A Manifesto For Social Enterprise In Scotland
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A Manifesto For Social Enterprise In Scotland

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  • 1. In Business to Change Lives A Manifesto for Social Enterprise in Scotland Championing business with a social purpose
  • 2. Introduction How can Scotland create a prosperous, sustainable economy inspired by our national values of fairness and social justice? How can Scotland enhance and improve the quality of public services? The answer is The Scottish Social Enterprise Coalition social enterprise – businesses which are already transforming lives and communities across Scotland through reinvesting their profits for social is the national collective voice for social and environmental purposes. enterprise. We represent a wide range of social From the earliest mutuals and co-ops, social enterprises were created enterprises as well as national intermediary in Scotland to address community needs. Today, our 3000+ social enterprises are pioneering new approaches to delivering quality public and support networks. Working together with services, tackling climate change and regenerating communities. They create quality jobs and training for vulnerable people furthest from the our members, we showcase the benefits of labour market, as well as exciting career opportunities for young people social enterprise and inform Scottish policy. and for individuals changing careers. This manifesto has been developed by the Social enterprises come in all shapes and sizes: from social firms, credit unions, and housing associations, to community and worker social enterprise community across Scotland. co-ops, development trusts and community interest companies. Social We would like to thank all those individuals enterprises operate in rural and urban Scotland and across more than 30 commercial sectors. and organisations who took so much care to This is a dynamic and fast growing movement ready to deliver a radical feed into this process. new approach in our business and community life. We call on all parties to work with us to ensure Scotland becomes a world market leader in social enterprise. © 2010 Scottish Social Enterprise Coalition Thorn House, 5 Rose Street, Edinburgh EH2 2PR T. 0131 243 2650 E. admin@ssec.org.uk www.scottishsocialenterprise.org.uk Design: www.contextdesigns.co.uk Photography: 2009 & 2010 bursary winners Rebecca Duncan (www.beckyduncanphotography.com) 1 and Aly Wight (www.alywight.com). Cover image: Aly Wight – McSence Training Midlothian.
  • 3. Executive Summary Social enterprises can enable Scotland to protect public services and create a prosperous, sustainable economy inspired by our national values of fairness and social justice. Social Enterprise in Scotland Enterprising Community Solutions Priority 3 – Creating Sustainable Priority 1 – Enhancing Public Services Communities through Social Enterprise through Social Enterprise We believe the promotion of community Actions for a National Culture We call on the future Scottish Government to ownership through social enterprise delivery of Social Entrepreneurship recognise the added value social enterprises can underpin the economic and social •Supportthefuturecapacityofcreditunions  deliver in providing quality public services. cohesion of communities, delivering local skills Priority 5 – Supporting Social to lend to social enterprise and local jobs. We call on the future Scottish Enterprise Businesses •Createabespokeloanguaranteeschemefor  • esigningandcommissioningofservices, D Government to: We call on the future Scottish Government social enterprise in Scotland through Public Sector Partnerships to ensure: •EngagewiththeUKTreasurytoensure  •EnsuringthatCommunity Benefit Clauses  •Recognisetheroleofsocialenterprise  Community Interest Tax Relief (CITR) is become an unarguable norm in public sector in regeneration •Scotland’ssocialenterpriseshaveaccessto  simplified and extended to encourage longer- procurement practice; achieving wider •Tacklepublicassettransferdelays  quality tailored business support, with clear term investment, and that other existing tax social outcomes in the procurement process •Restoremomentuminthelandreform  signposting for social enterprises whether relief included in the Enterprise Investment offersSMEsandsocialenterprisesreal agenda start-ups or established SchemeandVentureCapitalTrustsare opportunities in the supply chain •Learningaboutsocialenterpriseforms  amended along with the provision of clearer •Identifyingsolutionstothebarriers  part of school life and further and higher guidance for social investors presentedbyTUPEarrangementsinrelation Priority 4 – Achieving Green education •ConsidertheprinciplethattheScottish  to public sector pension fund deficits Communities through Social Enterprise Parliament should have powers to amend Social enterprises have a crucial role working the basic rate of income tax for third sector in community based renewable energy Priority 6 – Access to Capital for workers to aid sustainable growth Priority 2 – Building a Skilled Inclusive projects and reducing landfill through waste Scotland’s Social Enterprises •Introduceinvestmentmechanismssuchas  Workforce through Social Enterprise disposal and recycling. Profits are reinvested To enable social enterprises to fulfil their Social Impact Bonds which channel private We call on the future Scottish Government to in communities to provide local amenities, potential requires imaginative financial investment into projects run by social recognise and increase the contribution social local jobs and increased opportunity. We call solutions involving both public and private enterprises and third sector organisations enterprises make in creating quality jobs and on the future Scottish Government to: sectors. We call on the future Scottish skills training. Government to: Thank you for your support. •IntroduceaCommunityEnergy  •Scopingourcontributiontoinformfuture  InvestmentStrategy •Engagewithcommercialbanks,particularly  policy making •Allowlocalcommunitiestogenerate  those in majority public ownership, to ensure •WorkingtowardsgreateralignmentwithUK  income through local waste that lending to social enterprises is both Government programmes in skills training •Incentivisecommunityownership  sustained and increased and job creation of renewable energy developments 2 3
  • 4. Social Enterprise in Scotland Enterprising Community Solutions Delivering public services in the face of constrained public spending and rising expectations remains the biggest challenge for Scotland’s policymakers. However, we believe that social enterprises are part of the solution. They have a proven track record of providing quality, cost effective solutions to deep seated society problems, through innovative business practices and successfully unlocking hidden assets of local knowledge and resource normally overlooked in the conventional marketplace. 2014CommonwealthGames.Community benefits can be incorporated into contracts case study Priority 1 – Enhancing Public Services to include: targeted recruitment and training Third Sector organisations work with public (TR&T),equalopportunities,training Community Benefit Clauses through Social Enterprise sector purchasers to design public services. existing workforces, supply chain initiatives – Unity Enterprise, Glasgow By reforming public service design to involve and community consultation. We believe that service design and the end users and providers, improved quality The Community Benefit Clause for commissioning process should take account can be built round the needs of people and  We call on the future Scottish the building of the Velodrome for the of how social enterprises operate, recognising communities. GovernmenttoensureCommunityBenefit CommonwealthGamesinGlasgowprovided the value of the role they play in regenerating Clausesbecomeanunarguablenormin an opportunity to submit a tender to operate communities and enriching the skills and lives  We call on the future Scottish Government public sector procurement practice, through an on-site catering facility serving 500 of local people. to commit to a continuous programme of working with all public agencies and with workers.UnityEnterprisewasinvitedto Public Social Partnerships to deliver a radical effective monitoring of national data to set up the operation after a tender process  We call on the future Scottish Government new approach to quality service design. ensure progress is being made. exclusively involving social enterprises. to champion the added value social enterprises deliver in providing quality public While the main building contractor assisted services. Mainstream Community Benefit Clauses Remove Barriers with setting up the accommodation, Unity Enterprisehadtomakeaconsiderable CommunityBenefitClauses,socialclauses Social enterprises and other businesses can investment in equipment and infrastructure. Rolling out Public Social Partnerships that can be included in public contracts, are experience barriers in public sector contract To date the operation has enabled Unity of increasing interest to the public sector in delivery,withregardtoTUPEarrangements Enterprisetoemploy10peoplewhowere The public sector in Scotland spends £8bn Scotland.Achievingwidersocialoutcomes which encompass the liabilities of public not only unemployed but also to provide on procurement each year. Social and intheprocurementprocessoffersSMEsand sector pension fund deficits. employment and training opportunities for environmental outcomes can be achieved social enterprises real opportunities in the some of our current service users. alongside financial efficiency through rolling supplychain.CommunityBenefitClauses  We call on the future Scottish Government out Public Social Partnerships, in which have already played an important role in to identify solutions to this growing The agreement is to last over the next few achievingtheprincipleoflegacyinGlasgow’s challenge. We also ask for improved routine years until the site is completed and this social enterprise data collection to raise experiencewillenableUnityEnterpriseto awareness of the economic impact and reach tender for similar work in the future. “A charity dollar has one life, is used once, of the sector, including the introduction of features to identify social enterprises in and then dies. A social business dollar is public sector procurement portals. recycled and has an unlimited life.” Muhammad Yunus on BBC Radio 4’s Today programme 4 5
  • 5. 74% ThINk social enterprises are important to the future of Scotland’s economy. IpsosMORI–August2009 Priority 3 – Creating Sustainable Tackle Public Asset Transfer Delays Priority 2 – Building a Skilled Inclusive Communities through Social Enterprise  We call on the future Scottish Government Workforce through Social Enterprise to recognise and increase the contribution Communitymanagementandownershipof social enterprises make in delivering quality Social enterprises in Scotland already play public assets can support the wider public Scotland’s geography requires greater jobs and skills training and to scope our a defining role in developing sustainable interest and create community owned social dependence on local delivery from smaller contribution to inform future policy making. cohesive communities. However at a time enterprises working for the community good, providers of employability skills training and of constrained public spending and with our without incurring unmanageable risk and job creation. Social enterprises are already  We also call on the future Scottish communities facing so many challenges, we opportunity costs. part of the solution to this need and are ready Government to work towards greater believe the proactive transfer of public assets to go further. There is also a role for the size, alignmentwiththeUKGovernment to community ownership can underpin social  We call on the future Scottish Government scale and capital of larger social enterprises, programmes in skills training and job enterprise delivery of local skills, local jobs to work with all public bodies to tackle asset working in partnership to provide tailored creation,inordertotackleScotland’s and amenities. transfer delays, in particular to introduce local solutions. current high unemployment in a cohesive a legislative change to permit the transfer and coordinated approach. of underused assets below market value to Social enterprise can also be a successful Recognise the Role of Social Enterprise local people. model for individual entrepreneurs, who can in Urban Regeneration be encouraged to set up their own businesses OvER 70% of people to provide opportunities for themselves and believe that, when buying Largescaleurbandevelopmentscanoffer Restore Momentum in the Land others in their communities. goods or services from significant opportunities to empower local Reform Agenda suppliers, ensuring that communities and create local jobs through the supplier passes on community ownership of assets. Landownershipisthecatalystfordelivering some additional benefits community-led regeneration and growing to the local community  We call on the future Scottish Government community confidence and self reliance. We should be most important to ensure all new developments include call on the future Scottish Government to in their decision. asset transfer provisions to an independent review and extend community right-to-buy community trust. legislation with a re-established Scottish land IpsosMORI–August2010 fund to assist community land acquisition. 6 7
  • 6. Priority 4 – Achieving Green Actions for a National Culture  We further call on the future Scottish Communities through Social Enterprise Government to publish a local energy of Social Entrepreneurship investment strategy which sets ambitious Social enterprises have a crucial role targets for community energy production If social enterprise in Scotland is to fulfil its potential and be allowed inScotland’sgreenagenda,workingin across the country with mechanisms for community based renewable energy projects establishing capital investment. to create jobs and address the deep seated social and environmental and reducing landfill through waste disposal needs of its citizens, it requires a range of quality business support and recycling. Yet their purpose goes beyond and access to investment. the green agenda, with profits reinvested in Allow Communities to Generate their communities to provide local amenities, Income through Local Waste local jobs and increased opportunity. Social enterprises have established successful recycling businesses across Introduce a Community Energy Scotland, diverting waste from landfill while Priority 5 – Supporting Social Investment Strategy delivering local jobs and community skills. Enterprise Businesses Inthenexttenyears,significantinvestment  We call on the future Scottish Government With the current high levels of in renewable energy could create a source toworkwithLocalAuthoritiessothatfirst redundancy and unemployment, we ofincomeforlocalcommunities.Community preference is given to communities to utilise believe that social enterprise is an owned energy projects are already proving local waste for local economic, social and attractive option for those seeking to Support the Next Generation of successful engines for change, allowing environmental benefit. create employment for themselves as social Social Entrepreneurs local people to improve their quality of life entrepreneurs, or for individuals changing while working with Government in tackling case study careers and looking to start new businesses. Young people are increasingly interested in climate change, fuel poverty and energy social enterprise as an ethical business career security. However, at present communities Community Energy – Eriskay Scotland’sestablishedsocialenterprisesalso which transforms lives and local communities. are not always included in arrangements Community Hall, Western Isles require the business skills to scale up, acquire between local authorities and energy assets and to create consortia to trade and  We call on the future Scottish Government companies, while uncertainty around long Eriskay Community Hall facilities provide expand into new markets. to ensure that learning about social enterprise term investment in community owned energy a much needed community facility for the forms part of school life and to explore with projects is currently sapping community and residentsofEriskay.Itisusedregularly  We therefore call on the future Scottish further and higher education institutions how volunteer morale. for social functions, weddings, sport GovernmenttoensurethatScotland’ssocial awareness of social enterprise, as a business events, and is used frequently by the local enterprises have access to quality tailored model and a career option, can be increased. We believe the connection between community. High electric running costs business support, with clear, easy signposting community and energy production is vital to of around £3000 per annum and poor for social enterprises whether start-ups or endow communities with the means to thrive. heating resulted in the group deciding to established. install roof insulation and a 6kW on grid  We therefore call on the future Scottish wind turbine behind the hall to provide  We further call on the future Scottish Government to incentivise energy providers direct heat to the storage heaters. Government to consider supporting and local authorities through the planning mechanisms for social enterprises to trade process to engage with local communities. The group developed the project with the knowledge and expertise with each other. assistanceofCommunityEnergyScotland development officers who also granted 85% ThINk it is possible moneyfromScottishGovernment’sgrant 67% ThINk social for companies to make scheme at the time. Savings per annum enterprises should have a profit and also make a are over £2000 along with additional a role in the delivery of positive contribution to income of around £600 per year. Heating public services. Scotland’s communities. costs for this community facility have now IpsosMORI–August2009 reduced to about £300 per year resulting IpsosMORI–August2009 in a thriving community facility. 8 9
  • 7. case study Priority 6 - Access to Capital for A Culture of Scotland’s Social Enterprises Create a Bespoke Loan Guarantee Consider the Argument for Reduced Social Enterprise – Haven Scheme for Scotland Income Tax for Scotland’s Third Sector Products, Inverness & Glasgow All businesses need finance. Scotland’s We believe a loan guarantee scheme for InlinewiththeCalmanCommission social enterprises are now at a vital point in social enterprise would encourage financial recommendations for greater fiscal and Haven Products provides employment their development, with high expectations institutions to make finance available to financial self determination – we ask the and training opportunities for disabled of their capacity to deliver quality services supportgrowthandworkingcapital.TheUK future Scottish Government to consider the people; around 80% of its workforce has in their communities at a time of maximum EnterpriseFinanceGuarantee(EFG)Scheme principle, already successfully established adisability.Itoperatesasacommercially economic constraint. Fulfilling their potential is irrelevant for most social enterprises as inAustralia,thattheScottishParliament viable and efficient business, providing requires imaginative financial solutions the guarantee levels are low and charges are should in future have powers to amend the high-quality services and solutions to involving both public and private sectors, as high. We therefore call on the future Scottish basic rate of income tax for workers in the companies looking to outsource their well as unlocking the reserves of untapped Government to ensure a bespoke scheme is Third Sector, to aid sustainable growth, production processes. wealth within the sector itself. We call on the created to increase the flow of capital into deliver a step-change in innovative public future Scottish Government to consider good this expanding sector. service delivery and ensure that Scotland The firm operates from three sites practice elsewhere to attract a diversity of is positioned as a world leader in social across Scotland: Hillington, Ballieston funding. enterprise business. andInvernessandworkscloselywith Engage With the Uk Treasury on Tax the private and public sector through its Relief for Social Enterprise Investment ComplementaryWorkforcewhichseeks Engage With Lenders Introduce Social Impact Bonds to outsource skilled and trained Haven Incentivisinginwardinvestmentfromprivate staff to some of the countries largest Bank lending continues to play a big role sector institutions and High Net Worth  We call on the future Scottish Government businesses,includingIBM,StandardLife in supporting the sector. We call on the individuals concerned with community well to introduce investment mechanisms such and National Semiconductor. future Scottish Government to engage with being,isakeypriority.Atpresentthereis asSocialImpactBondswhichchannel commercial banks, particularly those in no equality of investor tax relief between private investment into projects run by social majority public ownership, to ensure that social enterprises and the private sector. enterprises and third sector organisations. 79% AGREEd lending to social enterprises is both sustained We therefore call on the future Scottish The Scottish Government would provide a and increased. When the reforms to credit GovernmenttoengagewiththeUKTreasury financial return to investors, by paying out a that people who unionlegislationcurrentlybeforetheUK toaskthatCommunityInterestTaxRelief proportion of the savings to the public purse invest in social Parliament are passed, we ask the future (CITR)issimplifiedandextendedto that result from improved social outcomes. enterprises should Scottish Government to support the capacity encourage longer-term investment in social The more successful the project, the more be given tax relief of credit unions to lend to social enterprise to enterprises, and that other existing tax relief public money is saved and the higher the equal to that diversify sources of investment in the sector. includedintheEnterpriseInvestmentScheme return for the investor. received by people andVentureCapitalTrustsareamended who invest in along with the provision of clearer guidance, private companies. for investors in organisations delivering social IpsosMORI–February2010 or environmental benefits. 10 11
  • 8. Scottish Social Enterprise Coalition Members & Associates Members Forth Sector UKCreditUnions AberdeenDayProjectLtd GrampianHousingAssociation UnityEnterprise (TheBreadMaker) GRECGraphics With People AberdeenFoyer Haven Products YouCanCook What’s next? AberlourChildCareTrust ACECreditUnionServices ActionforChange HealthInequalitiesAlliance HebrideanChocolates Highlands&IslandsSocial Associates AgeConcernEnterprises EnterpriseZone ACOSVO We ask all parliamentary candidates to sign up AlbynHousingSociety AlloaCommunityEnterprises ImpactArts Inspiralba CreationLtd FifeSocialEconomy Argyll&ButeSocial InspireVentures to the Social Enterprise in Scotland Charter EnterpriseNetwork InstituteofLocalTelevision InstituteofOccupational Partnership GlasgowCaledonianUniversity AssociationofBritishCredit GlasgowEastRegeneration to demonstrate their support for social UnionsLtd AutismInitiatives Medicine InverclydeAssociationfor Agency Glasgow South West Mental Health enterprises and the policies set out in this Bookdonors BRAGEnterprises LanarkshireEnterprise RegenerationAgency Keegan&Pennykid BuchanDial-a-Community Services MacRoberts manifesto for social enterprise. Bus CalmanTrust LinkGroup LinkedWork&TrainingTrust R.I.E.R.SocialEconomy Partnership CamphillScotland McSence RoyalBankofScotland Mediaco-op To view our Charter, please visit CBSNetwork CDA(Scotland)Ltd MoraySocialEnterprise ScottishChambersof Commerce CEiS Network ScottishCouncilfor www.scottishsocialenterprise.org.uk/ CEMVOScotland CentreofHealth&Wellbeing Mull&IonaCommunityTrust North Glasgow Housing Development&Industry ScottishFinancialEnterprise 2011holyroodelections ClaverhouseGroup CommunityCareProviders Association PortofLeithHousing ScottishUrbanRegeneration Forum Scotland Association ShellUK CommunityEnergyScotland RealWorkSkills SocialEnterpriseAlliance Thank you for your support. CommunityEnterprise CommunityFoodInitiatives Scottish Borders Social EnterpriseChamber Midlothian StandardLife NorthEast ScottishChurchesHousing TheCo-operativeBank CommunityRecyclingNetwork Action TheFacultyofAdvocatesFree for Scotland Scottish Federation of Housing LegalServicesUnit CommunityRetailingNetwork Associations The Grange Group CommunityTransport ScottishLeagueofCredit The Scottish Parliament Association Unions &BusinessExchange CommunityWoodlands Send-it Triodos Bank Association Senscot Unity Trust Bank Compassion‘nAction SKSscotland Voluntary Sector Gateway Co-operation&Mutuality SocialEnterpriseAcademy WestLothian Scotland SocialEnterpriseClydebank Co-operativeDevelopment Social Firms Scotland Scotland SocialInvestmentScotland Individual Associates Co-operativeEducationTrust Speyside Trust (Badaguish OutdoorCentre) Janet Barnes Scotland SpruceCarpets CharlesBrodie Cornerstone SupportersDirectinScotland Isobeld’Inverno CrescentKitchen TheAfrican&Caribbean SteveEbbitt CunninghameHousing NetworkLtd DavidHerd Association TheBigIssueScotland Martin Meteyard DevelopmentTrusts TheCleanCloseCompany Anne-MarieMcGeoch AssociationScotland TheEngineShed Jackie Scutt DunedinCanmoreHousing The Factory Skatepark Sandy Slater Association TheKibbleCentre KennethTomory EliteLinguists The Melting Pot PaulZealey EmployersforChildcare Firstport The Wise Group 12
  • 9. Social enterprises in Scotland working in... BuSINESS CENTRES CATERINg ClEANINg CHIlDCARE CoNSTRuCTIoN SERvICES CoNSulTANCy CulTuRAl & HERITAgE SERvICES EmPloyABIlITy TRAININg ENvIRoNmENTAl mANAgEmENT FINANCIAl SERvICES FooD Join us HEAlTHCARE SERvICES HoRTICulTuRE HouSINg The Scottish Social Enterprise INFoRmATIoN SERvICES Coalition is the national collective lAND mANAgEmENT campaigning voice for social enterprise PRoPERTy mAINTENANCE in Scotland. It represents the needs RECRuITmENT and interests of social enterprise to RESEARCH politicians, policy makers and opinion RETAIl formers through its members. SoCIAl CARE Each April, the Coalition runs the S2S SPoRT & FITNESS Social Enterprise Fair which attracts SuRvEyS more than 500 delegates from across TouRISm SERvICES TRANSlATIoN SERvICES the uK. www.s2sfair.com TRANSPoRTATIoN Tv, FIlm & mEDIA Contact us for more information and WASTE & RECyClINg SERvICES for details on how to join to make WEB DESIgN youR voice heard: WElFARE SERvICES T. 0131 243 2650 E: admin@ssec.org.uk www.scottishsocialenterprise.org.uk Championing business with a social purpose Thorn house, 5 Rose Street, Edinburgh Eh2 2PR