Theme DTheme D: Strengthening the social economy (the third sector), in particular the services which help the community, with a focus on improving the quality of jobs. Strategic Objective - To develop a framework for supporting and developing the social economy in GB.
Policy rationale There is a strong tradition of voluntary sector and community involvement in delivering government programmes and regeneration initiatives. However, there has been a lack of clarity about the role of the social economy within the British labour market. This is primarily because it can cover a wide range of activity with varied objectives and rationale. This is further complicated by the fact that the models for the social economy vary considerably across Europe - where the historical role of the voluntary sector or the legal basis on which activities have been developed varies significantly. Equal provides the opportunity to learn from other Member States and to clarify how best to develop the social economy in Britain, in a way that is appropriate to the overall policy and the labour market conditions, and takes account of the legal framework. Examples of some of the types of organisations within the social economy include: - Social firms: which exist to meet social objectives, such as providing employment for people with disabilities or a past history of mental health problems and who would otherwise find it difficult to get a job. In the UK there are examples such as “ Social Firms UK” which seeks to exploit niche markets and trade in the open market. This is quite different from social firms models which operate in some other Member States, where more protection is provided, often driven by legislation.
- Community businesses: which exist to enhance the resources available to a local community. These are frequently started up by faith (religious) organisations.
- Credit unions: which seek to provide alternative sources of finance. More recently, these have been established in deprived areas where people find it difficult to get access to mainstream banking, but traditionally they were a mutual-support option in UK and other Member States.
- Intermediate labour market projects: which seek to enable the transition to employment for individuals who face difficulty in accessing real jobs, or which exist to provide an alternative source of employment where real jobs are in short supply.
- Development trusts: which seek to help communities to become involved in the re-development of their areas by the public / private sectors. They also develop and deliver community-based, sustainable initiatives to contribute to economic and social regeneration.
- Co-operatives: which are frequently established for ethical reasons. In many cases other Member States have more experience of co-operative ventures, often driven by a different legal framework and history.
- Community-based activity: a wide range of leisure, social and learning activities that are organised by and for the community for the benefit of all.
The role of the social economy (which includes social enterprise and a range of third-sector voluntary and community activity) lies in developing alternative solutions for tackling social and economic issues to the traditional public and private sector approaches. Social enterprises are providing alternative business models for carrying out a wide range of activities across the economy. The tradition of short-term area-based interventions means that there is a diverse range of activities and experience, many of which are successful at a local level. But overall there has been limited opportunity for this work to influence the design and development of mainstream activities. So, there is a risk of developing a wide range of unrelated activities that do not provide the opportunity to identify and share good practice or influence mainstream policies. Any work funded through Equal needs to be able to influence the way in which core services are provided. The Government recognises the increasing role that the social economy can play in regeneration and involving those individuals and communities that have been failed by mainstream services. However, we need to clarify the rationale and objectives and make sure that we are encouraging sustainable routes to regeneration and employment rather than encouraging short-term interventions that are not sustainable. Social enterprise is a high priority for UK Government, led by the Department for Trade and Industry’s Social Enterprise Unit and the Small Business Service Social Inclusion Unit. In July 2002, the Government published ‘Social Enterprise: a strategy for success’ which outlines a three-year action plan to tackle barriers to the growth of the social enterprise sector and achieve three key outcomes: - creating an enabling environment;
- making social enterprises better businesses; and
- establishing the value of social enterprise.
In October 2003, the Social Enterprise Unit published a report on the progress that they, and other key stakeholders, have made towards these outcomes. The report outlines action that has been taken both regionally and nationally, and the priorities for the remaining two years of the strategy. You need to demonstrate a thorough understanding of national and regional policy, in particular the work of the Social Enterprise Unit and the SBS action plan for encouraging more enterprise in disadvantaged communities and under-represented groups . Regional partnerships will be expected to involve the relevant Government Office or Regional Development Agency in developing their bid. The outcomes must be able to impact on areas that are important in the overall government priorities and add to, rather than duplicate, current provision. For mor information on activities undertaken under this theme visit Ist Round Approved DPs and 2nd Round Approved DPs under Theme D
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