Social Enterprise in London

1
Social Enterprise in London

• Amanda Brandellero
• 10th February 2005,
• Milan Thematic Workshop

2
Definitions

• Social enterprise a business with primarily
  social objectives, whose surpluses are
  principally reinvested for that purpose in the
  business or the community, rather than being
  driven by the need to maximise profits for
  shareholders or owners.
• UK Department for Trade and Industry 2002
• Social economy is an expression increasingly
  used to describe the economic dimension of the
  voluntary sector

3
A brief history

• XII century just price craft guilds
• XVIII century Friendly Society Acts
• XIX century Industrial and Provident Society
  Acts
• Mill s Principles of Political Economy (XIX
  century)

4
The UK social enterprise agenda

• Mainly driven by the DTIs Small Business
  Service
• Work by other government departments promote the
  social enterprise agenda

5
Londons social enterprise agenda

• LDAs Economic Development Strategy
• Social Economy Taskforce London
• Social Enterprise London
• Community Action Network

6
Legal frameworks

• No single UK model
• Social enterprises not defined by legal form
• Companies limited by guarantee (60)
• Industrial and Provident Societies (10)
• Registered charities
• Companies limited by shares
• Unincorporated organisations

7
Legal frameworks
New!

• Community Interest Company
• for social enterprises wanting to use their
  profits and assets for the public good
• asset lock to prevent the company from being
  sold off for private gain
• status will enter into force in July 2005

8
Types of social enterprise

• Co-operatives
• Associations of people providing a shared
  service
• Credit unions
• Community Development Finance Institutions
• Development Trusts
• Social Firms
• Social businesses
• Community businesses

9
Areas of activity

• Managing affordable workspace
• Health, social care and childcare facilities
• Credit and financial support
• Food and entertainment through community run
  operations
• Leisure and fitness centres
• Supporting the green economy through waste
  prevention and recycling activities

10
Financing social enterprise

• Trading/delivering contracts/public procurement
• Grant funding
• External finance

11
The challenge in London

• Barriers to access to finance
• Investment readiness issues
• Capacity building needs
• Lack of tailored advisory and support services
• Poor knowledge of social enterprise
• Cultural barriers to social enterprise promotion
• Still under-developed social audit which can
  lead to lack of trust

12
London case studies

• Bromley-by-Bow
• Coin Street/Borough Market
• Community Action Network (CAN)
• Greenwich Leisure Limited (GLL)
• Havering Social Enterprise Unit
• Street Cred