EC15: Social Enterprise 9. Public Enterprise Marcus Thompson University of Stirling

Barriers poor understanding of the particular abilities and value of social enterprise; little hard evidence to demonstrate the impact and added value of social enterprise; fragmented availability of accessible, appropriate advice and support; difficulty accessing and making use of what is perceived to be limited appropriate finance and funding available; limited account taken of the particular characteristics and needs of social enterprise within an enabling environment; and complexity and lack of coherence within the sector, combined with widely varying skills and knowledge bases. DTI, 2002, Social Enterprise: a strategy for success, DTI/Pub 6058/5k/07/02/NP.

Create an Enabling Environment Government’s role in creating an enabling environment  Government’s role is to create the environment in which social enterprises can flourish.  Coordinated action by the DTI, the Regional Development Agencies, Government Offices, other government departments and local government. Legal and regulatory issues  Regulatory, tax and administrative framework should not hinder the development and growth of social enterprise. Public procurement  The Government believes there is potential for more public services to be delivered by social enterprises, and that local authorities in particular have an important role in opening up procurement processes.

Make Better Businesses Business support and training  Social enterprises need access to good quality business advice and training. The Government is committed to working with training providers, whether public sector or private, to ensure that the level and quality of support for social enterprises available in some parts of the country, and in some sectors, is made available to all. Finance and funding  Many social enterprises are undercapitalised and struggle to access external finance, particularly when starting up, growing or moving away from grant dependency. Central to strategy to encourage social enterprises to move away from grant dependency and towards greater self-financing.

Value of Social Enterprise Establish the knowledge base  Insufficient detailed information on the number of social enterprises in the UK and the Government acknowledges that there is an urgent need for research to determine the exact size, strength and spread of the sector. Recognise achievement and spread the word  The Government has a crucial part to play in the active promotion of social enterprise, and that awards offer the opportunity to recognise and reward success, promote the sector, and provide examples of innovative and entrepreneurial models for other enterprises. Create trust  The ability to show that a social enterprise is meeting both its financial and its social bottom lines will be increasingly important if social enterprises are to play an expanding role in the delivery of public services.  To build confidence, it may be helpful to develop and agree minimum standards of behaviour or an accreditation system – for instance along the lines of Investors in People - which allows ‘social enterprise’ to be clearly identified and ‘trusted’.

Existing Support Infrastructure The Network includes:  Development Trusts Association (DTA)  The Co-operative Movement  Community Action Network  Social Firms UK,  Social Enterprise London.  Social Enterprise Coalition Supplemented by regional support networks and by financial support from the Phoenix Fund.

Role of Enterprise in Government Hierarchy Continuity Impersonality Expertise Service provision Catalyst Empowerment Competition Focus on consumer Earners rather than spenders Market rather then bureaucracy Enabler not provider OLDNEW