Social Value Summit
On Monday we went to the Social Value Leaders’ Summit. Thanks to Livewell SW for supporting us to attend on your behalf.
This event saw the launch of a government consultation on Social Value in procurement. Oliver Dowden, Minister for Implementation, described how government spending could create diverse and safer supply chains, improve inclusion and wellbeing, reduce environmental impact and encourage development of employees. There was a timely BBC news story about it too.
These are warm words but the devil is in the detail and this is just a consultation. We urge you to put in your own response and PSEN will lead a collective reply to this as it seems crucially important and, potentially, a great opportunity for members that have business with government. It also sets the tone for a wider range of public sector organizations to follow. Here in Plymouth our local council has done some ground-breaking work on social value and we hope this can be extended across the public sector in the city. Other themes from the event were:
- Universities increasingly seeing themselves as ‘in service of society’ and well-placed as large anchor organizations to champion social value and procure with purpose
- How the local industrial strategies need to support re-structuring the economy to make it fairer. This is another consultation we urge you to get behind. There is an event on the local industrial strategy on 25th March you should attend if you can. Book here.
There is a report on the event from Pioneers Post here
Social Enterprise Places
On Friday we represented Plymouth – as the UK’s first Social Enterprise City – at the national Social Enterprise Places conference. This brought together some of the 30 counties, cities, villages, towns and zones that are demonstrating social enterprise at its best. The event was sponsored by NatWest and facilitated by SEUK. Key learning from the event:
- Need for the places to come together more strategically with SEUK in response to local economic policy making and sharing intelligence
- Need to raise public awareness of the social enterprise places movement
- Increasing market opportunities for social enterprise in the places through Corporate Buy Social and other campaigns
- Opportunities through NatWest on investment and local business support which we will share separately
- SEUK are launching some new videos with celebrity patrons in partnership with the Co-op. Watch out for these soon.
To stay up to date with where we are on your behalf please do sign up to the newsletter and follow us on Twitter.
There are two problems at the heart of Britain’s economy: that of driving fair, sustainable growth and that of boosting productivity. The focus has been, for too long, on the latter. We need a shift to investing in, buying from and supporting social enterprises.
We need an economy where businesses create decent work and the where the dividends of growth and prosperity are more equally shared. Check out your history books at the pages on Russia and France: if the rich get richer and the poor get poorer we can head, ultimately, into violent revolution.
The proceeds of growth are, too often, not shared fairly and this leaves many workers dispirited. Too many businesses are focused on minimising their tax bill, rather than contributing a fair share to fund public services. The largest social enterprises and co-operatives in the UK pay more in tax than Amazon, Facebook, Apple, Ebay and Starbucks combined.
Our local economic policy is fixated on productivity. It is a thorny problem: it takes us five days to produce something that Germans do in four. The reasons for this are vexed and no-one seems to be able to put their finger on what might be the problem and how to solve it.
We need a radical shift in the way we think about business and a move to a more socially enterprising economy. This is golden opportunity for the region to create productive, inclusive prosperity. Social enterprises not only create jobs and wealth, they do so more fairly and more innovatively than standard businesses and they also tackle social and environmental problems at the same time.
So, what are social enterprises? Simply put a social enterprise is a business with a good cause at its heart that dedicates its work and its profits towards achieving this good cause. My nine-year-old daughter described them as ‘businesses that help people’ which I thought pretty much nailed it. Nationally famous social enterprises include The Big Issue and Divine Chocolate. But did you know that there are social enterprise banks, book shops and bakeries? There are sport shops, florists, pharmaceutical companies and toilet paper makers. There are also gin, wine, whisky and beer producing social enterprises! Pretty much all sectors of the economy have a social enterprise in them somewhere. Although maybe not in the arms and tobacco industries.
Social enterprises can take many forms. They can be co-operatives, community businesses, trading charities, community interest companies or a myriad of other hybrid ethical structures. This can cause problems of definition but all are united by a common feature: that of using business to tackle social or environmental problems.
Here in the South West we are blessed with some world leading social enterprises. We have The Eden Project and Jamie Oliver’s Fifteen Restaurant in Cornwall. The University of Plymouth was the world’s first accredited social enterprise university and Plymouth was the UK’s first ‘Social Enterprise City’ – a virtual brand that has led to over £6 million of investment into the city in the last three years. Livewell Southwest operates across large parts of Devon and is one of the largest health and social care social enterprises in the UK. Plymouth Energy Community, which raised over £3 million to put solar panels on schools and Plymouth’s Life Centre, has revolutionised the way we look at local energy generation, investment and community ownership.
Across Devon and Somerset there are well over a thousand social enterprises. Their combined turnover is £1.5 billion per year and they employ close to 33,000 people. That’s big – and small – business but, despite being a significant part of the economy that is better for all of us, it is still marginal in government policy making.
So back to why investing in social enterprise is an answer to solving the knotty problem of a fairer economy. Here are some killer facts. Social enterprises are more likely to innovate and are more profitable than standard businesses. Social enterprises are more likely to be led by women. They are starting up at a faster rate and are operating in the most disadvantaged parts of the region: where we most need businesses to work to create productive growth. Critically, social enterprises are also much more likely to pay more fairly: over three quarters of social enterprises report paying the living wage to their employees.
Social enterprise shows us that we can create a vision of a better world driven by business. And this is a pro-business and an unashamedly ‘for profit’ agenda. The more profit we make the more good things we can do with it.
It is social enterprises that are building the inclusive, prosperous, productive economy we need to rejuvenate our high streets, treat workers and pay women fairly and tackle deep rooted social and environmental issues.
Business can make us noble or be a tool for oppression and control. Increasing unfairness can lead to deep societal problems. We need to enhance and protect our environment whilst creating decent jobs. I think social enterprises can create solutions and offer an alternative, compelling vision. One based on business.
PSEN Director Annette Dhami attended the POP+ Conference earlier in the year and talked about how PSEN founders came together to launch the network, and what this action has gone on to create.
It went back 8 years.
Michelle Virgo from Dartington School for Social Entrepreneurs, Dave Kilroy from Social Enterprise Outcomes, Ed Whitelaw from Real Ideas Organisation and Gareth Hart from Iridescent Ideas CIC sat around a kitchen table on a windy autumn afternoon over coffee. One year before, a research study had been done to see whether Plymouth’s growing social enterprise sector would benefit from a network that could support it. The study found that it could. In 2010 an event was run to discuss getting one started, but representation from the social enterprise community itself was low, and the ball didn’t start rolling. Without Plymouth social enterprises taking the lead, another organization from Exeter was awarded a pot of funding to try to get it going, but – not being based in Plymouth – traction didn’t take, and when their contract ended so did the activities.
Over coffee, Michelle, Gareth, Dave and Ed had a question to discuss: did they, representing their various social enterprises, feel that they could get a Social Enterprise Network for Plymouth going? And where on earth would they start?
They knew that there were things on their side: they were all passionate about social enterprise and the type of inclusive and sustainable economy that it could help to build in Plymouth. They were all committed and willing to chip in. They represented social enterprises in Plymouth, so who better to do it? They decided to try.
Plymouth Social Enterprise Network was formally constituted in May 2011 and began its work by arranging regular meetings of 10-20 people. Learning quickly, a Board of Directors was soon set up to change the focus of these meeting from ‘how do we run a network’ (now done by the smaller voluntary board) to ‘these are the great things are happening in Plymouth and let’s celebrate them’ (with growing participants to do so). Before long, they secured funding to run a large conference – now run as the annual Social Enterprise Festival – and launched the first directory of social enterprises in Plymouth. They conducted research into the state of social enterprise in Plymouth, and started to reveal information about how important the sector was becoming. As this was being published, Plymouth University announced itself as a social enterprise, adding even more weight to the sector. £500 million income and 6,000 jobs were identified from the sector in Plymouth, securing coverage from national press.
They ran an event asking: ‘Social Enterprise City: What, Why and How?’, wondering what it would mean to be a city that champions social enterprise approaches. National speakers became to attend events, recognising the buzz in Plymouth. They began to organise bigger conferences, including the next social enterprise festival, this time a week long.
In 2013 Social Enterprise UK launched their Social Enterprise Places badge, looking for hotspots of activity in the country where social enterprise was thriving. With all the work done in previous years, PSEN was able to quickly evidence the case for Plymouth and over a few days worked to pull together a bid. It was successful, and in September 2013 Plymouth was announced – along with Bristol – as the first Social Enterprise City in the UK. Plymouth was put on the national map as a go-to place for social enterprise, and international universities, major funders and large organisations started to travel to Plymouth to find out more.
In the last five years PSEN has leveraged this opportunity to develop the support for Plymouth’s social enterprises further. It launched a paid membership model, to ensure that trading income was at the heart of its work and that the network would be financially accountable to social enterprises in the city. PSEN Board members began to be invited to influence governmental policy, sitting on the Plymouth Growth Board and the Plymouth Inclusive Growth Flagship; at the Local Enterprise Partnership level; and working with Social Enterprise UK, national government and other powerful players to champion social enterprise as a way to create a more inclusive and sustainable economy.
Between 2013-2015 PSEN ran even bigger social enterprise festivals, with – for example – over 2,000 people attending over the course of two weeks.
By lobbying for support and raising awareness increasing funding was secured to support social enterprises in Plymouth. Power to Change, the Seedbed Incubator Programme, Esmee Fairbairn, The Rank Foundation and Plymouth City Council are among the supporters that have funnelled over £6 million of finance and support into social enterprise support as a result.
With support for social enterprise growing, social enterprise is increasing its contribution and influence in the Plymouth economy. Progress has been notable, but there is more work to do. We want to see an economy with social businesses not at its periphery but at its core. Whilst we continue to be run by passionate and committed people representing a range of social enterprises in Plymouth, we will continue to try.
Come join us for the 2018 Social Enterprise Festival to learn more about the exciting things happening in social enterprise in Plymouth and ways to be involve.
Plymouth is the national flagship city for compassion but what does this mean for our social enterprises. Tam Fowles, Director of Hope in the Heart CIC explains about how compassion can help your business thrive and more…
We need to talk about compassion. This is a conversation that needs to take place in many contexts. We also need to talk about why people in business don’t talk more about compassion. Too often I have heard “there’s no place for compassion in business”, and this belief is reflected in the practices and policies of many corporations. But social enterprises are often born of compassion and there is much to be learned from this source of inspiration that could positively affect all businesses, and significantly increase their productivity.
What is compassion? Neuroscientist Dr James Doty, of Stanford University’s Center for Compassion and Altruism Research and Education (CCARE), describes it as “the recognition of the suffering of another with a motivational desire to alleviate that suffering”. Global character education programme, the Virtues Project, says “Compassion is deep empathy for another who is suffering or living with misfortune…and a strong desire to ease their distress.” Many social enterprises are founded with the express purpose of alleviating suffering and easing distress. An article from the Vanderbilt University Owen Graduate School of Marketing states that “a commitment to helping others … encourages individual entrepreneurs to devote more time and energy to creative and flexible thinking than if they were making decisions to benefit only themselves” and that “compassion…acts as a prosocial motivator of cognitive and emotional processes that are preconditions for undertaking social entrepreneurship”
There is a link between the business world and the research world, suggests Emma Sappala, Associate Director at CCARE, as “research on compassion is setting a new tone for the workplace and management culture.”
Having worked with numerous groups on the subject of compassion, I have seen first-hand the change that can take place when individuals are encouraged to focus on compassion. Noticing incidents of compassionate action taking place in their various environments, and looking for opportunities to make the compassionate choice in every situation can change a person’s perspective on the world, replacing the cynicism born of negative media bombardment and general daily stress with a sense of hope, potential and achievement. When this happens throughout an organisation, the positive change is magnified and the culture can be transformed.
When compassion is a conscious aim, with appropriate boundaries and policies in place, leaders, employees and service-users find a shared focus which can provide a sense of unity, purpose and belonging. Respect and mutual consideration are high, and a general feeling of wellbeing is likely to permeate the business. Modelling compassion within the local community can create a ripple-effect, as others are attracted by the positive feelings and outcomes generated by the compassionate business. Employee health is increased and staff are likely to stay in their role longer. Customer service is improved with a corresponding positive effect on production.
Since its inception in 2008, Charter for Compassion International has engaged hundreds of businesses on many continents, in its business sector and across 11 other sectors.
There are opportunities for businesses in Plymouth to join the global compassion movement, increasing their focus on compassionate action and reaping the considerable benefits while helping to build a critical mass of compassionate businesses intent on changing the culture of business in their communities. Plymouth was registered as a Compassionate City with Charter for Compassion International in January 2017, and has become the flagship city for compassion in the UK, with several projects being piloted that will contribute towards a “Plymouth Compassionate City Model” for other UK communities to follow. Hope in the Heart CIC is currently leading the Compassionate Plymouth City Initiative, whose steering group includes representatives from The Zebra Collective, Lifeplay Learning and St Luke’s Hospice (the latter has also introduced a separate end-of-life focused Compassionate City Charter to Plymouth).
Any business, organisation, school, group or institution can become a partner of CCI and Compassionate Plymouth, at no cost and with many benefits. These include visibility on the CCI website and the opportunity to network and share resources with other compassionate businesses in many locations, as well as a chance to play an active role in the development of Compassionate Plymouth as a model community for the UK. Several local social enterprises and others have already registered. Hope in the Heart has funding from the Esme Fairbairn Foundation, via POP+, to deliver a number of half-day workshops introducing CCI and CP to representatives of organisations interested in knowing more or becoming partners, with free or subsidised consultation also available if required. Please contact email@example.com if you would like to know more, or attend or host a workshop
We need to talk about how compassion in Plymouth businesses can contribute to radical social change and model a more proactive way of working for the benefit of all. If you would like to be part of that conversation, please get in touch!
Tam Martin Fowles
Founding Director Hope in the Heart CIC
UK Ambassador Charter for Compassion International
PSEN attended the Social Enterprise World Forum in Edinburgh last week. What an event! We’ll provide a fuller report of our experience and how the conference applies to Plymouth’s social enterprises at our network meeting on 25th September. A quick summary:
It was a fantastic, energising and stimulating week. Attended by over 1,400 people from nearly 50 different countries the event was a huge celebration of social enterprise alongside lots of politics, debate and discussion on many themes. It was chance to re-connect with old friends and make new ones. There was even some dancing at a Scottish ceilidh (less said about the attempts at this the better!)
We were able to share the work of many of our social enterprises in various events. We went to the launch of Callander as Scotland’s first social enterprise place. We also attended events on building strong networks; tech for good; marketing social enterprises; procurement and supply chain; the UN Sustainable Development Goals and more. Some salient points were:
1. There was an expressed need for more digital social enterprise businesses.
2. We need to create a compelling vision of a better future – one where social enterprise is the ‘norm’.
3. We need to engage with wider audiences (creatives, corporates, small businesses, public sector, schools, general population, etc) – we can’t just talk to ourselves.
4. The importance of political support – Scotland’s ministers seemed to really ‘get’ social enterprise and see it as integral to their economic strategies. This has led to investment and the development of a good ecosystem of support.
5. Getting large businesses to spend more with social enterprises – this will increase impact rather than putting money into CSR initiatives.
6. That social enterprise ‘structure’ and the ability to be held to account were seen as marginally more important than ‘impact’.
The most powerful moment was a brilliant talk by Bruktawit Tigabu of Whiz Kids in Ethiopia. The country struggles with low literacy and Bruktawit said that two thirds of young girls in the country think that domestic violence can be justified. A shocking statistic that illustrates why her work is so desperately needed. Ethiopia will host the 2019 Social Enterprise World Forum.
There was also a great talk by Lord Victor Adebowale, Chair of SEUK. He reminded us that as a sector we need to be more joined up. We need to make alliances in the social economy and with the private sector.
The SEWF reminded us that if we want to create a better future we need to lead or the future will be created for us. Social enterprises employ more women, people from Black and Minority Ethnic communities, young people. Social enterprises work in areas that need economic development. Social enterprises pay more fairly. We should be unashamed of this and we need to BE business. Not charity but business.
We note with interest the demise of payday lender, Wonga which has gone into administration. It would seem that the fines imposed by the Financial Conduct Authority (FCA) for unfair debt collection practices, orders to repay over £35M to customers as a result of “unfair practices”, introduction of caps on administration charges and criticism over sky-high interest rates in excess of 4,000 per cent have finally taken their toll. They even suffered a data breach in 2017 and warned that personal data of up to 245,000 customers could have been compromised, incurring the wrath of the information Commissioners Office (ICO).
So what are the alternatives? Certainly people looking for loans should look carefully at the terms of the loan to make sure that the administration charges and interest rates are not exorbitant as is the case with many payday lenders. They should also consider whether these short-term loans are the answer to their financial problems. Taking out a loan for, say, £500 for a sudden unexpected expense like a car repair to be repaid when the next salary or benefit payment at the end of the month comes in means that there is £500 less to spend next month. And the temptation is to take out another loan for £500 plus the administration charges and interest that were incurred with the previous loan. This leads to an ever increasing debt spiral which is very difficult to get out of.
So what is our advice? Take out a longer term loan. Spread the repayments over several months, that way you don’t have to pay back all the money borrowed with your next salary or benefit payment. Look at ethical borrowers like Credit Unions – they are restricted by law to an absolute maximum interest rate on loans of 3% per month, just over 42% APR – the chances are that the interest rate charges will be even lower. There are no administration charges and loans can be paid back earlier with no penalty. For the full picture, why not visit our web site at www.cpcu.co.uk.
City of Plymouth Credit Union
Plymouth Social Enterprise Network believes that social enterprise is a fundamental way to help Plymouth become a better city to live and work in. This means a Plymouth where:
- Wealth is generated sustainably and stays here to improve the quality of life for all
- Everyone has access to meaningful work – work that they can see makes a difference to their community, the environment and the world
- Good ideas are generated and entrepreneurialism encouraged
We want to see our economy grow in a way that creates these conditions, not hinders them. Developing business that has ethics at its core and exists to improve our social and natural environment (social enterprise) – rather than personal profit – is needed to make this happen.
If you also share these ambitions for Plymouth, please join us. We can only achieve this by working together.
Not sure? Let us tell you more.
Plymouth’s historic dependency on the defence, manufacturing and construction industries has created challenges for the city. Plymouth was heavily impacted by the recession – losing, for example, 6,400 jobs between 2008 and 2010 (The Plymouth Fairness Commission Final Report March 2014) – and despite many positive developments, Plymouth has been struggling to sustainably generate wealth; GVA has been around 84% of the UK average for many years. (The Plymouth Fairness Commission Final Report March 2014) Where wealth is created, it is distributed unevenly across people and areas. For example, in Peverell, Widewell or Compton only 5 – 10% of families are on low incomes; in Devonport, St Peters and the Waterfront or Ham this is 43%. (The Plymouth Fairness Commission Final Report March 2014)
Unlike traditional businesses – social enterprises by nature generate wealth that is used to improve conditions in the city. Moments Cafe, for example, uses its profits to support people living with dementia. Bikespace uses income from bike repairs and other services to train young people struggling with mainstream education as bicycle mechanics. Plymouth Credit Union offers financial services including savings, affordable loans and budget accounts including for people who have been excluded from traditional services.
Social enterprises in Plymouth are growing in size and their contribution to wealth generation: they currently bring in an income of £500 – £600 million.(Plymouth Social Enterprise Network Survey) We want to see this continue to rise so that wealth can stay in Plymouth and benefit all.
A strong and content society goes far beyond income. We see wellbeing as critical to a better city, and meaningful work can contribute significantly to our wellbeing. “When the work is perceived as meaningful, people have a sense of fulfilment and purpose that provides a psychological sense of well-being. The experience of meaningful work and well-being then spills over into the other life arenas and contributes to the overall sense of an individual’s life purpose.”(Meaningful Work and Wellbeing by J. Lee Whittington) We want to see work for Plymouth citizens that is meaningful for them and wider society.
Social enterprises are businesses that exist to make a positive impact on others; they provide work that has meaning and purpose to employees. Social enterprises are also more likely to offer fair pay, involve their staff in decision-making and employ people from specific vulnerable groups. (The Future of Business: State of Social Enterprise Survey 2017 by Social Enterprise UK)
According to their employees, PSEN member social enterprise Real Ideas Organisation provides a “strong sense of ownership and democracy” to its team because “everybody gets a say”; team members say that working for RIO is “incredibly purposeful”. (Real Ideas Organisation website)
Social enterprises currently employ over 7,000 people in Plymouth and we want to see this grow.
“Due to the domination of Plymouth’s historically large employers, both the culture and infrastructure for entrepreneurs lags behind many other cities”. Plymouth has historically had a low business start-up rate (e.g. 60% of the England average in 2011), but entrepreneurialism is on the rise. (The Plymouth Fairness Commission Final Report March 2014)
When it comes to community and social enterprise, visitors to Plymouth note the buzz in the city. Social Enterprise UK’s State of Social Enterprise Survey 2017 states that “Plymouth is now garnering global acclaim…as a leading place for social enterprise”.(The Future of Business: State of Social Enterprise Survey 2017 by Social Enterprise UK) PSEN’s successful bid to make Plymouth
the UK’s first Social Enterprise City in 2013 had a key role in this, attracting investment (such as Plymouth Council’s £2.5 million Plymouth Social Enterprise Investment Fund) and interest into Plymouth, where good ideas are abundant and social entrepreneurialism continues to grow.
For example, in early 2018 PSEN member Street Factory CIC crowdfunded nearly £50K to bring the UK’s first Hip Hop Theatre to Plymouth. The Entrepreneur Inside programme supported its first cohort of prisoners to build their own entrepreneurial business plans for their release. Nudge Community Builders has bought a disused pub in Stonehouse and is renovating the building to create two homes to meet local need and a mini market area on the ground floor.
We believe that if every business in Plymouth were a social enterprise it would transform the health and happiness of residents and workers in the city.
If you’d like to start a social enterprise, find out about support available here.