Social Enterprises in a world

perspective

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perspective

Jonathan Bland

Social Business International

Many manifestations

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Using market power

• An evil monster enslaving the ordinary

people?

• The lion of freedom, liberating creating

wealth and opportunity bringing progress?

• A special kind of creature?

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• A special kind of creature?

• A VERY POWERFUL TRANSACTIONAL

MECHANISM

• It all depends: Who can access it? How? &

What terms?

Social enterprise is a tool, used by people across the world

• It is a business – there are many

models

• SE can harness the power of the

market

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• Bring social value into an economic

transaction

• Harness competition and dynamism a

driver for social innovation

• It can do great things – it can be

transformative

What is social enterprise?

Business

driven by a social mission

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with passion

making profits

creating value

for community benefit.

Global characteristics

• Clearly defined social purpose

• Trading in the market

• Limited profit distribution

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• Limited profit distribution

• Ownership structures

• Transparency

• Triple bottom line

Responding to challenges

• Economic prosperity

• Access to quality services,

especially welfare

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especially welfare

• The environment

Examples from around the globe

•Social care and integration of

disadvantaged people in Italy

• Schools in Spain

• Jobs in Korea, Thailand and Australia

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Jobs in Korea, Thailand and Australia

• Urban and rural community economic

development in Canada

• Basic services and income in many

developing countries

Routes to social enterprise:

• NGO’s doing business

• New start value driven businesses

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driven businesses

• Public sector externalisations

• Private business conversions and support

Wide approach, different forms

• Broad definition

• Legal forms:

– Companies

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– Co-operatives

– Trading associations, charities, “not for profits”

– Specialist legal forms

UK experience and the context of welfare reform

62,000 businesses - £24b - 800,000 employees

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What does social enterprisecontribute to public service reform?

• Entrepreneurial leadership

• Focus on the user

• Engage and empower staff in different ways

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• Knowledge of needs, what works and what

doesn’t

• Capacity to build trust

• Creativity

• Flexibility, ability to be quick

An entrepreneurial journey for the voluntary sector

• Since 2001: 128% increase in voluntary sector

income from the state (£9.1B public services)

• 75% of government funding to voluntary sector

as contracts

• In housing, social services, employment,

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• In housing, social services, employment,

training, law and advocacy services voluntary

organisations get 50% of their income from

government

• In social care, 88% of income from local

government as contracts or fees

• 1 in 10 CIC’s are social care providers

An entrepreneurial journey for pubic sector employees

• Social care, Leisure Trusts from the late 90s

• Right to Request programme 2008- 2011

Primary Health Care

About over 60 new enterprises being established,

£900m combined turnover, 25,000 staff

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£900m combined turnover, 25,000 staff

Financial support, contracts - stepping stone to

market

• Expansion of policy to other areas – Pathfinders

– part of Big Society agenda

Over a decade of Government policy in the UK

• UK Government/England: SE

Strategy 2002, Action Plan 2006,

range of initiatives up to May

2010

• Scotland, Wales and Northern

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• Scotland, Wales and Northern

Ireland developed their own plans

and strategies

• Now “Big Society”- agenda:

public services, communities,

localism --> “To create the biggest SE sector in the world”

What are the dilemmas for SE & welfare reform

• How are markers made and managed?

• Awareness and understanding of the model?

• Access to capital?

• Business and experience of new social

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• Business and experience of new social

entrepreneurs?

• Capacity – to work at scale but maintain

values and local connections

• How does it fit with wider system reform –

e.g. who pays and how does it work?

What kind of support is found in different countries?

• Specialist legal forms ( they don’t always work!)

• Tax breaks

• Investment funds

• Business support programmes

• Pro-active public sector – procurement, asset

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• Pro-active public sector – procurement, asset

transfer

• Awareness and promotional programmes

• Research

• Private business engagement

So what for Denmark?

• A positive government framework:

recognition, access to markets, investment

• From strategies to action!

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• Know-how: technical issues, leadership

• Build from the base. People need to connect,

share, learn from each other - networks

• Its business, It’s a social movement

Thank You!

• 0203 372 2878

• 358 2 – 5239015

• 358 400 - 430730

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• Jonathan.bland@socialbusinessint.com

• www.socialbusinessint.com