2010 News - Social enterprises – or the third sector – have become an increasingly important part of the economy in recent years. Chris Holland takes a closer look.
10:25am Wednesday 14th April 2010
By Chris Holland , Telegraph
It’s the season for manifestos. So, here’s another one.
The Social Enterprise Coalition, which calls itself the voice of social enterprise, has issued its own manifesto urging all political parties to commit to expanding the sector threefold by 2020.
By 2007, there were 62,000 social enterprises in the UK, contributing more than £24 billion to the economy and employing around 800,000 people. The Bradford district has seen a rise in the number and range of social enterprises.
A recent survey by the Social Enterprise Support Centre in Harris Street was sent to more than 1,200 organisations, giving an idea of the scale of the sector in this area.
It revealed that most social enterprises operate in the education, health and care, the arts, and environmental areas. More than half have a turnover of less than £100,000, and about half employ between six and ten permanent staff.
Many are funded through a combination of grants, charitable support and what they earn from customers, and the survey showed that around 50 per cent of Bradford’s social enterprises are trading profitably.
The SEC manifesto argues that the UK’s current economic tribulations make it more necessary to look at different business models to bring about social, environmental and economic prosperity.
It states: “We should be promoting businesses that operate for more than profit alone, that foster social and environmental innovation, that are ethical in their motivations and accountable to their employees, consumers and communities. Social enterprises are such businesses.”
According to the Cabinet Office, a social enterprise is: “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 the shareholders and owners.”
The Social Enterprise Coalition says: “This is a crucial time for the social enterprise movement; the sector is committed to working to meet the social and economic challenges that face the UK.”
It said social enterprises are also offering women a chance to shine, with more than 40 per cent of all board members being female, and more than a quarter being led by women – almost twice as many than in traditional small businesses.
One such is Saeeda Ahmed, a founding director of Trescom, based in Godwin Street, which works with the most economically and socially-excluded people both locally and nationally.
It advises organisations on diversity issues and runs training courses to prepare long-term unemployed people for the world of work.
A chartered accountant with a masters degree from Cambridge, Saeeda launched Trescom with two partners eight years ago.
She says: “We are determined to offer real help to those who find themselves most disadvantaged, whether they are lone parents, women on benefits, or young people struggling to get into work.
“We do everything we can to support people who are often desperate, including waiving fees or enabling them to pay weekly.”
Trescom has worked with more than 40 training providers nationally on how to be more inclusive, and overall has undertaken more than 70 contracts, with clients including Jobcentre Plus, Learning and Skills Council West Yorkshire, private businesses, Bradford’s ‘B-Equal’ equality employment project and the NHS.
It has won two employability and vocational skills contracts, with Bradford-based Skills for Jobs and Skilled for Success in Leeds, and has also been appointed by the University of Bradford to give training, mentoring and coaching to 50 local social enterprises.
Saeeda is also one of 25 UK social enterprise ‘ambassadors’ appointed by the Cabinet Office to promote the sector nationally and internationally.
The green agenda is a key area for social enterprises. One such is the Manningham-based Bradford Community Environmental Project, which tackles regeneration through programmes with schools and community groups.
Activities include adventure play sessions using obstacles and objects made from recycled materials, and the district-wide Wild And Safe Play Spaces scheme using spaces such as woodland and parks for activities including den-building, lighting small camp fires, treasure hunts and arts and crafts.
It also works with schools to improve their outdoor areas through involving pupils in gardening and other projects. Its Habitat Heroes scheme is supported by the charitable foundation of Santander Bank and Bradford Council.
Carlton Smith, of the Community Environmental Project, said the enterprise had grown since 1996 to employ 22 staff, including an urban design team which provides environmentally-friendly landscape design for community groups, Council departments and voluntary groups.
He says: “Over the past eight years we have transformed many derelict, often fly-tipped and unloved plots of land into community gardens, nature areas, play areas and other recreational facilities.
“Overall, we’re very busy as awareness of the environment has risen and more people and organisations recognise the importance of a greener approach. We have a varied funding base which enables us to offer mostly-free services to end users for our community-based programmes, while the urban design team’s charges are very competitive.”
The project operates out of the Carlisle Business Centre, which is operated by another social enterprise, Action For Business Ltd.
Established in 1992 as a community initiative, Action For Business worked with Bradford Council to rebuild the derelict Carlisle Mills and create the business centre, which now provides managed office space for a variety of small enterprises as well as a community focal point.
Profits are ploughed back into the community to support the regeneration of Manningham.
Action For Business has managed a range of regeneration projects including social and cultural events, training initiatives, seminars and conferences, with funding from the Big Lottery, the European Regional Development Fund and the European Social Fund.
Jenny Pupius, Action For Business chief executive, says: “Our purpose is to help make Manningham a better place to live, and work and our focus remains very much the local community. The Carlisle Business Centre is an income-generating asset which enables us to conduct a range of initiatives.
“The range and number of social enterprises has expanded significantly locally and nationally in recent years and will continue to play an increasingly significant part in the UK economy.
“The next few years will be a challenge for many social enterprises, however, as funds will be tighter after the election. That will be a problem for some groups that rely heavily on public funding. Action For Business generates most of our own income, with around 20 to 25 per cent coming from statutory funding bodies.”
Andrew Mason, managing director of Shipley-based Newmason Properties and chairman of the Bradford Property Forum, is a big fan of social enterprise.
He serves as a director of the Newlands Community Association, one of Bradford’s leading social enterprises, based at Greengates.
It started in 1996 as a community group and went on to gain cash from the former Social Regeneration Budget and became the first community association to be passed ‘fit’ under the SRB to run its own affairs. It now offers a range of services to to help small businesses and boost community cohesion.
Andrew says: “ It’s a privilege to be involved in Newlands. The level of commitment and energy is fantastic and would do justice to any business. Social enterprises such as this are a great thing, both for the communities they serve and the economy.
“They provide inspiration, support and a chance for people to shine and achieve their potential. It’s not about making the most money for a small number of people, but about personal commitment and fulfilment and sharing the benefits.”
Newlands was recently awarded more than £1 million by the Government towards creating an eco-friendly enterprise centre in Eccleshill. It has been granted planning permission to build the centre on a three-and-a-half acre brownfield site behind Eccleshill Community Hospital, off Harrogate Road, at a total cost of £3.7m.
Tony Holdich, the association’s business manager, says: “We intend to build an enterprise centre and managed workspaces. It will be the largest strawbale building in Europe. If all goes to plan, work will start in June, and this time next spring we’ll get the keys.”