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Introduction to social firms in economic development

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An introduction to the values and value of social firms, how they fit within a model of social inclusion and economic development.

A valuable resource for anyone tasked with strategic development that includes raising employment and employability rates, social inclusion of the most job-disadvantaged and the development of a fair social model.

Published in: Business
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Introduction to social firms in economic development

  1. 1. Social Firms in Economic Development g A business model for social inclusion
  2. 2. Third Sector (Civil Society Organisations) Social Enterprises Social Firms Employment Social Firms Employability Social Firms Introduction to Social Firms Social Firms are a subset of social enterprises that focus on employment and employability They seek to employ, train and support the most job-disadvantaged This focus on the most intractable barriers to work distinguishes social firms from the wider social enterprise sector
  3. 3. Definition of a Social Firm Employability Social FirmsEmployment Social Firms 25% employees have experienced job-disadvantage: • Physical disability • Learning disability • Ill mental health • Homelessness • Offending • Substance mis-use 50% of income is trading from the business operation They offer a personalised and supportive environment They have a focussed goal to get the most job-disadvantaged into work They offer work placements, training, coaching and/or mentoring Often Social Firms are both
  4. 4. Social Firms Values Enterprise Social Firms are businesses that combine a market orientation and a social mission. They are not “projects that trade”. Employment Social Firms are committed to the social and economic integration of severely job- disadvantaged people through employment. Empowerment The Social Firm environment provides all with support, opportunity and meaningful work, and for employees, pay the market wage.
  5. 5. What kind of businesses are Social Firms Limited only by market and imagination.
  6. 6. Social Firms are Vital Social Firms are very firmly focussed on job creation for sections of the community that rarely, even in times of plenty, get access to jobs and training. 73% 48% 33% 24% 15% 14% 11% 6% Employment Rates for Job-disadvantaged Groups All Labour Force All Disability Visual Impairment Autism Homeless Ill Mental Health Ex Offender Learning Disability
  7. 7. Social Firms: Good for Social Inclusion Social firms' provision of employment opportunities for people with mental ill health: a UK survey. Gilbert E, Marwaha S et al. 2013 Social Firms as a means of vocational recovery for people with mental illness: a UK survey. Gilbert E, Marwaha S, et al 2013 Social firms: building cross-sectoral partnerships to create employment opportunity and supportive workplaces for people with mental illness. Paluch T, Fossey E, Harvey C.. 2012 Social firms: sustainable employment for people with mental illness. Williams A, Fossey E, Harvey C. Social firms: a means for building employment skills and community integration. Lysaght R, Jakobsen K, Granhaug B. 2012 How do social firms contribute to recovery from mental illness? A qualitative study. Svanberg J, Gumley A, Wilson A. 2010 An update on affirmative businesses or social firms for people with mental illness. Warner R, Mandiberg J.2006 Social firms have a vital role in enabling job-disadvantaged people to experience the self- esteem, independence and other positive rewards that employment brings. Academic research tends to focus on therapeutic benefits for people with ill mental health.
  8. 8. Social Firms: Good for the Economy It is becoming more and more important not just for individuals, but for the economy that more social firms are set up, and that they win contracts Savings in Welfare £40,000,000 Savings in Healthcare £20,000,000 Savings in Social Services £1,000,000 Based on fiscal value of employment set out in David Freud’s independent report to the Department for Work and Pensions “Reducing Dependency, Increasing Opportunity: options for the future of welfare to work”; social return on investment (SROI) methodologies; and a series of SROI studies of social firms employing people with mental health problems.
  9. 9. Introduction to Social Firms England Membership Our members are employment and employability social firms, charities, public authorities, educational establishments, specialists and supporters. Together we work for the growth and development of the social firm sector. Promotion We promote the goods and services that social firms produce, through our trade website www.justbuy.org.uk. We also encourage the private and public sector to include social firms in supply chains. Support Social Firms England is the go-to expert for specialist business support and resource material to develop social firms. We provide consultancy and information to social firms, public authorities, housing associations, and others to support job creation. Lobbying We promote and support the social firms model at strategy and policy level. We work at local and national level to ensure that the contribution of social firms to the economy is understood and valued. Social Firms England replaced Social Firms UK in April 2015. Social Firms UK was founded in 1999
  10. 10. InWork consists of a Toolbox and a Best Practice collection. The Toolbox provides potential social entrepreneurs and local authorities with an overview of opportunities and methods for developing meaningful and sustainable work programmes for marginalised and vulnerable groups The Best Practice Collection gives examples and ideas for the development and the implementation of sustainable social inclusion programmes. Resources and Information InfoMine – Online Support Tool InWork – Best Practice Resource InfoMine guides the social entrepreneur through a series of questions to determine what they need. Then it provides a detailed report with tailored information, links and resources to help set up, run and grow a successful social firm. It’s that simple. Other resources and courses are available. We have a range of case studies, and other material to support the development of social firms.
  11. 11. Strategic Support for Social Inclusion We offer the above as examples of our services. We are always happy to discuss a bespoke package that meets local needs The Social Firm Model • Introduction & training • Local Examples • Best Practice Examples • Successes & Challenges • Social Firm Recognition • Benefits and Drawbacks • Products and services • Bespoke visits to local social firms Strategy Development • Strategic alignment • Feasibility and Direction • Social Firm Strategy Development • Planning & Monitoring • Strategic Partnership Development • Identifying resources • Identifying local partners • Sustainability Check The Next Steps • Working with local partners • Identifying markets • Growing existing social firms • Proposal Development • Proposal Feasibility • Setting up new social firms • Influencing supply chains Within the ESI Funds programme 2014-2020, LEPs address social exclusion and combat poverty. Social Firms England works alongside local partners, and offers proven successful methods to get results.
  12. 12. Create Social Inclusion The many social firms that exist are not just evidence of the ability of those previously written off by society to actually make their contribution to it. They also are evidence of the failure of the wider business world to create employment where it is most needed. Social firms fill the gap. Social firms: create social inclusion
  13. 13. Michele@socialfirmsengland.co.uk @socialfirmseng 01737 231 360 www.socialfirmsengland www.justbuy.org.uk www.socialfirmsinfomine.org.uk www.inworkproject.eu For Further Information Michele Rigby CEO

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