The UK landscape for social enterprise Ólöf Jónsdóttir Policy and Public Affairs Manager, SEUK

1. The UK landscape for social enterpriseÓlöfJónsdóttirPolicy and Public Affairs Manager, SEUK

2. Four things... • The history of social enterprise in the UK • Major initiatives in the UK • Challenges and opportunities • Lessons learned

3. What is social enterprise? • Businesses driven by social and/or environmental purpose, as set out in their governing documents • Trading organisations • Reinvest at least half their profits towards their social mission • Are accountable and transparent • Inclusive governance structures • Assets are often locked for community benefit • The Big Issue: A magazine supporting homeless people • Divine Chocolate: A chocolate company working with worker co-ops in Ghana • Hill Holt Wood: Preserving an ancient woodland and providing education programmes • Sandwell Community Caring Trust: a social enterprise delivering adult social care

4. Social Enterprise in the UK –a short history • 1844 Rochdale Pioneers ….growth of whole variety of models and business types… • 1960s/70s Fair trade movement emerges • 1980s Growing number of organisations emerge during the recession, ‘social enterprise’ begins to be used (by co-op movt) • 2001 Social Enterprise Unit founded by the government • 2002 Social Enterprise Coalition founded (now SEUK) • 2005 Community Interest Company structure created • 2006 Office of Third Sector created (now Office of Civil Society)

5. Social enterprise in the UK today • 68,000 social enterprises in the UK (5% of all businesses) • Contributing £24 billion to the UK economy and employing over 800,000 people. • Operate in almost every sector: from health and social care, to renewable energy, transport, retail and housing • There are many routes to becoming a social enterprise including: • spinning out of parts of the public sector • entrepreneur-led organisations • charities becoming more business-orientated

6. Major initiatives • Voice and recognition: • Social Enterprise UK • Social Enterprise Unit/Office for Civil Society • New legal forms – CIC and CIO

7. Social Enterprise UK • Established in 2001-2 as the national body for social enterprise • Membership organisation: over 600 members; reach to over 10,000 • Bring together all the different forms of social enterprise under one umbrella • Main purposes: • Influencing government and the political parties • Raising awareness and showcasing • Broker, facilitator, market builder

8. Office for Civil Society • Social Enterprise Unit established in Department for Trade and Industry 2001 • Subsumed into new Office for the Third Sector • Social Enterprise Action Plan 2006 launched by Ed Miliband, Minister for the Third Sector • Social Enterprise Ambassadors Programme • Re-named Office for Civil Society 2010

9. New legal forms • CIC launched 2005 as first new legal form for UK organisations in over 100 years • Two options – limited by guarantee and by shares • Around 7500 CICs now created • CIO launched 2012 as new legal form for charities

10. Major initiatives • Public services and social enterprise: • Trend towards outsourcing • Public sector spin outs • The Social Value Act 2012

11. Public service outsourcing and spin outs • Growing trend towards outsourcing services, goods and works over the last few decades • Currently driven by Open Public Services agenda • Accompanied by trend in spinning out services • Given impetus by the Department for Health’s Right to Request initiative in 2008 • Boosted by current focus on mutualisation

12. ThePublic Services (Social Value) Act • The social enterprise sector has long called for social value to be factored into commissioning • Social Enterprise UK included this in our 2010 General Election manifesto • In July 2010, Chris White MP tabled the Public Services (Social Enterprise and Social Value) Bill • The Act applies to : • contracts over the EU thresholds • public services contracts (not goods and works)

13. Major initiatives • Consumer and business to business buying from social enterprise: • Social Enterprise Mark • Buy Social campaign

14. Social Enterprise Mark • Lack of UK legal definition led to calls for a social enterprise “identifier” • Certification scheme for social enterprises, akin to Fairtrade mark • National roll out in 2010

15. Buy Social campaign

16. Major initiatives • Social finance and investment: • Big Society Capital • Social Impact Bonds

17. Big Society Capital • Initiated in 2008 as the Social Investment Wholesale Bank • Launched in 2012 as Big Society Capital • Resourced by funds from dormant bank accounts • Aims to lever in private sector capital and has an estimated £600m in currently committed funding

18. Social Impact Bonds • A form of outcomes-based contract for public services • First social impact bond launched in September 2010 - One* SIB – at Peterborough Prison • New bonds being launched in: • Criminal Justice • Vulnerable Children • Health • Unemployment • Rough Sleeping

19. Opportunities and challenges • Government • Open Public Services • Localism agenda • Social value • Consumer • Ethical consumerism • Government • Cuts – tighter budgets • Aggregation of contracts • Pace of change • Consumer • Lack of awareness of SE

20. Lessons learned • Power of collective voice • Importance of cross-party support • Positivity of the sector • Collaboration with other sectors

21. Any questions?olof.jonsdottir@socialenterprise.org.ukwww.socialenterprise.org.uk