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SOCIAL ENTERPRISE IN SCOTLAND

A new strategy and action plan intended to grow and develop social enterprise in Scotland is launched today.

The strategy ‘Better business – a strategy and action plan for social enterprise in Scotland’ highlights the important contribution a social enterprise business model can make to life in Scotland.

Social enterprises contribute to economic growth and business development while at the same time meeting important social goals. They can deliver services focused on the needs of people, regenerate and empower people in Scotland’s most deprived communities and play a major role in supported employment.

In addition to social and economic benefits, many social enterprises are involved in bringing environmental benefits to communities.

Communities Minister, Rhona Brankin, today launched the social enterprise strategy. She also announced £1.5 million in resources for an action plan to promote four strategic objectives.

These are:

• raising the profile and demonstrating the value of social enterprise;

• opening up markets to social enterprise;

• increasing the range of finance available to social enterprises; and

• developing the trading capacity of social enterprises through better business support.

Launching the strategy at the leading social enterprise, McSence, in Mayfield near Edinburgh, Ms Brankin said:

“Social enterprise has a vital role to play in helping the Executive with some of its main commitments for Scotland – growing the economy, delivering excellent public services and supporting stronger communities together with developing a vibrant third sector.

“Because social enterprises use the business model to deliver their social aims they can bring real benefits to Scotland’s health and community care, education and transport, and deliver excellent services to deprived communities in urban and rural Scotland.

“The time has come for social enterprise to take a much more central role in our society and the strategy launched today will be a key driver in helping to do this.”

Ian Mitchell, regeneration director of Communities Scotland, added:

“The strategy follows a wide consultation with nearly 80 responses.

“It is the result of close partnership working between the Executive, Communities Scotland, Scottish Enterprise and Highland and Islands Enterprise, working with representatives from the social enterprise sector including from social enterprises themselves.”

“We expect the combined efforts of the group, with the backing of the strategy, to act as a launch pad to make social enterprise a core consideration for those people responsible for buying goods and services in both the public and private sectors.

“The social enterprise sector deserves recognition and development support, but has the potential to expand on its own merit.”

The support of £1.5 million over the next year for social enterprises will include:

• guides and events demonstrating best practice in public procurement and good practice in tendering;

• support for efforts to increase the range of finance available to social enterprises, including £75,000 to provide financial management training for managers and board members;

• providing £400,000 in 2007/08 for business support. Mature social enterprises already receive this from local enterprise companies but this support will fill a gap for some and help them realise their potential. Bursaries will also be made available for people to study at the Social Enterprise Academy and provide other learning opportunities; and

• support work to help social enterprises raise their profile, including over £170,000 to develop a marketing strategy and to raise the profile with the next generation of entrepreneurs through enterprise education in schools.

FURTHER INFORMATION

1. Social enterprises are “businesses with primarily social objectives whose surpluses are principally re-invested for that purpose in the business or the community rather than driven by the need to maximise profits for shareholders or owners.” (DTI, 2002).

2. There are around 3,000 social enterprises in Scotland at different stages of development, from small start-up enterprises to well-established businesses with multi-million pound turnovers. The turnover of these businesses has been calculated at £1 billion a year, making a huge contribution to the Scottish economy. The sector employs around 21,000 with an additional 18,500 volunteers.

3. .Examples of successful Scottish social enterprises include:

Kibble (Paisley)
Kibble is a thriving Paisley-based social enterprise that works with troubled or at-risk young people. The organisation provides a wide variety of educational, residential and community services for clients throughout Scotland. Over 90 per cent of Kibble’s turnover, which is more than £10m, is generated through contracts for services with local authorities. Kibble won the ‘Young Social Enterprise Award’ at the 2005 Enterprising Solutions award and the best social enterprise at the 2006 Scottish Business in the Community Awards.

COPE Ltd Shetland)
COPE is a Shetland-based company that offers training, support, and employment to adults with learning and physical disabilities. Through various companies it owns it provides work opportunities to this client group and helps to change people’s understanding of ‘disability’. Social firms operated by COPE which sell products direct to the public include:

• the Shetland Soap Company which produces and sells soap and bath products;

• COPE Catering which makes and sells sandwiches; and

• the Shetland Coffee Company.

COPE, which is also involved in recycling, was a finalist in the 2005 Enterprising Solutions Awards and won the Dynamic Place Supreme Award in 2004.

6 Mary’s Place (Edinburgh)
Located in the historic New Town of Edinburgh, 6 Mary’s Place is a social enterprise guest house, part of the Forth Sector group of social firms. It employs four full-time staff and 20 trainees. In common with all Forth Sector’s operations, 25 per cent of all workers have severe and enduring mental health problems, and the majority of its income is generated through trading. Many of the trainees move into employment with mainstream employers in the hospitality industry after completing their placements at 6 Mary’s Place.
6 Mary’s Place is extremely popular and well run, as a full order book and a host of awards testify. It has an annual turnover of £157,000 recently won the prestigious Scottish Thistle award, and holds the Green Tourism Gold Award.

SpringBack (Fife)
The ‘SpringBack’ facility was established in Fife in 2005 by social enterprise FEAT Enterprises to recycle mattresses. To date 32,500 mattresses have been diverted from landfill.

The Springback operation collects mattresses and other bed parts destined for landfill. These are deconstructed into various components. It then finds customers who will reprocess the components into new products, including industrial carpets and underlay and horticultural products. It has four local authority clients who pay an agreed unit price for each bed part diverted from landfill. It is currently the only service of its kind in the UK.

4. The strategy is available on the Communities Scotland website.

Communities Scotland was abolished on 1 April 2008. This is an archived site and the contents may no longer be accurate. If you are looking for information about housing and regeneration, please visit www.scotland.gov.uk For information about regulation and inspection, please visit www.scottishhousingregulator.gov.uk.