Social Enterprise Co-ops - Case Study 2006

Case Studies – Co-ops and Intermediate employment

Introduction: Social Enterprise East of England, SEEE, is a network of social enterprises, advice and support organisations, local authorities and other groups with interests in Social Enterprise – particularly in its promotion and development. It covers the counties of Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk and Suffolk.

The Eastern Region has some outstanding examples of social enterprise and innovative approaches to providing the sector with advice, support and funding. The SEEE network has been established to promote, celebrate and share these successes and assist in implementing best practice throughout the Region.

Are you interested in the development of Social Enterprise in the East of England? Would you like to know more about the services available?

Would you like to get in touch with other social enterprises? Would you like the opportunity to influence policy in social enterprise?

For an informal discussion on how SEEE may be able to help you, contact

Peter See Development Manager, Social Enterprise East of England T: 01727 813401 peters@exemplas.com

InTouch SOCIAL ENTERPRISE EAST OF ENGLAND

Case Studies –

Co-operatives and Intermediate employment

A

number of social enterprises are managed as co-operatives.

Although co-operatives may take many forms, their principles of ownership by the members of the business and accountability to those members, make them an inclusive way to approach social

enterprise. Participation in management of the enterprise can foster development of business skills alongside vocational development. The examples described here illustrate different applications of the co-operative model to social enterprise.

Daily Bread rises to the challenge

by Sarah Charters

Internet: SEEE’s Web partner services are at: www.seee.co.uk www.nearbuyou.co.uk The SEEE network is co-ordinated by Business Link Hertfordshire InTouch is financed by SEEE (funded by the European Social Fund ) and published in its support by Business for People in partnership with Creative Touch, both of which are social enterprises. Layout

by Michele Smith.

Tel.

4 Archers Court Stukeley Road Huntingdon PE29 6XG 01480 455200

Daily Bread’s shelves are filled with a variety of goods including baby foods, dairy produce and jams; nuts, lentils and dried fruit; tea, coffee, Soya and Vegan milk; pasta, olives and rice; seeds, fruit and juices, the list goes on!

The opinions expressed in this publication are not necessarily those of the publishers or of Business Link Hertfordshire, Business for People Ltd or Creative Touch.

All rights reserved. No part of this publication may be reproduced, stored in an information retrieval system or transmitted in any form without the written permission of the publishers. This publication has been prepared using information provided by contributors and, while we make every effort, accuracy cannot be guaranteed. SSEER is unable to accept any liability for the consequences of any inaccuracies, errors or omissions in this publication. No representations, warranties or endorsements of any kind are intended.

© SEEE 2005

I

n the corner of an industrial estate in the city of Cambridge, a co-operative business is thriving. The unassuming exterior gives little clue as to the hub of activity within its walls, yet as you enter, it’s like walking into an Aladdin’s cave.

With a warehouse, packing room, office, shop and even a café serving fresh teas, coffee and cakes, it’s a welcoming sight.

Yet not many people have ever heard of Daily Bread.

Correcting injustice Originally set up in Northampton in 1980, the inspiration for this enterprise came from a group of nine Christians, who wanted to extend their philosophy of sharing and mutual support by bringing it into the workplace. Actively involved in the correction of injustices in society through the practice and promotion of equality, Daily Bread believes that the source of all prejudices can be traced ➜ page 2

Co-ops and intermediate employment to an unequal valuing of people, often promoted through hierarchical systems such as traditional business structures.

This enterprise demonstrates this does not need to be so. As a co-operative, there are no formal management structures and everyone is equal and encouraged to be as fully involved as they feel able.

Ethical products

This determination to address such bias is what inspires Daily Bread to source all of its products as ethically as possible, doing everything possible to stock goods which carry the Fair Trade mark or which have guarantees from suppliers stating they are not involved in exploitation of workers, natural resources or irresponsible marketing practices.

It was with this ethos that Daily Bread began trading, retailing in wholefoods, organic and fairly traded goods. Such was the success of the Northampton business that a second co-operative was established

by Andrew Hibbert in Cambridge, opening its doors in December 1992.

With support received from a variety of organizations and an NHS grant (linked to mental health), Daily Bread prides itself on providing a positive and empowering environment for all its members. As a result, the business currently has a workforce made up of 13 full-time members, eight part-time and two volunteers, of which 50% are recovering from mental health issues.

Instilling confidence

As Christian Ozborne explains “There is

Taking it in turns – The co-operative structure of the business means that all staff are equally responsible for all aspects of the business.

a great stigma around mental health and everyone needs structure. All the members are equal here and each person has a say. This is very empowering and great confidence is instilled in the individual”.

Some of the members are retired, but many have swapped their previous professions, including a nurse, teacher and bank clerk, for a more fulfilling career within the co-operative.

Social enterprise really can benefit all, without putting profit first and Daily

Bread is a shining example. Now eleven years on, this self-funded venture boasts a turnover of £800,000 (2002-2003), of which £15,000 has been donated to other organizations. The average worker contribution to turnover has remained at around £55,000 per year per person. This is not only high but consistent, generating a very profitable business.

i

Daily Bread 01223 423177 www.dailybread.co.uk

Lyn’s Story Life was good for Lyn, her two eldest children had left home and plans were being made for the next ten years before her husband’s retirement. Then suddenly, he died of a heart attack.

The bottom fell out of her world and within two months she was in a mental hospital suffering from severe anxiety and depression. After a seven week stay Lyn was released with extremely dented confidence, loss of identity and a fragile ability to cope. The days following were a living nightmare, she didn’t want to get up or go out – she couldn’t face the world. Some days she just lay in bed all day, with no motivation or sense of purpose, just a big, empty void.

Then one day Lyn’s Community Nurse suggested she do something voluntary.

Thinking this could be just what she needed, Lyn considered Oxfam or a similar organisation. Then while out

2 InTouch

with a friend drinking coffee in the Daily Bread café, she heard that the cooperative took on volunteers, especially people with mental health problems. So here the journey with Daily Bread began.

Lyn spent two afternoons a week tidying shelves and working in the coffee shop, then one day Daily Bread was short staffed and asked Lyn if she would do some extra hours. So after nine months as a volunteer and thirty years since her last paid employment, Lyn was to earn her first wage. She couldn’t believe they thought she was capable of doing anything worth payment, especially with her mental health issues – it was a real boost to her self-esteem.

Lyn now does 20 hours a week and her life is back on track. Daily Bread has been a real life saver, as Lyn says “it has given my life purpose, structure, a new sense of identity, built up my confidence

Case Studies – Co-operatives and Intermediate employment

and enabled me to try new things I never thought I was capable of”. Now Lyn really looks forward to getting up in the morning and Daily Bread is like an extended family. It seems almost impossible to express in words just how much Daily Bread has done for her, except to say “my debt of gratitude to them is enormous, they believed in me”.

Co-ops and intermediate employment

Trade Fairs Rule OK

by Peter Durrant

F

ollowing on from previous trade fairs sponsored by the Cambridge Co-operative Development Agency (CCDA), at the Guildhall in Cambridge, The Guild, through its trading arm nearbuyou, played host in October of this year to Norfolk region’s first trade fair for social enterprises. In Norfolk alone there are over 250 of these organisations – including managed housing, caring services to vulnerable groups, arts centres, cinemas, community cafés and training organisations – all of which were well represented on a sharp October day in the centre of Norwich.

A Smorgasbord of Enterprises

One interesting illustration of the social enterprise route many community and voluntary sector organisations are taking was Great Yarmouth and Waveney Mind, exhibiting carpentry made by craftspeople recovering from mental health problems.

A unique approach is taken by Charity Gift Tokens, where the recipient gives the token as a donation to a charity of their choice. The Hamlet Centre, set up in 1972, works with young people with special needs in Norfolk.

If recycling unwanted computers is more your style, Recycle-IT have a record of collecting and refurbishing unwanted equipment from almost 400 companies.

Meanwhile, the Howes Garage Project sets the scene with theatre for all. On the organic food front both East Anglia Food Link and eostre organics scored well, with Earlham Youth Mobile Units and Community Music East both demonstrating their commitment to local musicians and music in the round.

And these were just a few of the well-presented social and community enterprises in the professional setting of St. Andrew’s Hall. They were wellsupported by the Business Link stall, masses of freely-available laptops, refreshments, and even malted barley on sale through the co-operative East Anglian Brewers.

A challenge for SSEER – and indeed all of us who are involved in the social economy – is to think about how we can build on these initiatives. One benefit of the day was that social enterprises that knew little or nothing of each other’s existence got acquainted, indicating clear

East Anglian Brewers Co-operative showing quality beers made from malted barley.

routes ahead as we attempt to develop a more collective approach. This fair was a good showcase of how we can enable organisations, share ideas and co-operate more closely with each other.

i SSEER: www.socialenterprise-east.org.uk/sseer CCDA: www.colc.co.uk/cambridge/ccda Charity Gift Tokens: www.charitygifttokens.org Community Music East Ltd: www.cme.org.uk Earlham Youth Mobile Units: 01603 753396 East Anglian Brewers: www.eastanglianbrewers. com East Anglia Food Link: www.eafl.org.uk eostre organics: www.eostreorganics.co.uk Gt Yarmouth and Waveney Mind: 01493 330633 The Guild: www.the-guild.co.uk Hamlet Centre: www.hamletcentre.org.uk Howes Garage Project: 01603 765441 InTouch: david@businessforpeople.org.uk Nearbuyou: www.nearbuyou.co.uk Recycle-IT: www.recycle-it.ltd.uk

Keep InTouch SOCIAL ENTERPRISE EAST OF ENGLAND

InTouch is a bi-monthly publication with a circulation/distribution to 2,500 social enterprises, stakeholders and support organisations in the six counties of the East of England.

Advertising rates

——————————————————

STANDARD POSITIONS

Double Page Spread £2000 Single Page £1000 Half Page £500 Quarter Page £250 ——————————————————

A social enterprise itself, InTouch is creating employment and training opportunities in all aspects of magazine publishing including media sales.

SPECIAL POSITIONS

Outside Back Cover £1,200 Inside Front Cover £1,100 Inside Back Cover £1,100 ——————————————————

INSERTS

By advertising in InTouch you are accurately targeting customers in the social economy while contributing to the long-term sustainability of the InTouch project.

For inserts please contact Austin Bambrook on: Tel: 01480 455200 ——————————————————

DISCOUNTS

Book 2-5 issues for 5% discount Book 6 or more issues for 10% off

Call 01480 455200 to book your ad.

InTouch

Case Studies – Co-operatives and Intermediate employment

3

Co-ops and intermediate employment

Living and working under one roof

by Andrew Saul

re-invests to break even every year.

The purpose is to “employ people with special needs and give them the dignity of work” says John. Castle Print Finishers has placed fifty-three people in outside work since they set up. The most successful was an Arabian lad who, when referred, was incorrectly John Chestney’s tips for described as deaf a successful social firm: a n d d u m b. He • Your cash business Enjoying their work, from left to is now earning a has to be good right, Steven Mitchel, Christopher Fuller, Harriet Shepperd and six figures salary • It is important managing director John Chestney. writing computer to be flexible was familiar with the games, and recently • Don’t rely on leather goods and pottery gave the business a one customer shops in Cambridge’s Mill donation of £2,000.

• Find a niche market Road, but didn’t realise these As with most for the business were the shop front for Castle social enterprises, • Become a Project Print Finishers, one there is the problem co-operative of the most impressive social of perception, enterprises in our region. w h e re p o t e n t i a l The business was founded by the customers believe that they will get a subRichmond fellowship in 1989 to help standard product. To counter this, John people with mental health problems get markets the business in the same way off benefits and into employment. Under he would a conventional business, only the current managing director John mentioning the social element when it is Chestney it has grown into a successful relevant to the customer. print finishing (wire binding, folding, Quality work laminating, stitching) business with An example of the quality of the work nine full-time employees and seventeen is when two workers were placed into an trainees. Castle Print Finishers became outside company to cover a shortfall. By independent in 1992 and operates lunchtime they had achieved just 10% less as a workers co-operative, in which all than the company’s regular employees. By full-time employees can own a share. the end of the day, they had achieved 15% Trainees cannot be shareholders, but more, because they hadn’t slowed down are encouraged to participate in the through the afternoon as the others had. decision-making process. The business The building at 258 Mill Road was has an annual turnover of £260,000 and bought with a combination of lottery

I

FREE subscription Please post or fax to: InTouch, C/o Business for People 4 Archer’s Court, Stukeley Road, Huntingdon. PE29 6XG Tel 01480 455200, Fax: 01480 437888

4 InTouch

and other funding, and has allowed the business to grow and diversify. The shops at the front pay an affordable rent plus a share in profits and six of the eight residential flats on the first floor are occupied by workers, also paying rent.

Supporting each other

Many of the workers previously lived in sheltered accommodation, where they felt isolated and needed the additional support. Now they live as part of a unit and support each other, which creates a “strength and unity which has served us well for years”, says John.

The remaining two flats are made available for unusual accommodation needs. For example an Indian gentleman who had won a scholarship to a computer course in Cambridge had based his budget for accommodation on the most expensive hotel in his region of India. He was surprised to discover that £1 a night was not enough. John was able to offer him accommodation at £5 a week for the duration of his course. More often, these flats are rented by overseas nurses waiting for their first month’s salary.

John is constantly looking for areas to diversify into, as he believes print finishing as a business is in general decline. The leather and pottery shops downstairs are helpful for cashflow, but John needs to find a new core business. With his sound business sense, I’m sure this social firm will continue to do well.

i

Castle Project Print Finishers Co-operative Ltd 01223 414878

Yes, I would like a FREE subscription to InTouch, the social enterprise magazine for the East of England.

Title (eg.Mr/Mrs/Dr):

InTouch SOCIAL ENTERPRISE EAST OF ENGLAND

Forename:

Surname: Job Title: Organisation: Address: Postcode: Tel: Email: O we would like to send you appropriate information regarding the social economy in the East of England. If you prefer us not to, please tick the box

Case Studies – Co-operatives and Intermediate employment