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SOCIAL ENTERPRISE AND PUBLIC SECTOR PROCUREMENT: Voices from social entrepreneurs and public sector procurement professionals in the UK Sarah-Anne Munoz and Heather George SERC Conference, London South Bank University June 27 th 2008. Introduction.
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SOCIAL ENTERPRISE AND PUBLIC SECTOR PROCUREMENT: Voices from social entrepreneurs and public sector procurement professionals in the UK Sarah-Anne Munoz and Heather George SERC Conference, London South Bank University June 27th 2008
Introduction • Emerging themes in social enterprise-public sector procurement research: • Selling to the public sector as a strategy to increase social enterprises’ traded income. • Benefits to social enterprise of selling to the public sector,e.g. security of contract. • Delivery of services by social enterprises where public/ private provision has failed. • Barriers to social enterprises wishing to sell to the public sector. • Public sector perceptions of social enterprise.
Methodology • Focus groups: • Small groups discuss a particular subject. • Researcher initiated, but participant-led, discussion. • Snowballing recruitment method, utilising local gatekeepers. • Theme: Agents for Change – social enterprise and the public sector • Participants: 40 social entrepreneurs and 17 public sector staff.
Focus Groups – broad questions • Agents for change – the public sector and social enterprise: • Who/ what do you think are the current/ potential instigators of change? • In particular, what is the role of the social entrepreneur as a driver for change? • What types of policy changes could help social enterprises engage with public sector procurement? • What are the challenges for social enterprises and the public sector when trying to develop a procurement relationship? (Think about barriers and obstacles to change) • How could communication and networking between different public sector bodies and social enterprises be increased? Would this lead to a more mutually-beneficial procurement relationship?
Agents for Change – the Public Sector The public sector – potential to be a very important agent for change. Social enterprise practitioners look to the public sector to review their procurement processes. Some individuals within the public sector feel over-whelmed by this remit.
Agents for Change – the Public Sector • The Public Sector – current strategies for change: • Simplifying tender documents. • Attempts to factor social and community benefits into tender specification. • Instigation of staff training in sustainability and the writing of social and environmental clauses. • Development of on-line guides to procurement. • Organisation of events to explain procurement process to social enterprise workers.
Agents for Change – the Public Sector • The Public Sector – priorities for future change: • Standardisation of procurement practices and processes. • Foster attitude change amongst staff. • Promote understanding of procurement processes in the social enterprise sector. • Build on the enthusiasm of current ‘key drivers’ of change. • Greater marketing of help that is currently available for social enterprises. • Greater consideration of added value measurement tools.
Agents for Change – Social Enterprise Social Enterprise Practitioners – valuable agents for change. Commitment to measuring added value/ benefits. “Attitude Change” – consortia and clusters “Culture change” – shift from grant thinking
Barriers to Change (and over-coming them) • Larger contract size: working in collaboration; sub-contracting. • Budget cuts and efficiency savings: proving the true value of social enterprise; proving that social enterprises can meet public sector objectives. • EU Procurement Rules: increasing awareness. • Tenders that don’t meet the standard: helping social enterprises write professional tenders. • Lack of understanding of social enterprise within the public sector: increased training and dissemination of knowledge at all levels. • Lack of communication: networking and meet-the-buyer events. • Perception of risk averse culture: strategies for recognising the value of innovation.
Conclusions • Public sector and social enterprise can both act as agents for change. • Barriers to change require tailored solutions. • A culture change is called for within both the public and the social enterprise sectors. • Social entrepreneurs are looking towards different ways of working (clusters, consortia). • The type of change most called for by social entrepreneurs is a review and adaptation of tendering specifications and processes. • Future research – understanding perceptions.
THANK YOU Dr Sarah-Anne Munoz Researcher SDRC 01309 678111 Sarah-anne.munoz@sdrc.uhi.ac.uk