Welcome JIP e-bulletin No 19 January 2011

A great deal has been said about the severity of challenges faced by public sector organisations in the year ahead. Our role is to help councils continue transforming adult social care despite these challenges.

That’s why we are using this month’s issue to take a closer look at social enterprise and its potential for helping local authorities to continue the job of transformation effectively.

The Department of Health defines social enterprise (sometimes called micro or community enterprise)  as a business driven primarily by social objectives, where profits are ploughed back into its services or the community.

Thousands of social enterprises already deliver health and social care services on behalf of the public sector, and the government is keen for more to get on board.

We will be holding a summit in February, focusing on shaping the community care market. It has been organised as part of our market development programme which is helping to create the conditions needed for different types of social care service providers to operate.

We have recently appointed James Woods as our new regional personalisation lead. His role is to support authorities in delivering the personalisation agenda and meet the Putting People First milestones. Read James’ feature on social enterprise and what it means for PPF, below,
Please keep on sending details of your council’s initiatives to transform adult social care, to us. The contact for submitting details is cathrinalouis@btinternet.com .


Best wishes for the year ahead.


Eric Robinson
JIP Lead on Personalisation
Corporate Director of Social Care and Health
Staffordshire County

Encouraging social enterprise to support PPF

James Woods, the JIP’s regional personalisation lead, gives an overview of how social enterprise can play a part in local market development and support the Putting People First programme.

Creating an environment that encourages social entrepreneurship and the benefits it can bring.

This paper will give a brief introduction to social entrepreneurship and the beneficial impact it can have. It will show that by providing an environment which unleashes social entrepreneurs, there is a huge potential for significant and lasting social change. Finally the paper will highlight some of the measures authorities can take to provide the environment for successful entrepreneurship. The paper draws upon the Research Finding Series created by UnLtd, the charity supporting social entrepreneurs, and other sources, the links to which are provided at the end of the document.

What is Social Entrepreneurship?

John Wood, in his book Leaving Microsoft to Change the World, provides a succinct and accurate definition:

“Social entrepreneurship, to me, is a relatively simple concept: the melding best practices of the business world with the social focus of the charitable sector. Social entrepreneurs embrace ideas like reporting on their results, measuring the return on their investments, keeping their overhead expenses low, and constantly improving their programs. A new generation of leaders has emerged, eager to break with the historic legacy of large, bureaucratic, top-down solutions.”

This more ‘business like’ approach to tackling social issues is effective and aligns well with the coalition’s ‘Big Society’, which seeks to energise communities to find their own solutions.

Who are social entrepreneurs?

Social Entrepreneurs are normal people: there is no typical social entrepreneur. They commonly have a high degree of passion, creative ideas and a can-do attitude. Research has shown they are from a range of educational backgrounds, though often educated to degree or postgraduate level. They are more likely to come from the most deprived areas and there is an equal balance between male and female. A majority of social entrepreneurs are aged between 30 and 45 years of age, though not exclusively, and they are from a range of ethnic backgrounds, with people from ethnic minorities strongly represented.What do they do?

Activities can be local or in the wider community. Their solution can be anything from a one-off event to a nationwide social enterprise, and they can address any area of social or environmental benefit. In addition, they can be staff led and internal to existing organisations. The Social Enterprise Coalition's (SEC, 2009) State of Social Enterprise Survey showed the beneficiaries of the social enterprise activities were as follows:


Local People 52%
Young people (under 18) 45%
People on Low incomes 48%
Unemployed People 34%
People with disabilities 30%
People from BAME communities 30%
Women 28%
Organised groups, charities etc. 27%
People with physical and mental illness 26%
People with learning difficulties 25%
Elderly people 23%
Help the general public 23%
Prisoners or ex-offenders 12%
Other 12%
Homeless People 10%
People with drug or alcohol addictions 10%
People in other counties 10%
LGBT community 8%

It should be noted that projects often include more than one group of beneficiaries. Hence the figures add up to more that 100%: e.g. a group that supports unemployed females with disabilities would feature in all three areas. It is also noteworthy that social entrepreneurs on average target five different groups of people in their communities.

What impact do they have?

Improved Social Outcomes

The variability of social impact is staggering: from solving health issues, providing educational books, and increasing fairness, to inventing new approaches to environmental problems. Of enterprises supported by UnLtd, 59% were targeted at health, education, sport and recreation. Upon completion 40% of these organisations had produced publicity materials including broadcasts, publications and websites.

Creation of Social Innovation

Social entrepreneurs are integral to creating social innovation. They provide new solutions to social problems. Two examples of this include ‘Patient Opinion’, dubbed the ‘trip advisor of healthcare’, where patients can share experiences about NHS facilities, or Baharat Najib, who uses traditional Pakistani meditation approaches to tackle communal conflict and honour crimes in the Midlands. These innovative approaches are often repeatable, and research has shown that 36% of organisations have either been replicated or have plans to replicate their solution.

Economic Benefits

Social entrepreneurs have an important role in stimulating local economic growth especially in the current tough economic climate. This is demonstrated by a survey of 437 enterprises that received funding from UnLtd. Findings show they created an average of 4 jobs each and an average of 14 training opportunities each. Fifty percent of those who continued their UnLtd funded projects increased their turnover in the last year. This again mirrors the SEC (2009) survey, highlighting their value in the current economic climate. Whilst the majority of social entrepreneurs start small-scale projects, a small proportion expand and generate significant turnover.

Increased Social Capital

Social capital facilitates individual or collective action and is generated by networks of relationships, reciprocity and trust. It is integral for democracy and community cohesion, creating bonding between social groups, as well as bridging any divisions between them. This is a central focus and outcome of the coalition government’s ‘Big Society’ policy.

In relation to this, research has found 53% of projects enhance social capital by forming new networks, providing education, increasing familiarity and generating interest from local businesses and local authorities. According to UnLtd, of the 437 social entrepreneurs it supported, 15 volunteer positions on average were created in the projects set up.

The Multiplier Effect

The creation of social entrepreneurs and the effects that they have, both economically and socially, can be measured to a greater or lesser degree. What is more subtle and harder to measure is the wider effect of having these people working in and for your communities. Essentially these people are community assets that are generative, and as they grow they pass on their knowledge and passion, thus creating a virtuous circle which provides positive role models and success stories in environments where there are often few positive influences.

Reasons Social Ventures Fail

Research shows that social ventures predominantly fail or end owing to the following reasons.

• Lack of funding 24% The social venture was unable to gain further funding and could no longer operate without this.

• Internal 22% The social venture was not able to operate effectively because of internal factors (such as the cost of administration outweighing resources)

• Aim Achieved 20% The social venture met the original need, provided the necessary service or produced what it intended to.

• Personal 17% The individual setting up the social venture chose not to continue for personal reasons such as having a child or pursuing a job.

• Contextual 11% External factors changed such as vital partnerships or necessary networks and the social venture could no longer operate as a result.

• Progression 7% The social venture was co-opted by another service, developed differently to meet a different need or operated in a very different way.

It seems that several of the areas of failure could be inexpensively supported by authorities who could utilise their existing expertise, including assistance in administration, access to relevant networks and funding opportunities. This would increase the likelihood of success and associated societal benefits.

Creating the environment for Social Entrepreneurs

As we have seen social entrepreneurs are passionate and highly motivated individuals who are willing to work and put in a great deal of effort in ventures that have high social impact. Is your organisation able to provide the best environment for them to succeed?

Below are a few statements to ask yourself, the result of which will give you a quick self-assessment of your current position.

• My organisation is attractive to social entrepreneurs, and I have a good understanding of what social entrepreneurs have to offer in my area.
• I have measures in place that recognises the number of, and understand the effects that social enterprises have both inside and outside of my organisation.
• My systems and processes are un-bureaucratic and accessible to those who are motivated and express an interest.
• Our organisational culture welcomes new ways of operating.
• I know of the other organisations which support social entrepreneurs, and work with them to ensure consistency of approach and the maximisation of opportunities for all.

If the answer to these statements is an emphatic yes, then you are in a strong position and are already developing a healthy environment for social entrepreneurs. If the answer is no or you are unsure then there may be some further work to do.

Conclusion

Social entrepreneurs are often ordinary people who understand and deliver practical solutions to social problems, and as such, are extraordinary in the work that they do. They create publications, products and services, safer schools, better neighbourhoods and healthier stronger communities. Overall, social entrepreneurship has the potential to accelerate the delivery of the ‘Big Society’, and to address the social and environmental problems that the UK faces today and into the future.
For an authority trying to create ‘plurality of supply’, supports for social entrepreneurs will lead to a diverse supply base, high returns on investment and far-reaching social benefits.

This paper has aimed to provide an initial overview of this interesting and valuable sector. If you have found it useful and wish to discuss your ideas further, or want support in developing your entrepreneurial environment, please feel free to contact James Woods at the following e-mail address James@JW-consulting.com.

Useful links

Social entrepreneur organisations:

• http://www.unltd.org.uk
• http://www.venturenavigator.co.uk/content/612
• http://www.socialenterprisewm.org.uk/

General:

• Social Entrepreneurship: The Case for Definition, Sally Osberg and Roger Martin
• Everyone a Changemaker: Social Entrepreneurship's Ultimate Goal, Bill Drayton
• List of Social Entrepreneurship Organizations on WiserEarth
• What is Social Entrepreneurship
• Profile of a Social EntrepreneurThe Empowering Blog - Social Entrepreneurship & Sustainable Projects

Further reading:

• David Bornstein, How to Change the World: Social Entrepreneurs and the Power of New Ideas, Oxford University Press (and others) ISBN 0-19-513805-8
• Charles Leadbeater, The Rise of the Social Entrepreneur, Demos, 1996
• Joanna Mair, Jeffrey Robinson, and Kai Hockerts, Social Entrepreneurship, Palgrave, 2006. ISBN 1-4039-9664-4
• Peredo, A. M., & McLean, M. 2006. Social Entrepreneurship: A Critical Review of the Concept. Journal of World Business, 41(1): 56-65.
• John Elkington and Pamela Hartigan, The Power of Unreasonable People: How Entrepreneurs Creates Markets to Change the World, Harvard Business Press, 2008
• Robert Gunn and Christopher Durkin, Social Entrepreneurship: A Skills Approach, Policy Press, 2010
• Mark B. Durieux and Robert A. Stebbins, Social Entrepreneurship for Dummies, Wiley, 2010.
• J. Mark Munoz, International Social Entrepreneurship, Business Expert Press, 2010.

Supporting Micromarket Development: A Practical Guide for Local Authorities

Available free of charge, the guide gives advice to local authorities on how to support and stimulate the growth of local micro markets providing social care.

Micro social care enterprises are seen by DH as important elements of a diverse market providing more choice for people.

Providers of micro (very small) social care and support services are independent of other organisations.

They can be based on one of a number of business models including sole trader, partnership, small business, social enterprise, not for profit, charity or voluntary organisation.

Services can also be delivered on a voluntary or barter basis with no business model at all, motivated solely by the desire to help other people.

Examples of micro services include:

• Small care homes
• Supported housing
• Domiciliary care
• Brokerage, advocacy and planning services
• Holidays and short breaks

Services can be bought by individuals funding their own care or through direct payments and personal budgets, or can commissioned directly by public sector bodies.

Micro enterprises set up and managed by local people are well placed to deliver individualised services to individuals living in the same community.

Read more

Improvement, Change and Innovation – transforming your workplace to achieve all three

Improvement and Efficiency West Midlands (IEWM) will be holding its third annual spring conference on Monday 7 March 2011, at Maple House in Birmingham from 9.30am to 4pm.

Focus will be on improvement, change and innovation; reflecting current practical advice, guidance and examples of what councils can do to save money, transform services and change the way the public sector operates.

Read more

Cash injection to speed hospital discharge

An extra £162 million has been given to health and care services to spend this year on helping people to leave hospital quickly and settle back into their own homes. The money will also be used to prevent unnecessary admissions to hospital.

Announcing the additional funds last week, Health Secretary Andrew Lansley said: “Savings have been made in the Department of Health’s budget which can now be invested in frontline NHS services.”

The funding brings forward plans for health and local authorities to work together, using NHS funding to support social care as announced in the spending review; and will help relieve additional pressures on hospitals over the winter period.

The money will be allocated to PCTs and transferred to councils to spend on social support.

Care Services Minister, Paul Burstow, said: “This money will help cut the delays in getting the equipment and adaptations that people can need to enable them to live independently at home - saving them from an unnecessary stay in hospital or going into residential care.”

The NHS is already planning to spend an additional £800 million from April, on support to social care that benefits health. This was part of the package of measures in the Spending Review, to provide an additional £2 billion for social care in recognition of the importance of care services to hundreds of thousands of families.

Read more

Independent social worker pilots due to be announced

Social Work Practices pilot studies in adult social care are due to start in summer 2011, following similar successful pilots in children’s services.

The practices will be organisations led by social workers, and independent from local authorities.

They will provide services for a specific group of adults and be responsible for carrying out the statutory duties and responsibilities of the local authority.

The programme aims to:

• give social workers more time with individuals in their care
• reduce the bureaucratic burden on individual workers
• give social workers the freedom to make decisions much closer to that of their clients, resulting in a more responsive service
• empower social workers, giving them more control over day to day management of the practice
• make use of increased financial flexibility to deliver better outcomes by stepping back and thinking creatively about the way resources are used
• make the job more enjoyable – staff satisfaction levels for the children’s pilots have been high. They feel they are very much part of a decision making team.

The programme, subject to parliamentary approval, will run for two years.
Expressions of interest from councils wanting to take part are currently being considered.

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Modernisation of Commissioning moves one step closer

Government plans for transforming public sector commissioning are outlined in its Green Paper Modernising Commissioning: Increasing the role of charities, social enterprises, mutual and cooperatives in public service delivery.

Two key reasons lie behind plans to increase involvement of civil society organisations in delivery of public services; the first is to shift power from central government to local communities.

The aim is to change commissioning practices, to encourage greater involvement of people and communities in providing services that were the domain of the state.

Second, is to improve quality and efficiency of services by removing unnecessary duplication and equipping commissioners with good quality information needed to make informed decisions.

Minister for Civil Society Nick Hurd said:

“Public services must make better use of tax-payer’s money. We need smarter commissioning processes that take into account the social and environmental impact of organisations awarded contracts.

"Good performance in these areas can take pressure off other public services and so create efficiencies across the board.”

Deadline for comments on the Green Paper was 5 January 2011. Conclusions from consultation on the paper will be included in a wider Public Service Reform White Paper to be published early this year.

Read more