Thought Leadership

Social investment is a funding source that many have never heard of, need to learn more about or may be unsure whether it’s for them. In this webinar Adrian Bean from Key Fund helped demystify the world of social investment running through how it works and what kind of support is out there. The webinar aimed to help social enterprises with great ideas but need the capital and support to make them happen. 2 March 2023

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:

Two Midlands-based social enterprises have joined forces with a stunning countryside venue to offer a complete ethical events package which is good for the planet. The team at ChangeKitchen CIC craft innovative ethical menus, specialising in vegetarian, vegan and special diet options, while providing work opportunities for people who face social exclusion. That vision is shared by Jubilee Events, who employ those with multiple barriers to work as part of their marquee hire team and also offer event management services. When paired with the exclusive Meynell Langley estate, it results in bespoke, socially-responsible events for both corporate and private customers. The partnership began when Derby University contacted founder and managing director of Jubilee Events, Matt Parfitt to celebrate DE-Carbonise – a three year collaboration between the University of Derby, Derby City and Derbyshire County Council. Matt then approached director and founder of ChangeKitchen, Dr Birgit Kehrer. Here’s how the partnership developed in their own words: "Jubilee Events was approached by a university who wanted to hold a special celebration event to mark the end of some environmental research. The brief was simple: you have a great venue and a fantastic marquee - can you find us an excellent, social, 100% vegan/vegetarian caterer? My first and only thought was ChangeKitchen. And after the first canapes at the tasting event the client was licking their lips (literally!)" - Matt Parfitt, Founder & Managing Director, Jubilee Events. “As working as environmentally sustainably as possible has been part of our founding principles, we loved it when Matt from Jubilee Events got in touch to cater for an event for Derby University and City to celebrate the DE-Carbonise collaboration.We were even more delighted that the event took part at the beautiful Meynell Llangley Hall near Ashbourne, which is run in a climate friendly way, too. It feels there is so much synergy between the 3 organisations, we really hope to be delivering many more events together in this partnership.” – Dr Birgit Kehrer, Director and Founder of ChangeKitchen. Here's how the partnership with Meynell Langley estate works: Both social enterprises are dedicated to breaking down barriers to the labour market. Jubilee Events is one of two social enterprises set up by Matt Parfitt which are both owned by parent charity – Grace Enterprises, the other being award winning cleaning social enterprise Radiant Cleaners. Both Jubilee Events and Radiant Cleaners have a mission to transform lives through supportive employment offering holistic support to the people they employ from mentoring and coaching to regular reviews. In one season of trading, Jubilee Events have ten Living Wage jobs and run 20 events: ChangeKitchen are an award winning green, climate friendly caterer which began trading in 2010. Its focus is also on employment, supporting people furthest from the labour market, but during the COVID pandemic they also branched out to supporting people in need with healthy meals cooked from surplus. So far they have cooked and delivered over 70,000 meals and are in the end phase of a kitchen expansion that will help them at least double their positive social and environmental impact within a year. You can find out more about ChangeKitchen’s work creating opportunities and tackling the ongoing crisis of food insecurity in this short video: jubileeevents.co.uk changekitchen.co.uk

Delivered by the School for Social Entrepreneurs (SSE), Social Enterprise UK (SEUK) and Voice4Change England, and funded by the Department for Culture, Media and Sport (DCMS) – the VCSE Contract Readiness Programme‘s objective is to enable greater participation of charities and social enterprises (otherwise known as Voluntary, Community and Social Enterprise (VCSE) organisations) in public service procurement. The VCSE Pathway The VCSE pathway is the primary part of the programme. It offers charities and social enterprises a range of webinars, short and long courses to help them understand the public procurement process and provide them with support to better compete for public sector contracts. Upcoming courses and webinars can be found on the SSE website CLICK HERE TO FIND OUT MORE ABOUT THE VCSE PATHWAY AND GET INVOLVED The Commissioner Pathway The commissioner pathway offers a range of support for public sector commissioners to help them understand the charity and social enterprise sector and how best to work with them. Social Enterprise UK are leading on the commissioner engagement stream of the programme. This will involve working with government at a strategic and departmental level to make it easier for government to engage with VCSE suppliers. At a strategic level, this work will include: Working with Contracts Finder/Find a Tender on enriching the VCSE data held by government. Driving engagement with government platforms/tenders from a wider range of VCSEs. Building a Champions network of commissioners to help them to drive the agenda forward.  At a departmental level, SEUK will also be: Benchmarking departmental spend with VCSEs by using SEUK’s datasets to help departments. understand how much they’re spending with VCSEs and how they can do more. Engaging staff through a series of “Demystifying the VCSE sector” webinars. Driving new relationships through a series of targeted meet the buyer events working with relevant VCSE suppliers for specific departmental/category level spend. SEUK are working closely with DCMS to drive all of the above activity with the relevant areas of government. If you work for a department and would like to engage with the programme or find our more please email the DCMS public sector commissioning team at public-sector-commissioning-team@dcms.gov.uk

Here at Data Orchard CIC, our research shows that a lack of knowledge and skills about data is a major problem across the nonprofit sector, and that leaders are generally not making data-informed decisions. We think leaders are the key to advancing data maturity and to securing organisational commitment to drive improvements. With this in mind, we’ve launched a brand new training course designed especially for nonprofit leaders, board members and CEOs to teach the big picture things you need to know and understand about data, so you can lead your organisation’s journey to getting better with data. The 5-week course is available for enrolment now, with the first cohort running 26 April - 24 May. We’re offering a 10% discount to social enterprise leaders, using the code SEUK10 and a discounted rate for the keenest early birds. CLICK HERE FOR MORE INFORMATION AND TO BOOK YOUR PLACE

Jeremy Nicholls is an international expert on social value and has written a paper on the Future of Social Value as part of our Social Value 2032 programme to stimulate discussion and debate. You can read the full paper here Jeremy’s views are his own and not representative of Social Enterprise UK or any of the Social Value 2032 partners. For those of us who think about social value in the context of the Social Value Act, the idea of social value is relatively new. For others it has been around a bit longer – rooted in the idea of value for society. Go back a bit further and economists, politicians and philosophers have been grappling with the question of value for society for a long time. The increase in the use of fossil fuels, the age of exploration – aka invasion, the enslavement of people whose countries had been ‘explored’ and the increase in the use of fossil fuels, alongside innovations in systems to manage all this; financial markets, accountancy, joint stock and later limited liability companies, all contributed to a rapid increase in global GDP.  All this drove, and still drives, more argument and debate over the nature of value. Arguments that became both revolutions and wars, over access to resources that drive capitalism and the distribution of the benefits that arise. And we built an economic system to allocate those resources to activities to meet those demands, And we talk as if markets had agency as opposed to being people, a few people in the end who either manage huge sums on behalf of others or own huge sums in their own right. Unfortunately we (I say we though I mean men) built an economic system on the premise that private financial returns will maximise wealth, a system where there is no feedback loop and no limit to that wealth – aside from there also being no control of its distribution - to the point that 1% of the world’s population own 52% of its wealth. So if social value is to be useful, it needs to be a vehicle for a more radical, systemic rethink of our economic system. It may be already too late to do this for so many people around the world, and the implications are coming closer to all of us. But it is not too late to redress some of this, to regenerate a damaged society or to provide hope for future generations.   We need to recognise that we allocate resources to activities that should meet people’s needs and that those needs relate to their well-being. This means realising that there is only so much well-being (currently largely measured still by wealth) that you can squeeze into somebody and that endlessly pursuing ever more wealth is no good for anyone. It means recognising that a living wage is one without endless worry and should not be a survival wage. It means recognising that dependency on supply chains where people work in conditions that are lower, much lower, than we would ever accept is a legal sidestep of responsibility as they are someone else’s issue. These are all issues that social value should address, and the international networks that promote and support approaches to accounting and management of social value seek to address. But they are also the issues that public sector accounting seeks to address, and that with a couple of small tweaks, even private sector accounting could address. Public sector accounting already references the purpose as being well-being. Charity trustees should already be able to evidence that the public benefits outweigh the negatives. Were it not for a private sector approach to accounting that allows obligations to be ignored, obligations that most people would, and company directors could, already be willing to recognise, it would quickly be much more aligned. Social value is a way that we can divert the corporation away from focusing purely on expectation of financial returns to an expectation of financial, and social and environmental returns. Ironically, despite the opposition from some, this more closely represents the real investor interest, the interests of you, me and wider society, not the “professional” investment managers. Remembering that the purpose of allocating our scarce resources is wellbeing, and that this means recognising how dependent we are on natural, social and human capitals, would allow us to align private public and charitable approaches to accounting, and to be held to account, even if indirectly, by the people experiencing the consequences of our private businesses and our public services. We could even unleash all our human creativity on a goal of contributing to sustainability (and those SDGs which would of course include financial returns). And we might find that sustainability, social value and multi capital approaches all share the same purpose of maintaining and enhancing well-being. Yes, I remain a resolute optimist, but these are all changes within our power, they are all systems created by people and they can be changed by people too. Public, private and non-profit sectors respond to the incentives that society sets in its legal frameworks. Small changes to these incentive systems - to the wiring behind the walls - can have significant consequences for how resources are allocated – to create social value. Some are already happening, like proposals around s172 of the Companies Act. Some changes will need to go further if we are to align incentives around well-being; changing the purpose behind international accounting standards, developing new public sector accounting standards and aligning accounting with cost benefit analysis. This is the future of social value.

In this webinar, we heard from Camilla Rigby, the Co-Founder of the Women's Work Lab CIC - a South-West based social enterprise that helps mums transform their lives by rebuilding confidence and helping them on their journey to find work that works for them and their families. The Women's Work Lab were the winners of the Social Enterprise Team of the Year Award at the UK Social Enterprise Awards 2022 and were also featured on the BBC's We Are England last year. 26 January 2023 https://youtu.be/tZtKJhqd57Q