Social Enterprise
Fruit and Veg Co-op at DOVE workshop in Banwen
What is Social Enterprise?
The concept of social enterprise has in recent years been climbing up the political agenda, and has been flagged up as a positive new method for delivering services and goods.
There are numerous definitions for what a social enterprise is. One of the most commonly used is the Department of Trade and Industry (DTI) definition:
“… businesses with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather that being driven by the need to maximise profit for shareholders and owners.”
This definition serves only to assist organisations to self-identify themselves as a social enterprise. Social enterprises can be born and developed out of either the voluntary, statutory or private sectors. The main distinguishing factor is the distribution of the profits, which go back into the organisation to be used for social and / or environmental purposes to benefit the community.
Developments at National Level
If an individual organisation has an interest in social enterprise it is important to be aware of the strategic context for social enterprise on a national level.
The national strategic context is currently driven by the Social Enterprise Strategy for Wales which was published in June 2005, which states that:
“The Welsh Assembly Government’s vision is of dynamic and sustainable social enterprises strengthening an inclusive and growing economy.”
There are 4 strategic objectives underpinning this vision:
- Creating an Enabling Environment
- Making Social Enterprises Better Businesses
- Establishing the Value of Social Enterprises
- Encouraging the Development of New Opportunities
These objectives will ensure that barriers to the development of social enterprises are addressed on a national level and in turn on a local level.
The Strategy is clear about the potential that social enterprise has to offer, which can assist in raising Gross Domestic Product and economic activity levels.
‘Social enterprises harness entrepreneurial drive to achieve wider social objectives. In so doing they can help tackle social exclusion and regenerate deprived communities. In fact social and environmental objectives are the very reason that social enterprises exist’.
Social enterprises can:
- Provide routes to mainstream employment
- Create sustainable jobs
- Retain wealth within the local community
- Contribute to community regeneration
- Encourage active citizenship
- Make money in a socially and environmentally responsible way
- Identify and promote the needs of local communities
- Improve service delivery to meet local needs
- Reach out to those who are economically inactive or disadvantaged
The Social Enterprise Joint Working Group
On a national level, a Social Enterprise Joint Working Group has been established which will ensure that the vision and objectives within the national strategy are achieved.
Developments at a Local Level
The Neath Port Talbot Social Enterprise Network (SEN) was launched by the Minister for Social Justice and Regeneration in April 2006 and continues to meet on a regular basis. The Network is a forum to share information about social enterprise. The Network is a member of the newly established Welsh Social Enterprise Coalition (WSEC).
There are 2 key local partnership strategies which highlight how social enterprise plays a key role in revitalising the local economy.
The Neath Port Talbot Community Plan 2005-2015 seeks to:
‘Increase the number of jobs and the benefits to the social economy of community enterprise as an alternative source of employment in the most deprived areas”
The Neath Port Talbot Western Valleys Strategy seeks to:
‘Promote social enterprises both through the new Social Enterprise Network and by identifying a programme of initiatives, including at least one in each Valley area’
These strategies have an underlying vision to regenerate communities in Neath Port Talbot. The Strategies recognise that there is huge potential for growth in areas such as tourism and transport and that social enterprise may be able to take advantage of this potential to benefit the local economy.
Individual Communities First Partnerships have also produced action plans which identify social enterprise as a key area for development in regenerating the most deprived communities in Neath Port Talbot.
Neath Port Talbot has also been awarded Rural Development Plan status. A key theme within the Local Development Strategy which is attached to this status is to address economic inactivity within which social enterprise plays a key part.
The Neath Port Talbot Social Enterprise Strategy will be launched in early 2010.
There are a number of useful workshop sessions for Social Enterprises taking place during January. Please take a look at the selection available from the Wales Co-operative including those below.
14 January, Merthyr Tydfil Introduction to Social Enterprise
Deadline:7 January
This master class will clarify what a social enterprise is and examine real life case studies. Participants will have the opportunity to meet a role model who has successfully set up a social enterprise and time will be allowed to address questions such as, “What are the benefits and challenges of setting up a social enterprise?”
For the complete programme of events go to the Wales Co-operative website.
