Future of Public Services: The Rise of Social Enterprises Antti Karjalainen, Programme Director (Society)
<ul><li>Social Enterprises: </li></ul><ul><li>What are these organisations that have ’charitable’ missions but operate like businesses? </li></ul><ul><li>Defined (UK) as businesses that have primarily social/environmental objectives and they recycle the profit back to the business (trading for social/environmental purpose) </li></ul><ul><li>Variety of Social Enterprises </li></ul><ul><li>Charities, Companies (limited by shares/guarantee) and Co-Operatives </li></ul>
Many global economies (Britain more visibly than others) face a serious tension between these two things: One is this: Budget deficits are huge and public services cannot be funded by increasing taxes alone. The other side is this: We maintain same values as we did when the welfare state was created: for instance we believe in social justice and equal rights to all citizens and these beliefs guide our notion of how public services should be organised.
This takes us to a dilemma: How are we to meet our (increased) moral obligations with diminished public resources?
<ul><li>Here are some solutions: </li></ul><ul><li>Increase Taxes </li></ul><ul><li>Contract out public services </li></ul><ul><li>Charge service users </li></ul>
Suggestion: Find businesses that combine the strong value base with use of markets Social enterprises are competitive businesses that manifest values of welfare state (and more ex. Service participant, co-innovation etc.)
Social Enterprises UK: over 62,000 contributing £24 billion to the Economy In Finland SME sector is estimated to have around 12,000 Social Enterprises and €7 billion share of the economy Growth-oriented and optimistic, attract highly educated more enterpreneurialism generally
“ We’re with GLL !!” GLL – ‘Adding Value to our Communities’
What is different about SE’s? Problem they are aiming to solve is inherently social It is business in the sense that the cash for operation is raised through trading How to measure the success of the business? That is, what will it bring under the bottom line?