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Green Light Creating Jobs through Social Enterprise

Research by: Mark Richardson mark@socialimpactconsulting.org.uk


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contents 1 Executive Summary ........................................................................... 4

6.2.2 Social enterprises don’t have the capacity or quality to deliver 25

2 Introduction ........................................................................................ 14

6.2.3 Local SMEs being displaced .......................................................... 25

3 Background .......................................................................................... 15

6.2.4 Misunderstanding / fear of EU regulations ................................. 25

3.1 Methodology ................................................................................... 15

6.3 Solutions .......................................................................................... 27

3.2 Report structure ............................................................................. 15

6.3.1 Map social enterprises ................................................................. 28

4 Context: ................................................................................................ 17

6.3.2 Capacity build social enterprises .................................................. 29

4.1 Overview of housing association’s interest .................................... 17

6.3.3 Capacity Building Case Study: Accord Addventures ................... 30

4.2 Social and economic context .......................................................... 17

6.3.4 Capacity Building Case Study: People & Places ........................... 30

4.2.1 Job creation: ................................................................................. 17

6.3.5 Educate and incentivise procurement teams ............................. 31

4.2.2 Reduced services: ......................................................................... 17

6.3.6 Redesign procurement policies and processes .......................... 32

4.2.3 Reduced funding for charitable projects .................................... 17

6.3.7 Supplier diversity .......................................................................... 32

4.2.4 Growth in social investment ........................................................ 17

6.3.8 Kitemark ........................................................................................ 33

4.3 Political context ............................................................................... 18

6.4 Potential impact .............................................................................. 34

4.3.1 Big Society .................................................................................... 18

6.5 Examples of good practice ............................................................. 34

4.3.2 Localism Bill .................................................................................. 18

6.5.1 Case Study: Wates Group ............................................................. 35

4.3.3 Social Value Act ............................................................................. 19

6.5.2 Case Study: Accord Group ............................................................ 37

4.3.4 Right to provide ........................................................................... 19

6.5.3 Case Study: Hanover .................................................................... 38

5 Housing associations current engagement

6.5.4 Case Study: Aspire Bristol ............................................................ 39

with social enterprise ........................................................................ 20

6.5.5 Others ........................................................................................... 41

6 Procurement ....................................................................................... 23

7 Partnership .......................................................................................... 43

6.1 Context ............................................................................................ 23

7.1 Case study: Shoots and Roots ........................................................ 44

6.2 Problems .......................................................................................... 24

7.2 Case Study: Aspire Foundation ....................................................... 46

6.2.1 Contracts are too large for most social enterprises ................... 24

7.3 Case study: Northmoor Laundrette ............................................... 47

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7.4 Case study: Twice as Nice ................................................................ 48

10.6 Commercial franchises with social potential ................................ 71

7.5 Case study: Poplar HARCA ............................................................... 49

10.6.1 Micro-Franchising ....................................................................... 73

7.6 Case study: Your Place .................................................................... 50

10.7 Possible partners ........................................................................... 73

7.7 Case study: Riverside ECHG ............................................................ 51

11 Green Deal .......................................................................................... 74

8 Start new social enterprises ............................................................ 52

11.1 Green Deal and RSLs ...................................................................... 74

8.1 Barriers to start-up ......................................................................... 53

11.2 Green Deal Providers ..................................................................... 74

8.2 Possible solutions ............................................................................ 54

11.3 Timescale ....................................................................................... 76

8.3 Funding start-ups ............................................................................ 54

11.4 Potential for Job Creation ............................................................ 76

8.3.1 Social Enterprise support ............................................................. 55

11.5 Potential jobs within Green Deal work ......................................... 77

8.4 Case Study: LoCaL Homes ............................................................... 56

11.6 Additional ‘Green Jobs’ ................................................................. 78

8.5 Case Study: reCYCLEd Bike Workshop ............................................ 59

11.7 Suggested route forward ............................................................. 79

8.6 Case Study: Neighbourhood Furniture Store ................................ 60

12 Funding available for social enterprise

8.7 Case Study: RedWelly - Stamping out Garden Poverty .................. 61

development / contracting ............................................................. 80

8.8 Case Study: Plymouth Community Homes Services ...................... 62

12.1 Loans and Social Investment ........................................................ 81

8.9 Case Study: Riverside ECHG ............................................................. 63

13 Conclusions, Recommendations and Next Steps ...................... 83

9 Buying social enterprises ................................................................. 64

13.1 Procurement: ................................................................................ 83

9.1 Case study: PM Training .................................................................. 65

13.2 Partnerships / New Starts / Franchising: ..................................... 84

10 Replication and Social Franchising: .............................................. 66

13.3 Green Deal: .................................................................................... 84

10.1 Advantages of becoming a franchisee ........................................ 67

13.4 Specific Outputs in 2012: .............................................................. 85

10.2 Existing social franchises ............................................................... 68

14 About the author ............................................................................. 86

10.3 Franchising between housing associations .................................. 68

Social Impact Consulting ....................................................................... 86

10.4 Franchising a successful social enterprise .................................... 69

Mark Richardson .................................................................................... 86

10.5 Advantages and disadvantages of becoming a franchisor .......... 70

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Executive summary 1 Executive Summary Housing associations and social enterprises, such as Groundwork Trusts and Aspire Foundation, are pursuing complimentary visions: both working for the benefit of the community and in many

“Social enterprise’ means an enterprise whose primary objective is to achieve social impact rather than generate profit for owners and stakeholders. It operates in the market through the production of goods and services in an entrepreneurial and innovative way, and uses surpluses mainly to achieve social goals. It is managed in an accountable and transparent way, in particular by involving workers, customers and stakeholders affected by its business activity.”

instances its poorest residents. They should make perfect partners in this endeavour, but often housing associations and social enterprises struggle to engage with each other. In this report we use the EU definition of social enterprise:

Although housing associations are themselves social enterprises, for clarity in this report we use the term ‘social enterprise’ to refer to social enterprises other than housing associations. Our research identified 4 key areas where housing associations can and do engage with social enterprises: PROCUREMENT CAPACITY BUILDING / SUPPORTING / GRANTS PARTNERSHIPS SETTING UP

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overview Overview of housing association’s interest There is a growing interest in social enterprise amongst housing associations, although there is a wide spectrum of engagement. There are passionate advocates at one end and those who are disinterested, suspicious or simply see it as unconnected with the business of housing associations at the other. Despite the variety they can broadly be divided into the following:

CATEGORY

context

APPROXIMATE NO.

Wider context Passionately engaged

25

Very interested

1-200

The rest

1000

This growing interest in social enterprise takes place within a wider political and economic context: — High unemployment: 8.4% joblessness for the UK in January, with 22.5% of 16-24 year olds not in employment, education or training (NEET).1

Housing associations have a range of motivations for their interest

— Cuts to public services are creating a need for replacement

in social enterprise:

services, and the outsourcing of public services is also creating opportunities for service delivery by

CREATING EMPLOYMENT FOR TENANTS (91%)

social enterprises.

IMPROVING SERVICE DELIVERY FOR TENANTS (69%)

— Fewer available grants means social enterprises, which

DELIVERING WIDER COMMUNITY BENEFIT (78%)

generate at least a proportion of the income they need to operate, are increasingly being seen as a more sustainable way to deliver social benefit. — There is a rapidly growing social finance sector offering potential investment in social enterprise. — The Government’s Big Society agenda has generated a number of policies which create opportunities for social enterprise:

Plymouth Community Homes

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Creating Jobs through Social Enterprise

LOCALISM BILL

SOCIAL VALUE ACT

LOCAL GROWTH WHITE PAPER

RIGHT TO PROVIDE

GREEN DEAL

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BBC News March 14th 2012 - http://www.bbc.co.uk/news/10604117


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Procurement Procurement Every year housing associations collectively spend £13 billion BUT

Many corporates manage their supply chains, building capacity of

of the housing associations surveyed:

suppliers to deliver the services they require. This approach could

— 69% spent less than £50,000 a year with social enterprises

be adopted by housing associations developing the capacity of suppliers. This could involve a number of different things:

— 66% have no social enterprises on a preferred suppliers list — Working with the social enterprise to help them understand — 80% have not modified their procurement processes to accommodate social enterprises

exactly what systems, procedures and safeguards are required by the housing association — Support (financial or practical) to achieve necessary

The main reasons why housing associations struggle to procure

accreditation

from social enterprises include: — Back office support to professionalise systems and procedures — Contracts are too large for most social enterprises — Guaranteed work over 3 years to make investment in — Social enterprises don’t have the capacity or quality to deliver — Misunderstanding / fear of EU regulations

additional staff, equipment and training worthwhile — A soft loan paid back through earnings on work carried out for the housing association

There are some key elements all housing associations could build into their procurement procedures which would have enormous

— Brokering a partnership with other social enterprises or private sector firms

impact. Green Light could help support housing associations to: — Map social enterprises in their area(s) — Capacity building social enterprises to enable them to deliver the required goods or services at the required quality - supply chain management. — Educate procurement teams about, and measure their performance against, supplier diversity and procuring goods and services from social enterprise. Education in relation to EU legislation would be particularly beneficial. — Design the procurement policies and processes to deliver maximum social value, which could include making the process accessible to local SMEs and social enterprises, including targeted recruitment and training clauses, and requiring large suppliers to include social enterprises in their supply chains. — Integrate a supplier diversity programme into the procurement process.

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Shoots and Roots


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Partnership Partnership In many instances housing associations will find that there are

Despite these advantages most housing associations that do

no suitable social enterprises in their locality to deliver particular

choose to start a social enterprise do so alone.

goods and services they need.

Of the housing associations surveyed:

The obvious answer is to set up a new social enterprise. But there

— Only 10% said they had set up a social enterprise in

are some very good reasons why housing associations should

partnership with another organisation

consider partnering with an existing social enterprise to develop the new service:

— Only 3% had set up in partnership with another social enterprise

— Most housing associations don’t have expertise in setting up and running social enterprises, particularly those employing

— 40% don’t provide any support to social enterprises other than buying goods or services

disadvantaged people. — A partnership with an existing social enterprise will give access to new networks, experience, ideas, perspectives and

— Only 17.2% support a CDFI (although 74% do support a Credit Union) Interestingly, most of the social enterprises started by housing

resources. — Local social enterprises may be able to integrate new goods and services into existing operational structures more cheaply than starting a new social enterprise from scratch.

associations are relatively small scale. 58% of those surveyed employed 8 people or less and 55% offered volunteering opportunities to 15 people or less. Only 16% employed more than 50 people. The average size is larger than the social enterprise

— A partnership could create greater social impact by

sector as a whole where 78% have fewer than 10 employees, and

strengthening an existing social enterprise, allowing them to

only 3% employ more than 50 people.2 However, given the scale

consolidate or even expand their existing work as a result of

and resources of housing associations there would seem to be

the new partnership.

the opportunity for them to create an even larger number of social enterprises that operate at greater scale too.

Northmoor Community Centre

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BIS Social Enterprise Barometer 2010


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Grow your own Start new social enterprises There is a growing interest among housing associations in starting

When asked where they had found support for setting up a social

social enterprises themselves. Where there is a gap in goods

enterprise over 35% of housing associations surveyed said they

and services provided by existing social enterprises, and where

had not been able to access any support at all.

partnerships are not possible, this can provide an excellent option

These barriers could in many cases be overcome relatively

for creating employment for residents, and delivering

easily by:

many services and facilities for the community. Only 30% of the housing associations surveyed had set up any form of social enterprise but there was enormous variety even among this relatively small number, with businesses operating in

— Partnering social enterprise support agencies to produce specific guidance for housing associations — Putting housing associations in touch with suitable partner social enterprises with suitable expertise

over 20 sectors. Social enterprises set up by housing associations are most commonly funded from reserves in the first instance. Many also use a mixture of grants, loans and investment from a variety of

— Linking housing associations with each other, so that those who have succeeded in setting up social enterprises can support those who are starting out — Putting housing associations in touch with suitable

other sources. 68% of housing associations surveyed felt they already had

support agencies

a community project with the potential to become a social

— Linking housing associations with aspiring social

enterprise.

entrepreneurs

The main barrier faced by housing associations wanting to set up

— Introducing housing associations to potential social franchises

a new social enterprise is staff time, with over 70% of respondents sighting this as a problem.

— Introducing housing associations to potential sources of funding and investment

But other key barriers included lack of in-house expertise, no sustainable business model or the lack of an appropriate tried and tested model.

Shepherds Bush Housing Group

The needs sighted by most housing associations were:

Advice & support with business planning (42%)

Support with funding / staff time (31%)

Sustainable business models and successful case

studies (17%)

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franchising Franchising In many cases there are social enterprise models that are already

Of the 91 housing associations that responded to our survey:

working in other areas which could be replicated rather than

70% have not yet set up social enterprises

Of the 40 or so social enterprises that have been

reinventing the wheel by creating a new model from scratch. This process is often known as social franchising.

established only one has been franchised or replicated

There are a number of advantages for a housing association taking on a social franchise rather than starting a new social enterprise from scratch: — Less likely to fail than other new-start businesses

6 housing associations expressed an interest in franchising their successful social enterprise

2 housing associations reported having replicated social

enterprises in new geographic areas within their

— Start-up is usually faster and more cost-effective

own organisation:

— There is support in delivering a proven business model

Our research has identified 95 social franchises operating in the

UK. We have also identified a further 45 social franchises operating

However becoming a franchisor is not a cheap option. Of the 9

in other European countries. There are several successful

social franchises we interviewed the average investment to get

European social franchises which are not yet operating in the UK

the organisation franchise-ready was £134,000.

No social enterprises had been franchised between housing associations

but have the potential to do so. Aspire Foundation

There are 897 commercial franchises in the UK at the moment3. Although these commercial franchises would probably not consider themselves as part of the social economy many are arguably already operating with a social purpose, and others could be adapted to do so. For example a regular grounds maintenance franchise could be adapted to create employment opportunities specifically for disadvantaged people. One of the biggest challenges for social franchising is finding suitable franchisees. Housing associations are ideally placed to fulfil this role. There is also the potential for housing associations who have developed social enterprises themselves to benefit, and spread their social impact wider, by becoming franchisors.

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Natwest/BFA Franchise Survey 2011


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buying Buying social enterprises

Funding for social enterprise development:

In the current economic climate a number of good social

There are a number of potential sources of funding for the

enterprises are closing, and even more good businesses are

development of social enterprises. These vary enormously

going bankrupt because of lack of suitable finance and cash

from region to region and depending on the sector the social

flow problems. There may well be opportunities for Housing

enterprise is operating in and the anticipated social outcomes.

Associations to safeguard as well as create jobs by taking over

Sources can include:

existing businesses and running them as social enterprises, if

Development agencies

Government departments

The National Lottery

Private sector

Local authorities

appropriate expertise exists within the housing association or could be bought in.

Charitable Trusts

Specific funds

Aspire Group

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green deal Green deal Around 45 per cent of carbon emissions in the UK arise from the

The Government has committed to replacing these programmes

use of domestic and nondomestic buildings. These emissions will

when they expire at the end of 2012 with a new Energy

need to be radically reduced in order to meet climate change

Company Obligation which will run alongside the Green Deal.

targets. The government has created a package of incentives and

There was some question over whether RSLs would be able to

interventions to stimulate this market, including:

access ECO funding. But DECC’s website now explicitly states that “The relative ease of achieving economies of scale in social

The Green Deal

The Renewable Heat Incentive

Feed in Tariffs

housing will mean that providers are well places to attract ECO funding towards improving their harder to treat stock.”4 The American Green Deal failed to have economic impact through jobs that were expected. Other countries have achieved more,

The Green Deal is a framework to enable private firms to offer

with Germany often held up as an example of the potential for job

consumers energy efficiency improvements to their homes,

creation from Green-Deal-type policies.

community spaces and businesses at no upfront cost, and then recoup payments through a charge in instalments on the energy bill. Cut the Carbon estimate the Green deal will lead to 2 million

IPPR carried out some research in this area and came up with four key recommendations: 1 Keep it local

internal and external wall insulations by between late 2012

2 Join forces

and 2020.

3 Not just jobs

The UK Government claim Green Deal will create 250,000 jobs

4 Build a training-to-work ‘pipeline’

The social housing sector is well-placed to play a central role in delivering the Green Deal due to a number of factors: — The sector has experience of carrying out major home improvements, including energy efficiency works. — By managing significant numbers of properties, it offers economies of scale. — They have a natural market in their own tenant base, and good local engagement and visibility.

Energy company currently have to deliver energy efficiency in homes under two obligations; Carbon Emissions Reductions Target (CERT) and Community Energy Saving Programme (CESP).

4

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http://www.decc.gov.uk/en/content/cms/tackling/green_deal/gd_industry/social_landlor/social_landlor.aspx1

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Housing associations and social enterprises such as Groundwork and Aspire are clearly well placed to lead on and deliver exactly the kind of work that IPPR recommend. The greatest opportunity for job creation, particularly for entry level jobs with training opportunities or apprenticeships, is in the installation phase of Green Deal. Teams, overseen by suitably qualified people, could deliver a range of services including:

Loft insulation

Cavity wall insulation

External wall insulation

Replacement windows and doors

Solar hot water heating and PV installation

Social enterprises based around delivering core Green Deal services could also provide a range of other services for housing associations, creating further job opportunities and greater stability. There are two ways to approach the opportunities generated by the Green Deal and the growing green economy. — Individual housing associations, Groundwork Trusts and other social enterprises develop services to meet this growing demand either separately or in partnership. This is already happening and could be encouraged by sharing of best practice and successful business models. — Regional or national coalitions of housing associations and social enterprises work in partnership with large corporate Green Deal providers to create jobs for disadvantaged people in the Green Deal supply chain. In order to take advantage of the opportunities presented by Green Deal Green Light will need to move quickly.

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GREEN DEAL IS OFFICIALLY DUE TO LAUNCH AUTUMN 2012.

CESP & CERT FUNDING RUNS UNTIL DECEMBER 2012


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conclusion Conclusions and Next Steps There are huge opportunities for housing associations to

The next step should be a meeting with interested housing

create jobs procuring from or in partnership with existing social

associations followed by a wider roundtable discussion with

enterprises such as Aspire Foundation or Groundwork Trusts.

potential partners. This could be combined initially with the

There are also opportunities for developing new social

procurement roundtable as many of the housing associations and

enterprises. There is clearly a need for a project, organisation or

potential partners will be the same for both initiatives.

coalition to facilitate this work. Green Light can help facilitate this process in three key areas:

Green Light can facilitate the development and implementation of

PROCUREMENT

a model to maximise the creation of decent jobs by using social

NEW STARTS / FRANCHISING

enterprise consortia to deliver Green

GREEN DEAL

Deal. This should start

with a roundtable discussion with relevant partners including representative housing associations who have expressed a

The Procurement work should be carried out in partnership

keen interest or who are already involved in this process.

with social enterprise bodies such as SEUK, the Social Enterprise Mark and Social firms UK. It should also integrate with existing work in this field such as Shaftesbury Partnership’s Social Business Partnership and the work done by CIH Cymru. The programme should be piloted with housing associations who are keen and already innovating in this field. The next step should be a meeting with interested housing associations followed by a wider roundtable discussion with potential partners. The programme could be funded on a sustainable ongoing basis by creating a standard or kitemark. Facilitating the development of new

social enterprises

should also be done in partnership with social enterprise bodies such as SEUK, the Social Enterprise Mark and Social firms UK and should link with or integrate the existing work being undertaken by Aspire Foundation and HLF. The programme should be piloted with housing associations who are keen and already innovating in this field.

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The model should be piloted in one or two areas, with housing associations or Groundwork Trusts leading on the development of the consortia.


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intro Introduction Housing associations and social enterprises, such as Groundwork Trusts and Aspire Foundation, are pursuing complimentary visions: both working for the benefit of the community and in many instances its poorest residents. Especially in the current economic climate both housing associations and social enterprises are becoming increasingly concerned about job creation and employability. Many local social enterprises have skills, expertise and networks that housing associations do not: and most housing associations In this report we use the EU definition of social enterprise:

have skills and resources that the social enterprises do not. Social

“Social enterprise’ means an enterprise whose primary objective is to achieve social impact rather than generate profit for owners and stakeholders. It operates in the market through the production of goods and services in an entrepreneurial and innovative way, and uses surpluses mainly to achieve social goals. It is managed in an accountable and transparent way, in particular by involving workers, customers and stakeholders affected by its business activity.”

enterprises need contracts and housing associations spend billions

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of pounds every year. Housing associations and social enterprises should make perfect partners. There are many examples where this is indeed the case, but in the majority of cases housing associations and social enterprises struggle to engage with each other. This report looks at why housing associations and social enterprises don’t always find it easy to work together and, drawing on some inspiring examples of best practice, looks at what can be done to help these two worlds come together to achieve greater social impact.

Plymouth Community Homes


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background Background

3.2 Report structure

The aim of this research has been to assess the potential for

Our research identified 4 key areas where housing associations can

housing associations and Groundwork Trusts to create jobs for

and do engage with social enterprises.

disadvantaged people through social enterprise, with a particular

PROCUREMENT

CAPACITY BUILDING / SUPPORTING / GRANTS

PARTNERSHIPS

SETTING UP

focus on the Green Economy. It was designed as a scoping exercise to support practical decision making, not as an exhaustive or academic study. It came about as the first stage of the Green Light project, a collaboration between Groundwork UK, the National Housing Federation (NHF) and Aspire Foundation.

3.1 Methodology The research comprised: — A desk-based scoping study of literature about social enterprise and housing associations — A desk-based study of the current operating environment — A survey of 600 housing associations (of whom 91 responded) — Interviews with chief executives or social enterprise specialists

This report looks at these areas in turn: — giving a broad overview of the activity already taking place amongst housing associations in the UK; — picking out some examples of good practice; — identifying some of the barriers facing housing associations; and — suggesting ways in which this activity could be more widely encouraged

at 16 housing associations — Interviews with 3 groundwork trusts and 4 other social enterprises

In a separate section the report also looks specifically at the opportunities for job creation presented by the Government’s Green Deal initiative.

— Interviews with key stakeholders and experts in the field of social enterprise, housing and the green economy Where no source is given for a statistic in this report it will be taken directly from the survey of housing associations undertaken as part of this research. It should be noted when interpreting these figures that the responses do not give an accurate representation of housing associations generally. Those who responded to a survey on social enterprise were clearly a self-selecting group who already had some interest in the field of social enterprise. The figures therefore are likely to show greater involvement with social enterprise than for the housing sector generally.

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We have specifically taken these different areas in this order as we believe it is vital that this is the order in which housing associations approach the subject of social enterprise.

PROCUREMENT

1. Once a need is identified the first priority should be to see whether an existing social enterprise could deliver the required service.

CAPACITY BUILDING

2. If there is not an appropriate social enterprise to do that, can a local social enterprise be helped through capacity building from the housing association to develop the required expertise or scale?

PARTNERSHIPS

3. If this is not possible, could the housing association partner with an existing social enterprise to set up a new venture to deliver the service? This would bring to the new venture skills and expertise in running a social enterprise and employing disadvantaged people which most housing associations do not already have in-house.

SETTING UP

4. The final option is to set up a new, independent social enterprise.

Northmoor Homezone

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context Context 4.1 Overview of housing association’s interest

4.2.2 Reduced services:

There is a growing interest in social enterprise amongst housing

For both economic and political reasons public services are being

associations. This is mainly driven by a job creation agenda

cut back or cut altogether. This creates a need for new services

with 91% citing ‘creating jobs for tenants’ as a motivation for

to replace many of those that have been lost. Other services are

developing a social enterprise. However 78% cited ‘Improving

being outsourced, mostly to the private sector. This also creates

sense of neighbourhood and community’ as a priority, and there

opportunities for social enterprises to deliver public services.

was also interest from a pure service delivery point of view with 69% interested in improving services and 36% in saving money.

4.2.3 Reduced funding for charitable projects Social enterprise, generating at least a proportion of the income

This takes place within a wider context:

needed to operate, are increasingly being seen as a more

4.2 Social and economic context

sustainable way to deliver social benefit. Donations are the main

The bleak economic conditions have created an increased need for the services and financial independence that social enterprise

source of income for less than half of one percent of social enterprises.7

can offer.

4.2.4 Growth in social investment There is a rapidly growing social finance sector. The launch of

4.2.1 Job creation:

Big Society Capital is the most high-profile example, but private

The need to create jobs for tenants obviously comes within

investors, philanthropists and charitable trusts are all beginning

the context of very high levels of unemployment; The rate of

to look for investments that offer both a social and a financial

joblessness for the UK in January was 8.4%, with 22.5% of 16-24

return. Social enterprises are seen as the natural home for such

year olds not in employment, education or training (NEET). This

investments.

is further exacerbated by reduced work opportunities within the public sector. There is additional concern for housing associations within the context of the universal credit, that housing benefit may no longer provide the reliable source of income it did, and tenants in stable employment may prove an equally, possibly even more, reliable source of rent. Around half the tenants of Housing Associations are dependent wholly on state benefits for their income and many of the others have earnings considerably below

The growth in crowd sourcing as a means to raise funds for social initiatives is also contributing to a focus on social projects with the potential of generating a sustainable income stream. Despite this the single largest barrier to the sustainability of social enterprises is access to finance, with 44% of respondents [in the SEUK survey 2011] saying that they are still hampered by the availability and affordability of finance.8

average. RSLs therefore house a very sizeable number of those in, or at risk of, poverty. 6

6

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5 BBC News March 14th 2012 - http://www.bbc.co.uk/news/10604117 New Policy Institute (2006) REGISTERED SOCIAL LANDLORDS AND TACKLING POVERTY 7 SEUK (2011) Fightback Britain 8 SEUK (2011) Fightback Britain


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4.3 Political context

4.3.2 Localism Bill

At the last election there was cross party support for social

The Localism Act includes a ‘general power of competence’. It

enterprise. The coalition’s Big Society agenda has created

gives local authorities the legal capacity to do anything that an

a number of policies which create opportunities for social

individual can do that is not specifically prohibited; they will not,

enterprise.

for example, be able to impose new taxes, as an individual has no power to tax. The new, general power gives councils more freedom to work together with others in new ways to drive

4.3.1 Big Society

down costs. It gives them increased confidence to do creative,

Although no longer referred to very much by this name, the Big

innovative things to meet local people’s needs. It also includes

Society agenda is still at the heart of many Government policies.

the Community Right to Challenge which gives voluntary and

According to the Government it “aims to make society stronger

community groups the right to express an interest in taking over

by getting more people working together to run their own affairs

the running of a local service, which the local authority must

locally”. It seeks to give power and responsibility to local people,

consider and respond to, and the Community Right to Bid will

families, groups and neighbourhoods in a bid to generate a

require local authorities to maintain a list of assets of community

strong and resilient civil society.

value which community groups and individuals will be able to bid

There are three key elements to the Big Society agenda: — Community empowerment – allowing local councils and neighbourhoods to make decisions to shape their local area;

to buy for community use. 11 This potentially paves the way for innovative partnerships between local authorities and social enterprises, and also for social enterprises to take over running services or community

— Opening up public services – enabling charities, social

facilities. It should be noted however that many social enterprises

enterprises, private companies and co-operatives to compete

are turning away from public service markets, diversifying into

to deliver services; and

other areas. Organisations that mainly work with the public

— Social action – encouraging and enabling local involvement

sector anticipate they will make half of all the likely redundancies

in society.

amongst social enterprises over the next 12 months.12

10

Supporting this broad policy initiative are some specific pieces of legislation which have direct impact on social enterprise:

LOCALISM BILL

SOCIAL VALUE ACT

LOCAL GROWTH WHITE PAPER

RIGHT TO PROVIDE

GREEN DEAL nef (2010) Ten Big Questions about the Big Society London p2-3 10 Young Foundation (2011) Grow Your Own 11 Department for Communities and Local Government (November 2011) A Plain English Guide to the Localism Act 12 SEUK (2011) Fightback Britain 9

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4.3.3 Social Value Act The Social Value Act makes it a legal requirement for local

This will require housing associations to give far more

authorities and other public bodies (including housing

consideration to procuring directly from social enterprises and

associations) to consider the wider social, economic and

local SMEs, or considering ‘supply chain diversity’ and requiring

environmental well being of an area when procuring goods and

prime contractors to deliver social value through their second and

services. Specifically the act states:

third tier suppliers.

THE AUTHORITY MUST CONSIDER—

The Social Value Act is given in full here:

(A) HOW WHAT IS PROPOSED TO BE PROCURED MIGHT IMPROVE

http://www.legislation.gov.uk/ukpga/2012/3/contents/enacted

THE ECONOMIC, SOCIAL AND ENVIRONMENTAL WELL-BEING OF

There is a useful guide for social enterprises provided free

THE RELEVANT AREA, AND

by SEUK.

(B) HOW, IN CONDUCTING THE PROCESS OF PROCUREMENT, IT

http://www.socialenterprise.org.uk/uploads/files/2012/03/public_

MIGHT ACT WITH A VIEW TO SECURING THAT IMPROVEMENT.

services_act_2012_a_brief_guide_web_version_final.pdf

Housing associations will be among the public service providers which have to consider social value, not just cost, when awarding contracts.13

4.3.4 Right to provide The Government introduced ‘Rights to Provide’ across public services, where employers will be expected to accept suitable proposals from front-line staff who want to take over and run their services as mutual organisations. Prisons, Sure Start Children’s Centres, hospitals and the Civil Service are just some of the services where professionals could have more freedom to run their services the way they want to.14

13

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The Guardian Feb 28th 2012 http://www.guardian.co.uk/society/2012/feb/28/social-value-public-service-contracts 14 Frances Maude, Cabinet Office, 17 November 2010

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5 Housing associations current engagement with social enterprise All housing associations sit on a spectrum of engagement with social enterprise from passionate advocates at one end of the spectrum (like Aspire, Amicus Horizon and Accord) to those at the other who are disinterested, suspicious or simply see it as unconnected with their core business. When planning how to increase the level of engagement with social enterprise among housing associations it is helpful to carry out a market segmentation exercise. They can broadly be placed into one of three categories:

CATEGORY

APPROXIMATE NO.

Market leaders

25

Interested ‘early adopters’

1-200

The rest

1000

“There are obvious benefits to social enterprise. The main benefit is employment opportunities for local people and being able to deliver a service at a reduced rate to our tenants with profits going back into the community - either employing more people or allowing them to do some projects on our estates to support other tenants.” Jo Oxlade, Circle 33 Housing Trust

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21

Those housing associations that have expressed an interest in social enterprise have a range of motivations.

Community benefit: These can be broadly grouped into employment, community

The wider benefit to the community beyond those specifically

benefit and service delivery.

employed by a social enterprise was also seen as important with

Employment:

78% of respondents sighting ‘improving sense of neighbourhood and community’ as a priority.

For almost all (91%) ‘creating jobs for tenants’ was a priority with 60% focussing specifically on NEET young people, and 60% also sighting reducing financial exclusion as a priority.

There’s no jobs in the Midlands so we’ve had to create our own.” William Lilley, Accord

“Social enterprise is beneficial because rather than it going to private contract, the money is reinvested in the local community. That’s the critical thing for us. Is the investment being recycled or is it just going out of our economy?” Graham Nolan, Sanctuary Housing

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22

Service delivery: There was also considerable motivation from a pure service delivery point of view with 69% interested in improving services, 39% wanting to provide services not currently available and 36% in saving money.

The following sections explore how housing associations could create jobs, community benefit and better service delivery by looking at four areas of engagement:

Procurement

Capacity building

Partnership, and

New-start

“We knew we were paying externally for our some properties to be cleaned so we thought rather than us sending the money out we should actually increase the standard of the cleaning and create internal vacancies. Then potentially in the future we might sell the service externally.� Becky Hodges , Selwood Housing

Shepherds Bush Housing Group

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Procurement 6 Procurement

6.1 Context

“Joblessness on many social housing estates tops 50% but at the same time, housing associations contract for millions of pounds worth of services each year. Social enterprise can deliver both services and social impact. So, put this all together, and across the country you could have a social businesses creating jobs for local people, delivering contracts for housing associations and reinvesting the profits in communities. Surely it’s a nobrainer.”15 Owen Jarvis, Aspire Foundation

“If Green Light can help with anything, it needs to change procurement practices. That’s the most important thing. Housing associations’ biggest challenge is that they’ve got to look at procurement.” John Montague, Chief Executive of TREES

Every year housing associations collectively spend £13 billion BUT of the housing associations surveyed:

social enterprises

66% have no social enterprises on a preferred suppliers list

69% spent less than £50,000 a year with

80% have not modified their procurement processes to accommodate social enterprises

In our personal lives we have become quite accustomed to ethical shopping; choosing the goods and services we buy to make a positive difference in the world, whether that’s opting for Fairtrade coffee or locally sourced vegetables. But despite their commitment to delivering social benefit most housing associations have not yet taken this approach. Most housing associations continue to procure goods and services with a fairly narrow view of best value. Where they are looking to create greater social benefit through their procurement they are often struggling to find suitable social enterprises to deliver. Meanwhile social enterprises working mainly with the public

“I don’t think we procure from any social enterprises. The only services we procure are building maintenance services and it’s not the sort of thing where there’s a market for social enterprises to do that.” David Jones, Trent and Dove

sector cite procurement policy as the second greatest barrier to their sustainability – a greater barrier even than the perennial challenge of cash flow.16

http://www.guardian.co.uk/housing-network/2011/jan/21/housing-associations-support-communities-social-enterprise 16 SEUK (2011) Fightback Britain

15

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Problems 6.2 Problems There are a number of reasons why housing associations find it difficult to procure from social enterprises, and why social enterprises find it difficult to supply housing associations. In our survey the difficulties listed by housing associations are shown in the following diagram:

The main barriers facing housing associations and social

repairs rather than engaging a number of smaller contractors.

enterprises when they are trying to trade are as follows:

Social enterprises do not operate at a scale large enough to

6.2.1 Contracts are too large for most social enterprises Most social enterprises are micro businesses with fewer than 10 employees and a median income of just £240,000. Housing associations, for a variety of reasons, are increasingly opting for smaller numbers of very large contracts. For example Affinity Sutton have just one £50 million contract for all their day today

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Creating Jobs through Social Enterprise

compete for such contracts. John Montague, Chief Executive of TREES, one of the largest social enterprises in the Midlands reports; “we recently submitted two PQQs to two similar housing associations. We won one of them and not the other. The one we didn’t get was simply because our turnover wasn’t big enough”.


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6.2.2 Social enterprises don’t have the capacity or quality to deliver

“On a local level, there’s not many organisations to deliver the scale that commissioners need – we want to make it easier for people to bid but the organisations we are encountering aren’t contract ready.” William Lilley , Accord

“European regulations are the biggest problem. OJEU, the fact that all our contracts must be advertised all over Europe. If you break the contracts up into smaller chunks and contract to local suppliers, you can be sued.” Phil Miles, Director of Regeneration and Communities, Affinity Sutton

6.2.4 Misunderstanding / fear of EU regulations Most housing associations choose to ‘play it safe’ when it comes to procurement rather than risk a legal challenge. Consequently contracts tend to be bundled together and criteria take a fairly narrow view of best value. The introduction of the Social Value Act will require housing associations to rethink their definition of best value. And European case law has commented on the use of

62% of respondents to our survey find it quite difficult or impossible to find social enterprises to deliver services. Even if contracts are broken down into very small chunks many social enterprises do not deliver a suitable level of service, and it can be a difficult job for housing associations to find ones that can. Housing associations can provide an important break for a growing social enterprise, but they may well need to help capacity build them to deliver the quality of service that’s required and at a suitable scale.

6.2.3 Local SMEs being displaced When contracts are given to local social enterprises the easiest ones to give are those that are being delivered by local SMEs; window cleaning, catering, grounds maintenance etc. This could potentially result in a negative impact on the local economy if the withdrawal of a housing association contract causes the local business to close. It is vital that procuring from social enterprise is not considered in isolation, but as part of a broader ‘supplier diversity’ agenda which looks at the potential social value that can be added by locally owned SMEs as well as social enterprises.

Shepherds Bush Housing Group - City Farm

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social and environmental clauses. It has shown that it is possible to include Targeted Recruitment and Training Requirements in contracts. It has also shown that social requirements addressing a policy objective of the procuring organisation are allowed: they do not need to provide a financial or service benefit to the organisation – they can for example benefit the wider community.


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Further problems with the tendering process are identified by Geof Cox in his article Will Tendering Ever Work for Social Enterprises? 1. Any business that is really good at what it does will build a

5. Building in additional criteria meant to favour social enterprise

loyal customer base – who will recommend others - so those

might actually compound this problem - more criteria often

that respond to tenders are likely to be those with least work

means more forms

on, or those most motivated by ambition, rather than those that are really best at what they do

6. Sometimes it all really is a costly paper exercise anyway (most of us have been to selection panels both for tenders and

2. Social enterprise is more likely than conventional business

indeed for jobs where the winning candidate was always

to lose out in this situation, since it is likely to focus more

obvious to everyone, and we were all just going through the

on delivering social value, or on a work-life balance that is not

motions)

financially driven, than on growth

7. And last but certainly not least, large organisations will

3. Tendering – and especially the kind of excessively bureaucratic

generally have more capacity to engage in these tendering

tendering procedures often favoured in the public sector

procedures – and most social enterprises are small.17

– tends to select those that are good at tendering, rather than those that are good at actually delivering 4. And again, precisely because of its focus on delivery, social enterprise will suffer disproportionately from this

International Women’s Day at the Bromley by Bow Centre, in partnership with Poplar HARCA Will tendering ever work for social enterprise?, Geof Cox, http://www.geofcox.info/node/141

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Commissioning and procurement procedures can be simplified to allow social enterprises greater chance at successfully contracting with local authorities. But this requires strong leadership and the acceptance of higher levels of risk. All local authorities [in this project] envisaged changes to the way they procure services and created actions including: develop service standards to change attitudes towards risk, maintain a procurement calendar showing when contracting opportunities will arise, issue guidance for commissioners to aid understanding of legislation on using social clauses, and broker relationships between the private and social enterprise sectors to increase social enterprise as sub-contractors. Young Foundation ‘Grow Your own’

Solutions More specifically there are some key elements all housing associations could build into their procurement procedures which would have enormous impact. Green Light could help support housing associations to:

Map social enterprises in their area(s)

Supply chain management. Capacity building social

enterprises to enable them to deliver the required goods or services at the required quality.

Educate procurement teams about, and measure

their performance against, supplier diversity and procuring goods and services from social enterprise. Education in relation to EU legislation would be particularly beneficial.

Design the procurement policies and processes

to deliver maximum social value, which could include making the process accessible to local

SMEs and social enterprises, including targeted

recruitment and training clauses, and requiring large suppliers to include social enterprises in

6.3 Solutions

their supply chains.

There are some key areas where the Green Light project could have significant impact on sustainable job creation by educating, encouraging and supporting housing associations to procure from social enterprises. These need to be targeted specifically at

Integrate a supplier diversity programme into the

procurement process. These are all explored in more detail in the following sections.

the three different groups of housing associations:

CATEGORY

APPROXIMATE NUMBER

ACTION

25

Work with the market leaders to develop best practice, pilot innovative models and showcase effective solutions.

Interested ‘early adopters’

1-200

Develop the interest and expertise of early adopters ready to take on new initiatives once established and proven.

The rest

1000

Work with NHF to develop an awareness raising campaign highlighting the benefits of procuring from social enterprise and examples of best practice.

Market leaders

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Map social enterprises 6.3.1 Map social enterprises

“We don’t have information about which social enterprises are out there and which are good to work with.” Phil Miles, Affinity Sutton

When asked how they find out about social enterprises offering services in their area, 17% of the housing associations surveyed responded ‘we don’t’.

Many of the respondents and interviewees expressed a desire for a directory of social enterprises that could supply their needs.

“We would like Green Light to provide support with identifying which areas of our business would be suitable for a social enterprise and what social enterprises are already out there.” Dave Carter, Group Head of Sustainable Communities, Adactus

None of the organisations interviewed had a clear idea of what social enterprises could supply them, and which other social enterprises operated in their area which could benefit from their support. Interaction with social enterprises was at best haphazard. Working with local and national social enterprise intermediaries a housing association could quickly build up a detailed database of social enterprises operating in its area(s) and develop a strategy for engaging with those which could be beneficial for its residents.

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Capacity build 6.3.2 Capacity build social enterprises The majority of social enterprises are micro-businesses. Even larger social enterprises like Groundwork Trusts are too small to compete for many housing association tenders. Most social enterprises have started with a social aim and built a business around it, so the quality and professionalism is not always on a par with the large corporates. But they are delivering social and community value that large corporates are not. And with support they can develop their capacity, systems and procedures to deliver the goods and services needed at the quality required.

“The challenge will be for Social Enterprises to have core responses to those key questions around health and safety policies and that sort of stuff. It’s about making sure they’re equipped and can tick all the boxes so they can make sure they can provide the services.” Graham Nolan, Sanctuary Housing

‘Support’ could involve a number of different things:

Working with the social enterprise to help them

understand exactly what systems, procedures and

safeguards are required by the housing association

Support (financial or practical) to achieve

Accord Housing Group currently do this with two social enterprise

necessary accreditation

consortia in particular. They help develop these social enterprises

Back office support to professionalise systems and procedures

Guaranteed work over 3 years to make investment

in additional staff, equipment and training

worthwhile

and bid for public sector contracts. One is the Birmingham Mental Health consortium which comprises 22 social enterprises to deliver mental health services. The other is Health for Living. Many large corporates are used to the idea of capacity building their suppliers in order to secure the quality of goods and services they require. This is generally known as managing your supply

A soft loan paid back through earnings on work

chain. This is far less common in the third sector, and rarely done

carried out for the housing association

to achieve a social rather than a purely financial benefit.

Brokering a partnership with other social

The Shaftesbury Partnership, in conjunction with Social Firms UK,

enterprises or private sector firms

is developing this work with corporates. They have developed The Social Business Partnership (SBP), a membership organisation for businesses that want to build social enterprises into their supply chain. SBP is led by the private sector, and works to align its members’ commercial interests with the creation of positive social impact, brokering contracts with job-creating social enterprises. They are keen to partner Green Light to develop this work with housing associations too.

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6.3.3 Capacity Building Case Study: Accord Addventures

6.3.4 Capacity Building Case Study: Places for People

http://accordgroup.org.uk/addventures

The Good Soil project supports homeless people and those

Accord Addventures was set up last year to address the fact that there are high levels of deprivation and unemployment in the

recovering from alcohol or drug dependency by providing work experience and specialist support.

West Midlands where Accord operates. 70% of their residents are

The project is managed by farm owner David Harper who has

economically inactive.

helped to develop the concept of care farming to support

Accord AddVentures has three programmes which support a range of social enterprises and community ventures. These programmes are supported by a dedicated Enterprise team and

disadvantaged people. Based at his 500- acre farm, Top Barn, Good Soil is giving people the skills and confidence to move on to independent living.

offer a range of services including advice on starting up, access to

People & Places became involved with the project through the

investment and back office support.

governmentbacked Spark Challenge, which supports projects

RISE exists to support resident-led ventures, incubate them within Accord before launching independently (8 or 9 projects at the moment). The intention is then to work with them as potential

that tackle homelessness. The group offers a mentoring service to social enterprises sponsored by Spark and has been sharing its expertise with Good Soil. David Harper:

suppliers. They provide a free umbrella of support to kick-start their social mission. This includes;

Incubation space

Marketing & communication support

Access to free support & mentoring

Network of entrepreneurs

Support in accessing start up capital

The Accord Group also hosts and incubates a range of larger organisations and initiatives with ambitious plans for growth. These include:

Socialbreakfast.org: a youth engagement website

Planning for Real: a planning tool for

regeneration and development

Walsall Housing & Regeneration Agency

Health for Living Consortium.

And Accord has launched the A Fund – a £10million investment

“We’ve been working with Mary Parsons (Group Director, Business Development) at Places for People and she’s been marvellous, helping us develop a business plan and giving advice on how we can reach those in need. “Our vision for Good Soil is to see people become healthy and independent through landbased work such as growing food and looking after animals. The new business plan is very exciting because it takes us one step further - it focuses more on the long-term results where we give people the right skills and experience so they can move on to further education or full-time employment.”18

fund over five years aimed at young people in Birmingham. Mhttp://www.placesforpeople.co.uk/news.aspx/latest_news/good_soil_set_for_growth.aspx accessed 28-04-12

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Educate and incentivise 6.3.5 Educate and incentivise procurement teams

“I know a lot of organisations are looking to housing associations to develop the Social Enterprise through their procurement chains and delivering contracts, but when you have a contractor that is responsible for delivering all the contracts, it’s up to them to subcontract- it’s not up to us.”

What is social enterprise?

How to find suitable social enterprises

Supplier diversity

Designing procurement processes to be SME and

social enterprise friendly

Building social value into contracts

Examples of best practice

6.3.6 Redesign procurement policies and processes

Jo Oxlade, Circle 33 Housing Trust

Even in housing associations where the leadership team are supportive of social enterprise, this often fails to translate into procuring services from social enterprises. The key performance indicators (KPIs) against which procurement teams are measured are frequently based on a fairly narrow understanding of best value. And even where KPIs include wider social value these are very much secondary to financial value, rather than being seen as a crucial part of the mission of the housing association. There

“We’re against having very formalised procurement processes because they, preclude social enterprises. We don’t have a procurement document; it’s done at local level. We have made the accreditation process as simple as possible so social enterprises can engage with us.”

Bruce Moore, Hanover

are also very specific concerns about what can and can’t be done within EU legislation. The Social Value Act will require procurement teams to start considering the potential social impact that could be created through contracts, and this affords a great opportunity to design and deliver (or make available) a package of training for procurement teams covering areas including:

The Social Value Act

Social value and procurement legislation

The potential social impact of procurement

Financial value vs. social value

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Creating Jobs through Social Enterprise

Once the procurement teams understand the social impact they can create, the parameters in which they operate and the reality of working with social enterprises they can begin to look at their procurement policies, systems and procedures. This will imbed the learning into the organisation and ensure that learning achieves results.


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Supplier diversity 6.3.7 Supplier diversity

“…well designed supplier diversity programmes can help the procurement function ‘spend money smarter’ in meeting objectives related to quality, speed, flexibility, cost, innovation and other essential purchasing criteria.”

considerations than with business and economic imperatives. The tendering process for most organisations favours large companies, but many small and medium sized enterprises (SMEs) can actually offer significant advantages in terms of speed, flexibility, cost efficiency, and reliability. Putting in place a supplier diversity programme can:

Find suppliers who are more efficient, flexible,

innovative and committed

Add value to the supply chain

Improve community engagement

Contribute to local economic development

In procurement terms ‘supplier diversity’ is a broad concept,

Help to meet statutory duties

implying the inclusion of a host of groups that traditionally find

Ultimately ensure ‘best value’ and a better service

Centre for research into Ethnic Minority Entrepreneurship, De Montfort University

it difficult to participate in mainstream sourcing systems of large organisations. Supplier diversity initiatives in the UK do not discriminate positively in favour of specific types of businesses, but rather aim to ‘level the playing field’ so as to allow all

Two housing associations, Places for People and Home Group, are both currently working with Supplier Diversity UK (SDUK) to develop supplier diversity programmes.

suppliers, regardless of size or social aim, to compete for orders on equal terms. Basically ‘supplier diversity’ means sourcing goods and services from groups that often find it difficult to obtain contracts from large organisations. It certainly doesn’t mean accepting second best. In fact, it is about making sure that an organisation doesn’t miss the best supplier because their procurement systems didn’t encourage them to bid for a contract. The notion of greater supplier diversity appears at odds with the practices of many organisations, which are looking for more ways to manage their supply chains more effectively through outsourcing, contract bundling and supplier-base downsizing, thereby consolidating their purchasing activity with a handful of vendors. This begs the question why an organisation should want to engage with a supplier diversity initiative which appears to add to the complexity and cost of the procurement function and which seems to have more to do with moral and ethical

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Creating Jobs through Social Enterprise

“Supplier diversity is a process through which equal opportunities are provided to all businesses to compete and our experience has strengthened the argument that SMEs bring competitiveness, innovation and savings to the supply chain.” Procurement Officer – The Environment Agency


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Kitemark 6.3.8 Kitemark One way of encouraging housing associations to adopt more

organisations up to £4,500 for the largest, which includes most

social enterprise friendly procurement methods would be to

housing associations.

introduce a ‘Standard’ or ‘kitemark’. A useful model in this regard

If a kitemark scheme was to be developed it would make sense to

is the Green Dragon scheme run by Groundwork Wales.

do this in partnership with a number of organisations including:

Green Dragon is a stepped Standard recognising effective

Social Enterprise UK

Supplier Diversity UK

European environmental standards ISO 14001 and EMAS.

Shaftesbury Partnership

Such standards have proved extremely effective at raising

Social Enterprise Mark

environmental management. There are five levels, with each step contributing towards achievement of the International and

awareness and encouraging behaviour change when used as a campaign tool, such as the Fairtrade Towns scheme and The Gold Standards Framework Care Homes Accreditation process ‘Going for Gold’, supported by Help the Aged. A similar stepped approach could be introduced for social enterprise friendly procurement. Housing associations could be supported through the process with advice, online training, locally delivered training sessions, and tools such as a procurement toolkit. The Kitemark certification could itself operate as a social enterprise, providing a sustainable income to support the training and advice as well as acting as a campaign tool. With the introduction of the Social Value Act it could add value to housing associations in helping them prove their compliance with the Act. Seven out of the eleven housing associations interviewed thought the kitemark was a good idea. The scheme would require approximately £200,000 to cover pay for set-up, pilot and two years running costs, with a view to becoming self sustaining by year three. It would only require 100 housing associations to take part in the scheme at an average cost of £1200 to cover its running costs. As a comparison Green Dragon charges £250 for a small SME at level 1 up to £1000 for level 5 and break even for the scheme was around 130 companies participating. The Social Enterprise Mark charges £350 for small

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34

Potential impact 6.4 Potential impact

6.5 Examples of good practice

Accord Group have a turnover of £46 million. Their enterprise

There are many housing associations that we’ve come across that

manager, William Lilley, estimates that they have between £12 and

are looking at procuring from more social enterprises, but we’ve

£15 million annually that they could spend with social enterprises.

come across few examples of good practice that could easily be

This would equate to around 25% of their total turnover. The

rolled out across the sector. This is something that would need to

highest proportion of turnover spent with social enterprises by

be developed as a pilot project with Green Light before rolling it

any housing association responding to our survey however was

out.

Aster who estimate approximately £1 million of an £80 million turnover is spent with social enterprises, which equates to 1.25%. If Green Light pushes the boundaries of best practice and aims for participating housing associations to spend 7% of their turnover with social enterprises the potential impact would be huge, even with only 100 housing associations signed up.

The average spend of a housing association is £11 million

If a target of 7% spending was set, 100 housing

associations spending an average of £770,000 would lead to £77 million investment in Social

Enterprise and local SMEs

A social enterprise trading in services rather than

goods typically needs to earn £25,000 per employee.

So £77 million could support 3080 jobs.

This is a challenging target however. To put it into perspective one of the most talked about social enterprise procurement programmes in the housing sector is run by the Wates Group construction company. Their target for 2011 was £750,000 spent with social enterprises and they actually spent over £1 million. Even without capacity building social enterprises they were able to beat their target, and their processes for engaging with and monitoring the use of social enterprises in their supply chain is exemplary. However on their £985 million turnover this still equates to only 0.08%.

Aspire Group

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35 6.5.1 Case Study: Wates Group

iations ing assoc s u o h y n ma ey actor for chain. Th ajor contr m a re ir supply a e p th u ro to G in ing rise Wates 10, award ial enterp ons in 20 build soc ti a o is d n y a e and th rojects. rise org ifferent p ial enterp d c o 6 s 5 6 s 3 s ith acro nd a worked w £625,000 inesses a l value of ta to a st 60 bus a to le t ts a c a to is any contr reasing th y offer m et of inc 011. The 2 rg f ta o e d n th e e g It set ,000 by th y housin e of £750 dopted b a lu a e v b t c ld a u t co contr ctice tha good pra f o s le p exam social ons. spend with associati annual for set targets They targets against enterprises their performance They measure in an annual performance their report on They review is enterprise social enterprises social with , to spend aul Drechsler P commitment by he T level at the highest backed . the and CEO Chairman throughout is communicated This commitment of presentations a series through with whom 19 group enterprises social all key information ibility surveyed Respons They to capture te 0 ra 0 o 0 2 on rp £ o of C the impact spent over ft, Head t Wates, ro a and c is ll o o they enterprise Rachel W the social to. contributed about have ates W the impact of society the social – shared Success with are Celebrating Wates works social enterprises . celebrated staff and to with enterprises for social as effectively Held workshops as give to compete , and to inspire them sector private ’ with the of Wates possible understanding a greater . them chain process supply

erprises t n e l ia c o rt with s to suppo y it “Working n u t r of he oppo re many a gives us t h s t a h t tions nabling e , ls organisa a o g lues and Wates va loyment p m e e s a e ills us to incr evelop sk d d n a s itie e opportun unities in which w m ted in the com tes we are commit Wa prises an r work. At e t n e l ia g soc urement c o r to makin p r u o art of ibution integral p only for the contr ot process, n ocial and s r u f o o t e because o t u b they mak , ls a ental go rational e p o d n environm a e s ional valu it d d a e h t rtnership a p l a c lo hat benefits t supply chain.” ur bring to o

ED...

CONTINU

19

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http://www.wates.co.uk/news/wates-put-social-enterprise-heart-supply-chain-procurement-735 accessed 27-04-12

Creating Jobs through Social Enterprise


36 6.5.1 Case Study: Wates Group

EXOR that completes nterprise Social E pre Every / subcontractor to ) is flagged (Wates supplier . questionnaire social enterprises of qualification procurement Wates’ encourage added into been has asks whether A question Review which Contract used on Monthly has been nterprise Social E a . project were the Coordinators were Enterprise Unit. These Social usiness B with in each and commercial appointed to mix of production a from Trainee positions the role of varying level. The their encourage Management actively to is Coordinator with Social engage Unit to of information Business a source ; act as to i.e. how Enterprises nterprises E Social report ; and to regarding them etc vet , levels. them activity nit U find on Business calls were monthly and conference , meetings Update Paul Drechsler – , weeks every 6 Woolliscroft achel R held , and at the and CEO present Chairman were , Manager . These Sustainability in November meetings for of year end opportunity and were an best practice meetings to share as well and issues Coordinators challenges stories, solutions effective success to create a chance as . forward going

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37 6.5.2 Case Study: Accord Group

t tions tha g associa in s u o h l few and socia ne of the cal SMEs roup is o lo G m rd o o c fr c ial ure The A s and soc g to proc help SME vely tryin ti to c a s e y d id a u rd. They is alre ced g om Acco ve produ a fr h ts y c e a h tr T es. con l and win enterpris find socia ut about o d n fi events to h to c s a e e s tr ri u enterp yer’ o ed and et the Bu ell attend e w ‘M n e g e in b old ave are also h ts. Accord . These h articipan suppliers p E e M S th d m n fro ea ocial enterpris feedback employ s excellent d e iv e c tractors n re o e c v est a ig h b they their m to inv ging the ake sure ra m u o to c n g e yin and are also tr mmunity uppliers, k into co nd-tier s c o a c b e y s e s n a o es invests m lue of enterpris of the va ich in turn h re o w ’ m d n re u F aptu in their ‘A mpt to c is an atte is h T t. n e developm onomy. e local ec th r fo d n their spe

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Creating Jobs through Social Enterprise


38 6.5.3 Case Study: Hanover

Housing Hanover f o e v ti g f Execu inst havin ore, Chie ey’re aga th Bruce Mo , n o ti ey associa ecause th housing cesses b ro p says as a t n e curem . He says alised pro very form ake cesses m ment pro re u c ro p s informal rprises a g open, mall ente s h it w that havin ls a s more de ts such a nities for uiremen q re g opportu in v g rriers. Ha ff-puttin fewer ba can be o le p m there are a x ent nce for e rocurem ility insura have a p ’t n o d high liab r e v es. Hano enterpris to small cal level. one at lo d ’s it t, n docume

rises”

l enterp lude socia

“prec

“We have rocess p n io t a it accred so social made the le ib s s o as p us.” as simple can engage with es enterpris

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Creating Jobs through Social Enterprise


39 6.5.4 Case Study: Aspire Bristol

with the d e s a le p e. eally “We are r ontract with Aspir gc ce gardenin they keep the pla it do intained a m Not only ll e w ice and provide. e w e ic looking n v r to the se s d d a ghills now o n o ls L a t a s ice user and use a s s e c The serv c a ability to have the thanks to e h it w t lo p ais vegetable are also able to li ho ing Aspire, w vice users regard ser t’s great I . s t with the n e requirem parties any daily e both e s o t le b a team to be a s a r e h t d toge en is use d r working a g e h that t ensuring tential.� o p ll u f s Bristol to it ide ECHG

ies:

testimon

ers

nager, Riv

man, Ma

Gary King

nd other meless a o h s y lo mp ise se that e up expert l enterpri ia c o s a ave built is h l y to e s ri th B rs eed yea Aspire d to succ . Over 14 motivate d people d e n g a ta le n a b v sponsible ady, a disad ho are re p more re w lo e e s v o e d th s to ing rug use at recruit work help ending, d ry. Their ff to -o is h re ir e e duc r th esion, re whateve unity coh m m o c d buil citizens, lessness. ening, at home ding gard lu c in and repe s e rvic y nge of se , propert liver a ra e d l to s ecorating ri d d n a services g Aspire B paintin y deliver , e e h c T n . a g n in an mainte ga indow cle grounds l includin try and w n e rp a c mmercia o t, c n d e n m a h ate refurbis both priv ustomers c 0 0 0 1 r . for ove ociations ciations, using ass o h f o r e sing asso u o h numb to ice and ality serv support liver a qu e d to y gh their it u il ro b a th ir t e c Th impa following ge social d by the u e c h n g e in id d v , is e as well ad le adults vulnerab r fo t n e employm

ED...

CONTINU

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Creating Jobs through Social Enterprise


40 6.5.4 Case Study: Aspire Bristol

g service in n a le c dow llent all e c x e n “The win e e ire has b em. They h t from Asp d e s u s we’ve he needs t the year o t e iv it sens d adopt a n are very a s r e s y rvice u h on ever c of our se a o r p p a nal for professio want good value ou visit. If y efficiency look no nd money a ss Centre ” melessne r o e H y h t rm r A fu ation ager, Salv aning

Cle Window

ery good v a d e id v ge as pro “Aspire h cost effective ran ity d n flexible an to Bristol Commu last s e of service oundation over th l ia F Housing s. We support soc Aspire r d three yea s when we can an e e enterpris dmirably. We hav lar u a delivered ith Aspire for reg for w contracts g for our flats and r a in landscap aning and last ye ernal t le window c excellent job in in reas n la they did a to the communa ve a n decoratio cks of flats. They h e need w of four blo ery helpful when lear v c also been at short notice to sing e U assistanc rties and the like. st of e o void prop s to control the c ants, lp n Aspire he charges to our te come, e the servic om are on a low in vetails h o most of w exible approach d rs fl o and their es other Contract an and le ic with serv ays courteous, c rges, I lw a provide. A ith reasonable ch mend tidy and w leheartedly recom o would wh ny.” n oundatio a p ousing F m H o y c it n is u th omm , Bristol C g

Gardenin

n

Rod Brow

ry, Man Matt Albu

for the u o y k n ing to tha it r w e carried r k a r o w “We g decoratin e s n e m cing the im n a h n e e spir miciliary o d d out by A n a al, dining se. We commun u o H n o t ew l and area at N e the professiona dg the acknowle manner in which le l and personab rried out by Pau s ca orking w f o n work wa io recognit in le , m a e t vulnerab his r o f t c je s pro om client r f in a busy k c a b d he fee ositive, p y r adults. T e v n has bee f and staff high standards o he e team h T . as have t n w o ship sh workman omplete c a d e t a have cre ation” m r o f s n a ria Allen, tr

Painting

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Ma lecki and Gerry Ma ucester ECHG Glo Riverside


41 6.5.5 Others

ly are active ociations s s a g in s r hou social r of othe end with e p b s m ir u e n th A se to increa within practice t options a d o g o in g k f o o lo nts ve eleme es, or ha s ri rp te n e t. curemen their pro

a t started s ju s a h ation litan “Metropo the Young Found cial o ith project w s of working with s ity y un to find wa in the local comm es enterpris d establish them an (London) l suppliers. Bush is ia as potent ss of rewriting the rrent cu ce in the pro nt strategy as the d e e procurem ufficiently embedd s s ay one is not rganisation. He s tic eo within th project is a “fantas ne o g the Youn y” and has already it opportun t.” sociation s o p using As o d H e n d ta li fun tropo Bush, Me Matt

to build g in o g e hope we’r e with SE. “I would o engag t s e s s e moment c e h t t in pro a t a ld one of th t we shou u There’s n B . e r a I’m aw oking at as far as lo d n a g htin be highlig ts. I think we could en e procurem n the basis of ther e Eo ous develop S ract available in h nt g being a co ustain a SE movin ld s ment e r u c o r that wou p p Our grou one on d ’s forward. it o s , rporate l basis. a n io t is very co a n r scale, a hings up t t the bigge e s e w where ith local w k r Whereas o w do try to where locally we d social suppliers an nd things a s d o suppliers o g air trade l basis, a n io t a we can - f n e social But on th e . t h t a t h t a e g k li in start look o t d e e n sing we rside Hou .” y app, Rive ll n K a h e ra r a S angle

uring from ent c o r p n o keen mom “I’m very rprises but at the r o e social ent it in a systematic o o t we don’t d way. We’ve begun ide a v d measure e2) at how we pro rises s p look (with ce for Social Enter , g la marketp our commissionin to of e begun v a in terms h I . le g ro am contractin ur procurement te o te talk with we better facilita w about ho rprise by being a re o te Social En ketplace, being m we if ar better m t. I’m keen to see en transpar mething there.” icus Horizon so iller, Am can pilot William M

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ED...

CONTINU


42 6.5.5 Others

to look s d n e t t n rocureme p l a r t n e C ts such as s “ c a r t n o c cale ing repair d il at large s u b l, a v remo g asbestos nd buildin a e c n a n f te and main t. There are a lot o , en developm racts available too is ont example, r smaller c o f , g in r a Cate ently use r r however. u c e w where re we’re e h w t one area u b , ntractor ise private co d a social enterpr fin looking to ith local w solution. k r o w re y keen to We’re ver generally. There a rs rement contracto u c o r p r u of o age with g n e o t elements d se hat are u t s s u could e o c y o r p s e s s l busine rises, small loca ommunity enterp ec . say they’r social enterprises an rather th ment process ure erprises t n e Our proc l ia c o entify s where e c n a t doesn’t id s in y, but for e are specificall se social enterpris k ou . We wor we tend t g in in a r t like rises for p r e t n e for things l e of socia g n a r orking a w h r o f wit d n ur staff a p training o ts.” ster Grou l Smith, A u n a e P id s with re

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Creating Jobs through Social Enterprise


43

Partnership 7 Partnership In many instances housing associations will find that there are

Despite these advantages most housing associations that do

no suitable social enterprises in their locality to deliver particular

choose to start a social enterprise do so alone. Of the housing

goods and services they need. The obvious answer is to set up a

associations surveyed:

new social enterprise. But there are some very good reasons why

housing associations should consider partnering with an existing

in partnership with another organisation (and

social enterprise to develop the new service:

on further investigation many of these were not

Most housing associations don’t have expertise in setting

social enterprises but funded projects)

up and running social enterprises, particularly those

employing disadvantaged people.

A partnership with an existing social enterprise

will give access to new networks, experience, ideas,

perspectives and resources.

Local social enterprises may be able to integrate

new goods and services into existing operational

structures more cheaply than starting a new

social enterprise from scratch.

Only 10% said they had set up a social enterprise

Only 3% had set up in partnership with another social enterprise

40% don’t provide any support to social enterprises other than buying goods or services

Only 17.2% support a CDFI

Interestingly, most of the social enterprises started by housing associations are relatively small scale. 58% of those surveyed employed 8 people or less and 55% offered volunteering opportunities to 15 people or less. Only 16% employed more than

A partnership could create greater social impact

50 people. The average size is larger than the social enterprise

by strengthening an existing social enterprise,

sector as a whole where 78% have fewer than 10 employees,

allowing them to consolidate or even expand their

and only 3% employ more than 50 people.20 However, given the

existing work as a result of the new partnership.

scale and resources of housing associations there would seem to

be the opportunity for them to create an even larger number of social enterprises that operate at greater scale too.

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Aspire Group


44 7.1 Case study: Shoots and Roots

ase, e pilot ph ess of th c c u s e r the wing th 3 Living fo B 011, follo 2 h f it o w r t e trac mm in rmal con In the su schemes d into a fo re te n sheltered e 2 1 rk t o a w e d c nan nd Groun Shoots a ral mainte s named ver gene a li w e d e s ri to for terp team social en nterprise e social e . This new e th rn g u in o d b n til Brox itted to fu fund, un lopment ing comm e iv v L e 3 d B y . it un Roots this eir comm the end cient. In though th ffi rs u a e -s y lf e e be s of B3 thre ots is part usiness to o b R h d g n u a o en ots unities ted. Sho it gained its comm an expec in th h r it e w n o le o p ds eo & happene l young p . Shoots help loca to e prospects v ti fe ia li it ir in e ’s th g ve h Livin ome whic and impro rce of inc loyment u p o m s e a d s n e to fi rprise. ploye ocial ente am of em s te le e b a th in s e susta to Roots giv ts and in ss into a ir busine te benefi e ta s th d ff il o u b in ople helps to antaged oung pe re disadv y takes y a tl c o e h ir w d e t c os them to The proje targets th to enable yment. It d lo e p d e m e e n le port sustainab e the sup nd provid a t e rk a the job m succeed.

) sociation using As o H e rn u e Broxbo enterpris (formerly m social o B3Living fr s e ic ; serv r of years buying in a numbe r had been fo e ir h rds mme ork Hertfo m progra a w d te n n u e ro re G lG to successfu rtunities rly their ing oppo particula in a tr d e bas grounds ve work elivering d e il h which ga w g people yed youn unemplo tracts. ance con ave been mainten people h g n u o y of mployed scheme 8, 50 une , training ry ta n Since 200 lu o ed ll-time, v % obtain in this fu ourse. 60 c e involved th d plete . 90% of 4%) com ertificate c (9 7 id 4 A t h s ic wh a Fir obtained ved the s and all me achie rd m a c ra S g C S ro C ep vel 1) leting th cation (le nts comp ifi a rt ip e c ic s rt a ie p d % Based Stu e with 54 ilds Land ds Colleg n la k a O City & Gu e tion with pleted th in associa who com e s o delivered th f further . 72% o aining or tinctions tr is t, d n g e in loym gain ED... paid emp CONTINU ved into o m e rs cou Projects n. en Team re educatio G e th hin nities wit nts and opportu g’s reside g in in iv L in a 3 B tr oth The ived by b hoots well rece tion of S n e e b e v The crea . ha rt a p g e seed takin n from th g people n w u ro o y g e e s th rpri ities cial Ente pportun ts, the So d these o n te x e and Roo signed to eir first ject is de within th ts o o R of the pro d hoots an B3Living yment. S tract from n o c for emplo g in g a work er housin awarded with oth ts c a year were tr n o er c is now a ouncil. It ber of oth C m u ty n n u a o n wo ire C ertfordsh ns and H o ti ia c o s as terprise. social en le b a ing. in ta outstand fully sus 010 was 2 f o rt o ve am coh saw all fi Green Te 3Living it B The final h it w rship on with in partne qualificati d s d te il ra u e G p O y& id ve the Cit nd first a nts achie S cards a C S C ir e participa th th five gain a six mon n and all rk agreed o w d n distinctio u y four , Gro s a result g whereb A in . s iv L te 3 a B c with certifi e gramme d full tim f the pro o n io employe s n e b ld exte u o of uates’ w r a range am ‘grad to delive n io Green Te is e rv e ’s sup intenanc undwork neral ma ro e G g r d e n d a n u ts rovemen ental imp m n o ir v n e ing sites. on B3Liv

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Creating Jobs through Social Enterprise


45 7.1 Case study: Shoots and Roots

ken nd has ta owever a h e l n o y s ling socia an ea the fledg ot been n re s u a s h n s e s e e to en: The proc staff tim r have be ounts of rnt so fa a m t a le o t s n n n t a o c fi s les ene signifi g . The key aims to b the youn survived & Roots, e s ts ri o rp o . h te o S takes for n , to e it e s ts e ri n m a rp ti n e l ente Living’s te ntary stimate th The socia any of B3 sful, volu ts ’t undere n m n e t o u m D b e v s a succes e ro e p m in o a im fr tr te n e . esta only th transitio schedule excellent d people to ime work nting an ts deliver -t la ll o p o fu h R it a & w to as Shoots scheme munal are ys be so. training fencing cing com may alwa n d ty a li n h a a n u e le q s britt high such a eople are installing is rojects young p s well as p a e s n g e o h in ing in th T rk p a o landsc nd coach a Roots w g & , in g ts in in o a v o pa Sh n, tr ways. As replacing upervisio and path gardens, ngoing s O n w ro ls g il r ve ip were: ain sk learing o artnersh s, they g vital. p e c e is n e th s fe a such as c n g h o n p ing d onstructi nd B3 Liv impresse ing and c ndwork a ve been a u h ro G ts landscap f n e o ngs ic. ocal resid The feeli work eth dence. L e team’s th d and confi n a at fit... st of ir work local It’s a gre ty of the e the mo li k a a u mediate m q e im to n n a e s e by th s o ri h c terp d ple have social en rience an ung peo gives the ing expe It p a c These yo s d n ork gain la up new w cilities rtunity to to open s base / fa e lv this oppo e residents s m e th d ment of e li it p ru p c a e re v d ha ete skills and vides targ visibly e future. It pro th r fo s gramme ie ro it p n u rk o rt o w d opp a focusse It delivers te g the esta t improvin ial benefi dded soc a h it w e work don It gets otypes ges stere It challen nefits tional be r-genera te in s e vid nities It pro l commu fter loca a g in k o lo al people It’s loc 3Living cutive. B e x E f ie sen, Ch John Gie

engaged le p o e p cal young lo g in v a H unities is “ m m o c r ou hip in work in feeling of owners ga estates, ’s g increasin in iv L on B3 in and pride ing in a decrease sult areas.” l a n u m and is re m to our co m s li a d n va

from B3 e support iv e c re to ntinues to addition Roots co rdshire in Shoots & fo rt e g H rk wo ho is bein d Ground mbers w e m s Living an it f for one o . training on-going rvisor role e a Supe k a rt e d n to u coached

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46 7.2 Case Study: Aspire Foundation

tracts in: ering con liv e d y d alrea currently Works is y it n u m Com Aspiring in Removal lising ty specia Bulk Refuse ri a h c ic m d is a dyna ssness an undation g homele Maintenance n li k c ta Aspire Fo s They Grounds rprise t. te n n e e l m ia y c lo g so emp Cleaning rise and supportin & Communal and h enterp ip g h u ffice rs ro u O e th n tage epre 60 foot) disadvan rise, entr , (up to people, f of enterp o l le a leaning ti ro C n e te n th ck the po Window champio g to unlo ver in o lp c e is h d in to , and ent iety, Cleaning employm ff by soc Deep irations. written o p s n a e e ir b e n fte ve th ths who’ve o and achie s six mon lf-belief e s , ls il k VOID Clearances ing award s n , e in c w n y e d d ea s confi se was alr ards for it es: e enterpri rk includ ration aw th e o , d w 0 e 1 F ’s 0 n g 2 o n in of Housi undati Launched the staff National Aspire Fo social enterprises ents. For d up two d e si k ic re p l a it c n nd lo and managing later whe ards were munity a Creating as the aw local com t e n e th v programmes e in h d it u start-up impact w icularly pro business sidents. was a part is th Running se up housing re ri l rp ia set c te n so e f o e th panel organisations ieving a pendent housing rks is ach o y an inde b W d y e elping it g n H d ju mu ing Com acts Aspir enterprises tr n o : c e s the ondon including social Through in East L benefits, y it n u benefits m m local ge of co contracts wide ran Creating ssociation A Housing residents sing Employing through with hou ip h rs e n art opportunities , is rk is in p example training their wo orks, for ffering W O y it n Much of u m wer patterns iring Com rise in To ons. Asp xible working ial enterp c fle o s d associati e g on site presence y mana Offering ndation sidents b u re o F associations to e t ir fi p e an As the housing unity ben our ons ers comm associati Increasing through ff g o in It s . u ts o h r projects l fo Hamle ia s c e ic s so cted serv osts. All it local community g contra creased c in t u deliverin Funding o rs h it to w ti t e c p a p m co , and our g social im rofits its MicroFund increasin through vesting p n -i re y b d e d n . fu rs e are entrepreneurship . sharehold benefits Encouraging ners and programmes w o y a r p e usiness w e to of To Own B would us support Start Your with the d ’s e H d C n H u s fo loys T rprise wa and emp The ente g (THCH) in d s u o H ity aining an Commun m with tr e th g in Hamlets vid rise ents pro e enterp yed resid ts from th fi ro p t, unemplo n ugh its yme jects thro nd emplo ro o y p e y B it . n rt u m suppo local com back into d e h g u are plo roFund. ACW Mic

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Creating Jobs through Social Enterprise


47 7.3 Case study: Northmoor Laundrette

derette is The laun though.

o

about m

ng while

st surfi re than ju

you wash

t t Interne ster’s firs e h c n a ou wash M and driers g while y erette, n d rs n rfi e u u h a s s L a t r s o hw an ju Northmo great, wit t t more th nly looks hting, bu e is abou o g tt t li o re ft n e , o d s e n tt e and The lau laundere of orang ane. mers can by strips to s d u c te explains J t n a e though, tions th c complem e n n o c d band library an ur broad es, a free th lo houses fo g c ir e s, allowin for th n’s office they wait o e ti il ia h c w o s e s us ity a ir commun on in the the local , s ir ta s ut what’s p o u d n fi ople to ss for pe easy acce elop an urhood. ea to dev id neighbo n a d a on h associati se. Great l enterpri mmunity o ia c c l o a s c a lo into The undrette id for the -down la g and pa n in d ru il g u n b ti exis t the latively p bough gs was re ing Grou s in u o th H f s o e e sid Plac internet sistant at ents “The roject As P m h r, is le il rb M e rs refu ” says Jan e founde together, one of th t d e n g a n to o y eas ciati nity Asso re and r Commu g freewa o o m h rt e’re usin No “W the . e tt ey make dere tte from rnet laun ves, so th laundere ri te e d In th e rd a to th h of have ffices ere were alised th n’t even ove the o o re d m n h o to ic ti h n ia w io soc old PCs, The decis er the as came aft e tr n e c y . it terminals commun e public. ss for th e c c a f o s problem

ation and m r o f in is u’d ’ve got s that yo t c je b “What we u s f o a variety tre. The n n e o c s y t e it fl n lea e a commu in d n will be on fi s y r ll e t u p usua m on the co for things e s g k a n p li e s a m th ho ing, all bsite tha s e u o w h r , u h o lt a from aining, he , people will r t , s t fi e n y like be . Hopefull f f u t s f o n to ask. io t s e u that kind q ey have a h t n e h w use it ’s also an it t u b , e t t ndere It’s a lau point.” n io t a m r info

ind it is to h e b t in o are le p “The who t down. The softw 5 cos s were £1 keep the r e t u p m e co ing to be o g e r e is free, th w y w ause the c e b ought ne h b c a e e w d n skip, a ically, put in the d keyboards. Bas r an p fo monitors ’ll be charging 50 we st of the o c e h t it means r e v our to co half an h nd.” broadba

21

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mmunity o c in p o like a dr in, they p o p t s “It’s not ju ’t eople can he side, ring a bell P . e r t n e c t , round to o g the office o t o t e v in e ha m e wait to co ited. So w m li e it u and then q to us was he launderette, s s e c c a so we had t w o n y time t n h a g s n io thou t t ask ques n a c eans tha le m p o it o pe ls a , and to the o in t t t o n o a f w t e s they ay never m o h w us can do e e s people o t e ity centr sh their a w o t commun in e they com n e h w o s 21 clothes.”

http://www.bbc.co.uk/manchester/content/articles/2005/12/01/011205_launderette_feature.shtml

Creating Jobs through Social Enterprise


48 7.4 Case study: Twice as Nice

mpshire ject in Ha ro p e s iture re-u ess of run a furn the proc p in u y ro tl g n r e rr cu Aste . They are was set e as Nice re reuse u ic it w T rn d fu e ll ca The as a gap omerset. ; there w e up in S n ts o n e g id in s tt se ir re ds of the t the nee e e m to up se arket. l enterpri in the m use socia re re u it re is a furn o Aster a et there w level, s lo In Somers ry e v but at a ting one g already r the exis e v o operatin g in e t also tak ip with th ne up bu artnersh p e s setting o lo c orking in ing on a hey are w one, work g n ti as well. T is x e from runs the support tion that d a lot of a h organisa o ls a have They’ve lan. They council. p t n ic tr io it is s d tran the , the uncil and e bureau ounty co c e th ns’ advic th e iz bo it c e rms of with th working tions in te n ia e c e o s b s a o g als er housin other ork with n and oth w io l n il u w it it d cre ow king at h it and loo g in is c li b pu ster tions. ence at A organisa d Intellig n a e s ri f Enterp h, Head o Paul Smit id Group sa

rselves. u o y b it e have don ld u o c e o have t “W e ic t c a r ood p But it’s g erships. It’s much rtn it with o these pa d e w if ctive ideas and w e more effe n p u s t open others. I .” ies possibilit

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49 7.5 Case study: Poplar HARCA

upported Centre, s w o B y b ley nd today the Brom in 1997 a terprise, A n C e R l A ia H c r o opla wn s hip ciation P Well kno partners sing asso u o h f ners. The o rt g a in p d ic n g u strate s which the fo n service s are key o n ti o ti ra a e is n n e reg orga services. the two mmunity f housing ery of co o v t li n e e d e m e nag on th s focuses t and ma nterprise vestmen f social e in o r r e e id b w m the a nu in support pported , Leaders y have su e th m e x Nursery o th b h n e tc e a Betw cy, M onsultan ewmill C N : g in d . inclu r ral others ith Popla and seve y, it n u m nership w rt a p Com in ultancy imited ent cons (Poplar) L id s ts e n a -R lt to u entCons e od Resid New Mill The Guid hbourho ig e N e ramme. id g u G ro a p ’ is n e Ca me HARCA y the Ho gether W blished b Office ‘To ta e s e m o n e H s be in the mme ha ed in the ly engag od progra e o v ti rh c u e o ff b who are ave e Neigh ts who h residents n ’ e e id id s u re ‘g and fund earch support Office to area. Res areas to ir ir e e th th f f o o tion tion the work regenera regenera directing kling the c in t ta n f e o s m e ces ent involv physical in the pro ased resid cross the a re c n in o t ti a ra ene en th blems has prov g the reg social pro couragin n in e e s s e a ic re serv dec of public lead to a cture can u tr s a fr l in ur. l behavio and socia g anti socia d n a e d learnin m cri rvices an e s f o including e g e ran d ffer a wid roups an ultants o s n o C munity g l il m o c , ts New M n e local resid nities for opportu tions. organisa

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Creating Jobs through Social Enterprise


50 7.6 Case study: Your Place

dlords to social lan g in g ra cou l offer, en nants. very loca a rs e v of their te li s e w d ie e v c la e th Your P s, cording to clearance rvices ac h West, e s rt o ir e N e d garden th n e th a p e a in s h e u s v o ti itia s lace oid h e is an in g Your P ourhood rry out v Your Plac e neighb r. By usin eyside ca k a ’s a e rs e y e m id a M rs s to e e id s c t to Riv aim 0 vo Your Pla equivalen e le which 0% of 30 per void, and Carlis imately 3 ialled in th d x s e tr d v ro y a n p ll s la a p a is id in M 80 rig clearing actors, £ d safer. O for rnal contr ew Deal reener an g N te x a r, e e r n n e a a d cle l un rather th so Liverpoo eir project is n area of e to g th , in to clear th 0 year. s 1 n 0 e K 24,000 a ss our Place £ in July 2 Y ro e c n al v a io ti s s ia a is it g extern six are comm ities in than usin ncil also licated in e u Commun p v o ti re C c e n y e it ff . e lC st e as b rprise Liverpoo more co y other l that it h cial ente e used b prices are g as a so b successfu e n ti ld th u ra s o e a c p , s ach ow o own void ing appro , try. It is n enterpris vements the coun is ro h p T . im l rs enta contracto nvironm tly ve costs. munity delivers e m e o c c la significan d P n r ons to sa a ti s a e You is ic n s a rv a ree days; e rg re s th a o n d e to e rd v o a ri eight in tw t dep urhood w s in six to ars voids the mos id le f c o o v neighbo le e rs is m a rl o a m le eC hc trea cts in s levels, ISS, whic Your Plac of mains ent proje tisfaction ntractor, delivery a o s e c y l engagem th a it c n in u lo an e mm the cuts quicker th reases co s, Riversid of time, . Due to uthoritie h also inc amount a c l a rt a of the UK o c ro h p lo s p y a a in his e ices b weeks. T tenanted alternativ ental serv erties are ering an v p li environm e ro d p t a to th . rces in meaning andalism its resou nes ntial of v targeted te o p 0,763 ton e cing th oval of 1 ; u m d ts n re re e e m s th d 49 sses service. ve ordere leted 4,9 benefit a teams ha ts, comp t welfare e n c n a a n la n P s te s r te u le t u dre 2 rab The Yo e carry o erties; ad 46 vulne 371,083m Your Plac void prop l events. visited 1,7 a r , a n g o le ti c in a ; p c s r p k u io ec ed Jun of fly ti curity ch held 164 and run brought home se l jobs and ehaviour ared and b ta le l c n ia e e n c e th o m s e n f sb ars o enviro ental anti Garden in d land ha es and e environm neglecte nor Unity act as ey a d s n m a m y u t a a fl c e li te e B v e y mo des of dere eams. Th ple inclu raffiti, re ommunit Warden T er and g An exam d into a c . tt e li e s p u rm d u n fo a to g s in tran ority back in ity; clean land was local auth commun re waste g to the e n h li w u r, fo te g Leices report do tipping, ge of llotment. . s e c a percenta p s A en and a . n rd e le a p re g o g e te cal p regenera d on a bs for lo Jobs Fun created jo re s tu a u h F e e c ia th Your Pla r as ployed v bs, eithe were em ff ta s e ll time jo c fu e v a h Your Pla ce. ow f Your Pla All staff n ry basis. as part o s e v ti ra e tempora op the nmental areas, so or enviro ur Place o Y in wardens h re hig ces the t levels a my, redu n o e n o m c y e lo l loca Unemp a sense oost the s helps b d creates b n a jo f ts o fi n e en creatio welfare b claiming le p o e p f level o d pride. ution an ib tr n o c of

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51 7.7 Case study: Riverside ECHG

ork

Groundw

ing with

– work 4Change

social mber of u n a d e f s develop ple aim o ECHG ha h the sim it w y Riverside tr n in work e cou ple to ga across th o s e e p s s ri s rp le ente home ccredited nities for cess to a opportu c a g d in n id a v pro ring voluntee ised through e c n e y recogn ri e exp nationall d n a s e m program training ry HG are ve ons. erside EC iv R qualificati e s ri terp social en : aflet on le ir e th rtnership In de to pa u it tt a ir ut the open abo

essary c e n e h t on’t have d e w e r e a social e “Wh k a t o t ouse we are , d r a skills in-h w r o e idea f elop enterpris h partners to dev wit chemes.” working s r u o o t ally them loc

e eld on th rk Wakefi o w ison, d n u erick Garr ith Gro tt w a d C re in e n e s rpri ave part ocial ente RECHG h ence in scaping s d n la a nd experi f a o ls t il n k e s e m th develop ork have ity to gain Groundw pportun . o e e ir h th s h rk it w North Yo future eir clients rovide th obtaining p in to m g e in ist th landscap ns to ass ualificatio q d n a ls new skil st ent. rvaux Tru h the Cle employm it w g n ri rtne e kery – pa to provid rtisan Ba A s n ra te arlington D Ve in g n gs the perati Trust brin already o x u ty a ri rv a h le c C sful the kery A succes ividuals, aining ba taged ind n a v d a velop a tr is e d d to to g d e quir tterick trainin RECHG re con in Ca a e e c B n e e ri h e T exp eme specialist nnel sch ice perso rv e -s x e ew at their n d to start fundraise y ll fu Garrison. s s e e ucc will provid ey have s ership, th 11, which n 0 2 rt f a o p t d lients. the en As a join ervices c akery at -s B x n e a r is u rt o for rans A rtunities the Vete ing oppo in a tr d n ring a voluntee nts… y s for clie with man outcome l ia c fi e n r clients u Be o s e id rov rprises p ocial ente s g in p lo Deve benefits:

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Creating Jobs through Social Enterprise

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Nationally

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Time keeping

Appropriate

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NEW START 8 Start new social enterprises There is a growing interest among housing associations in starting social enterprises themselves. Where there is a gap in goods and services provided by existing social enterprises, and where partnerships are not an option, this can provide an excellent way to create employment for residents, and to deliver a variety of services and facilities for the community. Often there are social enterprise models that are already working in other areas which could be replicated, instead of reinventing the wheel by creating a new model from scratch. This process is usually referred to as social franchising and is dealt with separately in section 9. Only 30% of the housing associations surveyed had set up a social enterprise, and, in fact on further investigation, many of these turned out to be community projects rather than financially sustainable social enterprises. However there was enormous variety even among such a relatively small number.

To support this growing interest amongst housing associations in setting up social enterprises, is a growing need for advice, support and guidance. 68% of housing associations surveyed felt they already had a community project with the potential to become a social enterprise.

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NEW START 8.1 Barriers to start-up The main barrier faced by housing associations wanting to set up a new social enterprise is staff time, with over 70% of respondents stating this as a problem. But other key barriers included lack of in-house expertise, no sustainable business model or the lack of an appropriate tried and tested model.

The needs stated by most housing associations were:

Advice & support with business planning (42%)

Support with funding / staff time (31%)

Sustainable business models and successful case

studies (17%)

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Solutions 8.2 Possible solutions

8.3 Funding start-ups

These barriers could in many cases be overcome relatively easily by:

Social enterprises set up by housing associations are most commonly funded from reserves in the first instance. Many also

Partnering social enterprise support agencies to

use a mixture of grants, loans and investment from a variety of

produce specific guidance for housing associations Putting housing associations in touch with suitable partner social enterprises with suitable expertise Linking housing associations with each other, so that

other sources including:

Development agencies;

Government departments;

The National Lottery;

those who have succeeded in setting up social

enterprises can support those who are starting out

The private sector;

Putting housing associations in touch with suitable

Local authorities;

Partner housing associations; and

Specific funds such as the Spark challenge

support agencies Linking housing associations with aspiring social entrepreneurs Introducing housing associations to potential social

More detail on potential sources of funding are given in section 12.

franchises Introducing housing associations to potential sources of funding and investment

Fishing competition run by Aspire Group

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support 8.3.1 Social Enterprise support When asked where they had found support for setting up a social enterprise over 35% of housing associations surveyed said they had not been able to access any support at all.

National social enterprise support agencies: Yet there is support available. As well as a range of national and regional social enterprise bodies there are some organisations working specifically with housing associations to set up new social

Name

Link

Social Enterprise UK

www.socialenterprise.org.uk/

Social Firms UK

www.socialfirmsuk.co.uk/

Social Firms UK market place

www.justbuy.org.uk/

The Social Enterprise Mark

www.socialenterprisemark.org.uk/

enterprises.

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support agencies Regional social enterprise support agencies: NAME

AREA COVERED

LINK

Social Enterprise London

London

www.sel.org.uk

Scottish Social Enterprise Coalition

Scotland

www.ssec.org.uk

Social Economy Network

Northern Ireland

www.socialeconomynetwork.org

Social Enterprise Yorkshire & Humber

Yorkshire & Humber

www.seyh.org.uk

South East Social Enterprise Partnership South East England

www.sesep.org.uk

Social Enterprise East of England

East of England

www.seee.co.uk

Wales Co-operative Centre

Wales

www.walescoop.com

North East Social Enterprise Partnership North East England

www.nesep.co.uk

Social Enterprise East Midlands

East Midlands

www.seem.uk.net

Social Enterprise North West

North West

www.senw.org.uk

Social Enterprise West Midlands

West Midlands

www.socialenterprisewm.org.uk

N.B. RISE, the social enterprise agency for the South West went into administration last year. Following cuts in public spending others may well have closed since this list was compiled.

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Social Enterprise support specifically for housing associations

Social Enterprise: Supporting Your Community Venture A short programme, this service is designed to offer an advice on the potential of turning existing community groups into

Aspire Foundation aspire-foundation.com

commercially viable social enterprises. The service focuses on initial training and discussions with the community group alongside discussions with housing association procurement

Aspire Foundation, along with the NHF and Groundwork UK, is one

managers.

of the three partner organisations on Green Light. It has been supporting housing associations to establish social enterprises for

Tailored support

several years, providing advice and support to over 60 of them, as

Our experts are able to design tailored support services to

well as running social enterprises themselves that supply services

suit both existing projects and feasibility assessments in social

to housing associations. Their services include:

enterprise.

Social Enterprise: Creating and Managing Your Enterprise

Housing Leadership Foundation (HLF) www.hlfoundation.org.uk

Supporting housing associations in creating a social enterprise through; undertaking feasibility studies, designing a business case, tailoring social impacts and offering ongoing management

HLF have an ambitious aim to “create 20,000 jobs� through

of a new enterprise through its start up phase.

helping Registered Social Landlords (RSL) set up new social enterprises. The programme is currently in its pilot phase

Social Enterprise: Creating Your Business Case

developing a new social enterprise with Amicus Horizon. The

An integrated package of support, roundtables, community

intention is that HLF raise finance to fund the development of the

engagement, consultation and training which delivers a business

Social Enterprise with a guaranteed 3 year contract from the RSL

plan setting out the potential for the creation of a social

of at least ÂŁ500,000 per annum.

enterprise to deliver contracts for a housing association. Aspire Foundation

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58 8.4 Case Study: LoCaL Homes

cluding rprises in te n e l ia oc r -house s nt timbe und 12 in ro a s n ru rgy efficie e p n u e ro t, G s o w-c Accord cturing lo , manufa s e m o H LoCaL , eechdale ctory in B homes. fa ) s ee m o CaL H 200 offsit Living (Lo e around c n u o d rb ro a p C ually The Low p to ann duce on the Grou rties pro e s p le b ro a p n e e ck built es. Th Walsall, itional bri d rbon hom a a tr -c f w o lo ions tured th the on emiss manufac the carb ts for bo s f o o c t n g e in c c du 50 per el bills, re n in the average ied carbo t lower fu d n o e c b r m e e p he nd 50 homes. T homes homes a aditional f the new tr o in ts t n a e id th of d res a fraction Group an grows. ss is also e c ro p ere as it g h n p s ri o tu c tm the a manufa on from ur ks in carb c lo r ree and fo e b as tim d two, th te la u s in hly can be offers hig e panels ry th to h c ic fa h L for w The LoCa ngalows, s and bu e s u o h y. bedroom st one da , putting nsite in ju o d te c e factory re e th t ly a k d ic u te q crea rse lso been g to reve bs have a jo l a c nd helpin a lo y 0 it 3 n d u n m Arou com anels for ecline. P t into the d n g e n ri tm s tu e v ufac further in edditch and man ents in R ent levels m p m y lo e lo v p m s de cing local une l previou of produ uccessfu ts s s e o c re r e th w p’s e lo the Grou y, and th increased m Norwa o fr d e enue and rt v o p re r im te a re we gre ill lead to work. locally w s e m o h e Group’s th the f o t s the re ent into reinvestm

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59 8.5 Case Study: reCYCLEd Bike Workshop

nd offer p to try a u t e ial s s a in use w cling soc d people ike recy Julian Ho e b s n li a o a ti is in a , d P rg n SHO t ma At its fou : g the mos IKE WORK h aims to to offerin - BATH B some of d d e to E L it rt C m o Y li ath, whic p C s B e p a R u s w to t is e c u e th dir ially , uniq ther initiative eless. Init terprise er time o the hom n v – e O . ty d ie o c more people so me fo by getting ich not ht and so h ig w n d e issues e th p r develo a bed fo e ve been environmental ut also th rvices ha e tackle s d n ssness b a le e ts c m je o h ro p used s of ; rced onto symptom by recycling en are fo ress the m cycling d o d a possible w ly d as n n o prices; en a as green ns why m competitive o s a at cycling re g make underlyin selling them re-use and ; nt re fe for . if ts d e cts at 7 and servicing the stre je ro bikes p in repair ma bike lients erates 10 affordable over 70 c harity op e c m e ti and training th provide e y n a Tod ho At any o w . n e th employment a m B o d , dw nd aroun time create – men an communities sites in a at . at the same staff team re e a o th h y w b s or for disadvantaged helped homelessness homeles n e e are being b perienced y x tl e have ve recen opportunities eless, ha people who are hom . s s omele especially coming h unching t called risk of be will be la w projec e d n E L a C d Y e C sed - re se launch rkshop llenge. U ulian Hou bike Bike Wo park cha S h t e a th B In 2010 J running , m 1 . funds ing fro rly 201 d will be a d e n e n is a ra ed fu In e g ic to v in us sold xperienc ir ser reCYCLEd and then d more e ike repa n ts b a n e e ts rs il li e n c b e n o y li b gin am by c repaired nning es for be rried out bikes are eir bike ru ce cours LEd is ca n th C a Y p s n e e C e e d t re k lu t in a to ma is inc the work learn how bers. Th Much of want to o taff mem s h f w o t ts h n s g li io is cyc brou e superv hich are under th chines w a ly. m y a to d s e ir and safe sam and repa smoothly en with a ft o servicing – c li f the pub mbers o in by me nd. turnarou

http://www.bath-bike-workshop.org.uk/index.html

22

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60 8.6 Case Study: Neighbourhood Furniture Store

ump ying to p hase of tr p te ia it ich is the h an in ful of wh t throug s n s e e c w c n u s o ost oriz d Amicus H es, the m goods an enterpris l ia c o is a white s s is u h T o ri ). a S v F recycling re (N prime 0 a year, iture Sto 0 rn ,0 u 0 F 4 1 d ÂŁ o urho er of . Neighbo a turnov aidstone ice with rv e s e ay and M s w -u d e re M re , u le wa furnit t with iture in S ting furn re was se u to ib S tr re is u d it urn and re urhood F Neighbo e th 5 0 0 ed in 2 Establish of aims: disposal two key for the . alternative landfill a green need for provide the o T 1. to people waste, reducing furniture household , affordable good quality provide o 2. T . . It has incomes al people c lo low to s on unitie serves e opport rise. NFS xperienc rp e te rk n o e l w ocia offers ing as a s eholds NFS also off hous plan runn r s e s tt e e in b s u om able b cycling fr a sustain d is now a year, re rs e m to s rsified an e u c iv d 0 0 s a ,0 h it about 2 recently well. asonably eed. More n in le p going re is h ic for peo h w ls service a remova offering

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61 8.7 Case Study: RedWelly - Stamping out Garden Poverty

itycommun P) run a H (M ip l people nersh with loca ing Part s s u rk o o H w n lita lly. It ardens d RedWe Metropo munity g ject calle m ro o p c g to in nd in rden d sed grou based ga complete of underu s a re a ave been h rm ts c fo s je n 0 pro to tra areas. 15 . outdoor le b e to date a lu a and v Derbyshir d n a e ir h ms ottingha within N in s elly’s ma objective ies, RedW it n u rt o Aims and pp erience o work exp g in id v ro p Through perience work ex to: aims are rewarding xactly of highly spaces e a range Provide outdoor by in green and valued , resulting of the community places to the needs suited and everyone of people network in working a thriving interest Create shared a . with the community organisations the benefit of for and development together training people at life-changing Provide vulnerable and groups to community progress them to for , helping . of exclusion in the future risk work opportunities possible and lls Royce ch as Ro u s s n o ti a nd d organis ey can se panies an so that th y ll e ir W d Local com e ay R ssess the Brigade p sers to a e u ir y F ll e e ir W h d Re Derbys teer with to volun ff ta s etc n w way days their o ills, for a k s g in rk wo own team

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62 8.8 Case Study: Plymouth Community Homes Services

ts that ur projec fo e v a h id to ry can be sa a subsidia y Homes it n u m te under m ra o e C p o th ll u a aids any They Plymo rprises. hich gift w te n s e e l ic ia rv c s Se as so ity Home operate Commun th u o m Ply mpany. company, parent co e th to ack surplus b ality s high qu : hat make These are “t , ry to c g as ng fa iminishin nufacturi arket is d dows ma m l in a w xt rn A te 1 e in er the ne s�. Now th y are, ov w e o th d , in d w n C ne uPV mes to a for the s work co markets e l a m o rn H te t x n ge Dece identifyin ing to be o g , rs a e y 2/3 or nd exteri ows. interior a n wind e d o o gw p ters, sho ery makin ws, coun uality join o q d h in w ig h e est 2 A box fram the high ent and es. Using h c n e rs, casem b o o d d iture an ses, furn ts, stairca n sources o fr stainable u s m o fr r nal hand ty timbe es traditio o d quali h ic h w orkshop perform rication w hey also b T fa . l rk ta o e w me ts 3 A m high volu . Produc modern etal work r m o d to e ft ts en cra rs, improvem irs, ladde airs and p re e it -s ilings, sta ra , g in on c e: fen talwork, es includ tural me ic c e rv it e h s rc d a , an , ducting l ironwork ra u lt u c f welding ri ag aspects o ll a d n a ws nything rs, windo roduce a p d n a doo n esig n both d window which ca raphics, g p o le h ic s h n e ns, v 4 A sig els terior sig signs, lab or and in ri te x e ad traffic m ro o , fr rs te s po ry style ners and hics, ban ntempora p o c ra g le b a il ade ava to newly es have m stickers, pprentic A . n io s and a cc r for any o e and fo as wraps Boat Rac p u C s a canv eric local Am s for the sign panies. l bus com loca

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63 8.9 Case Study: Riverside ECHG

f social umber o n a d e p f s develo ple aim o ECHG ha h the sim it w y Riverside tr n e cou ain work across th ople to g s e e p s s ri s rp le e ente hom ccredited nities for cess to a opportu c a g d in n id a v pro ring voluntee nised through e c n e ri e ally recog exp d nation n a s emselves e m gram tarted th ro s p e v g a in h in y tra the of these ns. Two o ti a c fi li a qu ently. independ fe Your ca

S

@ STAGE

of e Places art of th p s a h g @ STAGES sbrou Your cafe in Middle y, m e d a Located Ac st e STAGES rices whil roject Th ordable p ff a t a d Change p o r quality fo voluntee excellent lients to c G H C provides E R nities for ees and, opportu ome train c e b rs providing e te 2 ur volun art in a 1 e cafe. O ef, take p h C d a within th e H l ce of the uccessfu e guidan me. On s m ra g under th ro rp voluntee are then uctured g, clients n ri e te week str n lu weeks vo e skills on of 12 utilise th to r e n completi rt a p training fication in nrol with ited quali d re c c able to e a n d nd gain a ration an e learnt a od Prepa o F . .g they hav e t s of intere sen area their cho Services. ospitality H r o ry e Cook

ing ons work rganisati o l a c lo r othe unities orks with f opport o w r S e E b G A m T @S r nu r a greate Your cafe s to offe lt u d a le erab with vuln . ened in sbrough sings op s le d ro C id e M h s @T acros our cafe STAGES, se cafe, Y r cafe @ ri u o rp Y te s n a e t a social same form A second f Hull can wing the o ll o F . the city o 1 s 1 s 0 ro 2 c r a e b from the Septem s clients mme at homeles g progra G in H in C a E tr R f Chef g and many o the Head lunteerin o in v a r g a A il . s im sing ss a s The Cros le work now acce h valuab scheme, it e w g n a m e h C th es of providing oth new Plac evelop b ual client id iv d in h skills to d c a ry e a s h s it e w c ne works with the ing them iv g ent. e c n e employm experi in future s a ll e w y as personall clients‌ y mes for o c t u o l with man ia r clients u Benefic o s e id rov rprises p ocial ente s g in p lo Deve benefits: Confidence

Self-esteem

Creating Jobs through Social Enterprise

development

perience

ex Work

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building

Nationally

and a working

recognised

Time keeping Appropriate

reference

qualifications

and personal

presentation

work behaviours

Development

of interpersonal

skills


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9 Buying social enterprises One example of a successful social enterprise within the housing sector which gets talked about a lot is PM Training. This was originally a private business which was bought by Aspire Housing and turned into a social enterprise to deliver their training initiatives. Aster Group have also taken over the running of a struggling furniture recycling social enterprise. In the current economic climate a number of good social enterprises are closing, and even more good businesses are going bankrupt because of lack of suitable finance and cash flow problems. There may well be opportunities for Housing Associations to safeguard as well as create jobs by taking over existing businesses and running them as social enterprises. Or to increase the social impact of a successful local business by buying it and turning it into a social enterprise, employing and delivering services to tenants.

Aspire Group

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65 9.1 Case study: PM Training

ent at evelopm D s s e in s d Bu ses says ration an l enterpri f Regene ia o c r o s to c ’s e n n, Dir ciatio ot have Will Nixo the asso n have n eads up e g, h ft in o o in h o ra w h T , up , PM ple w to work. ung peo business Aspire Gro nd get in vides, ‘yo cquired a ly a a ro in ls p g a il k g in m s s in s u gain Train work spire Ho as hance to that PM rprise. It In 2008 A ork such ns, life the c o cial ente ti in o s a c rt a fi ta li s to a acts for w t u in tr s q n e d l o b a e c e rn h rm tu roug in better had th ited fo which it h results munity th have lim ic m h o n o h w e c , w th e g le e usin fit th spir ng peop social ho We bene d skills. A 23 with you people in rience an r e e p ld x g o e eople. r in rk o Train ning fo young p em wo ig e y d th rd b In a e g le r, iv e p g o vid to pe of older aining pro centres in nother tr rstanding a g e d d in e n in ir u a u tr q ac , om structure perates fr w group , which o e s n n a o ti provide a d lu te o S s ire crea ing. They s e p in s ic re ra ‘A rv T tu e u . s M k F s rk of P ing s and Lee Homewo d service Enterpris orks’ arm Stafford rise arm tate-base ‘direct w PM s rp e e to te d th n n n e is a io l s it rk en dd a socia homes, Homewo ities’ In a me-, gard including transform rise activ ge of ho da n h rp e ic ra ir te h u e n w q e iv c , s l s a n e tion also its socia compreh organisa recently to grow te sector tures has a her its v u rt ri F p fu e s d ri to n a Mine Enterp to public . urniture training, munities Charity F e s u e and com R s e re s s u e it in rn s bu local Fu , cutting : s. e v , hedge ti c je y include g b e h in T in mowing a tr social o and – lawn loyment Gardening ment, ,000 emp p 1 s lo e e v id e v d rce ing pro , tidying g workfo PM Train ctors r, includin e a s weeding e y h r c e u s p in nities landscaping learning opportu d and soft undation fo d n a s Hard inting an a ip p h s d e n c a ti , on appren ed ministrati ong, turn siness ad u b , g arpet fitting in 0-staff str s 0 1 is h as hou ic C h w , g 0 0 in in 5,0 g. PM Tra fit of £22 / decoratin with a pro 0 properties 1 / 9 Furnishing 0 n to 0 o 2 ti a in d n n individual o u – li mil se Fo over £4.2 the Reali and decorating aided to t if g Painting learning. s a g w n h lo ic fe h li w velop all of amenities , bulky s and de xternal removal nticeship re p p e a graffiti / create – litter state caretaking E car collection – off street item improvements , nvironmental E enhancements boundary , parking , fencing planting sculptures including ublic art P rking and living, wo e v ti c ra tt a e te more s with th is to crea g trainee n u o y The aim e to provid cure aces and eed to se public s p ce they n n e ri e p x e skills and 24 valuable ent. employm le b a in susta ED...

CONTINU

http://www.insidehousing.co.uk/need-to-know/we-mean-business/6516032.article by Anita Pati 24 http://www.pmtraining.org.uk/uploads/PDF%20Uploads/Homeworks.pdf Creating Jobs through Social Enterprise 23

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ft, ental upli nvironm e s e id v industry cess pro truction hole pro s w n o e c th e , ore in th 25 r others Furtherm erties. perity fo s ro p d n ring prop a u s o b b h jo ig s for ne create e prices sts hous o o b o ls gy and and a f its strate o rt a e h the scope of rprise at cial ente cale and s o s e s e th c f la o wp ation Aspire no e an indic ccess giv u s f o s re its measu bition: their am and employment training the annual Increase . to 2,000

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tic er fantas oes it off d ly n o t o ny roach. N nd in ma -win’ app ntices – a re p p a It’s a ‘win e ctical for th a very pra rtunities o n p o p t, o u g b b– trainin tly to a jo omes led direc empty h s g a n h ri is b th to y cases ective wa a cost-eff o ls a is it level, ve use. producti back into

http://www.insidehousing.co.uk/home/blogs/the-answer-to-empty-homes/6519590.article

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Replication 10 Replication and Social Franchising: The term ‘social franchising’ can mean different things. In the UK the term social franchising is often used interchangeably with the broader concept of social replication: replicating a successful social purpose organisation or project in a new geographical location. We would argue however that it is helpful to distinguish

model is proven and the systems are in place, a franchise is

often quicker and easier to start up, and you get significant

support in doing so

The franchise has an established brand bringing credibility,

legitimacy and potentially opening doors to new networks

and investment There are benefits from being part of a national

between franchising and replication and so the definition of social

franchising we use in this report is:

organisation that franchising allows you to access (joint

purchasing, economies of scale, communications, policy

work etc)

A successful social purpose organisation that enables at

Franchising still allows some autonomy, independence and

least one independent franchisee to deliver their proven

model under license.

local ownership, compared to running the branch of a

national organisation.

As reported in section 8 the main barrier faced by housing

associations wanting to set up a new social enterprise is staff

time, with over 70% of respondents sighting this as a problem. But other key barriers included lack of in-house expertise, no sustainable business model or the lack of an appropriate tried and tested model. This is where social franchising can really help.

10.1 Advantages of becoming a franchisee There are both advantages and disadvantages for an organisation taking on a franchise rather than starting their own new social enterprise from scratch. The most obvious advantage is that

Successful franchises work through genuine partnerships and mutual benefit, which is suited to work in the social sector Individual franchises can call on the support of the whole franchise Shared services are provided from training to marketing that an individual enterprise could not afford Innovations in one of the franchisees can be spread through the whole franchise. Franchisees can focus on their core competences rather than central administration and business development

franchises are, in most cases, less likely to fail than other new-

The market is already established (at least in one area)

start businesses. Start-up is usually faster and more cost-effective

A proven demand for products & services (at least in one area)

and there is support in delivering a proven business model. This

Greater access to (bank) finance (in the commercial world)

Networking amongst franchisees to share experience, ideas

is particularly helpful for social purpose organisations that have limited business expertise. However franchises can be expensive, and if the model is too rigid it may not be adaptable to the local need and market. And of course a franchise is only as good as the business model being franchised.26

and innovations Franchise fees can provide a very real incentive to create

turnover and profit, making the organisation more

financially sustainable.

Other advantages for the franchisee in choosing a social franchise

If a housing association is looking to establish a new social

over starting a new project from scratch include:

enterprise they would do well to explore the possibility of taking

Faster and more cost-effective start-up. Because the

on a social franchise rather than reinventing the wheel.

Social Franchising (2011), a report for Big Society Capital by Mark Richardson and Dan Berelowitz

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Existing franchises 10.2 Existing social franchises

10.3 Franchising between housing associations

Our research has identified 95 social franchises operating in

There is also the potential for housing associations who have

the UK. We have also identified a further 45 social franchises

developed social enterprises themselves to benefit, and spread

operating in other European countries. Although franchising

their social impact wider, by becoming franchisors.

across borders has its challenges it has been successfully

Of the 91 housing associations that responded to our survey:

accomplished by a number of organisations. There are several successful European social franchises which are not yet operating in the UK but have the potential to do so. There are 897 commercial franchises in the UK at the moment.27 Although these commercial franchises would probably not

70% have not yet set up social enterprises

Of the 40 or so social enterprises that have been

established only one has been franchised

or replicated

consider themselves as part of the social economy many are

arguably already operating with a social purpose.

In addition to commercial franchises which are seemingly already

delivering social benefit, there are also those which could be

social enterprises in new geographic areas within

adapted to do so. For example a regular grounds maintenance

their own organisation:

– Riverside ECHG with Your cafe @ STAGES

– Aster Group with Twice as Nice

franchise could be adapted to create employment opportunities specifically for disadvantaged people One of the biggest challenges for social franchising is finding suitable franchisees. Housing associations are ideally placed to

fulfil this role.

Socially motivated

Embedded in and engaged with disadvantaged

6 housing associations expressed an interest in franchising their successful social enterprise 2 housing associations reported having replicated

No social enterprises had been franchised between housing associations.

communities

Existing back office systems and staff

Ability to access suitable finance and funding

Natwest/BFA Franchise Survey 2011

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successful franchising 10.4 Franchising a successful social enterprise In the short to medium term replicating your social enterprise by

Other Costs

becoming a franchisor is relatively expensive.

Of the 9 social franchises we interviewed the average investment

documentation (notably the franchise agreement

to get the organisation franchise-ready was £134,000. However

and a non-disclosure agreement): circa

this average masks enormous variation with estimates from

£4,500 - £5,000.

£10,000 (BlueSky) to £500,000 (CASA).

Julie Waites, of The Franchise Company, estimates that the

(FOM): The FOM can vary tremendously depending

average cost for a commercial business to become franchise

upon the type and complexity of the business model

ready is between £30,000 and £50,000. Although again this varies

and how much written operational information is

enormously depending upon the complexity of the business, the

available in house. As a guide only fees for

amount of staff input etc. This cost would not include the cost of

producing the FOM are normally in the region of

running the franchise pilot.

£4000-£8000.

These break down as follows:

Consultancy Fees:

Fees for the feasibility study are likely to be in the range £3000-£8000 Fees for the remaining preparation work would be in the region of £6,000-£8,000. Ongoing fees for helping with franchisee

Any additional piloting costs (although any additional pilot operations would be treated as a

profit centres in their own right, so they should

recover some or all of their costs).

Franchise marketing and franchisee recruitment

costs (although these costs would normally be

recouped as each franchisee is recruited by adding a

figure to the initial franchise fee).

recruitment, training and support, will depend

on precise involvement but they could be linked

to recruitment.

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Production of the franchise operations manual

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Being a franchisor 10.5 Advantages and disadvantages of becoming a franchisor The franchisor can share the entrepreneurial risk

There are advantages and disadvantages to becoming a social

franchisor, and these vary depending upon the model of social

franchise and the potential fees that can be earned from

franchisees. These include:

between the partners and become the basis for sustainable cooperation.

and start-up capital with the franchisees. Franchising can generate a high degree of trust

Potential revenue stream from the franchisee

Potential capital from sales of franchises

However there are disadvantages too:

Potential for fast growth

Franchisees provide commitment and resources

Risk, both in terms of resources committed and to the reputations of those involved. Since initiatives are often set up with a specific

meaning franchisors don’t have to rely solely on

paid staff time

geographic focus in mind, there is a risk of changing

the initial mission when adapting it to other locations.

Appropriate franchisees will already be imbedded

The relative independence that franchisees are

in the new area with significant social capital and

involvement of local partners

granted can lead to activities that might be

inconsistent with the project and thus alter

the mission.

Franchising leverages existing resources rather than creating new structures at high costs. The concept can be adjusted more effectively to

local peculiarities than a centralised system

of expansion.

Franchisees are arguably more motivated to work

hard to generate income and minimise costs than

centrally paid staff.

Monitoring and evaluating franchisee performance

is difficult. However this is essential in order to

ensure adequate quality.

Standardisation might lead to inflexibility, making it more difficult to adapt the project to other locations. Some research has shown that the risk of being a

franchisee under a new franchisor may be higher

Activities such as fundraising and marketing can be

risk than being an independent start up because of

shared between the franchisor and the franchisees.

the added risk of the franchise failing centrally. The

Ongoing improvement of the social enterprise model

risk reduces dramatically when then franchise

through systematic transfer of know-how and on-

network starts to mature.

going learning between franchisor and franchisees,

up down and sideways.

Quality management through standardisation.

More effective use of available resources through

economies of scale.

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Commercial franchises 10.6 Commercial franchises with social potential Our research has suggested a number of commercial franchises that do not necessarily consider themselves as part of the social economy but are arguably already operating with a social purpose whether that is working with pre-school children or delivering green energy solutions: For example: FRANCHISE

DESCRIPTION

Banana Moon Day Nursery

Nursery

Computer Xplorers

ICT training to children aged 3 to 13

Dig It

Outdoor ´Play and Learning´ provisions for Education and Community Sectors

Energy & Carbon Management

Energy broking and consulting business

Green Assess

Energy Performance Certificates (EPCs) & renewable energy supplies

Green Care solar franchise

Distributing UK certified solar panels and solutions

Little Kickers Football Classes

Football skills classes for children aged 18 months to 7th birthday

Playtime Nursery

Nursery

Tumble Tots

Physical play programme for children from six months to seven years,

Social Enterprise North West

North West

Witty Day Nursery

Nursery

Many of these could potentially be taken on and ‘socialised’ by not-for-profit organisations with little adaptation.

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In addition to commercial franchises which are arguably already delivering social benefit, there are also those which could potentially be adapted to do so. For example a regular grounds maintenance franchise could be adapted to create employment opportunities specifically for disadvantaged people. Many job-creation social enterprises are already operating in similar markets. Some commercial franchises that might present a possibility for ‘socialisation’ include:

FRANCHISE

DESCRIPTION

Countrywide Grounds Maintenance

Grounds maintenance

Driver Hire

Supplying commercial drivers and logistics staff

Envirocare Grounds Maintenance

Grounds maintenance

Furniture Medic

On site repairs of wood, laminate, leather upholstery, UPVC, marble etc.

Green Thumb Lawn Treatment

Grounds maintenance

Office Express Social Franchise

Supplies small and medium sized companies with office supplies

Travail Employment Group

Staffing solutions to industry, commerce, education and the professions

VIP Bin Cleaning

Domestic & commercial bin cleaning

These could potentially be taken on by social enterprises to be applied with enhanced social objectives, for example a housing association taking on an Envirocare franchise to engage its

These include:

Bringing commercial business expertise into the not-

for-profit organisation

residents groups in estate maintenance. An adapted version of the franchise agreement might be needed.

Reduced failure rate of new franchises compared to

stand-alone start-ups For a housing association looking to develop business there are some clear advantages of partnering with an experienced Commercial Franchisor rather than developing a new business from scratch.

Buying into an established brand with an established

market

Significant time and resource savings implementing a

proven business plan rather than developing a new one by trial and error

The pre-contract support and resources make

financial projections less of a guessing game .

The ability to demonstrate to stakeholders that they

are investing in a proven business

The training, operational support and guidance

provided by an experienced franchisor has been tried and tested.

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10.6.1 Micro-Franchising Micro-Franchising is where financially disadvantaged people are encouraged to take on a commercial franchise of some sort in order to create an income or add to their existing income. These could be existing franchise opportunities, or opportunities developed specifically for this market. Franchising Works is an initiative run by the Shaftesbury Partnership which is developing this as a means to combat lack of employment in disadvantaged areas and is also worth exploring as an opportunity for housing associations. Tenants could be supported to take on appropriate commercial franchises.

10.7 Possible partners A number of organisations are looking seriously at the potential for social franchising at the moment. The International Centre for Social Franchising (ICSF) is taking a lead on this, and also developing work in this field on behalf of Big Society Capital. Possible partners include

International Centre for Social Franchising

Aspire Foundation

SEUK

Social Firms UK

Shaftesbury Partnership

UnLtd.

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Green Deal 11 Green Deal

Housing associations will be central to this drive to ‘green’ the

As we have seen already in this report, social enterprises operate in a wide variety of sectors. For a number of reasons there is expected to be strong growth in the ‘green economy’ over the

UK housing stock. And in that position they have the capacity to stimulate or create decent jobs and training opportunities for their tenants.

next few years and particular opportunities for social enterprise

Social enterprises such as Groundwork are already employing

development around the Government’s Green Deal initiative.

disadvantaged people in many aspects of the green economy and

Put simply, the Green Deal is a framework to enable private firms to offer consumers energy efficiency improvements to their homes, community spaces and businesses at no upfront cost, and then recoup payments through a charge in instalments on the energy bill.28

can make ideal partners in this endeavour. The scale of the opportunity is vast:

“The green jobs agenda in the UK has tended to focus on the issues of reducing greenhouse gas emissions and creating jobs. Much less thought has been given to the issues of how to create good quality jobs that are accessible to the people who really need them.”

IPPR – Green & Decent Jobs

UK Government claim Green Deal will create 250,000 jobs ARBED in Wales investing a further £45 million in

retrofit of poorest homes

Cut the Carbon estimate the Green deal will lead to 2

million internal and external wall insulations by between late 2012 and 2020 Operations at this scale will clearly involve collaboration between a number of different organisations across sectors. Some consortia are already developing with key partners ranging from councils and RSLs to Energy Companies. At the moment the furthest advanced of these are in Manchester, Birmingham, and Newcastle.

11.1 Green Deal and RSLs Around 45 per cent of carbon emissions in the UK arise from the use of domestic and nondomestic buildings. These emissions will need to be radically reduced in order to meet climate change

DECC have recognised the importance of housing associations in delivering the Green Deal. Their website currently states:

targets. The government has created a package of incentives and

The social housing sector is well-placed to play a central role in

interventions to stimulate this market, including:

delivering the Green Deal due to a number of factors:

the Renewable Heat Incentive

Feed in Tariffs

The Government has also made a commitment that all new homes coming through the planning system from 2016 must be

zero carbon

The sector has experience of carrying out major home improvements, including energy efficiency works. By managing significant numbers of properties, it offers economies of scale. They have a natural market in their own tenant base, and good local engagement and visibility.

http://www.decc.gov.uk/assets/decc/legislation/energybill/1010-green-deal-summary-proposals.pdf

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Green Deal providers Social Housing Providers can play a number of different roles

There was some question over whether RSLs would be able to

in delivering the Green Deal. For example, they could become

access ECO funding. The original Green deal consultation stated,

Green Deal Providers in their own right or work in partnership

“the ECO Affordable Warmth obligation will focus on providing

with others to offer economies of scale. They could also have

support to low income households… focused on private tenure

an important advocacy role. The social housing sector could also

properties where energy efficiency standards are lowest and

help kick-start the market place. For example, the sector has an

there are fewer alternative forms of support.”31 But DECC’s

existing and skilled construction workforce that is used to working

website now explicitly states that “The relative ease of achieving

in occupied homes.29

economies of scale in social housing will mean that providers are

There will also be additional funding targeted at hard to treat properties and those living in fuel property. Green Deal finance will not be the only source of support for

well places to attract ECO funding towards improving their harder to treat stock.”32

11.2 Green Deal Providers

energy efficiency measures in homes. At the moment, the

Many large private sector organisations are already gearing up to

Government’s principal tools for driving uptake are the energy

deliver Green Deal. The list of organisations, in alphabetical order,

company obligations Carbon Emissions Reductions Target

who have signed the Green Deal agreement are:

(CERT) and Community Energy Saving Programme (CESP). The Government has committed to replacing these programmes when they expire at the end of 2012 with a new Energy Company Obligation. The obligation will be restructured to bring it up to date and enable it to function alongside the Green Deal finance

Ampere GDP

Keepmoat

Anglian Home

Kingfisher

Improvements

Mark Group

market.

BritishEco

ReEnergise Finance

The ECO will be focused on those households who need support

British Gas

SIG plc

over and above the Green Deal so that everyone can share in

CarbonLow Group

SSE

Carillion

Stroma

households, who tend to under-heat their homes, to heat their

Empower Community

Toriga Energy

properties adequately and more affordably. It will also offer

Enact Energy

Willmott Dixon

E.ON

Gentoo Group (RSL)

Grafton Group

Insta Group

the British energy efficiency transformation. Importantly, it will provide measures which help the most vulnerable low income

support to the expensive to treat properties, such as those with solid walls. The additional ECO support will be able to be combined with Green Deal finance as one package for consumers.30

Energy Services Yorkshire Energy Services

http://www.decc.gov.uk/en/content/cms/tackling/green_deal/gd_industry/social_landlor/social_landlor.aspx 30 http://www.decc.gov.uk/assets/decc/legislation/energybill/1010-green-deal-summary-proposals.pdf 31 The Green Deal and Energy Company Obligation Consultation Document p119 32 http://www.decc.gov.uk/en/content/cms/tackling/green_deal/gd_industry/social_landlor/social_landlor.aspx 29

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Potential Jobs 11.3 Timescale The timescale for taking advantage of the opportunities presented by Green Deal is short.

1. Keep it local: Local knowledge is vital – it is impossible for central policy makers to know which green jobs are most viable where, what the local barriers to implementation are, what the needs of the local work

Green Deal is officially due to launch autumn 2012.

force are and what the local skills base looks like.

CESP & CERT funding runs until December 2012

2. Join forces:

The Energy Company Obligation (ECO) will take over but

The benefits of partnership working are clear - it is unrealistic

from CESP and CERT but given the initial focus on private

to expect any one organisation to be able to identify new

tenure properties may not be as reliable source of funding.

opportunities, provide training facilities, access community networks and provide employment opportunities. Partnership

11.4 Potential for Job Creation

working is vital for achieving the holistic approach necessary to

The American Green Deal failed to have economic impact through

create good quality green jobs.

jobs that were expected. Other countries have achieved more,

3. Not just jobs:

with Germany often held up as an example of the potential for job

It is essential to ensure that objectives about tackling poverty and

creation from Green-Deal-type policies.

supporting disadvantaged communities are at the heart of green

IPPR carried out some research in this area and came up with four

jobs programmes from the very start. Adding them at a later

key recommendations:

stage is likely to mean they are overlooked. 4. Build a training-to-work ‘pipeline’: training programmes and welfare-to-work schemes need to be properly integrated with the local labour market. This can help ensure there is a viable journey from unemployment into green work and that local people have the skills to take on new jobs. Housing associations and social enterprises such as Groundwork and Aspire are clearly well placed to lead on and deliver exactly the kind of work that IPPR recommend. IPPR scoping work also included a survey of over 450 organisations from across the UK working on employment, poverty, skills, housing and the environment. Over a third were interested in principle in joining some kind of coalition for green jobs.

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Potential Jobs 11.5 Potential jobs within Green Deal work Officially Green Deal work breaks down into three stages: assessment, finance and installation. However Groundwork have suggested three additional stages which will be necessary to actually make the scheme work:

STAGE

GREEN DEAL ACCREDITED?

Awareness

No

Engagement

No

Assessment

Accredited GDA

Finance

Accredited GD finance provider

Installation

Accredited GD installer

Follow-up

No

Social enterprises and housing associations are well placed to carry

The greatest opportunity for job creation, particularly for entry

out awareness and engagement work within the communities

level jobs with training opportunities or apprenticeships, is in the

they serve. Groundwork already carry out similar work in many

installation phase. Teams, overseen by suitably qualified people,

parts of the country under their Green Doctor scheme. There

could deliver a range of services including:

may be the potential to fund jobs delivering this work either by

Loft insulation

Cavity wall insulation

External wall insulation

Replacement windows and doors

Solar hot water heating and PV installation

being paid by Green Deal to deliver this work, or being paid by providers for leads which turn into assessments. Work delivering Green Deal Assessments is not entry level work, however a suitably motivated and educated individual could complete the qualification to deliver Energy Performance Certificates (EPCs) and Green Deal Assessments (GDAs) within 3 There is currently a lack of qualified people to oversee this work

months.

but suitable people can be trained up relatively quickly and easily. Green Deal Finance probably doesn’t offer any opportunities for job creation by the Third Sector.

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additional green Jobs 11.6 Additional ‘Green Jobs’ A social enterprise, or consortium of social enterprises, delivering work under Green Deal could also look at additional work in both the housing sector and the green economy. CATEGORY Recycling

EXAMPLE FRC

Re-use / second hand:

Clothing

Lost Vintage - Trident Housing

Furniture restoration

Twice as Nice

Sports gear

Sports Traider

White Goods

SOFA

Mobility equipment

Brighter Futures

Grounds maintenance

Shoots & Roots

Micro-renewable installation

Groundwork North East

PV

Air source heat pump

Ground-source heat pump

Micro-CHP

Solar water heating

Retrofitting

Groundwork North East

Loft / wall insulation fitting

The Yard Project

Allotment / green house growing food

Riverside ECHG - Your Place

Bike repair / sales / hire

Julian House - reCYCLEd

Home renovation

PM Training – Homeworks

Internal maintenance

Aspire Bristol

Derelict property renovation

Bristol Together CIC

Car share scheme Fairtrade / eco wholesale Void Properties

West Kent Extra

Bulky item removal

Bulky Bobs

Flood prevention work Energy advice, behaviour change

Groundwork – Green Doctor

Community food growing schemes

Groundwork London

Community engagement

Riverside ECHG – Your Place

Gardening/horticulture

Metropolitan Housing - RedWelly

Composting

Groundwork London

Graffiti removal

PM Training - Homeworks

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next steps 11.7 Suggested route forward There are two ways to approach the opportunities generated by the Green Deal and the growing green economy. The easiest approach is for individual housing associations, Groundwork Trusts and other social enterprises to develop services to meet this growing demand either separately or in partnership. This is already happening and could be encouraged further by sharing of best practice and successful business models. The approach with the potential for the greatest impact is to explore the possibility of regional or even national coalitions of housing associations and social enterprises to work in partnership with the large corporate Green Deal providers to create jobs for disadvantaged people in the Green Deal supply chain.

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Available funding 12 Funding available for social enterprise development / contracting There are a number of potential sources of funding for the development of social enterprises. These vary enormously from region to region and depending on the sector the social enterprise is operating in and the anticipated social outcomes. Sources can include:

Development agencies; Government departments; The National Lottery; Private sector; Local authorities; Charitable Trusts Specific funds Housing associations wishing to source funding for a specific project are best off approaching regional and national social enterprise agencies. Grants are often not the most appropriate form of finance for a social enterprise as it should be able to generate revenue to pay back a loan. Sources of loan, equity and patient capital are given in the following section.

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12.1 Loans and Social Investment There are a number of specialist social investors in the market including:

LOAN FUND

DESCRIPTION

Adventure Capital Fund

The Adventure Capital Fund is an ambitious new style of funder for community and social enterprise.

Big Issue Invest

Big Issue Invest is a specialised provider of finance to social enterprises or trading arms of charities that are finding business solutions that create social and environmental transformation

MAX LOAN

WEBSITE www.adventurecapitalfund.org.uk/

£ 250,000

www.biginvest.co.uk/

Big Society Capital

Only invest in social investment finance intermediaries, but through them investing in a number of social enterprises.

Bridges Community Ventures

Bridges Ventures is a sustainable growth investor whose commercial expertise is used to deliver both financial returns and social and environmental benefits. It invests in entrepreneurial small and medium-sized enterprises in the most deprived 25% of England (using the Index of Multiple Deprivation).

Charity Bank

Charity Bank finances social enterprises, charities and community organisations, with the support of depositors and investors who want to use their money to facilitate real social change. Almost exclusively secured loans.

£ 2,000,000

www.charitybank.org/

Community Business Loan Fund (CBLF) Royal Bank of Scotland

Financial assistance to help potential and existing social entrepreneurs in the UK who are unable to access finance through the normal mainstream channels.

£ 1,000,000

http://www.rbs.co.uk/business/ banking/g3/community-businessloan-fund.ashx

Co-operative and Community Finance (Industrial Common Ownership Finance Ltd)

Financial aid is available for the support of the development of cooperatives or employee-owned businesses and social enterprises in the UK for general business needs, including loans on property, business purchase, capital equipment and working capital.

£ 250,000

www.coopfinance.coop/

Enterprise Finance Guarantee Scheme

Guarantee facility, available through high street banks, for small UK businesses. It will also support lending for business growth and development in cases where a sound proposition may otherwise be declined due to a lack of security.

£ 1,000,000

http://www.bis.gov.uk/policies/ enterprise-and-business-support/ access-to-finance/enterprisefinance-guarantee

FSE SOCIAL IMPACT COINVESTMENT FUND

Early stage loan fund for social impact entities: subject to match-funding from angel investor

£ 100,000

www.thefsegroup.com

Modernisation Fund (Cabinet Office)

Financial assistance is available in the form of interestfree loans to help third sector organisations in England overcome the impact of the economic downturn.

£ 500,000

http://www.modernisationfund. org.uk/

The Social Investment Business

The UK’s largest social investor has made over 1100 investments in civil society organisations. They invest in viable, non-bankable projects: facilitating their move into more enterprising ventures; strengthening them; investing in excellence; and bringing to scale the most innovative ideas.

£7 million

www.thesocialinvestmentbusiness. org/

http://www.bigsocietycapital.com/

www.bridgesventures.com/

Triodos Bank Loan Finance

Loan packages and investment finance available to charities and social enterprises throughout the UK. Almost exclusively secured lending.

Discretionary

http://www.triodos.co.uk/

Unity Bank

A specialist bank for civil society, social enterprises, CICs, councils, and trade unions

£6 million (property

http://www.unity.co.uk/

£ 250,000

https://www.cafonline.org/ charity-finance--fundraising/ banking-and-investments/loansand-capital.aspx

Venturesome (CAF)

Financial assistance in the form of loans and equity investments is available to support charities and social enterprises throughout the UK.

There are also a number of specialist investors in the field of climate change.

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There are also an increasing number of individuals and organisations willing to take an equity stake in a social enterprise, or to put in ‘patient capital’ including.

ClearlySo ClearlySo describes itself as the first online marketplace for social business & enterprise, commerce and investment. In the previous 12 months they have helped over 100 social enterprises looking for investment, of which just fewer than 10% were involved in some form of social franchising.33 http://www.clearlyso.com/

Impetus Trust Impetus Trust describes itself as the pioneer of venture philanthropy in the UK. Venture philanthropy is an active approach to philanthropy, which involves giving skills as well as money. It uses the principles of venture capital, with the investee organisation receiving management support, specialist expertise and financial resources. The aim is for a social, rather than financial, return. http://www.impetus.org.uk/ Shepherds Bush Housing Group

In addition Crowd Funding is becoming an increasingly common way to raise finance, with a number of crowd sourcing platforms including:

CrowdCube

Bank of the Future

Buzzbnk (quasi equity for social enterprises)

Because crowd sourcing requires significant commitment from the fund raiser to ‘sell’ their idea to a large number of potential investors it could be used as a way to guarantee the commitment of franchisors or franchisees if they were not in a position to commit their own cash, or provide assets as security for a loan.

Mark Richardson, conversation with Rodney Schwartz, 23-12-11

33

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Recommendations 13 Recommendations and Next Steps

13.1 Procurement:

There are huge opportunities for housing associations to

Develop a programme to support housing associations to:

create jobs procuring from or in partnership with existing social

Map social enterprises in their area(s)

Capacity building social enterprises to enable them to deliver

enterprises such as Aspire Foundation or Groundwork Trusts. There are also opportunities for developing new social enterprises. There is clearly a need for a project, organisation or coalition to facilitate this work. Green Light can help facilitate this process in three key areas:

the required goods or services at the required quality. (Supply chain management.)

Educate procurement teams about, and measure their

performance against, supplier diversity and procuring

Procurement

New starts / franchising

Green Deal

goods and services from social enterprise. Education in relation to EU legislation would be particularly beneficial.

Design the procurement policies and processes

to deliver maximum social value, which could include making the process accessible to local SMEs and social enterprises, including targeted recruitment and training clauses, and requiring large suppliers to include social enterprises in their supply chains.

Integrate a supplier diversity programme into the

procurement process. This should be done in partnership with social enterprise bodies such as SEUK, the Social Enterprise Mark and Social firms UK. It should also integrate with existing work in this field such as Shaftesbury Partnership’s Social Business Partnership and the work done by CIH Cymru. The programme should be piloted with housing associations who are keen and already innovating in this field. The next step should be a meeting with interested housing associations followed by a wider roundtable discussion with potential partners. The programme could be funded on a sustainable ongoing basis by creating a standard or kitemark.

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EQUITY 13.2 Partnerships / New Starts / Franchising:

13.3 Green Deal:

Green Light could facilitate the development of new social

Green Light can facilitate the development and implementation

enterprises by:

of a model to maximise the creation of decent jobs by using

Partnering social enterprise support agencies to

produce specific guidance for housing associations

social enterprise consortia to deliver Green Deal. This should start with a roundtable discussion with relevant partners including representative housing associations who have expressed a keen

Putting housing associations in touch with suitable

partner social enterprises with suitable expertise

Putting housing associations in touch with suitable

support agencies

Linking housing associations with aspiring social

entrepreneurs

Introducing housing associations to potential

social franchises

Introducing housing associations to potential sources

of funding and investment As with the procurement this should be done in partnership with social enterprise bodies such as SEUK, the Social Enterprise Mark and Social firms UK. The programme should be piloted with housing associations who are keen and already innovating in this field. The next step should be a meeting with interested housing associations followed by a wider roundtable discussion with potential partners. This could be combined initially with the procurement roundtable as many of the housing associations and potential partners will be the same for both initiatives. This should link in with the existing work being undertaken by Aspire Foundation and HLF.

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interest or who are already involved in this process. The model should be piloted in one or two areas, with housing associations or Groundwork Trusts leading on the development of the consortia.


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13.4 Specific outputs in 2012 Following discussions with an advisory board made up from representatives of interested housing associations it was agreed

Develop a more detailed plan for a kite mark for social

enterprise procurement in conjunction with partner organisations

that Green Light would try to deliver the following outputs before

December 2012.

measurement project

Work closely with the wider social enterprise sector

Liaise with HACT regarding their impact

Open discussions with Place Shapers & Aspire

to ensure a closer relationship with the

Foundation around practical support for a group of

housing sector

housing associations developing social enterprises

Produce and disseminate 10 detailed case studies of

housing associations setting up social enterprises covering different models

Explore the possibility of making business plans /

blueprints for successful models available either through a social enterprise or open source model

Conclusions Housing associations are among the largest social enterprises in the country. There are many opportunities for them to increase their social impact by engaging with other social enterprises. They can do this as part of their supply chain, by mentoring and capacity building, or by starting new ones themselves. There

Work with national and regional social enterprise

bodies to make social enterprise directories accessible and useful to housing associations

Produce a guide to mapping social enterprises in your

are some great examples of best practice in the sector which, if spread, would help create jobs and empower residents. It is hoped that this report, and the Green Light project of which it is part, will act as a catalyst to do just that.

area for housing associations

Create a network of interested housing associations

(possibly with Place Shapers) and arrange a programme of visits to see best practice examples of social enterprises set up by / working with housing associations

Develop a business plan to run the network on a

sustainable social enterprise footing

Produce a guide to procuring from social enterprises

for housing associations (particularly aimed at procurement teams and covering legal points as well as best practice)

Explore the demand for a training package to

accompany the procurement guide

Shepherds Bush Housing Group - Furniture Shop

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14 About the author Social Impact Consulting Social Impact Consulting is an affiliated network of researchers

Mark Richardson is a social entrepreneur, consultant and researcher.

and consultants experienced in understanding social problems

On leaving university Mark founded Aspire, a ground-breaking

and delivering social impact in the public, private and third

social enterprise that employs and trains homeless people. He

sectors. It is led by the award-winning social entrepreneur,

pioneered a social franchise model establishing the business in

Mark Richardson and exists to improve the opportunities and

eight different cities providing supported employment for over

life-chances of people experiencing poverty, discrimination or

100 homeless people a year. As a result he was asked to advise

disadvantage in the UK and abroad. It is committed to high

the Prime Minister and the UK Government on homelessness and

quality research and an international understanding of best

social enterprise.

practice to develop innovative solutions that deliver maximum Using this expertise Mark became a Regional Business Advisor,

social impact.

supporting the development of over 107 social enterprises and It delivers social impact through:

Originating and incubating new social enterprises

Research into social enterprise

Developing and delivering projects, research and

community co-operatives in two years. In 2006 he became Chief Executive of Fair Trade Wales, growing the organisation’s support base one hundredfold and partnering the Welsh Government to make Wales the world’s first Fair Trade country.

social enterprises for clients With the success of the Fair Trade Wales campaign demand for Fairtrade products rocketed but the private sector failed to keep up with demand. Mark joined Dwyfor Coffee as Operations Manager to transform the business into a specialist Fairtrade wholesaler. In 2011 Mark was appointed a Fellow on the Clore Social Leadership Programme, became a Fellow of the Third Sector Research Centre and established Social Impact Consulting. Through this new initiative he carries out research and develops new initiatives for a variety of clients including Big Society Capital, Clearly So, the International Centre for Social Franchising, Groundwork, the National Housing Federation and Barnardo’s Cymru. He is also Director of Social Enterprise at Bangor University.

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Creating Jobs through Social Enterprise


Green Light Report