lewisham social enterprise strategy...

Lewisham social enterprise strategy 2008–2011

executive summary and action plan

Researched and written byCDSE

(Centre for Development & Social Enterprise Ltd)

‘Lewisham is home to a large number of social entrepreneurs who are passionate about ideas which are profitable and which make a positive difference both to our communities here in Lewisham and to the wider society. The development of social enterprises is an important aspect of our plans for Lewisham. Our aim is to build on the success of our thriving third sector and to enhance the role of social enterprises in making stronger communities and a prosperous and dynamic local economy here in Lewisham.’

Sir Steve Bullock, Mayor of Lewisham and Chair of the Lewisham Strategic Partnership.

‘The commitment to positive change is a core value of the voluntary sector and an underlying principle of social enterprise. Voluntary Action Lewisham welcomes the new cross-sector support and the opportunities to help people introduce more entrepreneurial, income-generating approaches to their organisations’.

Martin Howie, Director, Voluntary Action Lewisham.

Executive Summary

Introduction The vision for the development of Lewisham between 2008 and 2020 is set out in the Lewisham Strategic Partnership’s (LSP’s) Sustainable Community Strategy Shaping the future. The partnership’s vision for Lewisham is of a place where ‘we all pull together to create a prosperous and exciting place with strong and cohesive communities’. Social entrepreneurs can play an important role in realising this vision. They possess drive, innovation and creativity, and a commitment to achieving social and environmental aims, which can help bring about lasting change.

In 2007 the Council, Voluntary Action Lewisham, Social Enterprise London, South East Enterprise and representatives from the local social enterprise sector came together to form the Lewisham Social Enterprise Working Group. This group would oversee the development of a strategic framework for social enterprises in the borough. Work was undertaken to map local social enterprises, to understand better their needs and barriers and to identify opportunities for developing the sector.

The result of this work was the development of the Lewisham Social Enterprise Strategy 2008–2011, a document that would help inform strategic decisions, provide direction and guide activity to develop the sector over the next three years. The strategy identified six strategic objectives:

1. Raising the profile and demonstrating the value of the third sector

2. Developing the entrepreneurial capacity of the third sector

3. Enabling access to a range of finance

4. Opening up procurement practices to enable access to new markets

5. Developing a recognised voice for social enterprise

6. Improving access to suitable premises

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Lewisham Social Enterprise Strategy 2008–2011

The Lewisham Social Enterprise Steering Group has produced a strategy and action plan for 2008–2011 to:

ü develop a thriving third sector using social enterprise as a business model

ü raise the profile of social enterprise as an important part of the local economy

ü maximise the social, economic, environmental and other benefits the sector offers to Lewisham.

While it is envisaged that the action plan will be driven by the members of the Lewisham Social Enterprise Working Group working together with local social enterprise ambassadors Trisha Lee and Sam Coniff, the objectives can only be fully achieved with the wider support from social enterprises, and community and voluntary sector and other social enterprise activists. Consequently the early establishment of a social enterprise forum is critical to the successful implementation of the action plan.

This strategy was developed by the Centre for Development and Social Enterprise (CDSE). A consultation process is currently under way with local partners, businesses, community groups, voluntary groups and social enterprises. It is envisaged that the strategy will be endorsed by Lewisham’s Strategic Partnership after this consultation has been completed in December 2009. If you would like to provide any comments on this strategy please contact:

Sandra Jones, Head of Community Sector Unit, Lewisham Council, 020 8314 6579, [email protected]

Brian Wagonbach, Change Up Coordinator, Voluntary Action Lewisham, 020 8698 6034, [email protected]

Paul Hadfield, Economic Development Manager, Lewisham Council, 020 8314 3708, [email protected]

A copy of this strategy can be downloaded at www.lewisham.gov.uk/socialenterprise

An equalities impact assessment report will be produced to ensure that this report meets the equalities requirements of the Council and the LSP.

Lewisham – borough overview Lewisham is one of the largest inner London boroughs, with an area of 13.7 square miles. The 2001 census estimated the population at just under 250,000, of whom nearly a quarter described themselves as Black or Black British.

In autumn 2008 Lewisham was ranked eighth most deprived area in London and 57th most deprived borough out of 352 boroughs in the country, and the borough has higher levels of unemployment than London or the national average. The work of social enterprises in the borough plays a significant role in reducing deprivation by contributing to outcomes in educational attainment, housing, childcare, health inequalities and crime reduction.

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Social enterprise: the national and local context

What is social enterprise? In the simplest of forms, a social enterprise is regarded by many as an organisation with a social aim, which re-invests any surplus back into the organisation to pursue the aim or donates it to other social causes. It is a business model where social, community or environmental purpose is the most important factor. Lewisham has chosen to use this definition.

The UK has had a social enterprise strategy since the Department of Trade and Industry (DTI) published Social Enterprise: a Strategy for Success in 2002. In what seems to have become the official UK definition, social enterprise is defined (in the report) as ‘a business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for the share holders and owners’.

In this report a social entrepreneur is defined as any person, in any sector, who runs a social enterprise.

Benefits of social enterprise Social entrepreneurship has moved into the mainstream, generating more than £27 billion in turnover in the UK and contributing £8 billion each year to the GDP. Social enterprises are often developed to cater for needs that the state does not fully meet and to overcome social injustice or exclusion in society through innovation.

An LSP report, Valuing the Voluntary Sector, states that there are an estimated 1,000 voluntary and community organisations in the borough of which Voluntary Action Lewisham is the main coordination and support organisation. The sector is an important local employer providing one in 50 workplaces, with an estimated value of volunteering worth £18.2 million a year. The report further states that a number of voluntary and community organisations have the potential to develop an enterprise approach to their work, particularly those involved in childcare, environmental, cultural media, health and social care sectors.


Lewisham Strategic Partnership has established a local area agreement with central government, which sets out the local priorities for the borough and challenging targets that Lewisham will have to meet. The partnership recognises that effective and long lasting change can only happen by drawing on the expertise and involvement of citizens and voluntary and community organisations. Social enterprises can play an important role in helping to achieve Lewisham’s local area agreements. This includes contributing to the following priorities for Lewisham:

ü to be empowered and responsible – a place where people can be actively involved in their local areas and contribute to supportive communities

ü to be dynamic and prosperous – a place where people are part of vibrant localities and the town centre, well connected to London and beyond

ü to be ambitious and achieving – a place where people are inspired and supported to fulfil their potential.

Social enterprise: challenges and barriers Despite its popularity and associated benefits, some critics argue that social enterprise may not be all it’s cracked up to be. There is the view that the vast majority of social enterprises fail to achieve profitability. More than half of all small business ventures – it is believed – fail within a few years or never get off the ground at all, and social enterprises are not different.

There is evidence that specialist advice and support for social enterprises at national, regional and sub-regional level is inadequate; in many respects this has led to the sector feeling marginalised.

There is also the problem, especially in London, of obtaining decent and accessible offices and attracting and retaining good staff.

Central Government With increasing government attention being placed on social enterprise, the DTI published the UK social enterprise strategy, Social Enterprise: a Strategy for Success, in 2002. This strategy was reviewed in 2006 in the action plan Social Enterprise Action Plan: Scaling New Heights.

Various concerns have been expressed regarding the strategy including the lack of access to finance, information and support opportunities for start-up and smaller social enterprises.

Local authorities and social enterprise There is the view that, in spite of such encouraging potential, it has been hard for local authorities to include social enterprises in their selection of organisations to provide services. Current procurement services do not favour many social enterprises trying to obtain contracts in the public sector.

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Findings and analysis

The analysis of a survey of actual and potential social enterprise in Lewisham in 2008 provides an interesting picture:

ü Nearly three-quarters of the respondents (73%) classified themselves as social enterprises. Of those who didn’t see themselves as a social enterprise, 47% stated they would like assistance to become one.

ü 32% stated they were a company limited by guarantee and 62% that they were registered charities.

ü The majority of respondents (67%) had been in existence for 18 months or more. This supports current thinking that there is a steady growth of social enterprise activity in the borough; 33% felt they were start-up organisations as they had been in existence for less than 18 months.

ü A fair number of respondents delivered their services within the borough, with the exception of a few areas such as Blackheath, Grove Park and Perry Vale, where there was no activity recorded.

ü 92% of the organisations are based in Lewisham with the remainder elsewhere, mainly in neighbouring boroughs.

Employment and training, education and advice services ranked highest in the list of services offered by the sector in Lewisham, followed by health, youth, food, arts and culture. Transport, retail and construction ranked lowest according to responses.

ü Nearly 52% of respondents used volunteers against 22% and 26% for part-time and full-time paid staff, respectively.

While most organisations indicated that they served all the Lewisham equalities groups, services targeted at men, women and youth represented the main client groups of the organisations.

The number of responses to the question about organisations’ income and expenditure was low compared with other sections of the questionnaire, with just over half of the respondents answering this question. Of this number, 60% fell within the £10,000–£100,000 income range, suggesting they were smaller-sized organisations most likely to be run by volunteer staff and possibly without a formal office space. The highest income recorded was £650,000 against the lowest income of £80.

ü 50% of respondents indicated they have been successful in raising income from grants, 42% stated they were fairly successful and just 8% stated they were very successful.

ü 14% of respondents re-invested surpluses back into their organisation and the remainder passed surpluses to a charitable arm.

ü 17% of organisations had never bid for contracts. Of those that had, 8% had been very successful, 25% had been successful and 50% had been fairly successful at winning contracts.

Contracts from the local authority, educational bodies and the Lewisham primary care trust dominated the sources of contracts for 70.1% of the respondents. Of this, the local authority represented 53% against 11% and 5.9% from the PCT and educational bodies, respectively.

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Half the respondents experienced a skills gap in their organisation. 63% of respondents had personnel issues that needed to be resolved. Staff and volunteer retention appeared to be a major issue.

Despite the overall skills gap identified, 88% of respondents felt their management board contained sufficient range of expertise to make it an effective governing body.

74% of respondents agreed that a business plan was essential to the growth and development of their business, and 78% had business plans.

67% of respondents had accessed business advice from enterprise agencies or other support organisations. Asked how effective the advice had been, most considered there was lack of depth in the support provided. Some respondents felt that the nature of their needs went far beyond the advice and support that was available.

The five most restrictive barriers for organisations that respondents experienced were:

ü access to sustainable external funding

ü irregular cash flows

ü lack of working capital

ü lack of specialist business support

ü unsuitable premises.

Summary of findings from interviews with officers The views of members of the Lewisham Social Enterprise Working Group, named officers in the Council and Voluntary Action Lewisham also provided information for this study. There were personal interviews with 13 people and details from the interviews were crystallised into key issues on which the strategic recommendations were also formulated:

ü access to financial resources

ü business support

ü unfair and complex commissioning procedures

ü lack of strategic focus

ü lack of interest and identity

ü access to suitable and affordable premises.

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The Social Enterprise Strategy Following the mapping exercise an outline strategy and action plan is suggested in the following pages. The six strategic objectives recommended are:

1. Raising the profile and demonstrating the value of the third sector

2. Developing the entrepreneurial capacity of the third sector

3. Enabling access to a range of finance

4. Opening up procurement practices to enable access to new markets

5. Developing a recognised voice for social enterprise

6. Improving access to suitable premises

To achieve these, it is recommended that the Social Enterprise Working Group in an action plan for Lewisham will propose to:

ü develop a promotional strategy targeting the general public and business sector with a clear social enterprise message that highlights the meaning of the concept, types of social enterprise and the benefits it brings to the community

ü develop a comprehensive directory of social enterprises in the borough with embedded good practice models to inspire confidence, motivate potential social enterprises and signpost people

ü simplify access to business support for social enterprises, and reduce or merge provision to defragment current support

ü link up with Business Link, now responsible for brokering business support on behalf of the government, so they can signpost organisations to appropriate local support

ü engage local and national financial services companies and offer them social enterprise awareness training as part of developing dialogue with the sector

ü streamline commissioning processes with the help of the social enterprise sector in order to include added value and outcome criteria, making it easier for social enterprise to tender

ü capacity-build commissioners and develop systems that they can use to access the sector

ü establish a social enterprise forum

ü consider the needs of social enterprise as part of the broader work around community assets and premises.

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establishing Lewisham as a hub for successful social enterprise and a thriving third sector.

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Action plan 2008–2011

Social enterprise represents a new paradigm for business and a new and dynamic way of addressing some of society’s biggest challenges.

The Lewisham Social Enterprise Working Group has produced a strategy and action plan to:

ü develop a thriving third sector using social enterprise as a business model

ü raise the profile of social enterprise as an important part of the local economy

ü maximise the social, economic, environmental and other benefits the sector offers to Lewisham.

The action plan sets out a three-year programme

Objective 1 > p13

Raising the profile and demonstrating the value of local third sector

Objective 2 > p16

Developing the entrepreneurial capacity of the third sector

Objective 3 > p18

Enabling access to a range of finance

Objective 4 > p19

Opening up procurement practices to enable access to new markets

Objective 5 > p20

Developing a recognised voice for social enterprise

Objective 6 > p21

Improving access to suitable premises

Objective 1:

Raising the profile and demonstrating the value of local third sector

Actions Outputs Actual date

Responsibility/ Lead Outcome Next steps

1. Develop a communications strategy to promote the role and value of social enterprise and social entrepreneurship in Lewisham. Target audience:

ü public sector commissioners

ü voluntary and community sector

ü social enterprise

ü faith sector

ü general public

ü private sector

ü A communications strategy Dec 2008 ED, SEWG and COMMS

Raise the profile and recognition of social enterprise and social entrepreneurship in the delivery of excellence and service innovation

Produce communications brief

Identify London Borough of Lewisham (LBL) communications officer

2. Develop a web page primarily, but not exclusively, for third sector, social enterprise and purchasers of services:

ü promoting social enterprise

ü providing information

ü accessing support

ü signposting via web links

ü Put information onto website

ü Produce design brief

ü Create website

Nov 2008 VAL, ED and COMMS

Raise the profile of the sector in Lewisham.

Growth in the sector, improved access to specialist support

Confirm arrangements for setting up web page

Produce text for interim web page

KEY ED – LBL Economic Development / SEWG – Social Enterprise Working Group / COMMS – LBL Communications / CSU – LBL Community Sector Unit SEA – social enterprise ambassadors / PRO – LBL procurement / VAL – Voluntary Action Lewisham

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Objective 1: Raising the profile and demonstrating the value of local third sector (continued)



3. Produce a social enterprise directory

ü Up-to-date directory of social enterprise operating in Lewisham

Oct 2008 ED Raise awareness of entrepreneurial third sector in Lewisham.

Improve purchasing of services from the sector

Produce a list of social enterprise

IT and paper-based directory

4. Work with schools and colleges to encourage the inclusion of social enterprise as part of enterprise education

ü Work with schools shortlisted for young entrepreneurs category of Business Awards

ü Joint social entrepreneurship project by LBL Economic Development and Education Business Partnership

ü Work with Stephen Lawrence Centre in developing its social enterprise space

Sept 2008 to Mar 2009

VAL, ED and COMMS

Increased understanding among young people of social enterprise as a career option

LBL Economic Development to develop idea with Education Business Partnership

5. Reward successful social enterprises through local and national social enterprise award schemes

ü Social enterprise category continues to feature in the bi-annual Lewisham Business Awards

ü Lewisham social enterprises enter regional and national awards schemes

LBL Business Awards 2010

Jan 2009

ED Lewisham social entrepreneurs gain local and national recognition

Award Social Enterprise of the Year 2008

Identify regional and national awards

Social enterprise web page has links to regional awards opportunities

6. Keep abreast of developments coming from central government about social enterprise and identify how they impact locally

ü National and regional issues, drivers and opportunities regularly identified

ü Local responses produced

Ongoing SEWG Proactive development of thriving third sector in Lewisham through partnership working

Regular agenda item for Social Enterprise Working Group

Lewisham

Social Enterprise Strategy 2008–2011


14



7. Raise awareness of social enterprise services and products available to the public and private sectors

ü Date agreed and annual event offered joining up with other events as appropriate

Sept 2008 CSU Third sector products and services being purchased as providers of choice

Planning for events

8. Establish a social enterprise day ü Work with schools shortlisted for young entrepreneurs category of Business Awards



Nov 2008 SEWG Celebratory informative event supporting continued growth of Lewisham’s thriving third sector during Enterprise Week

Discuss with social enterprise ambassadors

Consider during planning of Lewisham events during Enterprise Week

9. Work with social enterprise ambassadors in the development and delivery of the Lewisham Social Enterprise Action Plan

Engage with ambassadors and identify how they can support delivery of the action plan

Ongoing

July 2008

SEWG Raise awareness of sector and support growth of sector in Lewisham

Meeting social enterprise ambassadors in July 2008


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Objective 2:

Developing the entrepreneurial capacity of social enterprise sector

Lewisham




1. Map financial and business support offered by voluntary, private and public sectors to develop an integrated package of support

ü Map support across the sectors Sept 2008 ED, VAL and CSU Integrated support offer for third sector and social enterprise sector is widely used and effective at facilitating growth

Mapping project completed by LBL Economic Development

2. Develop an integrated package of support through partnership for social entrepreneurs

ü Widen business support forum to include organisations that support social entrepreneurs

ü Successful organisations and entrepreneurs offer training, mentoring and secondment opportunities to Lewisham social entrepreneurs

ü Offer specialist support to entrepreneurial third sector to improve their access to business opportunities in the public and private sector

ü Social enterprises are aware of and ready for asset transfer opportunities

Jan 2009

Jan 2009

Mar 2008

Jan 2009

ED

ED and VAL

ED and CSU

ED and SEA

Thriving third sector using integrated package of support, which is assisting their growth

Map providers hold business forum meeting

LBL Economic Development meets community sector unit

Lewisham



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3. Ensure that advice and support organisations have up-to-date knowledge and skills

ü Explore possible use of Small Firm Enterprise Development Initiative (SFEDI) national occupational standards as a Lewisham standard

ü Identify current continuous professional development (CPD) needs of support providers

ü Deliver CPD to support providers

Oct 2008

Mar 2009

Jun 2009

ED, VAL and CSU

ED

ED

Thriving third sector using good quality mainstream and specialist support

Identify current skills base as part of mapping exercise and identify the need

4. Joint working with fora that have an interest in social enterprise

ü Promote potential for franchising to social enterprise

ü Explore the option for other models of social enterprise

Oct 2008 and ongoing

ED and SEA Sustained support for thriving third sector in Lewisham

Map providers hold business forum meeting

LBL Economic Development meets community sector unit

5. Promote different business models to generate more growth in social enterprise activity

Nov 2008 and ongoing

ED Growth and diversification of third sector in Lewisham

Franchising events promoted to the sector


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Objective 3:

Enabling access to a range of finance

Lewisham

Social Enterprise Strategy 2008–2011Lew

isham Social Enterprise Strategy 2008–2011



1. Scope and engage with national and local funders and financial institutions working with the sector

ü Financial institutions and funders identify finance packages suitable for the sector

ü Private and public sectors purchase from the sector

Feb 2009 ED Growth of third sector in Lewisham

2. Have ongoing engagement with the finance providersüpromoting social enterprise

ü providing information

ü accessing support

ü signposting via web links

ü Work with schools shortlisted for young entrepreneurs category of Business Awards



Mar 2009

ED/CSU Thriving third sector accessing a range of finance to support their growth

Engage with national policy regarding financial institutions supporting third sector

Develop a pilot procurement project

3. Build the capacity of the sector, enabling them to access finance

ü Develop and deliver financial awareness and specialist social value training and support

July 2008 ED Third sector successfully accessing the right kind of finance to support their growth

Discuss with social enterprise ambassadors


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Objective 4 :

Opening up procurement practices to enable access to new markets Actions Outputs Actual

date Responsibility/ Lead Outcome Next steps

1. Produce guidelines for public sector commissioners to facilitate equal access by third sector to commissioning opportunities

ü Complete commissioning guidelines

Aug 2008 CSU Council officers using commissioning process to purchase goods and services from entrepreneurial third sector

2. Create an environment for entrepreneurs to exploit procurement opportunities in the Council

ü Entrepreneurial third sector organisations are aware of opportunities at the right time and ready to exploit opportunities available

Jan 2009

Jan 2009

Aug 2008

ED, CSU and PRO Third sector winning tenders to deliver services

LBL Economic Development and procurement pilot project

Complete and disseminate commissioning guidelines

3. Make public sector commissioners aware of the potential of social enterprises to deliver services

ü Disseminate commissioning guidelines

ü Involve commissioners in delivering capacity building to social enterprises enabling them to access commissioning and procurement opportunities

ü Promote local social enterprises in addressing serious public service challenges

Nov 2008 LBL Corporate Commissioning Working Group

ED

Council officers are purchasing goods and services from entrepreneurial third sector

Outcomes from objective 1

Plan Social Enterprise Day

Hold compact voluntary and community sector event for purchasers of services


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Objective 5:

Developing a recognised voice for social enterprise

Lewisham




1. Establish a social enterprise forum

ü Develop forum

ü Encourage the formation of clusters, peer mentoring and inter-trading

ü Introduce and publish a quarterly social enterprise newsletter

ü Run events to encourage collaborative partnerships among social enterprises to procure contracts, access funding and exchange ideas

Nov 2008 SEWG and SEA Bringing together sector from across the borough

Promote Lewisham as a borough supporting and growing social enterprise

Outcome of Social Enterprise Day event

2. Develop genuine partnership working between statutory sector and the forum

Create environment for supporting development and growth of social enterprise in spite of policy, economic and other limitations affecting all partners

Nov 2008 SEWG and SEA Promote Lewisham as a borough supporting and growing social enterprise

Outcome of Social Enterprise Day event


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Objective 6:

Improving access to suitable premises



1. Develop a premises finder and information service

ü Adapt and develop existing business property information services

ü Monitor intelligence on the demand and supply of premises for social enterprises

June 2009 VAL, ED and CSU Improve use of existing vacant property by social enterprises

Improve intelligence on the demand and supply for premises

2. Facilitate opportunities for social enterprises within new site developments

ü New site developments provide development and growth space

Ongoing Premises Working Group and ED

New and existing social enterprises access good-quality work space in Lewisham


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Every effort has been made to provide accurate and complete information at the time of going to print (Nov 2008). However, we cannot guarantee that there will be no errors or omissions contained within this publication. To add or amend your details please contact Paul Hadfield, Economic Development Manager on 020 8314 3708 or email [email protected]

Paul Hadfield Economic Development 5th Floor Laurence House London, SE6 4RU

For other formats, including Braille, large print, audio tape or computer disc contact: Paul Hadfield 020 8314 3708 paul.hadfield@ lewisham.gov.uk

Visit www.lewisham.gov.uk for all the latest news and information about your Council’s services, and the range of job opportunities we currently have on offer.

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