Social enterprise seen as "woolly and confused", says research

By Paul Jump, Third Sector Online, 22 September 2008

Social enterprise needs to be clearly distinguished from the voluntary sector and promoted more vigorously as a credible business option, according to research commissioned by the Office of the Third Sector.

The OTS asked the Government's Central Office of Information, an agency of the Cabinet Office specialising in communications advice, to conduct the research.

The COI's summary presentation of the results, Is Social Enterprise at a Crossroads?, says most people identify social enterprises with the non-profit sector and characterise them as woolly, confused, worthy, inefficient, grant-dependent and lacking dynamism.

It suggests launching a drive similar to Tony Blair's ‘Respect' campaign to promote social enterprise. It says the OTS's existing social enterprise ambassadors programme, which uses a roster of 30 well-known figures from within the sector to promote social enterprise, should be "taken onto another level" and recruit mainstream celebrities.

Potential recruits to social enterprise, such as young people with strong business knowledge and social drive, should be specifically targeted in campaigns that emphasise social enterprises' commercial dynamism, according to the report.

It says such drives should look like they come from within the sector itself, rather than being government initiatives.

"Great things might be happening, but this is a sector ‘in waiting'," the report says.

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Richard Cowling

Richard Cowling, 23 September 2008, 11:20

recruit me!! I'll demonstrate social enterprises commercial dynamism http://www.mesomoco.org.uk ... !!!

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Sharon Clephane

Sharon Clephane, 23 September 2008, 11:29

We agree. BigPinkHeart is a social enterprise trying to get off the ground and we feel that there needs more definition about this sector. We are currently using volunteers so also fall into the voluntary sector bracket! www.bigpinkheart.com

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Bob McBride

Bob McBride, 23 September 2008, 11:43

What is missing is a clear, unambiguous definition of a social enterprise separating it from the name users who are looking for grants. A vibrant and lively social enterprise sector could aid to revitalise the economy if the government did not see volunteers as “cheap labour” and “not-for-profit-distribution” as cheap!

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Brian Craven

Brian Craven, 23 September 2008, 12:26

Needs to be BOTH "Social" and "Enterprise".

Social - of community, social and/or environmental benefit.

Enterprise - trading to create a surplus by selling goods &/or services at a profit.

Simple init?!!

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Deborah Hart

Deborah Hart, 23 September 2008, 12:41

This is a problem of the Government's own making. It was primarily their idea that what was always just the VCS should be lumped together with others with different value systems as a 'Third Sector' and it hasn't done any sector any good. It's just a cheap option for the Government ie only one consultation, one output, whereas they should actually make their staff conduct appropriate consultation for each sector. The needs are different, and even if on occassion there are overlaps, how they are achieved etc., are different. Smaller VCS groups have in particular been damaged by the cost saving excercise by the Government (ie the false notion of a Third Sector) and whilst cutting down on their own staff time it has led to a ridiculous amount of grant money in creating tiers within the "Third Sector" which all have to be staffed (with grant money) instead of the Government paying for their staff to be in consultation with each intrinsic sector (equally applies to the 'traditional' charity sector and the now voguish 'faith sector'). The cost saving to Government departments is at the cost of grant money going on faux civil servants (mis) representing us to the Government, rather than front line services.

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Robert Ashton

Robert Ashton, 23 September 2008, 14:35

Is the answer as simple as CIC?

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Thea Allison

Thea Allison, 30 September 2008, 09:00

Answer isn't as simple as CIC or a 'clear definition' which will always run into problems. The article above shows the issue is primarily one of communication and profile to highlight the successes within a wide range of social enterprise activity. Organisations along that spectrum need support to get where they want to go and recognition for what they have achieved so far, not to be boxed out of a definition because they aren't quite cutting edge.

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Rachael Black

Rachael Black, 8 October 2008, 12:33

I agree, the patronising surprise we get when people realise we have a business plan, professional backgrounds, understand budgets and cashflow, etc., is just offensive. We're effectively setting up a new and innovative business in combating obesity but because we are not yet drawing salaries we're seen as dabbling volunteers with nothing else to do!

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Jeff Mowatt

Jeff Mowatt, 15 October 2008, 11:53

Agree strongly with Deborah, that this is a problem of the government's own making. It comes I believe out of the weak branding which has been used to lump together the charities, social businesses and voluntary groups it wishes to project. At the same time we have PM Gordon Brown pitching a 12 year thesis for social business at corporations to promote CSR "showcases"

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scott charlesworth

scott charlesworth, 20 October 2008, 11:38

Watch out for the new geneartion of social entrepreneurs, in time we will prove this sector is not woolly, Money is not our goal we strive for a better society and belive in openness, mass colaboration and freedom, supported by web 2.0 we are net generation. We are niether socilaist or capitalist, we are a new breed of enterpreneur, embracing the free market to create a better tomorrow putting an end to the destructive reign of greedy globalist corporations and calming the anger of the socialist protestors.

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