Social enterprise research: CIC-ass results?

Posted on August 15, 2006 by sse

All bad puns aside, the research in this month’s Social Enterprise Magazine on CICs makes interesting reading. The survey of the 296 CICs (they interviewed 65 of those, which is not a bad sample size) has some good stats to chew on. Most interesting is the "Why did you choose a CIC structure?" question, of which the results were:

– Most appropriate form between business and charity: 43%
– Less regulation than charity: 19%
– To prove social purpose: 16%
– Asset lock: 9%
– Clear brand: 8%
– To get funding: 3%
– Simplicity of setting up: 2%

Although I remember several of the early CICs saying that they were in it for the free PR! Though maybe that comes under "clear brand". Obviously, for most organisations it would have been a mix of all of the above (they also asked "which was the most important factor for your decision?", and proving social purpose came top, followed by less regulation)…..it is intriguing that the asset lock scored relatively lowly, although the regulator’s role is also a key part of the CIC make-up, and that was obviously welcomed.

The other stats that seemed most interesting to me were the regional breakdown (19% London, 15% South East, 12% South West, %10 North West and all others between 3% (Wales) and 9%) and the "What is the biggest barrier facing your company?" The answers to the latter were as follows:

– Access to finance: 37%
– Lack of understanding of CIC model by others: 20%
– Dealing with growth/cashflow issues: 9% (surely these are separate problems?)
– Winning business/contracts/sales: 8%
– Finding premises: 6%
– Getting the right staff and skills: 6%
– Marketing: 6%
– Other: 5.5%

So, there is obviously further work to do promoting the CIC model, but it’s still early days, so that comes as no surprise, really. Nor does the ‘access to finance’ issue….is this ever not a barrier for any business, I might ask, if I was being unfair – but just because we always hear it doesn’t mean it’s not true (or still true). It’s also good to see that the model can be used by a diversity of different businesses (environmental, youth, restaurants, transport and so forth). The finding that the "typical manager is aged between 30 and 50, white and male" is less encouraging, and I hope the SSE can help in changing that picture (which is probably similar for the sector as a whole).

Other research is available for download from SEL’s website: the Social Enterprise Journal, Volume 2 (pdf), which has some interesting pieces worth a flick through (or a longer peruse, if you find the time). Most relevant to us seems to be the "Developing fledgling social enterprises? A study of the support required and means of delivering it" and "Developing emerging social enterprise through capacity building", so I will report back on those another time…….

Third Sector Review + a Breakthrough in social investment

Posted on July 25, 2006 by sse

Spent yesterday at the Treasury / Cabinet Office Third Sector consultation (focusing on social enterprise) as part of the Comprehensive Spending Review. All off-record, but thought I would just mention that Ed Miliband (who attended the London SSE Fellowship ceremony last Thursday) quoted Becky Barrett, one of the new Fellows, as an example of those individuals driving change, repeating her immortal words, “I realised frozen potato waffles weren’t going to change the world”. Nuff said, methinks. [more on the ceremony soon]

The consultation was interesting, if (inevitably) too brief, slightly restrictive and too short (again!) of practitioners. And, yes, I know I was only making that worse, but hopefully I was representing our myriad of Fellows as well as SSE itself. As ever with such things, fine and welcome words were heard: the proof will be in the eating….

Another event tonight, the launch of CAN‘s new Breakthrough investment fund, in association with leading international private equity firm Permira. The Telegraph has a write-up, which is worth a read, and the event features that man Ed Miliband again, the chief execs of Permira and CAN + the journalist David Aaronovitch….should be interesting. Amongst the first three organisations to benefit from the new investment/venture philanthropy initiative are Green Works and, intriguingly, TimeBank, the volunteering charity that government helped establish.

Replicas exactas Golden GooseI say intriguingly because the latter choice shows that Permira and CAN are using a broad definition of social enterprise, which is to be welcomed. Time Bank is a charity primarily funded by government, trusts and foundations and corporate sponsors/partners, so will not be some people’s idea of social enterprise; but it may also be taking risks, acting entrepreneurially, grasping opportunities, developing new initiatives and so on, meaning it has a place in the wider world of social entrepreneurship.

The Hot 25: new social entrepreneurs joining the SSE Fellowship

Posted on July 19, 2006 by sse

As blogged previously, tomorrow (Thursday) and Friday see 25 new SSE Fellows graduating their programmes in London and the East Midlands. Here’s the press release:

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The Hot List: social entrepreneurs blazing a trail this
summer

On Thursday July 20^th, 25 social entrepreneurs
will graduate from the School for Social Entrepreneurs in London and the East
Midlands, all of whom run projects and organisations that are meeting unmet
social needs in innovative ways.

The graduations will celebrate the success and achievements
of these true changemakers. It will give them deserved recognition, and also
give an insight into how such individuals are changing the way we view the old
divide between private business and social welfare.

Those graduating include:

–
Sheenagh Day, who has established Maison Bengal, a fair trade company
selling housewares and gift items from Bangladesh;

–
Charlotte Benstead, who runs In-Spire, a community centre for learning and
the arts based in Walworth, South London;

–
Dave Pitchford, who is setting up the first independent online
information and advice service for individual donors giving to charity.

The London event will be hosted by writer and broadcaster
Simon Fanshawe, and feature a keynote speech from Ed Miliband, Minister for the
Third Sector.

Ed
Miliband MP says
“Today’s graduate social entrepreneurs are truly inspiring individuals
whose extraordinary initiative and driving social conscience demonstrate
just what the social enterprise movement is capable of achieving.

“The
School for Social Entrepreneurs is in the vanguard of training a new generation of social
entrepreneurs, and must be congratulated on its success in
promoting better understanding of social enterprise and
embedding the desire to tackle injustice through community
action.”

Alastair Wilson, Chief Executive
of the School for Social Entrepreneurs says: “Social entrepreneurs are
the ones making change in their communities and fields of work, challenging the
status quo, and solving the problems they find. They all deserve our
congratulation and continuing support.”

Notes
to Editors:

The London graduation will take place at the Amnesty Human Rights Action Centre, EC2A 3EA, between 1pm and 5pm. The East Midlands graduation is at Chase Community Centre, a social enterprise in Nottingham, from 10.30am-2.30pm

Twenty-five students will be entering the SSE Fellowship today; fourteen after graduating from the London School’s Ready Steady Grow programme, and a further eleven from the East Midlands SSE’s programme.

For further information and interviews with social entrepreneurs contact: SSE on 020 8981 0300 or office [at] sse.org.uk

4. The SSE was founded by serial
social entrepreneur Michael Young, who also established the Open University and
the Consumers’ Association. It provides support to individuals who are acting
entrepreneurially for social benefit, rather than personal profit. There are
now over 250 Fellows who have completed the programme since 1998. See www.sse.org.uk
for morewww.luxusnitasky.com

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