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Micro enterprise: harnessing community capacity to deliver great outcomes and savings

Learn about Community Catalysts and their micro-enterprises providing various support services. Discover the importance, challenges, and the support model for these local businesses. Find out how they benefit communities and individuals alike.

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Micro enterprise: harnessing community capacity to deliver great outcomes and savings

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  1. Micro enterprise: harnessing community capacity to deliver great outcomes and savings Sian Lockwood, CEO Community Catalysts

  2. What is Community Catalysts? • A social enterprise and a wholly owned subsidiary of NAAPS UK, the small community services network • Aims to make sure that people wherever they live have real choice of great local social care and health services • Works to harness the talents of people and communities to provide high quality small scale and local support services.  

  3. Micro providers • Are local people providing support and services to other local people • Work on a very small scale (5 or fewer workers – paid or unpaid) • Use a variety of business models (70% sole traders or partnerships) • Deliver on a continuum from fully voluntary at one end to fully commercial at the other • Are bought by people from their own money or personal budget

  4. What types of services do they provide? People buy support and services to help them to live their lives - many micro enterprises deliver services that fall outside health and social care such as: • Supported tenancies • Well being and health • Leisure and arts • Holidays and short breaks • Friendship or good neighbour • Drop in centres and lunch clubs • Advice and representation • Transport

  5. Why are micro providers important? • Offer choice of personalised services to help people to live their lives and meet health and support needs • Cost beneficial– help to develop social capital; services on a continuum from fully/semi voluntary (30-40%) to fully commercial. • Bring tangible assets for community benefit • Route into work for local people - encourage self employment and create local jobs • An option for public sector employees (eg: exercising the new ‘Right to Provide’)

  6. Why does micro enterprise need support? • 90% of unsupported micro enterprises fail in the first year. Business, Start Ups and Economic Churn: A literature review: NIESR: 2009 • About half of the micro enterprises surveyed operate sub legally MacGillivray, A., Conaty, P., and Wadhams, C. (2001) Low flying heroes: micro-social enterprise below the radar screen, London: New Economics Foundation. • For every 100 people with a good idea only one makes it UnLtd July 2010

  7. State of the typical local social care micro market • There will already be some micro enterprises • Many of them will only be viable because of continuing grant aided funding - remove that and they will fail • Good micro enterprises will be closing because of commissioning, regulatory and legislative barriers • Barriers to entry will be deterring new enterprise - and 90% of those that set up will fold after a year • Existing third sector and business infrastructure organisations will not be able to provide the tailored support needed for the full range of micro enterprise

  8. The micro enterprise support agency model Developed and tested with funding from DH • Scopes, identifies and engages with current micro providers. Can help them to regenerate or remodel • Provides a single contact point for local people with good ideas who want to set up services • Links customers and potential providers • Makes best use of existing advice and support agencies by sign posting and information • Gives people help to overcome barriers • Facilitates peer-to-peer mentoring through association membership

  9. The micro support agency model in practice: case study from the North West Over three years: • 78 would-be micro entrepreneurs were supported. • 52% (36) successfully established flourishing enterprises  • 83% were still flourishing at the end of 3 years • 850 disabled and older people were using micro services • 140 jobs and 40 volunteering opportunities had been created.

  10. Value for money: Comparative cost For enterprises offering day support/activities (using local authority figures): Average charge (including support agency costs) is £32.85pd Typical traditional day centre charge is £45pd

  11. For more information Contact : Sian Lockwood sian.lockwood@communitycatalysts.co.uk

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