BRADFORD SOCIAL INNOVATION LAB Building an enabling social investment ecosystem to support social enterprise and charities to improve the lives of people in Bradford District
Stage 2 Proposal Local Access Programme
CONTENTS “Bradford is a young, diverse and innovative district. It is therefore right that we are being considered for the local access fund. If successful, we will use this fund to support and encourage growth in our local social enterprise sector. This will include further developing and maturing our infrastructure support and improve the offer of financial support for this sector. For all these reasons, Bradford Council are fully supportive of this bid”.
Kersten England Chief Executive, Bradford Council “Local Access Programme is an exciting opportunity for Bradford partners to bring in some innovative new support for the social enterprise sector. I know Bradford is already an energetic and innovative District and as such has the foundations to bring a strong social enterprise hub for the region and beyond. The opportunity that the Local Access Programme could bring to the District is therefore fantastically timed to build on the pioneering activity already taking place across the area and open up new opportunities for what is a dynamic and youthful City and District. As a Regional MP and someone who worked in a social enterprise sector in Bradford District benefit from this opportunity and contribute to a thriving social enterprise sector across the region and country”.
Alex Sobel MP Leeds North West “Bradford has a strong, diverse and vibrant Voluntary, Community and Social Enterprise Sector which is increasingly recognised for the invaluable role it plays in the District. Like all sectors, we face significant challenges, but we are meeting these head on through strong collective leadership, passion for our Place, commitment to collaboration, and a real drive to make things better. If successful, the local access fund would allow us to build on this strong platform to ensure that we have the right infrastructure in place to further develop, enhance our sustainability and maximise impact for the people of Bradford District.”
Kim Shutler Chair, VCS Assembly
BRADFORD SOCIAL INNOVATION
1. EXECUTIVE SUMMARY..........................................
2. BRADFORD SOCIAL INNOVATION PARTNERSHIP......
3. OUR VISION: BRADFORD IN 2030 – ....................... PAGE 10 A LIVING LAB OF SOCIAL INNOVATION
3.1. Bradford – A social and economic marketplace with all the right ingredients 3.2. Designed Together, an inclusive, democratic and diverse process
4. BRADFORD SOCIAL INNOVATION LAB: ................... PAGE 24 OUR PROGRAMME
4.1 Existing Enterprise Provision 4.2. Enterprise Support Services under BSIL 4.3. Financial Investment Model 4.4. Faith Inclusive Investments 4.5. Asset based Investments 4.6. Impact of Financial Investment 4.7. Investment Partners 4.8. Keep it Local – Bradford’s way to invest locally 4.9 Knowledge & Learning 4.10. Options for Investment 4.11. Why should LAP invest in Bradford 4.12. Bradford as City of Culture
5. NEXT STEPS ........................................................
6. APPENDICES ....................................................... PAGE 58
Appendix 1: Partnership table of Activities Appendix 2: Bradford Community Anchor Organisations and Networks Appendix 3: Enterprise Support Gaps in Bradford District Appendix 4: Barriers to Growth Appendix 5: Local Infrastructure Appendix 6: GIIN Appendix 7: Leveraging opportunities Appendix 8: Social investment providers Appendix 9: Social Enterprise Providers in Bradford District Appendix 10: Key Strategies in the Bradford and Leeds City Region
BRADFORD SOCIAL INNOVATION
1.EXECUTIVE SUMMARY Bradford Social Innovation Partnership (BSIP) brings together a diverse, committed and expert group of social and business leaders to imagine and create a social investment ecosystem to support social enterprise and charities and improve the lives of people in Bradford. Together; and in co-design with the city’s stakeholders, our ‘Bradford Social Innovation Lab’ vision for 2030 is to have a dynamic, compassionate and inclusive ecosystem of support for social enterprise, creating a destination for social innovation. This means connecting the breadth of our economy and among the wide range of people, communities, businesses and organisations that have a stake in addressing the greatest need in Bradford. We have the backing of our city and the skills and capabilities needed to succeed. Bradford District is ideally placed to partner with Local Access Programme (LAP). We have great strengths and assets to draw upon. We are a place of ideas and innovation. We are a big economy with globally successful businesses, a young diverse and enterprising population, strong knowledge institutions, a world class cultural offer, attractive urban and rural environments and increasing momentum provided by the regeneration of our city and town centres. Importantly we have a broad based and thriving voluntary, community and social enterprise economy. Our challenge as a city is to build upon our revealed strengths to create an inclusive and forward-looking city that works for all our citizens. Our public sector is already enabling growth and opportunity, but it is our charities, social enterprises and talent in communities that are the source of energy, ideas and innovation needed to meet the most pressing social and environmental challenges. Our Local Access Programme is for all; however, we know that people closest to the problems in communities often have the most effective 4
BRADFORD | EXECUTIVE SUMMARY
solutions. We will reach out and support talent from underserved communities, for example women, young people, white working class communities and BAME to step up and start up new ideas and help anyone who can and wants to scale up proven initiatives to create greater social impact. We share Local Access Programme’s belief that social finance is crucial to resilience and sustainability and our programme will provide social enterprise with bespoke high-quality support and a menu of social investment options for the best chance of success. In addition, we will test out new social investment approaches, such as faith-inclusive finance as a model for other areas and support institutions who can benefit from this opportunity. Bradford suffered greatly during the recession and following this, the impact of austerity has been stark. A strong social economy is fundamental to boost renewal and opportunities. The need is urgent, and our 10-year plan for Local Access Programme is to achieve a step change in how we co-design solutions and invest in sustainable ideas. Our Local Access Programme plans seek a balance of focus between the significant long-term interventions that will create systemic change, for example creating a more level playing field in commissioning and procurement for social enterprise and the catalytic activities we can put in place to enable major social impact through supporting social enterprise to start up and grow impact with access to networks, and the right forms of support and social investment. Finally, we want to generate and share knowledge and learning that will inform our decision making and help the work of others faced by similar challenges around the UK. BSIP believe Bradford is an ideal partner for Local Access Programme investment and would provide the catalytic support needed to enable the development and growth of our ambitious plans to create a thriving social economy and marketplace for social investment and support. BRADFORD | EXECUTIVE SUMMARY
2. BRADFORD SOCIAL INNOVATION PARTNERSHIP
The Bradford Social Innovation Partnership (BSIP) share Local Access Programme’s (LAP) belief in the power of local social enterprise to create thriving places and communities. Our work and experience shows that self-reliance and sustainability of Bradford’s Social Enterprise and Charity Sector is crucial for the social and economic benefit of our communities and city; and that connecting Social Enterprise and Charity Sector to social investment has a vital role to play if they are to have the best chance to thrive and create impact. The need is urgent, and we believe investment and support from LAP towards creating an enabling and sustainable support ecosystem for Social Enterprise and Charity Sector will be catalytic in creating the step change needed to achieve our aim for Bradford to become the Social Innovation Lab.
BRADFORD SOCIAL INNOVATION
The BSIP panel consists of eight partners representing social entrepreneurs, public, private, community and social economy support organisations with deep expertise in placebased working. Our approach is participatory, collaborative, diverse and enabling. We have come together in a process of learning and coproduction that will drive social change in Bradford. We are locally rooted and nationally connected with an in-depth understanding of Bradford and its communities. Many of the organisations within BSIP already have a strong track record of working together to deliver significant change. The process of developing our LAP proposals have enabled the partnership to galvanise around a common vision and strong commitment to delivery. Our proposals to LAP have been developed through a series of community consultations held between April and August 2019 (Appendix 1). This process has enabled us to bring together experienced social entrepreneurs and organisations from across sectors who are committed to tackling some of Bradford’s key social and economic challenges. An early and key outcome has been to identify and mobilise the experience and expertise needed to convene BSIP panel as a change agent for Bradford and approach LAP to partner with the city of Bradford. Each partner has agreed an initial commitment until January 2020 (Stage 2 submission). At that point, the existing partnership structure will come to an end. A review will be undertaken once the outcome of our LAP bid is known, in order to assess individual roles, professional and sector expertise requirements, and to manage any potential conflicts. We envisage that the work of BSIP will continue to evolve and explore a range of opportunities to grow a vibrant social investment support ecosystem for Bradford. LAP support would provide cornerstone support to leverage other partnerships and resources for Bradford’s social enterprises and charities.
The remit of Bradford Social Innovation Partnership is to: • Act on behalf of the Social Enterprise and Charity Sector and its partners for the preparation and submission of stage 1 and 2 proposals to LAP. • Develop a theory of change based on the findings from our consultations • Take forward implementation plans developed with communities and sector partners. • Identify gaps in knowledge, expertise and delivery capacity; and fill these to ensure success • Identify and pursue social investment and funding opportunities to develop a vibrant support ecosystem. • Gain in-depth understanding of the sectors in Bradford that would most benefit from LAP’s investment.
The people and organisations involved in BSIP are listed below. We have purposefully organised around a broad-based, cross sector partnership with the relevant experience, expertise and reach needed to deliver a successful LAP. We recognise and are committed to expanding the diversity and range of partners and capacity to fill gaps in expertise and delivery capacity as our work develops through stages 2 and 3 of the LAP application process. At this stage of development, we have identified the following gaps: • A locally based expert organisation (Local Lead Organisation) with the skills and capacity to manage and deliver blended finance products • Corporate partners with resources and expertise to strengthen the support offer, including facilities, pro bono support and routes to market for social enterprise and charities
• Explore effective practice and evidence-based investment and support models that can be beneficial to social enterprise and charities in Bradford District. • Review the Partnership Panel for skills to enable successful submission of stage 3 LAP proposals. • Develop model options for programme delivery, including the selection of an Investment Partner and ‘Lead Local Organisation’ for delivery of a successful partnership with LAP. • Determine the longer-term governance and ownership model for BSIP.
BRADFORD SOCIAL INNOVATION
BRADFORD SOCIAL INNOVATION PARTNERSHIP
PARTNERSHIP PANEL PARTNER DISCIPLINE
DELIVERY ROLE AND EXPECTATIONS
ORGANISATIONAL – EXPERIENCE AND TRACK RECORD
30 CHAPEL STREET LTD (Social Innovation)
Lead the proposal for stages 1, 2, 3 and 4 Bring together key partners to share vision and manage expectation and commitments. Share expertise in delivering grants programme and delivering social enterprise support to new start-ups.
30 Chapel Street Ltd are an emerging social enterprise and innovation support organisation in Bradford. They led the development of the proposal and co-design process.
KEY FUND (Finance)
Knowledge transfer and blended finance management expertise
Key Fund is a social enterprise that provides investment to support the growth and development of other community/social enterprises. Established 20 years ago, they have invested over £55m in over 2,000 organisations.
ON TRACK SOCIAL (Enterprise)
To be explored
Ontrak is an independent garage and charity, specialising in repairing, MOT, tyres and bodywork. As a frontline Charity, Ontrak works with some of the most underserved young people in Bradford through a sustainable model.
PARTICIPATE (Social Enterprise support agency)
Enterprise support design and delivery
As a frontline Social Enterprise support organisation, Participate Projects support people and organisations to realise their potential by providing support that helps them to develop and grow their ideas into sustainable projects and enterprises.
LOCALITY (Social Enterprise Support organisation)
Strategic Guidance of overall programme Investment proposition structuring/asset transfer support / Risk Appraisal Peer network support
Veteran community enterprise practitioner with Locality / Key Fund Social Investment Business Community Shares Unit / The Cellar Trust
BRADFORD CITY COUNCIL (Public Sector)
Bradford Council will act as an enabler and connector. We will use our leadership function to support progress on the Local Access programme, influencing partners locally and regionally. We will also be mindful of opportunities where our work can be tailored to better support social enterprises (social value policy, community asset transfer, local commissioning, VCSE investment). We are also advertising for a social enterprise support officer, which will connect directly with Local Access.
Supported and delivered externally funded programmes – including ERDF targeted at social enterprises. · Historic experience of establishing and growing social enterprises. · Facilitated the set up of business incubators. · Accountable body for CLLD (Bradford & Keighley). · Invest in Bradford team supporting new start ups and bringing new business to Bradford · Partner in the Health Enterprise Zone and Digital Capital (supporting SMEs) · Accelerator programme on Digital Technology for SMEs. · Employ SME growth managers in partnership with the LEP. Note: Much of the support given to SMEs is transferrable and relevant to Social Enterprises/Charities.
Leadership Represent community Anchor’s in the District. Share experience and track record as a community business involved in delivering enterprise and employment support. Share track record of managing blended finance.
A community business and an Anchor based in Bradford East delivering District wide contracts and commissions. Established in 2011, employs 58 staff delivering enterprise and employment support, welfare, debt and housing advice, physical health and mental wellbeing programmes, managing community centres and a community library. Recently secured £1.8m Bradford Community Led Local Development programme for three years with outcomes similar to LAP. This will complement our LAP proposal.
To be explored
PwC help build trust in society and solve important problems. They recently opened an office in Bradford and are exploring with local partners how to support them through their social enterprise club.
To work with locally based social entrepreneurs and small business community, supporting the customer with business advice, business planning, cash flow forecasting. Identifying the right level and the best source of funding for the business. Delivering a wide spectrum of training opportunities to ensure the business has the best chance of survival & success.
BEIS registered Enterprise agency based in Keighley for over 36 years supporting Business & Enterprise in the community and the wider district. Supported over 20,000 individuals and businesses with one to one and one to many Business advice, business planning, cashflow forecasting. Business development training for both business owners & employees, Strategic planning, business improvement and quality management system Implementation. Facilities include incubator units, hot desking, virtual office, meeting & conference facilities. Airedale Enterprise Services is the Locally Trusted Organisation for the Local Trust’s Keighley Valley Big Local programme - £1m fund to engage & support residents & Business in Keighley East ward. AES was also chosen as the Local Action Group support team for the Keighley Community Led Local Development programme - £4.8m part funded by ESIF programme. We are also a delivery partner for the Good Things Foundation ensuring that people in our community can access digital skills training free of charge.
INSPIRED NEIGHBOURHOODS GROUP (Community Business and Anchor Organisation)
PWC (Corporate) AIREDALE (Enterprise Services Enterprise support)
BRADFORD SOCIAL INNOVATION
To ensure our proposals to LAP directly meet the needs of our communities, Social Enterprise and Charity Sector, we have engaged Bradford’s key community, statutory and private sector organisations and networks through an extensive consultation and co-design process. We aim to continue as we have started and maintain an ongoing conversation with key stakeholders in Bradford. We will do this by sharing our plans and seeking feedback and design input through focus group meetings with frontline organisations and social enterprise as our plans develop. Information about these organisations is in Appendix 2. Their work is profiled throughout this proposal to illustrate their potential to provide a solid foundation upon which to build new investment and growth opportunities. This has been an important process for Bradford. It has already created opportunities to share experience, networks and potential investments/ contract. In a short period of time, we have mobilised key actors across sectors, developed a vision around social investment, forged new relationships and strengthened existing ones.
BRADFORD SOCIAL INNOVATION
3. OUR VISION: BRADFORD - A LIVING LAB FOR SOCIAL INNOVATION
Our vision is that by 2030, Bradford has a dynamic, compassionate and inclusive ecosystem of social enterprise creation – a destination for social innovation and enterprise, that kick starts social innovation and proactively enable people, organisations and institutions who can, and want, to start new and expand existing ventures. The Social Enterprise and Charity Sector in Bradford are a rich and varied landscape, this can mean it’s often hard to know where to look to find the appropriate support, or even who does what. At the same time, Bradford needs many more people and organisations to step up, start up and grow solutions to meet the needs and aspirations of our communities. Our mission for Bradford as a living lab for social innovation is to engage and connect together a broad range of individuals, organisations and institutions, cutting across the boundaries of industries, professions and cultures to convince those already working together to collaborate wider and others that otherwise may not work together, or may not understand, the role they might play in supporting social entrepreneurs in the city. We will proactively encourage a shift in how we work together. As an Innovation lab we will engage a wide range of participants, cutting across the boundaries of industries, professions, and cultures; bringing together “an unusual bunch” of people that would otherwise not work together. We will explore a range of design thinking, convening and co-creation methods and emerging enterprise support and social finance methodologies for out toolkit approach; selecting the methods and partners that are the best fit for Bradford. We anticipate that this diversity will fuel innovation and creativity, bringing about innovations and partnerships to amplify social impact.
BRADFORD - OUR VISION
Our programme activities will include: • Advice & Support – advice and support on how to improve impact, productivity and sustainability. Guidance and help to make decisions about the most appropriate legal form to achieve particular objectives • Coworking and workspaces – spaces to access services and work together to tackle social and environmental issues in Bradford. • Finance, investment & funding – A range of options for investment, funding and finance to start up, accelerate the development, growth and spread of successful organisations. • Market development – Interventions, (e.g. social procurement and policy) to develop and grow the market, creating a more level playing field for commissioning, contracts and grants, embedding evidence based and innovative practices. • Networks & Networking – Events, communities of practice and online networks to open opportunities, connection among peers, experts, mentors and partners. • Research & Impact Management - Investment in research, the scale, scope, benchmarking and impact measurement to enable learning and sharing of what social enterprise and charities are having in Bradford, and what works for helping them to start up, grow and become sustainable. BSIP’s combined experience provides us with confidence that strategic impact of LAP’s financial interventions will include: • System Shift: Educate and raise awareness of social innovation enterprise models. Enable organisations to implement new models of investment, governance, risk management and service delivery. • Leadership Development: Develop leadership skills at different stages of businesses. Undertake succession planning. • Blended Finance/ Loan Investment: enable and support organisations to consider this form of investments
• More Inclusive Social Investment Sector: Embed a culture of partnership, mutual support and codesign among investors / investees. Share information, data and intelligence for investments, service design and delivery. • Sustainability: Enable and support organisation to embed governance and structures that allows income generation, full costs recovery models, generating surpluses and profit. Undertake cost efficiency approaches. For example: sharing back office functions; block buying energy. • Market Development and creating new opportunities: Influence statutory organisations procurement policies and commissioning methods to provide level play field for local organisations. Influence community asset transfers to enable Social Enterprise and Charity organisations to generate income. • Social Impact: Majority of Social Enterprise and Charity Sector organisations invest their resources in local neighbourhoods. Bradford is committed to ‘Keep it Local’ approach which creates a level playing field for Social Enterprise and Charity Sector organisations and provides sustainability. This in turn means increased investment by Social Enterprise and Charity Sector organisations creating cohesive neighbourhoods that are mutually supportive, safe and, look after environment and housing, feel safe, crime is low, education, skills and training is encouraged and live longer healthier. • Economic Impact: Study carried out by Locality evidences that for every £1 invested the return on investment is £2.75. This means LAP’s investment of £6 million is anticipated to produce ROI of £16.5 million, creating more jobs, increasing GDP, taxes to HMRC and rates paid to the Council. This will also increase disposable income for households which has direct impact on the retail sector. • Inward Investment: LAP’s investment will unlock match funding/investment from other investors. This will enable us to deliver a well-resourced and diverse interventions using a ‘toolbox’ approach where all organisations are offered a bespoke investment and support. We have agreed to work alongside Bradford Central CLLD and have initiated a dialogue with Power to Change.
We would produce a detailed analysis on LAPs role at stage 3.
Our consultation with Social Enterprise and Charity Sector organisations shows that ‘impact on the ground’ from LAP investment will include: • creation of new enterprises • supporting existing enterprises towards contract readiness • enable organisations to secure contracts/ commissions to deliver services • acquire assets through community asset transfer from statutory organisations to generate income • help enterprises to becoming sustainable through generating earned income • make informed decisions by taking enterprise support • manage risks better by adopting bespoke investment models • accessing networks, mentoring and knowledge base through cross-sector collaborations
This direct impact will enable Social Enterprise and Charity Sector organisations ‘at ground level’ to: • support local supply chains • generate further income from contracts and assets • train to retain skilled staff and volunteers • build capacity with local communities • develop innovative service and investment models • be more accountable and transparent to local communities through better policies, procedures and engagement • attract lower rate of interest from lenders as a more secure risk • contribute more to Bradford’s economy • produce even higher return on investment for funders and lenders Given the need for investment in Bradford’s Social Enterprise and Charity Sector, our change model reflects the impact we envisage from LAP’s investment. This model will evolve overtime through our experiences and learning: BRADFORD - OUR VISION
HISTORY OF SOCIAL INVESTMENT IN BRADFORD
Social investment has been a part of Bradford’s culture since the start of the industrial revolution in 1800 with social entrepreneurs developing wool mills, dye works, iron works and foundries such as Salts, Manningham, Drummond Mills and James Wood Iron Works. These early entrepreneurs created multi-million-pound businesses whilst reinvesting their profits to provide houses, hospitals and schools for their workers and supported Bradford’s infra-structures. From early settlement of ‘Brade’ ‘Ford’, immigrants have settled here to work and create social enterprises. The two world wars in 1900’s continued to bring migrants from Ireland, Poland, Germany and later followed by South Asian communities. The migrants to Bradford have brought with them entrepreneurial skills and culture of entrepreneurship that continuous to influence local communities. In 2017, Bradford was named as the best city in the UK to start a business by Barclays bank. Bradford was ranked first overall, reflecting good performances on road infrastructure (the top ranking), job vacancies (the top ranking), commercial rent costs (the top ranking), and business rate relief (the top ranking).
With a population of over half a million people and youngest population, 25% under 25 years of age, in Europe Bradford is large enough to demonstrate the impact of social investment, yet small enough to be a living lab of open social innovation and investment. Right now, products and support available to entrepreneurs do not fully harness the potential of people who live in Bradford (Appendices 3 & 4). Our research evidences that a system of intelligent linking and triage services, combined with our energetic networks and suite of enterprise support and inclusive investment products, will equip more women, more ethnic minorities, and more young people with the skills and knowledge to become social innovators and entrepreneurs.
We are not only investing in Bradford’s future social pioneers but harnessing their skills to co-design more responsive local services and establish Bradford as a model for inclusive social and economic growth. The district will become synonymous with social innovation and investment.
BRADFORD’S FUTURE SOCIAL PIONEERS
BRADFORD - OUR VISION
BRADFORD - OUR VISION
KEY CHALLENGES BRADFORD DISTRICT ...BUT WE FACE SERIOUS SOCIAL, ENVIRONMENTAL AND ECONOMIC CHALLENGES Deprivation: The District is the second most
deprived local authority in the Yorkshire and Humber region, and nineteenth most deprived in England. The number of people 65+ will increase by at least 20% - potentially requiring additional healthcare services. In addition, the trend will continue for more people to leave Bradford for other parts of the UK, than those who come to live here; In detail: by mid2026 the population of Bradford District is projected to grow by 2% to 543,000. By 2026 the 65+ age group is projected to increase by 20% and the 85+ age group is projected to increase by 17%. By 2041 the 65+ age group is projected to increase by 51.4% and the 85+ age group is projected to increase by 92.8%.
Public Sector Spend Cuts: The demand for public services is increasing despite the Council’s budget for public services being halved in the last ten years.
Unemployment: Bradford’s unemployment rate is the highest the Leeds City Region, and above the national average. The average gap over the period equates to 20,000 people with BME women making up three quarters of our employment gap. We have a high proportion of mid-skilled residents. Evidence suggests that jobs requiring these mid-level skills will be most affected by globalisation, technological change and automation.
Black and Minority Ethnic (BME) communities are more likely to be receive Jobseeker’s Allowance across the Yorkshire region. 2.1% of BME communities are in claiming Job seeker allowance compared with 1.3% for White communities - both of which are above the national average. Research by the Centre for Cities indicates 1 in 4 jobs in Bradford is in an occupation that is very likely to shrink. 18
BRADFORD - OUR VISION
The job market will look very different in 2030. As NESTA identifies in The future of skills: employment in 2030, a number of factors, such as technological changes, globalisation and demographic changes will affect employment, reducing demand for some occupations and increasing it for others.
Health and Wellbeing: Life expectancy in
Bradford District is 81.5 years for females and 77.5 years for males. Keighley Central ward has the lowest life expectancy for females (76.8 years) and Wharfdale ward has the highest life expectancy for females (85.3 Years). Manningham has the lowest life expectancy for males (72.3 years) and Wharfedale has the highest life expectancy for males (84.7 years).
Education and Skills: Bradford is one of the
10 cities with the lowest percentages of residents with the highest qualifications. There are around 87,500, individuals with an NVQ Level 4 and above in Bradford, equating to around 26.8% of the city’s population. This is amongst the lowest level in the whole country significantly lower than nearby Leeds
Pollution: Bradford is one of the most congested
cities in the UK with Leeds-Bradford placed eighteenth on the list of the 25 most congested UK towns and cities. Bradford exceeds the legal standards for levels of nitrogen dioxide (over 40μg/ m3 annual average) in a number of city centre locations. The local authority has been mandated by the government to develop a plan to comply with the legal limits in the shortest time possible. On an average weekday nearly 200,000 vehicles enter the centre over a 24-hour period.
PUBLIC SECTOR CUTS BRADFORD - OUR VISION
100,000 ACTIVE VOLUNTEERS
There are significant health, social and economic inequalities across the District. Life expectancy depends on which area of the District people were born in. There are number of areas in Bradford that are amongst the most deprived in the country. This is reflected in lower educational attainment, higher than average demand for health services and reduced life expectancy. Bradford’s Social Enterprise and Charitable organisations are tackling many of the city’s social, environmental and economic challenges. Some of the key examples of collaborative work of the statutory sector and community businesses include: • Physical health and mental wellbeing commissions: Prevention and management of diabetes services are delivered by community businesses with better access to local communities delivering better health outcomes. This model of health commissioning managed by Bradford VCS Alliance has been hailed as the best practice for co-production, co-delivery and co-creation. • Community Assets: Bradford Council is working collaboratively with community businesses and transferring community assets such as community centers, village halls and building land. These are being developed and managed by community businesses to generate income. These surpluses are re-invested in local communities to deliver much needed services. This approach is key to organizational sustainability and removing grant dependency. • Service Delivery: Community businesses are finding innovative ways to deliver services in local communities and generate income by managing pubs, post offices, rental offices space, mental health support, event management, community led housing and so on.
During our consultation period, we undertook an extensive mapping exercise. Bradford have over 1500 community and voluntary organisations and 100,000 active volunteers1. There is a growing number of social enterprises, however there is insufficient data to illustrate the scale and scope of their work. As part of this proposal we plan to undertake further research to address this data gap. At least thirty-three organisations are providing support to Social Enterprise and Charity Sector - from seed funding to co-working spaces (Appendix 5). There are also a number of organisations providing social investment (Appendix 5). There is an established Social Enterprise and Charity Sector infrastructure network, with five community anchor organisations supporting local charities and enterprises from start-up to trading. Each one is located in key deprived wards and represented on our Partnership Panel. (Appendix 2). In parallel, there are five Community Network organisations supporting the sector and building new relationships across the public, private and statutory sector (Appendix 2).
Bradford as a marketplace is substantially large with diverse nature of contracts and commissions made available every year. In the year 2016/17 Bradford spent around £424m with third parties. This is mostly with commercial companies but also with not-for-profit companies and other public sector organisations. About £190m of spending is with businesses and other organisations operating from a base in the Bradford District. The top five categories of spending were:
In 2016/17 Bradford District CCG had a budget of £487.8 million. The top five categories of their spend were:
• • • • •
With innovative support, financial investment and collaboration Social Enterprise and Charity Sector organisations supported by our programme would be able to become investment ready and position themselves to benefit from the future opportunities. For example, Bradford’s 0-19 Children services contract worth £35 million was commissioned and secured by Bradford District Care Trust in partnership with the consortium (Young Lives Bradford) of local social enterprise and charities. A similar approach may be applied to other contracts and commissions.
Social & Community Services (Adults) £127.9 million Children’s Services £50.5 million Building and Construction £33.2 million Public Health and Social £32.8 million Community Services (Children’s) £21.7 million
Bradford Council currently commission 43% of their annual spend with Bradford based organisations and they are endeavouring to increase that commitment to 60%.
• • • • •
Acute Care £237.1 million Prescribing £56.1 million Primary Care £48.1 million Mental Health £41.2 million Community Service £32.6 million
https://bdp.bradford.gov.uk/media/1363/ stronger-communities-together-strategy.pdf 1
BRADFORD - OUR VISION
BRADFORD - OUR VISION
4.2. ENTERPRISE SUPPORT SERVICES UNDER BSIL
ONE: A MORE SUSTAINABLE MARKETPLACE target audience: grant recipients + capacity build enterprise support providers + anyone in need of business support
We will adopt a ‘tool box’ approach by encouraging collaboration between providers in the markets to improve the choice and variety of support available in the social enterprise support and investment market place. This will provide a coordinated access to a pool of experts across various fields who can deliver technical and professional support for example: • Social Innovation and Social Enterprise Workshops in schools / centres • Social Investment Advisers, including info on SITR • Social Impact Advisers • Community Asset Transfers • Legal, Accounting, HR Firms • Pro-Bono Providers such as Ad:Venture
ENTERPRISE & INVESTMENT ADVISORS
We will employ Enterprise Advisors who will support new entrepreneurs and VCSE organisations with ‘Triage Assessments’ followed by Enterprise Support. This will encompass mutually agreed objectives and timeline adopting an approach ‘we will if you will’ thus ensuring entrepreneurs are fully committed. We will also engage an Investment Partner who will employ an Investment Manager. Their responsibility will be to (a) build capacity, knowledge and expertise in Bradford (b) to get VCSE investment ready, secure investment (grant or blended finance) and provide support throughout transition period.
NETWORK EVENTS 1 per quarter
Our enterprise support is for everyone. We adopt an ‘inclusive by design’ approach. Our goal is to address systemic barriers, and actively ask ourselves who is not being included, and work to do things differently to ensure inclusion.
INCLUSION BY DESIGN
VCSE networks and service providers often face similar challenges. Our learning and networking events will provide an opportunity to spend uninterrupted time together to break through challenges more efficiently and with the added benefit of collective innovation. Expert speakers will provide intelligence and in depth knowledge of good practice and opportunities. Inter-trading and supply chain opportunities will be made available. There will be opportunities for mentoring and coaching sessions.
SOCIAL INVESTMENT ACCELERATOR
To accelerate the scale and rate of change of the social investment marketplace in Bradford, we will convene private, public and third sector partners to explore and develop ways to mobilise impact investment funds, de-risk investments, and effectively deploy capital to communities or groups in need.
DATA & KNOWLEGE GAPS
Building evidence that convinces others about the benefits of social enterprise and informs its development through blended finance 32
BRADFORD - OUR PROGRAMME
BRADFORD - OUR PROGRAMME
4.12. BRADFORD AS CITY OF CULTURE Our cultural assets are a key part of this proposal. In July, Bradford announced its exciting plans to become the UK City of Culture 2025. A catalyst for culture-led regeneration, if successful the District will receive millions of pounds in UK investment and reap significant cultural, social and economic benefits. A timely investment in our social and cultural infrastructure and the regeneration of abandoned buildings and heritage spaces across our District has the potential to boost the District’s bid.
Bradford has suffered from decades of under-investment in our built environment and there are too many underused or at-risk buildings across the district. Community facilities and cultural spaces perform a wide variety of functions which help underpin and support the sustainable development of communities. • Mills: Historic England’s report into the loss of mills in the northwest and Yorkshire, Engines of Prosperity, found that 90 percent of the 1500 mills in the West Riding of Yorkshire are either vacant or underused. Integrating historic buildings with regeneration schemes can create popular, vibrant urban quarters or coworking spaces which can act as a catalyst for investment. • City Centre: The city centre enjoys substantial, high quality, architectural heritage with over 100 listed buildings. Although, the most recent Centre for Cities Report lists Bradford as the city with the third highest level of high street retail vacancies in England and Wales. The report shows that 24% of Bradford’s retail premises were vacant in 2017-18 compared to an England and Wales average of 16%. Within the City Village Area, 32% of units are currently vacant and account for 73% of all vacant units in the city centre as a whole. The Council has a growth target of 3,500 additional homes in the city centre, to be met over the next 15 years. • Community Spaces: i.e. heritage spaces, libraries, museums, postoffices (places that connect people) It is anticipated whether the city secures City of Culture status or not, the journey will bring substantial investment which would provide Social Enterprise and Charity sector with substantial opportunities.
BRADFORD - OUR PROGRAMME
Culture is generally understood to include the following areas: art (including visual arts, literature, music, theatre and dance), architecture, crafts, creative industries, design, heritage, historic environment, museums and galleries, libraries, archives, film, broadcasting and media. Cultural facilities therefore provide venues for members of the public and the community to congregate, providing a valuable form of social infrastructure, ensuring that a location is valued and the wider area is seen as a desirable place to live and work. Culture is also a key driver of tourism.
BRADFORD - OUR PROGRAMME
5. NEXT STEPS To ensure we submit a robust Stage 3 application, become contract ready, as well as embedding and implement our plan within the next fifteen months, we have considered the following actions and time scales:
At Stage 2 of this process we have considered: a ten-year plan; the actions we would need to take; milestones we will have to achieve; time scales; we would need to take the following actions:
OUR NEXT STEPS FOR THE FIRST 15 MONTHS ARE:
THE PROGRAMMES TEN YEAR PLAN: Access Programme 10-‐year delivery Plan
Access Programme Phase 3 and 4 Next Steps
Hosted Access and BSC Visit to Bradford
Review current partnership panel
Outcome of Proposal
Conclude discussion with investment partners
Conclude discussion with Match funders
Agree lease for a Hub
Recruit delivery team
Co-‐design investment models
Co-‐design Enterprise support models
Learning journeys to other successful cities
Appoint Local lead body
Identify, secure and deploy CRM system
Governance (GDPR, Policies, Procedures etc)
Monitoring and Reporting
Leveraging Inward Investment
BRADFORD - NEXT STEPS
BRADFORD - NEXT STEPS
PROVIDER OF GUARANTEE
IMPACT OBJECTIVES RISK BEING MITIGATED, AMOUNT OF LEVERAGE, PRICING
FINANCIAL RETURN AND TERMS OF COVERAGE
ADDITIONAL INVESTORS Roles
PREFERRED EQUITY AND/OR DEBT FUND MANAGER INVESTEE INVESTORS Recipient of Investment What are my impact expectations, and how will impact be measured and managed? • (If applicable) which Sustainable Development Goals am I seeking to address through this investment? •Is there alignment among stakeholders regarding impact expectations? • What specific type(s) of risk needs to be mitigated (e.g.., unproven business model or market, misperceived risk, lack of creditworthiness) in order to attract capital required? • How does the provision of the guarantee mitigate the risk(s)? • What is the minimal level of catalytic capital required? Is permanent subsidy required, or is subsidy temporarily being provided? If the catalytic Capital is temporary, at what point will it be withdrawn, and what milestones should be achieved before decreasing coverage? • Will the guarantee cover the fund or the underlying transactions? Will the guarantee cover all the investors or only senior investors? • Is there precedent to justify calculation for the level of catalytic capital required? What are the proof points that would signal that catalytic capital is no longer required? • How should the catalytic tool be priced? What is the cost of capital and/or return expectations (e.g. Capital maintenance)? • What measures are in place to avoid moral hazard or market distortion through the provision of catalytic capital? • Is there a simpler way to design this structure to reduce transaction costs? • What is my expected leverage ratio? What is my absolute risk appetite? What level of risk will I accept for the proposed rate What type of risk do the • How will I price the guarantee and manage my of return? investors see in my business own risk in the event a guarantee is called? model and have I taken steps to • What internal policies and procedures must be in mitigate it (e.g., collateral, place to provide the guarantee (e.g., approval financial management process, legal documentation)? processes)? • Are there additional restrictions that will be placed on me as a result of the guarantee? • Am I willing to provide a funded or unfunded Is the timing of my anticipated return • How much am I willing to pay for a Can I meet the return guarantee (e.g., backed by cash reserve or simply a different from other investors? guarantee? expectations of each investor commitment)? • How creditworthy is the guarantor? • How creditworthy is the guarantor? group? If so, how can I • What fee, if any, will I charge for the protection I • What are the implications of the • Can I meet the return expectations of each demonstrate the ways in which am providing? To what degree will this be guarantee on the risk-‐return profile of investor group? If so, how can I demonstrate that could be achieved, and the concessionary? the investment? Does it meet my the ways in which that could be achieved, and risks entailed in doing so? • When might I have to make payouts, based on the objectives (e.g., fiduciary duty)? the risks entailed in doing so? triggers? • What internal policies and procedures must be in place to administer this guarantee (e.g., approval process, legal documentation)? • Am I Comfortable with the triggers and methods to access the guarantee? • (if applicable) Will the guarantee be in foreign or local currency? • If additional public, private or philanthropic capitals blended what is the best way to attract the capital? • Do existing investors allow for new forms of capital to be included in the blend finance structure? If so, are there terms and/or restrictions that govern those new investors and investments? • what are the core competencies that each stakeholder can contribute to the structuring and implementation of this blended finance structure and during post-‐investment activities? • Is there mutual understanding among stakeholders of each others rationale and motivations for pursuing this investment? • what is the anticipated timeline for this blended finance structure to materialise? Am I comfortable with this timeline? • Are there any unresolved issues? If so, what are possible solutions to advance discussions?
BRADFORD SOCIAL INNOVATION LAB OCTOBER 2019
On behalf of Bradford Social Innovation Lab
KAMRAN RASHID DIRECTOR, 30 CHAPEL STREET LTD KAMRAN@30CHAPELSTREET.CO.UK 34 PECKOVER STREET BRADFORD BD1 5BD