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Social Enterprise UK (SEUK) are proud to be a delivery partner on the newly launched VCSE Contract Readiness Programme.  Delivered in partnership with the School for Social Entrepreneurs (SSE) and Voice4Change England, and funded by the Department for Culture, Media and Sport (DCMS) – the VCSE Contract Readiness Programme’s objective is to enable social enterprises and charities to compete alongside other organisations for public sector contracts. The programme is divided into two pathways – one for voluntary, community and social enterprises (VCSEs) and one targeted at public sector commissioners, with an initial focus on commissioners at central government departments. How to get involved - VCSE pathway This programme is a great opportunity for social enterprises and charities wanting to win government contracts to find out more about how to successfully apply for these opportunities.  There are a number of ways for SEUK members to take part in the programme from introductory webinars to more in-depth short and long courses designed to help organisations implement the practical steps to become procurement ready. Our friends at SSE are primarily managing the VCSE pathway and more information can be found on the SSE website. Click here to find out more about the VCSE pathway and eligibility criteria. Organisations can sign up to 'Government Contracts Revealed', the first public webinar in the programme which will introduce social enterprises and charities to public sector procurement. This will be suitable for those with little or no experience of tendering. Click here to sign up The first available public webinar is on 25 April with further dates in June. The Public Services Hub The Public Services Hub is an online platform, developed by SEUK as part of the programme, which hosts resources and opportunities to help advance the role of social enterprises and charities in public sector commissioning.  From government guidance to details on how to find contracts – the Public Services Hub is a great first port of call for social enterprises and charities interested in working with government and the broader public sector.  The Public Services Hub also holds resources for commissioners to help them better understand the benefits of partnering with VCSE service providers. Click here to visit the Public Services Hub  We will be sending out updated information about the programme as more elements of it become live.

Responding to the Spring Budget, Peter Holbrook, Chief Executive of Social Enterprise UK, said: Today, the Government has shown a more nuanced view on how fiscal policy can encourage investment and shape better business behaviours, that goes beyond corporate tax cuts. However, many social enterprises continue to work in a difficult economic environment. SEUK will continue to lobby Government for more support to deal with inflation and to be the voice for social enterprises which have an important role to play in building a stronger national economy.

In these troubled times, it is welcome that the expanded Dormant Asset Scheme will provide £880 million to essential causes, including through social investment and a Community Wealth Fund. The results of the Dormant Assets consultation were announced today. Funds will continue to be used for youth, financial inclusion and social investment wholesalers. There will also be a new Community Wealth Fund which will give long-term financial support (whether directly or indirectly) for the provision of local amenities or other social infrastructure. This is an important milestone because of the impact this will have on communities through the work of social enterprises, trading charities and other community-based businesses. The consultation recognises the importance of extending affordable, patient, flexible capital and highlights findings of the Adebowale Commission on Social Investment which recommended that social investment must reach more minority-led organisations and disadvantaged communities. Existing Dormant Assets continue, including a £31 million fund which will enable community and social enterprises to install energy saving technology in their buildings and help them meet the growing need for their services as a result of cost-of-living pressures. We look forward to more details on how this funding will be allocated. It is imperative that it is distributed fairly and used to support communities and places in need. Our CEO Peter Holbrook said: “This is an important and positive development. Dormant Assets offer huge potential support for social enterprises and the communities they serve. We are pleased to see that the Adebowale Commission has influenced improvements for social investment. We look forward to supporting how the Community Wealth Fund is shaped, as we know the vital work that social enterprises do at a hyper-local level and the importance of place-based infrastructure. These are extremely challenging economic circumstances. We hope the Spring Budget next week will provide further hope and support to drive social enterprise solutions.”

The State of Social Enterprise (SOSE) survey, which runs every two years, is live! We’re inviting all UK social enterprises to take part. We know social enterprises across coops, community businesses, start-ups and more get surveyed a lot. So, why should you give up your time for it?  1. Drive policy change SOSE data helps drive policy change for social enterprise. For example, it informed public policy which led to the creation of Big Society Capital and Access – the Foundation for Social Investment, contributing to a social impact investment market of over £6.4bn. It supported Social Value legislation and underpinned calls for sector support during COVID. 2. Shape a powerful narrative Did you know that social enterprises generate £60bn GDP and 2 million jobs? That’s SOSE data. And we want to update it this year.  3. Contribute to the UK’s largest dataset for social enterprise Central government comes to us for this data. Social investors, national sector bodies, local and combined authorities – they all access this data to inform policy and practice. SOSE data is central to analysis such as the Adebowale Commission on Social Investment.               4. Build understanding SOSE data is used by researchers and academics to better understand many areas of social enterprise, from rural ecosystems for social enterprise, to improving routes to market, the data is core to research across sectors, regions and impact areas.  5. Data for your social enterprise SOSE provides a benchmark for social enterprises to better understand their own performance and learn from others. For the first time in 2023, SEUK members will receive benchmarked results from their survey data in the pilot run of our Better Business Benchmark tool.  We’ve simplified the survey this year. If you took part in 2021, you won’t be asked all questions as we’ll use data you’ve already provided.   You’ll need info on your financial turnover, profits and staff demographics to hand – as well as an overview of how you generate income. The survey shouldn’t take more than twenty minutes.   If you do one survey this year, please make it this one. How to take part   All SEUK members and social enterprise contacts will be contacted by respected research company BMG research – look out for an email from them. Not heard from BMG yet? Please drop BMG a line to confirm your interest – you can request a telephone call back, or to do the survey online: socialenterprisesurvey@bmgresearch.com Social enterprises which are not SEUK members are also encouraged to take the survey – email socialenterprisesurvey@bmgresearch.com to express your interest in taking part. “Evidence matters – and the state of the sector surveys helps us all to get a better understanding of the pressures facing social enterprises, be that frontline staff, policy makers or funders. It helps to connect the dots and create the evidence base we need to spot trends, challenges and opportunities and provide the support social enterprises need.” - Lydia Levy, Head of Impact and Evaluation - Access -The Foundation for Social Investment. “There has been a lot of progress in supporting social enterprises to access the investment they need to create and sustain impact but we know there is still so much more to do. The SEUK SOSE survey gives us vital data on where barriers still exist in equality of access to finance, where products need to be improved and a better understanding of the current and future demand for capital. Simply put - what is working well and what is not. SOSE is a key tool in helping us to understand how our money can best be put to work.” - Melanie Mills, Head of Social Sector Engagement, Big Society Capital “The State of Social Enterprise (SOSE) is the best and most consistent source of in-depth data on social enterprises. At Social Investment Business, we believe passionately about supporting social enterprises with the right finance and support to build a fairer society. We believe equally passionately in the role of high-quality data and insights to make that support as effective as it can be. We are therefore proud to support SOSE and encourage all social enterprises to take part in the research” - Nick Temple, CEO Social Enterprise Business. SOSE is supported by:

The most recent Social Enterprise Barometer report published on 9 February shows that the next quarter is critical for many social enterprises with more than one in ten social enterprises across the UK expecting reduced turnover or to close due to the tough economic climate. The Social Enterprise Barometer reports are published quarterly and provide a snapshot of social enterprise performance and as well as how specific economic and political developments are affecting social enterprises. The February report showed that overall, across the 101 respondents, 14% are expecting to reduce turnover and staff or to close completely. This is the highest proportion reporting a growth decline since the survey began two years ago. High costs continue to challenge social enterprises. Almost two-thirds of the social enterprises who took the survey (62%) said they saw an increase compared to last quarter and almost half (48%) saw an increase in staffing costs. Although there was a slight improvement in cashflow and reserve positions this quarter, but a high number of social enterprises expressed concern about projected cashflow and income. When social enterprises were asked about their turnover position since July 2021, 21% said they saw a decrease while 37% said their turnover remained the same since then. Factors included a reduction in commissioning opportunities for public sector contracts and smaller contracts as local authority budgets struggle. Despite the tough economic climate, more than half of the social enterprises surveyed said demand for their products and services increased. The number of people being supported through social missions has also increased since last quarter to 63%, demonstrating how social enterprises prioritisation of their mission continues to deliver in times of need. Social enterprises in London reported particularly weak growth and cashflow positions compared to counterparts elsewhere in the UK. Peter Holbrook, Chief Executive of SEUK, commenting on the findings said: “As the UK economy is predicted to fall into another recession and interest rates hit their highest levels in more than a decade, social enterprises continue to face a tough economic climate. “For many, the financial support they will try to get next quarter will be critical to their survival. “More than three quarters of social enterprises reported that the profits they reinvested into their social or environmental mission has increased or stayed level, highlighting the resilience and importance of the social enterprise business model to increase investment in the communities they serve. “Government support must prioritise sustaining businesses that serve our economy, community and planet in order to maximise returns on investment and to ensure that otherwise viable social enterprises aren’t lost to economic uncertainty.” The Social Enterprise Barometer report can be accessed through SEUK’s Social Enterprise Knowledge Centre. The Social Enterprise Knowledge Centre seeks to be the UK’s most comprehensive source of evidence on social enterprise. Click here to read the full Barometer Report

Commenting on the need for responsibility for social enterprise to be moved into the new Department for Business and Trade, Peter Holbrook CEO of Social Enterprise UK said: The creation of the Department for Business and Trade is a welcome move that will allow a single department to focus exclusively on creating an environment which will allow business to thrive. However, it is essential that this department is given explicit responsibility for social enterprise. Social enterprises are the best of business, growing the economy whilst also addressing the entrenched social and environmental challenges. As businesses, decisions made in this new department will have a big impact on the sector’s future. That’s why it is important that social enterprise sits with the rest of the business community in this new department. It is why social enterprises have been calling to be treated the same as the rest of the business community for years. We have an opportunity to fully embed social enterprise into the government’s new approach to business. I hope that the Prime Minister will listen to the hundreds of thousands of social entrepreneurs in this country and show them his government backs them.

According to Social Enterprise UK cuts to energy support for business will not deliver savings and could cost taxpayers more. If the proposed changes go through as many as 10,000 social enterprises could face closure putting as many as 160,000 jobs at risk and costing the UK billions in lost output and tax revenue. Peter Holbrook, CEO of Social Enterprise UK commented: “British businesses that should be at the heart of our economic recovery face the threat of closure should the Government prematurely cut back its energy support package for business. In the social enterprise sector, even the existing package has proven inadequate, with at least 3,900 social enterprises set to close, and over 10,000 more at risk of closure. This could put as many as 160,000 jobs at risk and could potentially cost the UK billions in lost output and tax revenue. The long-term costs to the economy would likely outweigh any savings made today from cutting energy support. If the Government goes through with further reductions in support, then the collapse of more social enterprises will become inevitable. Communities across the country will be deprived of businesses that are committed to investing in tackling social challenges and fostering inclusive growth. Supporting social enterprise today is not a cost, but an investment, one that will pay dividends when viable businesses survive these hard times and are able to drive the future recovery.”