  m  u  n   i   t  y

 

  o  n   t   h  e   B  o  a  r   d

   C  o  n  s  u   l   t  w   i   t   h  c  o  m  m  u  n   i   t  y   /  u  s  e  r  s   t  o

 

  e  s   t  a   b   l   i  s   h  n  e  e   d  s

   I  n  v  o   l  v  e  m  e  n   t  o   f   t   h  e  w   i   d  e  r  c  o  m  m  u  n   i   t  y   /

 

  u  s  e  r  s   i  n  s  e  r  v   i  c  e   d  e  s   i  g  n

   I  n  v  o   l  v  e  m  e  n   t  o   f   t   h  e  w   i   d  e  r  c  o  m  m  u  n   i   t  y   /

 

  u  s  e  r  s   i  n  s  e  r  v   i  c  e   d  e   l   i  v  e  r  y

   M  e  m   b  e  r  s   h   i  p  o  r  g  a  n   i  s  a   t   i  o  n

   F  o

  r  u  m   f  o  r  m  e  m   b  e  r  s  o   f   t   h  e  c  o  m  m  u  n   i   t  y   /

  u  s  e  r  s   t  o   i  n   f   l  u  e  n  c  e   d  e  c   i  s   i  o  n  s  o   f   t   h  e   b  o  a  r   d

   O   t   h  e  r

   E  m  p   l  o  y  e  e  o  w  n  e  r  s   h   i  p

   N  o  n  e

Figure3.4.How

respondents

involvethe

communityin

theirwork

8/8/2019 Growing the Big Society: Encouraging success in social and community enterprise in deprived communities

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Criticalfactorsforsuccess

Weaskedrespondentstoidentifytheirtopthreeenablersandbarrierstosocialand

communityenterprises.Therewasconsiderableagreementthatpeoplewerethemost

importantenabler,alongwithgrants.Figure3.5splitstheresponsesintothosefrom

respondentswhoidentifiedthemselvesascommunityenterprisesspecificallyandthosethatdidnot.Overallthereisconsiderablesimilaritybetweentheanswers.However,thosesocial

enterprisesnotidentifyingthemselvesascommunityenterprisesweremorelikelytohighlight

cashflow/liquidity,businesssupportandprocurementskillsandknowledgeaskeyenablers.

0

5

10

15

20

25

30

35

40

45

50

   P  e  o  p   l  e   (  e .  g .  e  m  p

   l  o  y  e  e  s

 

  a  n   d  v  o   l  u

  n   t  e  e  r  s   )

   M  a  n  a  g  e  m  e  n   t  c  o  m

  m   i   t   t  e  e

 

  o  r   b  o  a  r   d

    B  e  n  e   f   i  c   i  a  r   i  e  s   /  c   l   i  e  n   t   /

 

  c  o  m  m  u  n   i   t  y

   G  r  a  n   t   f  o  r  r  e  v  e  n  u  e

   G  r  a  n   t   f  o  r

  c  a  p   i   t  a   l

   S   k   i   l   l  s   /   t  r  a   i  n   i  n  g  a  n   d

 

   d  e  v  e   l  o

  p  m  e  n   t

   C  a  s   h   f   l  o  w   /   l   i  q  u   i   d   i   t  y

   A  c  c  o  m  m  o

   d  a   t   i  o  n

   P  r  o  c  u  r  e  m  e  n   t

  o  p  p  o  r   t  u  n   i   t   i  e  s

   L  o  c  a   l  a  u   t   h  o  r   i   t   i  e  s

   P   R   /  m  a  r   k  e   t   i  n  g  s   k   i   l   l  s  a  n   d

 

   k  n  o  w   l  e   d  g  e

   I  n  v  e  s   t  m  e  n   t   f   i  n  a  n  c  e

   C  o  n  s  u  m  e  r  u  n   d  e  r  s   t  a  n   d   i  n  g

 

  o   f  s  o  c   i  a   l  e  n   t  e  r  p  r   i  s  e

   B  u  s   i  n  e  s  s  s  u  p  p  o

  r   t   (  e .  g .

 

  a

   d  v   i  c  e   )

   P  r  o  c  u  r  e  m  e  n   t  s   k   i   l   l  s  a  n   d

 

   k  n  o  w   l  e   d  g  e

   G  o  v  e  r  n  m  e  n   t  r  e  g  u   l  a   t   i  o  n

 

  a  n   d

  p  o   l   i  c  y

Co m m u n i ty e n te rp r i se s No t co m m u n i ty e n te rp r i se s

%

Figure3.5.

Topthree

enablersto

socialand

community

enterprise

0

5

10

15

20

25

30

35

   C  a  s   h

   f   l  o  w   /   l   i  q  u   i   d   i   t  y

   G  r  a

  n   t  s   f  o  r  r  e  v  e  n  u  e

   G  r  a  n   t  s   f  o  r  c  a  p   i   t  a   l

   G  o  v  e  r  n  m  e  n   t

  r  e  g  u   l  a   t   i  o  n  a  n   d

 

  p  o   l   i  c  y

   I  n  v  e

  s   t  m  e  n   t   f   i  n  a  n  c  e

   C  o  n  s  u  m  e  r  u  n

   d  e  r  s   t  a  n   d   i  n  g  o   f

 

  s  o  c   i  a   l  e  n   t  e  r  p  r   i  s  e

   L  o  c  a   l  a  u   t   h  o  r   i   t   i  e  s

   P  e  o  p   l  e   (  e .  g .

  e  m  p   l  o  y  e  e  s  a  n   d

 

  v  o   l  u  n   t  e  e  r  s   )

   P  r  o  c  u  r  e  m  e  n

   t  o  p  p  o  r   t  u  n   i   t   i  e  s

   M  a  n  a  g  e  m  e  n   t  c  o  m  m   i   t   t  e  e  o  r

 

   b  o  a  r   d

   S   k   i   l

   l  s   /   t  r  a   i  n   i  n  g  a  n   d

 

   d  e  v  e   l  o  p  m  e  n   t

   P   R   /  m  a  r   k

  e   t   i  n  g  s   k   i   l   l  s  a  n   d

 

   k  n  o  w   l  e   d  g  e

   B  u  s   i  n  e  s  s  s  u  p  p  o  r   t   (  e .  g .  a   d  v   i  c  e   )

   P  r  o  c  u  r  e

  m  e  n   t  s   k   i   l   l  s  a  n   d

 

   k  n  o  w   l  e   d  g  e

   B  e  n  e   f   i  c   i  a  r   i  e  s   /  c   l   i  e  n   t   /  c  o  m  m  u  n   i   t  y

   A

  c  c  o  m  m  o   d  a   t   i  o  n

Community enterprise Not community enterprise

%

Figure3.6.

Topthree

barrierstosocial

andcommunity

enterprises

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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

differencesemergewhenthesefiguresarebrokendownintothoseorganisationsthatidentifiedthemselvesascommunityenterprisesandthosethatdidnot,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.)

0%

10%

20%

30%

40%

50%

60%

70%

80%

   G  r  a  n   t

   F  u  n   d   i  n  g   f  r  o  m   l  o  c  a   l

  g  o  v  e  r  n  m  e  n   t

   D  o  n  a   t   i  o  n  s

   F  u  n   d   i  n  g   f  r  o  m  o   t   h  e  r

  g  o  v  e  r  n  m  e  n   t

 

   b  o   d  y

   F  u  n   d   i  n  g   f  r  o  m   t   h  e   l  o   t   t  e  r  y

   C   h  a  r   i   t  y   /  v  o   l  u  n   t  a  r  y  o  r  g  a  n   i  s  a   t   i  o  n

   L  o  a  n   f  r  o  m   f  a  m   i   l  y   /   b  u  s   i  n  e  s  s

 

  p  a  r   t  n

  e  r   /   d   i  r  e  c   t  o  r  s

   B  a  n   k  o  v  e  r   d  r  a   f   t

   O   t   h  e  r

   H  a  v  e  n   ’   t  s  o  u  g   h   t   f   i  n  a  n  c  e   i  n   t   h  e

 

   l  a  s   t  y  e  a  r

   B  a  n   k   l  o  a  n

 

   L  o  a  n   f  r  o  m  a

   C  o  m  m  u  n   i   t  y

   D  e  v  e   l  o  p  m  e  n   t   F   i  n  a  n  c

  e   I  n  s   t   i   t  u   t   i  o  n

   S   h  a  r  e   i  s  s  u  e

   S  e   l   l   i  n  g   l  a  n

   d   /   b  u   i   l   d   i  n  g  s

   D  o  n   ’   t   k  n  o  w

Figure3.7.

Typeoffinancial

supportsought

byrespondents

inthelast12

months

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However,someconsiderabledifferencesemergewhentheresultsarebrokendownby

communityenterprisesandnon-communitysocialenterprises,asFigure3.9shows.

Respondentsthatdidnotidentifythemselvesasacommunityenterprisewerefarmorelikely

toseeksupportfromBusinessLinkandothersupportproviders,ororganisationslikethe

DevelopmentTrustsAssociatationorSocialEnterpriseCoalition.Organisationsthatidentified

themselvesascommunityenterprseswerefarmorelikelytoturntovoluntarysectorsources

ofsupportorlocalauthorities,suggestingtheseorganisationsmayhaveaparticularly

importantroletoplayinsupportingcommunityenterprises.

Respondentsweregenerallyfairlysatisfiedwiththesupportavailabletotheirorganisation,

particularlywithregardtohavingopportunitiestonetworkwithotherorganisations,share

relevantinformationandaccesstraining.Areashighlightedaslesssatisfactoryincludedaccesstolegaladvice,marketingandPRadvice,opportunitiestoworkwithother

organisationstoinfluencelocaldecision-makingandsupporttobidsforcontracts.(Figure

3.10below.)

0%

10%

20%

30%

40%

50%

60%

70%

    I  n   d   i  v

   i   d  u  a   l  s  w  o  r   k   i  n  g   f  o  r  o   t   h  e  r   t   h   i  r   d

 

  s  e  c   t  o  r  o  r  g  a  n   i  s  a   t   i  o  n  s

   L  o  c  a   l   S  o  c   i  a   l   E  n   t  e  r  p  r   i  s  e   N  e   t  w  o  r   k

   L  o  c  a   l  a  u   t   h  o  r   i   t  y

 

   C  o  u  n  c   i   l   f  o  r   V  o   l  u  n   t  a  r  y

 

   S  e  r  v   i  c  e  o  r  e  q  u   i  v  a   l  e  n   t

   B  u  s   i  n  e  s  s   L   i  n   k

   O   t   h  e  r  g  o  v  e  r  n  m  e  n   t  a  g  e  n  c  y

   O   t   h  e  r   b  u  s   i  n  e  s  s  a   d  v   i  c  e

 

  s  e  r  v   i  c  e  p  r  o  v   i   d  e  r  s

   C  o  n  s  u   l   t  a  n   t  s

   S  o  c   i  a   l   E  n   t  e  r  p  r   i  s  e   C  o  a   l   i   t   i  o  n

   C  o  -  o  p  e  r  a   t   i  v  e  s   N  o  r   t   h   W  e  s   t

   D

  e  v  e   l  o  p  m  e  n   t   T  r  u  s   t   A  s  s  o  c   i  a   t   i  o  n

   C  o  m  m  u  n   i   t  y   M  a   t   t  e  r  s

Figure3.8.

Wheresupport

hasbeensought

0

5

10

15

20

25

30

35

40

   I  n   d   i  v   i   d  u  a   l  s  w  o  r   k   i  n  g   f  o  r  o   t   h  e  r

 

   t   h   i  r   d  s  e  c   t  o  r  o  r  g  a  n   i  s  a   t   i  o  n  s

   C  o  u  n  c   i   l   f  o  r   V  o   l  u  n   t  a  r  y

   S  e  r  v   i  c  e  o  r  e  q  u   i  v  a   l  e  n   t

   L  o  c  a   l  a  u   t   h  o  r   i   t  y

   L  o  c  a   l   S  o  c   i  a   l   E  n   t  e  r  p  r   i  s  e   N  e   t  w  o  r   k

   B  u  s   i  n  e  s  s   L   i  n   k

   O   t   h  e  r   b  u  s   i  n  e  s  s  a   d  v   i  c  e

 

  s  e  r  v   i  c  e  p  r  o  v   i   d  e  r  s

   O   t   h  e  r  g  o  v  e  r  n  m  e  n   t  a  g  e  n  c  y

   C  o  n  s  u   l   t  a  n   t  s

   S  o  c   i  a   l   E  n   t  e  r  p  r   i  s  e   C  o  a   l   i   t   i  o  n

   C  o  -  o  p  e  r  a   t   i  v  e  s   N  o  r   t   h   W  e  s   t

   D  e  v  e   l  o  p  m  e  n   t   T  r  u  s   t   A  s  s  o  c   i  a   t   i  o  n

   C  o  m  m  u  n   i   t  y   M  a   t   t  e  r  s

Community enterprise Not community enterprise

%

Figure3.9.

Wheresupport

hasbeensought

–community

andnon-

community

enterprises

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0 20 40 60 80 100

Bid for contracts

Identifying efficiencies/savings

Access legal advice

Find trustees/management

committee

Financial management

Work with other organisations

to influence local decisions

Access marketing and PR advice

Have space to operate

(e.g. office space)

Grow your organisation

Business planning

Find people (employees,

volunteers)

Work together with other

organisations to deliver services

Apply for funding

Access training

Share relevant information

Network with other

organisations

Don’t know Very dissatisfied Fairly dissatisfied

Fairly satisfied Very satisfied

Figure3.10.

Howsatisfied

respondentsare

withthe

supportavailable

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

   C  o  m  m  u  n   i   t  y

 

  g  r  o  u  p

 

   N  e  w

  o  r  g  a  n   i  s  a   t   i  o  n

   C   h  a  r   i   t  y

   t  r  a   d   i  n  g

    P  r   i  v  a   t  e

   b  u  s   i  n  e  s  s

   A  n   i  n   d   i  v   i   d  u  a   l

   A  n  o   t   h  e  r  s  o  c   i  a   l

 

  e  n   t  e  r  p  r   i  s  e

   P  u   b   l   i  c  s  e  c   t  o  r

   C  o  -  o  p  e  r  a   t   i  v  e

   D  o  n   ’   t   k  n  o  w

Figure3.11.

Organisational

rootsof 

respondents’

organisations

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Organisationalorigins

Someofthedifferencesbetweenthegroupsofrespondentsmaybeexplainedbydifferences

inorganisationalorigins.Themajorityofourrespondents’organisationshadtheirrootsina

communitygroup(42percent)and/orwereneworganisations(31percent).(Figure3.11

above.)However,whentheseresponsesarebrokendownbycommunityandnon-community

organisations,thedominanceofcommunitygroupsgrows,asFigure3.12shows.Non-

communityenterprisesweremorespreadacrosstherangeofoptions.

Thesurveyalsoaskedwheretheorganisations’start-upfinancehadcomefrom.Forthevast

majority(60percent),agranthadprovidedthestart-upfinance,whichwasthecasefor

communityenterprisesandothersalike.(Figure3.13.)

0

5

10

15

20

25

30

35

40

   C  o  m  m  u  n

   i   t  y  g  r  o  u  p

   N  e  w  o  r  g

  a  n   i  s  a   t   i  o  n

   C   h  a  r   i   t  y   t  r  a   d   i  n  g

   A  n

   i  n   d   i  v   i   d  u  a   l

   P  r   i  v  a   t  e

   b  u  s   i  n  e  s  s

   A  n  o   t   h  e  r  s  o  c   i  a   l

   e  n   t  e  r  p  r   i  s  e

   C  o  -  o  p  e  r  a   t   i  v  e

   P  u   b   l   i  c  s  e  c   t  o  r

   D  o  n   ’   t   k  n  o  w

Community enterprise Not community enterprise

%

Figure3.12.

Organisational

rootsof 

respondents’

organisations–

communityand

non-communityenterprises

0%

10%

20%

30%

40%

50%

60%

70%

   G  r  a  n   t

   D  o  n  a   t   i  o  n  s

   G  u  a  r  a  n   t  e  e   d  c  o  n   t  r  a  c   t

   f  r  o  m   a

  n  o   t   h  e  r  o  r  g  a  n   i  s  a   t   i  o  n

 

   (  e .  g .  p  u   b   l   i  c  s  e  c   t  o  r   )

   D  o  n   ’   t   k  n  o  w

   S  e  e   d  -  c  o  r  n   f  u  n   d   i  n  g

 

   T  r  a  n

  s   f  e  r  o   f  a  s  s  e   t  s   f  r  o  m

 

  p  u   b   l   i  c  s  e  c   t  o  r

   L  o  a  n

Figure3.13.

Whenyour

organisation

began,where

didtheinitial

resourcecome

from?

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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.

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AswellasengagingwiththevoluntarysectorintheNorthWest,wealsosoughttheviewsof 

asmallnumberofstakeholderswithresponsibilityforsupportingsocialandcommunity

enterprises.Theseincludedleadlocalauthorityofficers,regionalagenciesandinfrastructureorganisationsprovidingsupporttosocialandcommunityenterprises.Theinterviewswere

semi-structuredandconductedonthebasisofanonymity,toenablepeopletobecandid.

Theyexploredanumberofkeyissues:

•Interviewees’understandingoftheterm‘communityenterprise’

•Theplaceofsocialandcommunityenterpriseinlocalandregionalpolicies

•Thecriticalsuccessfactorsforcommunityandsocialenterprise

•Supportavailabletosocialandcommunityenterprises,andanygapsinprovision.

Understandingcommunityenterprises

Intervieweeswerefamiliarwiththeterm‘communityenterprise’,althoughprecisedefinitionsvaried.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.Thedraftstrategyproposesdevelopingaworldclasssocialenterprisesector;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.

4.Theviewfromsupportprovidersandlocalauthorities

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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.Theauthorityregardedthetransferassetswithoutbuildingincommunitydevelopmentasunsustainable.

Thecriticalsuccessfactorsforcommunityandsocialenterprise

Interviewees’viewofthecriticalsuccessfactorsfororganisationstendedtofocuslessonthe

organisationalissueshighlightedbythesocialandcommunityenterprisesthatparticipatedin

ourresearch.Theissuethatsupportprovidersandlocalauthoritiesregardedasbyfarthe

mostimportantwasfinancialsustainabilityandhavingdiversesourcesofincome.For

intervieweesthismeantastrongfocusondevelopingabusinesscaseandincomestreams.Manyvoicedfrustrationattheideathatsocialandcommunityenterprisesshouldbe‘notfor

profit’,arguingthattheyshouldbeaimingtomakeaprofitinordertobesustainable.What

Box4.1.Liverpool–understandingandsupportingsocialenterprise

InLiverpoolresearchhasbeenconductedtoassessthesizeofthesocialenterprisesector,

withanestimated280socialenterprisesidentified,ofwhich170havesignificantlevelsof 

trading(theaverageleveloftradingincomeis45percentofturnoverandrising).The

turnoverwithinthesesocialenterprisesisaround£75mannually,andtheyemploy2000-

pluspeople.

Thecitycouncilhasauditeditscommissioningandprocurement,andfounditspends

around£11mannuallypurchasinggoodsandservicesfromsocialenterprisesviaaround70separatecontracts.Thefigureof£11mrepresentsaround0.6percentofthecouncil’s

budget.Amajorinitiative,theMerseysideSingleProcurementVision,istryingtoincrease

levelsofcontractingwithsocialenterprisesinthemunicipal,healthandhousingsectors.

Therehavebeenexamplesofcontractsbeingsplitinordertomakethemmoreobtainable

forsmallbusinessandsocialenterprise.

Socialenterpriseplaysanimportantroleinthecouncil’seconomicdevelopmentactivities,

andenterprisestart-upgrantsareavailabletoentrepreneursintargeteddeprived

communities.

Someotherlocalsupportprojectsinclude:

• TheLiverpoolSchoolforSocialEntrepreneurs,whichinitsinitialphasewillassist45aspiringsocialentrepreneursandcreate15fullytradingsocialenterprises

• TheLiverpoolAcademyofSustainableEnterprise,assisting240peoplemanaging

socialenterprisestowinmorecontractsandimproveoperations.

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differentiatessocialandcommunityenterprisesfromotherenterpriseswaswhattheydowith

theirprofit.

Beingbusinessmindedwasseenascentraltosuccess,andthiswasinterpretedasbeing

hard-headedaboutwhatanenterprisedoes,includingceasingactivitiesthatarebeing

deliveredataloss,unlesstheyaredeliberatelyandconsciouslybeingcross-subsidised.

Goodcoreorganisationalfunctionswerehighlightedascriticalforsuccessbysomeinterviewees,withaparticularfocusonfinancialmanagement,marketing,procurement

andnetworking.Liketheorganisationsthatcontributedtothisresearch,interviewees

emphasisedtheissuewasaccesstoskillsratherthannecessarilyholdingalltheseskillsin

house.Thisextendsthequestionofskillsbeyondjustanorganisation’semployeesand

volunteers,toincludetheirboardmembers.Theimportanceofhavingaclearvisionand

missionthatiswidelyunderstoodandconfidentlycommunicatedwasalsohighlightedas

criticalforsuccess.

Finally,owningorbeingabletomanageanassetinawaythatgeneratesprofitwas

highlightedascrucialbysomeinterviewees.However,oneexpressedconcernthattoooften

localauthoritiesweretryingtooffloadliabilitiesratherthanassets,andpassingthemto

organisationsthatdonothavesufficientcapacitytomanagethem,anddonotinvolvethewidercommunityintheiractivities.

Box4.2.TamesideMetropolitanBoroughCouncildraftsocialenterprisestrategy

–identifyingandfillinggapsinsupport

Theobjectivesofthestrategyare:

• Topromoteanddevelopawiderunderstandingofsocialenterpriseanditsbenefitsacrosstheborough

• 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.

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Supportingsocialandcommunityenterprises

Evidencesuggeststhatthesupportneedsofsocialenterprisesdonotdiffergreatlyfrom

thoseofprivatebusiness.However,thelanguageusedinthedeliveryofsupportisdifferent

andadvisersneedtobesympathetictothesocialorenvironmentalaimoftheorganisation.

Ifthisistrueforsocialenterprises,intervieweesconsideredittobedoublysoforcommunityenterprises.Thiswasthoughttobeparticularlyimportantinthestart-upphaseandearlylife

ofanenterprise.Atthisstage,supportmightbemoreappropriatelydeliveredbyvoluntary

sectororganisations,ratherthanmainstreambusinesssupport.

Theinterventionsrequiredtohelpindividualsororganisationspriortostart-up,andthe

assistancerequiredbyyoungcommunityenterprisesinordertomoveon,wereconsidered

relativelysimple.Forexample,opportunitiestonetwork,adviceondevelopingstrong

organisationalproceduresandadviceonissueslikemarketingandbuildingapublicprofile

werehighlighted.Mostintervieweeswereoftheviewthatthereissufficientsupportand

fundingavailabletosocialandcommunityenterprises;thekeyissueisensuringpeopleare

awareofwhatisavailableandhowtoaccessit.Themultiplicityofprovisionwasseento

resultinalackofcoordinationandcomplexity,andthisisanareawheremoreworkneedstobedone.

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,thekeyareawheresocialandcommunityenterprisesneedsupportisinachievingsustainability,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

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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.

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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.

Theideathatcommunityenterprisesaremorelikevoluntarysectororganisationsisreinforcedbythefindingsofthesurvey,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.Thereisrealconcernthatsupporttosocialandcommunityenterprise–andthevoluntarysector

morebroadly–willbeanareaforcuts,aslocalgovernmentdiscretionaryspendingis

5.Conclusionsandrecommendations

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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-peersupportandmentoring.However,thebenefitsofmixednetworksarealsorecognised.

Bringingtogetherpublic,privateandvoluntarysectororganisationsoffersopportunitiesfor

hearingaboutcontractingopportunitiesandbuildingconsortiatobidforcontracts.

Serviceprovisionandidentifyinganiche

Socialandcommunityenterprisesneednotonlytounderstandthecommunitythatthey

serve,butalsohowtoaccessmarketsand–whererelevant–developnewmarkets.Partof 

thischallengeistofindanichetofill,andgatherevidencetodemonstratecommunityneed

andgapsinservices.Thisrequiresgoodqualitymarketresearchandprofessionalmarketing

oftheresultingservice.

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BarrierstosocialandcommunityenterpriseTheresearchalsofoundconsiderableagreementaboutthekeybarriersthatsocialand

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,ratherthanfocusingontheoutcomessought;overlycomplexprocesses;tighttimescales;andlargecontractsthat

areoutofthereachofsmallerorganisations.

Box5.1.Developingapictureofsuccess

Weaskedourworkshopparticipantstoidentifythekeycharacteristicsofahighly

successfulcommunityenterprise.Intheirviewitwould:

•Havetherightpeopleinvolved,whohaveappropriateskills,arecreativeandinnovativeandseechangeaspositive.Therewouldbeastrongcultureoflearning

andstrongleadershipfromapersonwhocatalysesactivityandempowersthose

aroundthemaswellasthewidercommunity.

•Bestronglyrootedandwellknowninthelocalarea,ownedandcontrolledbythe

communityandaccountabletoit,withagoodunderstandingofcommunityneed.

Goodorganisationsshouldalsobuildthelocalcommunity,developingandutilising

positiveformsofsocialcapital.

•Knowwhatsupportisavailableandmakeuseofit.

•Beenterprisingandactivelytrytogeneratesustainablerevenueandensureadiverse

fundingbase.Astrongorganisationwillbechoosyinwhatitdoes,andnotsimplydrivenbyavailablefunding.

• Haveaclearvisionandplanforthefuture,includingHRandbusinessplanning.

• Identifyeconomicopportunitiesandusequalitymarketresearchtoensureitsservices

meetlocalneeds.

•Useitssuccesstoinspirefurthersuccessinthecommunity,sharingknowledge,ideas

andspacewithothers.

•Buildstrongpartnershipsandrelationships.

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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,ishowtofundcoreinfrastructureonanongoingbasis.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

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deprivedneighbourhoodswheretheyactasasocialglueenhancingresilienceandqualityof 

life.However,itwouldappearthatasubstantialproportionoforganisationscalling

themselvessocialorcommunityenterprisesstillhavesomedistancetotraveltoachieve

sustainability.Organisationsneedsupportiftheyaretoreducetheirrelianceongrantsand

movetomoreenterprisingactivity.

Werecommendthatleaders,boardmembersandtrusteesoforganisationsaspiringtobe

communityorsocialenterprisescarryoutanorganisationalreview,focusingoncore

missionandfuturefinancialsustainabilityinordertofacilitateagenuinetransitiontoa

moreenterprisingapproach.

Supportingthistransitionshouldbeakeyfocusfornationalpolicymakers,regionally-based

representativesofthevoluntaryandcommunitysectorandsocialenterprise,localauthorities

andothersupportagencies.

3)Commissioningandprocurement

Bothprocurementandcommissioningofferaroutetosustainabilityformanysocialand

communityenterprises,andyetourresearchshowsthatmostcommunityandsocialenterprisesexperiencesignificantbarriersinaccessingsuchfunding.

Werecommendthatlocalauthoritiesandotherlocalserviceprovidersshouldreview

commissioningandprocurementprocessestobetterunderstandtheneedsandbenefits

ofthesocialandcommunityenterprisesector.Theyshouldthenmovequicklyfrom

developingstrategiesandplanningtoconcreteaction.

Reviewsshouldfocusonremovingunnecessarycomplexityandbureaucracy.Toensurethe

users’perspectiveisattheheartoftheprocess,localsocialandcommunityenterprises

shouldbeinvolvedinthereviewtoensureanynewprocessesareaccessible.Contractsize

shouldalsobeconsidered,withlocalauthoritiesandtheirpartnersconsciousthatas

contractsincreaseinsizetheybecomemoredifficultforlocally-basedsocialandcommunity

enterprisestodeliver,favouringinsteadlargernationalorinternationalorganisationsandbusinesses.Thereisdissonancebetweeneconomiesofscaleontheonehand,and

supportingsustainablelocalcommunityandsocialenterprisesontheother.Partofthe

answerliesincontinuingtodevelopcapacityforconsortiaworkinginthevoluntarysector,

butpartoftheanswerisalsolikelytorelyonafundamentalreassessmentofwhatwemean

by‘value’.Valueshouldincorporateideasofplaceshaping,andpromotingsocial,economic

andenvironmentalsustainability.

4)Coordinatingsupport

Awiderangeoforganisationsandindividualsacrossthepublic,privateandvoluntarysectors

areofferingsupporttosocialandcommunityenterprises.Fromprovidersofgeneric

voluntarysectorsupporttoorganisationsofferingspecialistsupport,businesssupportprovidersandlocalauthorities,thepictureiscomplex,confusingandunhelpfully

competitive.

Organisationstendtoneeddifferenttypesofsupportatdifferentstagesoftheir

development.Thefocusshouldbefirmlyontheneedsoftheclient,astheyareguided

throughdifferentstagesofdevelopmentandhandedontothenextlevelofsupportwhen

(andif)relevant.Generallyspeaking,communitydevelopmentsupportislikelytobeneeded

intheveryearlystagesofthelifecycle,genericvoluntarysectorsupportasanorganisation

becomesmoreestablished,andbusinessand/orspecialistsupportasanorganisation

becomesanestablishedenterpriseorseekstogrow.Supportshouldthereforebelinkedinto

a‘lifecycleframework’,withprovidersspecialisingindifferentpartsofthelifecycleand

referringenterprisestootherproviderswhereandwhentheyarebetterabletomeettheirneeds.

Werecommendthat,ininterestsofthewidersector,thewiderangeofsupportagencies

operatingintheNorthWestworktogethertobettercoordinatetheireffortsandpresent

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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.

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