Social Enterprising Challenges in the Health and Social Care Sectors

1. Leeds University Business School Social Enterprising Challenges in the Health and Social Care Sectors Evidence from Theory & Practice Leeds University Business School Professional Services Research and Innovation Hub Dr Vassiliki Bamiatzi, Lecturer in Entrepreneurship Dr Gianluca Veronesi, Lecturer in Accounting & Finance

2. Research Project: Brief Description The research project investigates the impact of SEs in the health and social care sector, in particular with reference to the role and behaviour of professionals in these relatively novel organisational forms. Aiming to answer questions such as: What is the impact of social enterprises on the traditional model of professional behaviour? What are the implications of social enterprises on professional identity? Do they have any impact on the underlying ethics, beliefs and values of professionals? What kind of relationship exists between governance of social enterprise and professional regulation?

3. Research Project: Motivation • Great focus has been placed lately on transforming bureaucratic and inefficient public and non-profit organisations into more competitive and socially efficient organisational models (e.g. “Right to Provide” initiative) • SEs are believed to be capable of successfully employing innovative and flexible solutions to social problems that generate change • Yet empirical studies on SEs have so far been rather limited and fragmented, based solely on singular case study and anecdotal evidence and failing to provide a clear and objective view of the phenomenon • Within the health and social care sector in particular, the short track record of SEs has made even more difficult to assess, in concrete terms and beyond anecdotal evidence, SEs benefits

4. Research Project: Methodology • Three -stages project: • i.A mapping exercise of the social enterprises (SEs) operating in the health and social care sector • Exploratory interviews and focused group discussions are instrumental in delineating key issues, constructs and measures to be incorporated into our conceptual framework that will guide our data collection efforts. • Development of a data collection instrument and data gathering across the country • Building benchmark case studies • A Networking Event in Spring 2013 to provide more visibility and resonance to the research findings

5. Social Enterprising: Definition Paradox • Controversy surrounds the definition of a “social enterprise” in the academic literature due to the two ambiguous and somewhat controversial words the term entails: Social (value) and Enterprise • Enterprises are largely driven by profits and their performance is measured in financial returns… • Entrepreneurs, including those who lead social ventures, usually pursue multiple goals that include a diverse set of personal objectives. • Social Entrepreneurs create social value through innovation and leveraging financial resources…for social, economic and community development • Simultaneously pursuing both a financial and a social return on investment • Policy makers: • A business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners” (DTI)

6. Social Enterprising: Benefits • As presented by the Social Enterprise Survey in 2011 • 1. Economic: Rising is the contribution of SEs to the UK economy • SE SMEs == £24 billion GVA (Gross Value Added) • £175,000 (2009)  £240,000 (2011) (median annual turnover) • Growth: 58% of SEs grew last year compared to 28% of traditional SMEs • Innovation: 55% of SEs launched a new product or service last year, compared to 47% of traditional SMEs • Economic & Social : 39% of all social enterprises work in the 20% of the most deprived communities in the UK. Their profits are reinvested back in the community Benefits 62,000 social enterprises in the UK

7. Social Enterprising: Benefits As presented by the Social Enterprise Survey in 2011 5. Employment: Creating more jobs than mainstream small businesses in all regions 6. Diversity & Equality: 86% of leadership teams are consisted of at least one Female director, 27% of leadership teams have directors from Black and Minority Ethnic communities, and 7% have directors under the age of 24 7. Environmental sustainability: 88% of the SEs seek to minimize their environmental impact 8. Accountability: all SEs are accountable to their communities, with the majority of them actively involving their beneficiaries in the decision making process. Benefits 62,000 social enterprises in the UK

8. SEs in the Health & Social Care Sectors Caring for our future: reforming care and support (White Paper, July 2012) www.official-documents.gov.uk

9. Themes of the Research Motivations and Expectationsfrom Social Enterprising Professionalism Innovation in Social Enterprising

10. ….Motivations and Expectations Social Enterprise Survey 2011 – Social Enterprise UK: Fightback Britain

11. ….Motivations and Expectations The “Right to Provide” initiative provides the right to people working in Health or Social Care to develop a staff-led enterprise which can deliver more flexible, responsive services, whilst having ownership and real influence in the way the service develops. Which are YOUR main motivations and expectations for opening up your own Social Enterprise? • Think also and discuss about: • Are SEs going to be a main player in the market? Or are they just there to fill gaps/weaknesses? • From your experience, how do you find staff/community engagement?

12. ….Professionalism Difficulties associated with the involvement in business especially of people that have been ignorant of the business environment, e.g. doctors, nurses, social care staff etc. • What is the role of professionals in SEs? • Can you see differences between diverse types of professionalism? • Do you feel that certain entrepreneurial characteristics are missing from those professionals that turned into SEs? • Is there any conflict between the new roles (e.g. doctors becoming entrepreneurs)? • Please provide examples from your experience…

13. ….Innovation Innovation is a vital element of entrepreneurship and crucial for any enterprise success. All definitions of “Social Enterprise” entail the element of innovation (see table with SE definitions provided) The right to provide gives NHS and social care staff the opportunity to innovate and redesign services in flexible ways, to deliver services responsive to the needs of the community and people they serve. • What do you understand with the term ‘social innovation’? • Which are the innovative elements of social enterprise? • What kind of innovation is possible in Health and Social Care Sectors? • Please provide examples from your experience