Social Enterprise and Public Services Craig Dearden-Phillips MBE Smarter Funding Better Outcomes 15 th July 2015 The Apex Bury St Edmunds

Why I think I am here I have set up charities and social enterprises I do both big stuff and small stuff I have been a Councillor I am a Social Investor I believe in the voluntary and community sector 2

My Main Messages 1.Government is about to get a LOT smaller so hold on to your hats. 2.There will be space for local organisations who work in a more business-like way. 3.But you will need to work in partnerships to do this properly 3

What Life So Far has Taught Me Money is important but isn’t your main resource The future has always been challenging! Don’t get into a dependency mentality Don’t be beaten! 4

My first and biggest enterprise Started in a community centre in Cambridge in Started without money! Now gives people a Voice Helps 5000 people each year Works across the UK Winner of many awards 250 staff, £10m turnover

Empowerment has been the theme of all my business ventures Good things can only happen when power and control and responsibility is handed back to people This has a big effect on personal & social well-being 6

7 The First Five Years –Developing grant-based local charity

Why I cut down on short-life grants Grants leave you with unsustainable projects that have to end within 3 years They leave you feeling dependent The only grants I think are worth having are as start- up capital for a better income model Contracts are better if you need money to do things 8

I thought about our venture as a business – a social business! We replicated SU in five major UK locations We attracted a social investor over five years We grew from 500 clients to 5000 and £500k to £5m

Learnings for me Invest in organizational skill-base Focus on impact not on activity Be ambitious Find allies beyond your organisation 10

Success (eventually)

12 Setting Out Stepping Out Staying Out 3. Public sector Spin Outs

Stepping Out: Using Enterprise to Transform Public Services

Local Examples of Public Sector Spin Outs Suffolk Libraries Leading Lives (former learning disabilities services) Realise Futures (former employment support services) 14

The Results? They save money The services improve The staff are happier The business grows Services are saved They treat their users like customers 15

Staff are freed up Citizens give their time more freely Council can’t interfere in day to day management Financial long-view can be taken Brilliant Board and Director Leadership Clear single purpose 16 How does this Happen?

There are enough resources for all the public services we need in the UK

My Social Investment Roles We look for best models, best teams, biggest impact Grants are NOT for programme but for capacity We look for disruptive business models with new takes on problems 18

Chair - Stepping Out Foundation Tiny start-up investments in individuals Pre-start-up often For credibility To develop an idea To pilot something To encourage exploration Evergreen 19

What do Investors Look For? 20

The Leadership – it’s about YOU Are you sticking around? Are you resilient? Are you open to change? Can you work with others? 21

The Proposition Do we understand it? Is there a proven income model? How will we get our money back? 22

3 Challenges to You as Local VCS Leaders 23

1.Don’t rely on Grants! Philanthropy has natural limits and we may be approaching them This doesn’t address the fundamental problems in a sustainable way 24

2. Find Your Partners! Partnerships make it easier to get big things done because they have credibility with backers Partnerships based on neighbourhoods make for a better whole- place approach Partnerships can build trust and shared understanding 25

3. Take a business-like approach Grants tend to encourage dependency You can achieve more by thinking of what you are doing in terms of a business – even if you measure success differently People like Bob Jones (on next) will show how this can be done 26

ENJOY MY REASONABLE- SELLING BOOKS: ‘Your Chance to Change the World – The No Fibbing Guide to Social Entrepreneurship’ ‘How to Step Out – Your Guide to Setting Up a Public Service Mutual’