Community Led Activity - With Social Enterprise at the core Supported by EU Structural Fund

Community Led Activity

With Social Enterprise at the core

Supported by EU Structural Funds  

  

This document identifies the role of Community Led Local Development, CLLD, as a conduit through which Greater Birmingham can deliver a Social Inclusion programme funded through European Structural Funds.

The paper argues that Social Enterprise should be at the heart of any community led activity and that community led activity should be at the core of any social inclusion programmes developed with Structural Funds

Digbeth, as an embryonic Social Enterprise Quarter should, be a pilot area for such development developing a base line standard of engagement, innovation and enterprise development. 

Introduction

Community-Led Local Development (CLLD) is a process within the European Structural Funds that aims to involve citizens at local level in developing responses to social, environmental and economic challenges.

The Commission aims to encourage the use of CLLD as it also allows local communities to take ownership of the objectives within the Europe 2020 strategy.

CLLD is considered as an approach that requires time and effort, but for relatively small financial investments. It has developed out of a rural equivalent, LEADER, which has been shown to have a marked impact on people’s lives and generate new ideas and the shared commitment for putting these into practice.

This paper argues that the Greater Birmingham and Solihull LEP (GBSLEP) should consider a CLLD model, developing a series of Social Inclusion strategies to identify and tackle the skills and employment issues within some of its most deprived and hard to reach communities.

It will also suggest that this programme should be underpinned by the development of social enterprises, supported from a hub - the inaugural social enterprise quarter in Digbeth. This will not only offer socially innovative responses to local issues, but also provide a sustainable programme, beyond the life of the EU funding, attracting additional resources and income to the socially entrepreneurial, innovative and inclusive programmes that are capable of responding to the strategic economic plans and aspirations of the GBSLEP.

If, however, the GBSLEP should choose not to adopt a formal CLLD programme I believe it should strongly consider a community, localised, programme that adopts the seven CLLD principles outlined in the guidance from the commission, as well as placing the role of social enterprises at the heart of any community response.

Seven principles - of community-led development are¹:

1.       area-based local development strategies intended for well-identified subregional [rural] territories;

2.       local public-private partnerships (hereinafter local action groups (LAGs));

3.       bottom-up approach with a decision-making power for LAGs concerning the elaboration and implementation of local development strategies;

4.       multi-sectoral design and implementation of the strategy, based on the interaction between actors and projects of different sectors of the local economy;

5.       implementation of innovative approaches;

6.       implementation of co-operation projects;

7. networking of local partnerships.

The advantages of a bottom up approach²:

·         Local ‘actors’ will  have more in depth knowledge of local challenges and needs that are to be addressed, as well as the resource and opportunities available.

·         They are able to mobilise local resources, including people, in a development process that cannot happen with top-down approach.

·         This gives local communities a greater sense of ownership and commitment to the projects, which allows them and the local ‘actors’ to make the best of the local assets and resources.

However, the community-led approach can only be effective if it identifies relevant and sustainable stakeholders, develops trust among participants and stakeholders, creating a supportive and enduring, and economically sustainable, local structure, developing the necessary experience and expertise.

The Commission identifies that community-led local development is a method for involving partners at local level including the civil society and local economic actors in designing and implementing local integrated strategies that help their areas make a transition to a more sustainable future.

It believes that CLLD can be a particularly powerful tool, especially in times of crisis, showing that local communities can take concrete steps towards participation in substantial and sustainable economic development.

In the GBSLEP area that development can be linked to the localism agenda and the policy of local budgeting - communities engaged in the management and development of public services.

A focus on Digbeth

Digbeth, Cheapside and Highgate contain a large number of Social Enterprises, as well as some of the most deprived communities within the GBSLEP area.

The population of the area is about 10 -12,000

The development of a CLLD within Digbeth, Cheapside and Highgate, or at least a Community-led pilot programme, can utilise the current energy of the Social Enterprises that have developed in the Digbeth area to generate socially inclusive programmes that are both innovative and entrepreneurial, challenging and changing some of the imbedded and entrenched deprivation in the residential area within the CLLD.

Social Enterprises, Private and Public Sector, as well as community groups, already co-exist within the area, with an economic interdependence that is unprecedented in Birmingham. Developing a pilot CLLD within this area will enable the vibrant economic activity and relationship to become more productive and dynamic.

Developing a Local Action Group (LAG) will be relatively simple, and will build on, and develop, a number of current initiatives: The Social Enterprise Network, residents associations that are already engaged in community action and economic development activity, as well as venues that address social inclusion issues for residents, including young people, within the area.

The LAG will be given the specific remit of

·         Consolidating the current network of Social Enterprises; develop the existing links with private sector companies.

·         Developing a vibrant entrepreneurial environment for social enterprise business development.

·         Fusing the ethos of private and social entrepreneurs with the aim of widening the scope of Social Enterprise development to encompass higher GVA sectors.

·         Addressing the Social Inclusion challenges in the area: youth and enterprise, low skills and lack of entrepreneurship through social innovation activity to challenge social and employment exclusion.

·         Identifying the main issues relating to social exclusion

o   Long term unemployed

o   Youth activity

o   Specific excluded groups within the area

·         Identifying links to other initiatives

o   Neighbourhood Budgeting and management;

o   Community Learning Trusts

o   Employer Skills Development programmes 

Local Action Group membership - general  

·         Social Enterprise representative

·         VCS organisations

·         Residents Associations

·         AE, FE and 14 -16 Educational Provider

·         Higher Education

·         Cultural Organisations

·         Business Representatives

In Digbeth, Cheapside and Highgate this may translate into representatives from

·         Social Enterprise Quarter 

·         Digbeth Residents Association

·         Highgate Residents Association

·         South and City College Birmingham

·         Cultural Organisations (Friction Arts)

·         Business Representatives (Custard Factory, National Express)

 Widening activity across the City

Because of the diverse communities and geographic size of Birmingham, proposing a one size fits all approach will not work. However, establishing basic principles of engagement that other community-led programmes should follow is not a one size fits all programme, but provides areas with a best practice pro forma that enhances success and sustainability.

Developing European Funded Social Inclusion programmes in Birmingham’s diverse communities should be linked to the skills agenda and economic growth programme developed through GBSLEP.

Programmes need to recognise the journey that some individuals need to make to access employment in an increasingly competent and highly skilled labour market.

Local communities are aware of the issues and support required for individuals to progress and, as such, local community-led programmes could be funded, accessing Big Lottery Fund, BLF, support as match, and utilising current BLF programmes being developed or operating in Birmingham.

Local Action Groups, developed in each identifiable area, can adopt the protocols and processes identified in the Digbeth, Cheapside and Highgate pilot / model, increasing the chance of success. By centring development around Social Enterprise, sustainability of activity is increased, as the enterprise will not be totally reliant on grant funding, as in previous programmes, but through business development, acquiring contracts through contracts and successful track record of delivery.

The Social Enterprises at the core of locally-led programmes can benefit from a level of expertise and dynamism focused within the Digbeth Quarter and, while some Social Enterprises work outside Digbeth and across the City, success and sustainability of locally-led programmes is ensured by local people developing skills and entrepreneurship through support and links to the good practice in the Digbeth Quarter.

New technology will make such links easier and more productive; ensuring that all communities, developing social inclusion programmes through social innovation, can share experiences and learn from other organisations, making Birmingham a Social Enterprise City like no other.

Access to a variety of funding

The EU Guidance on CLLD recognises that CLLD requires a large amount of work for small grants³  

In placing Social Enterprise at the core of any community-led development, it enables programmes to access a wider variety of funding and support.

While European Structural Funds can finance some activity at a community level though ESF and ERDF, should a CLLD programme be chosen, it will not provide substantial delivery activity for identified programmes.

Social Inclusion programmes developed through a community-led programme can attract match funding from the BLF - this can complement current lottery programmes through clear and delineated provision.

Youth Employment Initiative funding will support a specific element of activity, matched by ESF and potentially the BLF.

These programmes are however, only sustainable if Social Enterprises developed through community led programmes, develop significant and sustainable business plans, supported by the Local Action Group.

This development will attract other funding and support, ERDF, Social Investment and Unlimited, to mention a few. This development ensures sustainability of process and locally-led activity.

Links to other initiatives

A robust and sustainable community-led programme provides obvious links to other local and national initiatives.

·         The Localism Bill, especially the identification of assets of community value, that may be underused or derelict, that may be bid for and brought back into use.  

·         Neighbourhood Budgeting / Localisation of service delivery, enhancing national and local pilots and consultation activity on proposed devolution of budgets and service management to local areas

·         Local Development Plans - part of local delivery plans – greater input and potential greater economic focus with recognition of social inclusion issues.

Conclusion and recommendations

·         CLLD enables LEPs and Local Authorities to fuse economic development aims with social inclusion programmes, through multi sectoral activity. With the lead being undertaken by Social Enterprises, the process ensures that the economic and social inclusion agenda receive equal attention.

·         This enables local considerations to be addressed as well as wider economic needs to be worked towards; this reduces the number of individuals furthest from the labour market.  

·         CLLD – or community focused activity, enables programmes to benefit from ESF and ERDF structural funds, blending hard ERDF targets with softer, lower level ESF activity that ensures an individual’s progression to higher, economically relevant, qualifications and skills. This process will, in turn, enable activities and enterprises, generated through such a programme, to benefit from other sources of funding.

·         Developing a Social Enterprise Quarter⁴ in Digbeth creates an energy and a focus for sharing and economic development within the SE sector.

·         Social Enterprises developed through a localised programme, while not being geographically attached to Digbeth, will be able to benefit from the energy, entrepreneurship and expertise that such Quarters and Zones develop.

·         Developing Local Action Groups to lead and drive local activity, as well as placing Social Enterprises at the heart of such activity, ensures sustainability and economic substance to the programme.

References and other guidance   

References  

1. In the current EAFRD Regulation (1698/2005, Art. 61) the LEADER approach is identified as having to have the elements outlined
2. Common guidance of the European Commission's Directorates—General Agri,, Empl,, Mare And Regioon Community--Led Local Development in European Structural And Investment Funds April 2013 – page 7 
3. Ibid; page 4
4. Provision Of Support To Social Enterprises In GBSLEP;  iSE 2013

Guidance

Common guidance of the European Commission's Directorates—General Agri,, Empl,, Mare And Regio

on Community--Led Local Development in European Structural And Investment Funds April 2013

BIS Supplementary Guidance Annex G July 2013

A7.2.       Community Led Local Development will be focused on the specific needs and opportunities of a particular area, usually much smaller than the average Local Enterprise Partnership, and typically through small local community projects.

A7.3.       Community Led Local Development can be supported by one European Structural and Investment Fund or a combination of all of them.

A7.4.       Community Led Local Development will be based on a partnership of public, private and civil society sectors coming together to form a Local Action Group (LAG) that will develop and drive the delivery of a Local Development Strategy (LDS).

A7.5.       A Local Action Group formed under Community Led Local Development will:

·         cover a population of between 10,000 – 150,000;

·         be based on a logical, functional geography within England; and

·         have a distinct boundary that does not overlap with another Local Action Group or Leader area (a LAG can overlap with a Fisheries Local Action Group provided their strategies clearly demonstrate different priorities and do not duplicate activity).

A7.6.       Community Led Local Development can make a real difference to the lives of local people and businesses:

·         providing a unique long term investment opportunity of up to 7 years, with the benefits of the investment remaining within the designated local area;

·         empowering local communities to identify challenges in their area and tailor their own innovative solutions; and

·         increasing local interest and engagement by supporting projects to work with the community - improving partnership working and their ability to access and effectively use both European and wider funding streams.

A7.7.       The funding for Community Led Local Development will need to come from the Local Enterprise Partnership’s  notional allocation. In order to provide an indication of scale, those Local Enterprise Partnerships that wish to use Community Led Local Development should consider allocating up to 5% of their allocations to this type of activity....... A recent evaluation of the current Leader Programme suggests that for individual LAGs to be effective and sustainable a minimum of £1.0m over the full term of the Programme is needed.

A7.8.       Local Action Groups may spend up to 25% of their allocated funding on running costs linked to the management of the implementation of the strategy and to project development costs.

A7.15.    Following discussions with local partners, each Local Enterprise Partnership should consider whether there is a need and/ or an opportunity to support Community Led Local Development

A7.16.    The Local Action Group is an essential feature of the Community Led Local Development approach.

·         Identifying and implementing a local development strategy, including allocation and management of financial resources;

·         Bringing together people and money from the public, private and civil society sectors in order to ensure joint ownership, joined-up delivery and the right scale of intervention needed to improve the area’s economic competitiveness; and

·         Strengthening communication between different local groups who often have little experience of working together, reducing the potential for conflict, and facilitating solutions through consultation and discussion.

A7.17.    Each Local Action Group will need to nominate an accountable body that must be agreed with the Managing Authority,

A7.18.    The Accountable Body will typically be a Local Authority and should also be a member of the Local Action          Group

Ted Ryan September 2013

First thoughts as to where VCS are in relation to LEPs - August 2013. What is the VCS offer?

Background

LEPs were established to develop a local growth agenda, locally driven by businesses that had a buy-in to a distinct geography, supported by Local Authorities and other influential institutions, FE Colleges and Universities. LEPs developed strategic plans, recognised skills deficiency and suggested ameliorative processes to enhance their growth programme.

This was all fine and dandy, with government programmes being routed through the process, focusing such activity through the development plans, business plans being reviewed and evaluated with a business eye, and then along comes Europe!  

In November 2012 after some deliberation, but coming as no surprise to those who had read Lord Heseltine’s report ‘No Stone Unturned’, The Department for Business, Innovation & Skills (BIS) announced that the EU Structural Funds 2014 -2020 were to be directed through the LEPs.

While they waited for the initial guidance which eventually arrived in April and July 2013, LEPs went about their business, merrily developing their strategic plans within their initial structures, business orientated growth programmes targeting, predominantly, private sector enterprise, acknowledging the growing sound bites that it was the private sector, and not the public sector, that creates the wealth.

LEP and VCS engagement – a stalled start

In their initial development LEPs had little, and in some cases, no contact with Voluntary and Community Sector (VCS) organisations. From November 2012 there was an increased flurry of activity by some LEPs with VCS organisations as they began to discuss how LEPs and the Sector could benefit each other.

What didn’t help matters was the variety of names and terminology used to describe the activities of VCS organisations:

·         Civic Society

·         Civil Society

·         The Third Sector

·         Non Government Organisations (NGOs)

·         The Voluntary Sector

·         Social Enterprises

·         Charities

·         Community groups

Adding to the confusion of titles was the variety of perceptions of where the Sector gets its money from.

Some basic statistics

 VCS organisations constitute an important sector of the economy, creating jobs and economic value, as well as social and environmental benefits.   According to research by the National Council for Voluntary Organisations (NCVO), there are over 162,000 voluntary organisations in the UK.  These organisations employ 793,000 people (around 2.7% of the UK workforce), and additionally they spend around £18.1bn on goods and services each year. At the same time there are over 60,000 social enterprises in the UK, and 5,950 co-operatives employing 230,000 people. 

LEPs and Europe

With the announcement that LEPs were to ‘oversee’ the 2014-2020 structural funds, LEPs had to begin to accommodate new concepts and partnerships in order to deliver EU programmes.

Whilst ESF and ERDF were known programmes, terms like social inclusion, social innovation, community lead local development were unfamiliar. These concepts were to be accommodated into new strategic plans that would outline how the LEP would deliver a European funded programme, and so consultation began.     

LEP and VCS engagement – a second bite  

While an LEP is capable of delivering economic growth, it will be necessary for it to develop strategic partnerships with VCS organisations in order to fulfil, not only EU requirements, but also to enable them to deliver a growth agenda that accommodated the socio-, as well as the economic, growth agenda.

In some cases, the LEP journey of partnership with VCS was easier than in others - some sought out partnerships, some had partnerships within their existing agenda, and others continued without any partnership plans.

Those LEPs that recognised the importance of an ‘inclusive economic growth’ programme have recognised that the delivery of any growth agenda requires the engagement of those furthest from the labour market, people who, for whatever reason, take longer to become, or in some cases cannot fully become, economically active, and are continually excluded from accepted ‘norms’ and mainstream activity. For this engagement to be achieved, community lead organisations need to be involved.

LEP and VCS – issues to be addressed confusions to be clarified

The most common prejudice faced by the sector in any engagement is the focus on the charitable aspect of the sector, and not on the business aspect. There is often a misguided view that organisations receive grants to deliver to those in need. Much less is known or appreciated of the new commissioning and procurement aspects of public services, and the sometimes onerous open tendering process which organisations need to go through to win contracts, even small ones. 

The concept of ‘Social Enterprise’ was often confused with ‘charitable’ delivery and, therefore, in some cases, ignored. There is evidence throughout the country, through information sharing at VCS network meetings, of sparse appreciation of the activity and role of the VCS.

This ignorance or lack of appreciation has prevented significant partnerships being developed, and while the role of LEPs was purely economic growth, stimulated only by the private sector, the management of European Structural Funds brings wider responsibilities.

The most successful LEPs and VCS partnerships occur where there is a historical connection between local and regional infrastructure organisations and the current European Management processes in Local Management Groups.  

What therefore does the sector bring to LEPs?

While there is little argument that local, regional and national economic growth policies are a necessity, where such activity can be lead by business, it can be supported by public sector funding. However, the lack of penetration and engagement of public sector programmes has consistently failed to engage a certain percentage of the population. Whatever title we give this, or these groups, (for they are not a homogeneous community, geographically, culturally or socially), if we are to develop a fully integrated socio-economic growth programme, they must be engaged to their fullest potential, and at a pace that maintains and sustains their engagement.

 We cannot assume that all individuals are capable of full time employment within the labour market. Are then these economically excluded individuals not to be included in mainstream developments and provision, or just managed/cared for, within other provision?

Are we to ‘lump’ all these people together or, building on the concept of the individual, develop communities of geography or interest, with civic activities that can include the individuals, starting the journey from their own specific capability and journeying, at their own pace, arriving at a destination with which they are comfortable?

What the VCS offers the LEPs is access to such groups, and the ability to engage them in relevant, developmental and sustainable programmes that will engage them, over a period of time, in the socio-economic development of an area.

There is significant evidence throughout the country where community and civically lead programmes have stimulated local engagement in economic regeneration and growth activity. Social innovation programmes can develop a social economy, and can generate sustainable activities that can accommodate developments which facilitate the necessary engagement outlined above.

This process is not one of ‘charity and care’, ‘handouts and management’, but one of business, humanity, and compassion, with an understanding of the individual’s journey, place and circumstances, and an appreciation of the economy, targets and their achievement capability, matched to a support programme to accomplish set and agreed targets and activities.

Ted Ryan

Policy Associate, RAWM

Strategic Development Director, RnR Organisation

©August 2013 

Digbeth – a possible focus for Community Led Local Delivery

The European Union Structural Fund guidance from the commission and BIS outlines the use of Community Led Local Development (CLLD) as a method of addressing challenges identified within a specific geographic community.

Developed in rural areas as the LEADER programme, its use has now been widened to include Urban areas.

This proposal explores the possibility of promoting the Social Enterprise Network within Digbeth, Cheapside and Highgate as a CLLD.

THE AREA

Digbeth, Cheapside and Highgate contain a large number of Social Enterprises as well as some of the most deprived communities within the Greater Birmingham LEP.  

The population of the area is about 10 -12,000

Developing a Local Action Group (LAG) within this area will build on, and develop, a number of current initiatives.  The Social Enterprise Network, a vibrant residents association that is already engaged in community action and economic development activity, as well as venues that address social inclusion issues for residents, including young people, within the area, will enhance the LAG’s ability to deliver and develop socially innovative and inclusive responses to issues that can be replicated across the area.

Social Enterprises, Private and Public Sector as well as community groups already co-exist within the area, with an economic interdependence that is unprecedented in Birmingham. Developing a CLLD within this area will enable the vibrant economic activity and relationship to become more productive and dynamic.  

THE OUTLINE ACTIVITY

Developing a LAG’s Local Development strategy to address the following;

Challenges to be addressed – Youth and enterprise, Low skills and lack of entrepreneurship within the area, social innovation activity to challenge social and employment exclusion.

Target groups to be supported – Young people, long term low skilled individuals and business start ups; social enterprises.

Thematic objectives likely to be covered    TBC

European Social Fund can be used to develop a skills agenda and programme.

European Regional Development Fund can be utilised for business support and potential asset transfer activity. 

Links to other initiatives

Neighbourhood Budgeting and management; Birmingham City Council

LOCAL ACTION GROUP (suggestion)

·         Social Enterprise Network (Hub) covers all SE and VCS organisations

·         Digbeth Residents Association

·         Highgate Residents Association

·         City and South Birmingham College

·         Cultural Organisations (Friction Arts)

·         Business Representatives (Custard Factory, National Express) 

Ted Ryan July 2013 

Balsall Heath Carnival

Butterflies, Bees, Bugs and Blooms 

and people and sunshine... a plenty 

What a great day and well done to everyone who took part 

Marshals getting ready 

Marshals still getting ready 

Balsall Heath Historical Society arrive 

with 'friends' 

Greeted by Val 

Waiting for the Judges 

Activities in the park 

Activities in the park 

Activities in the park 

Activities in the park 

Activities in the park 

Activities in the park 

Activities in the park 

Activities in the park