Inclusion
Innovation
Enterprise
Social by any other name
|
This
discussion document ( produced as part of my work with RAWM) explores the issues and relationships concerning social
inclusion, social innovation and social enterprise.
Its aim
is to stimulate and inform the debate concerning social inclusion and the
role social innovation and enterprise plays in resolving issues and wider
economic growth.
You are
invited to comments and make observations on the content; this activity will
culminate in a third sector, cross region, round table discussion later
in the year. A discussion that will hopefully influence the development of strategic planning documents concerning social
inclusion and economic growth.
The
discussion is in three parts –
PART ONE begins by
discussing terminology but also explores levels of engagement and community
/civic development.
PART TWO outlines the
specific role and issues addressed by social enterprises and potential
innovation together with the problems accrued though changes to public
procurement processes.
PART THREE identifies that
‘social’ does not have to mean care or service, but can have wider
implications to the local economy.
This
part also begins to examine social impact, a measurement remote from formal
economic activity measurement, but totally relevant to social enterprises, of
whatever sector, within an economic growth agenda.
|
Ted
Ryan
European
Policy Associate
RAWM
February
2013
©rawm
2013
|
INTRODUCTION
This discussion document explores how, with a
slight modification to terminology, we can incorporate ‘inclusion’ programmes,
which tend to focus on the social aspect of ‘community development, within
socially innovative programmes that encompass social and economic activity.
The document is founded on the premise that we
cannot separate social inclusion programmes and objectives from social
innovation, and social innovation from community lead initiatives.
Examples of social innovation range from community
nurseries and care programmes, catering, horticulture and arts organisations.
Products and services delivered through social enterprise, co–operatives, charitable
and VCS trading arms, earning and receiving funding from a variety of clientele
and sources.
Social Innovation and community lead delivery
are recognised within EU structural funds and will therefore have an important
role to play within economic development and regeneration programmes that
receive funding through that source.
However, for such initiatives to be successful
within an economic growth programme there may be a need to explore terminology and
role within social inclusion and innovation programmes that clarifies what we,
as a third sector, are talking about, who we are targeting and how do we do
it.
There is an exploration of terminology within
social inclusion policies, providing clarification and categorisation of issues,
outlining how community lead, socially innovative programmes can be developed.
While this process will acknowledge and
promote a ‘social’ response to issues, it also recognises the importance of the
economic impact of activities, as well as the business activities of the
providers.
PART ONE
SOCIAL INNOVATION – SOCIAL INCLUSION
Defining social inclusion terminology
The general ‘wide ranging’ aims of Be Birmingham’s
consultation “Giving Hope, Changing Lives – Birmingham Social inclusion
Process - Making Birmingham an Inclusive city” are outlined as:
Support families
and children out of poverty, Embrace super-diversity [a term used throughout
the document to describe Birmingham’s wide range of nationalities and
communities], Protect the most vulnerable, Connect people and places, Create a
city that values young people, Empower people to shape their neighbourhood,
Address safety, isolation and loneliness.1
Whilst there may be general agreement that all the above aims are
laudable, they are not very specific in terms of project development and impact.
Regeneration and economic growth activities are developed to challenge deprivation,
unemployment and worklessness, wider issues of income inequality,
child poverty, and health
inequalities are often included in overall aims. Education and the skills gap
become the focus for specific programmes and activities. These are not,
however, specific impact measures within which social innovation programmes can
be developed.
The Birmingham report, like so many other
social inclusion policies, reduces the objectives to Place, People,
Wellbeing, Inclusive Economic Growth and Young People. By doing so the activity
parameters may be set very wide and create non-specific, generalised projects
which, instead of targeting the extremes i.e. categories 1 and 2, Table 1, programmes are developed that enable
categories 2 and 3 to become more engaged; in other words we move to the centre,
reducing the impact of inclusion programmes.
Table 1 - Basic of
categories of engagement
1.
Those not engaged – the
furthest from engagement
2.
Those ‘putting their toe
in the water’ – people not engaged, but willing to give it a try
3.
Individuals involved in civic
and economic activity but compliant with status quo, norms and values
4.
Individuals who are
leading civic and economic activities
5.
Individuals innovating civic
and economic activities
Social innovation
impact requires ‘smart’ targets, activities and programmes developed with
specific measurements and terminology – targets that can be sub categorised.
If we start by
deconstructing the five elements in Table 2 , modify the terminology and provide sub categories
within terminology where necessary, we can begin to identify social inclusion
issues and how social innovation programmes can address identified issues.
Table 2
– Five (traditional) elements of social inclusion
1.
Place
2.
People
3.
Wellbeing
4.
Inclusive Economic Growth
5.
Young People
If we are to develop
‘inclusive’ policies that engage, excite and motivate people, we need to
develop an awareness of who we are targeting and what our expectations of them
are, what activities we should develop to engage them, and ask how do we
monitor and measure our activity and impact?
Starting with Place – Place is actually
geography, an attachment to a geographic location for specific reasons and
activities (actions); simple sub classification within this category would be
·
to
live
·
to
work
·
of
interest
·
for
recreational activity - fun and cultural
People is a generic
term describing ‘everyone’, whereas if we use the term ‘individual(s)’, it is
far more specific, and we become capable of identifying programmes that enable
individuals to have their own stories and journeys to tell / share and
undertake and be valued, irrespective of age or gender. There is no one
starting point, and no finishing line.
Any social innovation can recognise the differentiated need and starting
point of individuals, the length of journey that an individual wishes or needs
to undertake, and engage the individual in planning, developing and
implementing programmes.
Wellbeing, so often
categorised as ‘health’, is a much wider concept, including personal
development and attitude, state of mind, drive and belief, lifestyle and
values. Many of these are very subjective and ‘value laden’, but no more value
laden than ‘wellbeing’.
If we are to be
inclusive, wellbeing is part of geographical and individual support, people and
place, developing personal aspirations that are achievable and can be attained
in short, identifiable, steps, enabling the individual to believe in themselves and the progress they can make.
Having developed
geographic, individual and aspirational elements within which to develop social innovation, Inclusive
Economic Growth becomes operationally focused – the provision of opportunity for skills
development. Activities are designed that an individual undertakes, in environments
they can access, and where they feel comfortable and supported. Inclusive
economic growth is a support programme, acknowledging an individual’s
associations of place, as above, that acknowledges people’s starting point,
aspiration, journey and support necessary to achieve this.
Young People, so often
identified as a separate ‘commodity’ in social inclusion policies, should be
included in all the above elements. We should not compartmentalise young people
outside the ‘social inclusion’ elements of geography, individual, wellbeing or
inclusive economic growth. Programmes can be developed within these elements,
as they would for other, identified, individuals (groups of), or of geographically
associated groups.
If there is to be a separate
element concerning younger people, it needs to accommodate and focus on investment
and belief in the future, including all individuals and groups promoting
development by through geography,
personal growth through aspiration and development, and an economic place in the
community that is valued. The element should promote the belief that we
encourage our young people to adopt all these positive values, and support them
in how they achieve their goals in their way, and not necessarily in a way that
we need to either condone or condemn.
Table 3
– Revised elements of social inclusion (without sub categorisation)
1.
Geography
2.
Individual
3.
Attitude,
drive and belief (confidence)
4.
Skill
acquisition and personal development
5.
Aspiration
Inclusion through innovation
The five elements
definition of social inclusion should not just be confined to social and
welfare services, they can also be used
to develop economic, skills and leisure activities.
If we start from the premise that socially excluded individuals are not
involved in ‘civic societal constructs’ then it can be assumed that ‘mainstream’
solutions have not, or do not, work. Social inclusion is about involving those
who aren’t involved in ‘civic societal constructs’ (mainstream activity) i.e.
employment, community engagement, recreational, social and leisure activities etc.
Social innovation programmes are about new ideas (products, services and
models), or the new
application of old ideas that work to address pressing unmet needs. In
identifying specific individual, or group of need(s), ‘non mainstream’ or new forms of organisation and
interaction may need to be designed or supported, utilising different ‘actors’
and partners (civil society, citizens, public and private sector).
While the ‘end result’, the ‘inclusion’, may be economic, civic or
leisure, the ‘innovations’ to engage the excluded are primarily social in their
ends i.e. how they enable individuals to engage with civic societal constructs,
at their own level, and in their means i.e. how the engagement is achieved.
Too often programmes
solely focus on the social aspects of inclusion, social outcomes, to the
determent of an individual’s economic progress. Social outcomes should include
economic factors. The alleviation of poverty, economic well being and inclusive
economic growth are all economic constructs - engaging and including individual
within these activities is not purely a social activity but has measurable
economic impacts.
In addressing social
inclusion there are two important dimensions to Social Innovations:
- ensuring
the activity has a social outcome (including economic)
- ensuring
the process has user involvement, engagement and management, collaborative
working, holistic approaches, outreach in local communities.
Social innovation is
entrenched within the social economy, meeting social need, creating and enhancing social
and economic relationships or collaborations, within a wider economic
framework, and is one of
the most rapid growth areas of the economy.2
Levels of engagement, development and involvement
Having accepted the
breadth of the inclusion issues, we also need to appreciate differentiated
involvement by those ‘actors’ we aim to engage and partner.
In the majority of
programmes engagement is top down, usually initiated through specific funding
programmes, and therefore lead by officers or institutions.
A simple categorisation
of ‘actors’, could be formulated, and then sub categorised, which allows us not
only to identify individuals and groups, but also engagement rationale.
If we reverse the ‘top
down’ principle we recognise ‘community actors’ as the initiators of any form
of civic involvement for communities (of interest, culture or geography).
Elementary engagement with any community is through these individuals, who are
often very focused on their specific issue. They are aware of their community,
its activists and non activists. They ‘hover’ between category 3 and 4 (table 1),
either becoming compliant to organisational values (and therefore complaining
about non engagement), or leading civic activity and actively working to engage
or inform those not active.
An elementary ‘Community
Actor’ programme would support these individuals in developing skills and their
appreciation of non engagement, a programme that is ‘pedagogically democratic’
in that its content is developed and initiated by ‘the actors’, with
facilitators responding to ‘actors’ learning need and requirement not provided
from ‘off the shelf’ experiential and historical delivery based curriculums.
If we are to access
those furthest from any form of engagement, activities must be supported and
augmented by community ‘actors’ and a community animateur process, locally
lead, locally delivered and locally managed. The very fact that there are
groups not engaged, or detached from organisational activity, implies that
current structures are deficient in managing and engaging the breadth of
individuals, the copious geographies as well as the many mindsets that prevent
engagement and therefore progress – personal, social and, in terms of EU
programmes, economic.
Having developed the
‘actors’ skills at a local level, it is necessary to progress development,
widening engagement from local ‘focused’ issues to individual development
within a wider social and economic framework, ‘actors’ could progress to ‘Community Engagement and Development’ programme,
with attached training and development for ‘actors’.
While the first
‘elementary’ programme would encompass a wider range of ‘community actors’, this
programme would benefit a smaller
number, as fewer people would be interested in wider issues than their own
immediate geographic issues. Nevertheless, the focus remains local, accessing
those who are not engaged in civic activities, learning, sport, cultural etc.
The ‘actor’s role is to appreciate the breadth of involvement and work to facilitate
engagement in specific activity or a wide range.
At this level the
‘actors’ role is still one of facilitation, and liaison with external / outside
agencies, ensuring the provision of such agencies is compliant with local
requirements, negotiating and monitoring activity and facilitating stakeholder
involvement. Agencies need to respect local ‘actors’ and the requirements of individuals
and communities, of interest and geography. Provision should not be off the shelf
programmes that have worked elsewhere. If individual need and geography /
geographic exclusion are the issues to be addressed then provision has to
recognise that, and the local or personal knowledge of the ‘actor’ respected.
The training and
learning undertaken by the ‘actors’ should be experiential and peer lead, not
dictated by historical ‘off the shelf programmes’, tutor experience, delivery
organisation experience or precedence.
‘Actor’ involvement and
development should recognise the journey which individuals are making, and that
their peers in other communities are just as valid a source of information and
development as historical research and accepted ‘dogma’.
The next progression
for ‘actors’ is developing civic leaders and innovators, people who begin to
develop and lead community activities themselves, identifying, developing and facilitating
their own ‘actors’ to support them in a sustainable and evolving series of
events and activities that are identified by the community, developed by the
community, then managed and delivered by the community.
Too often,
institutions, organisations and public officers intervene or lead any of these
three components of development - this then ceases to become social inclusion
development and becomes programme delivery, partnered by, but not in
partnership with, community actors.
Table 4
– Three step ‘actor’ development within social inclusion and social innovation
1.
Community
‘Actor’ programme
2.
Community
Engagement and Development
3.
Community
Leadership and Innovation
The complex issues faced
by many of our communities, of individuals or of geography, cannot be lumped
together within a single ‘social inclusion’ policy.
To facilitate social
inclusion, and assist people on their ‘journey’, recognising the individual,
and their starting point, their allegiances to (various) geography
[geographies] as well as their ability to facilitate, innovate and resolve
cannot be a top down approach. It must be a community /civic lead activity,
encompassing (and developing in partnership with the participants) the
processes outlined above.
However engaging people
in the start of a journey is one issue. Supporting them as they progress
through a friendly, civic, community lead process, through to the more complex
issues of economic engagement, employment and learning is another.
If we recognise the
need to support excluded individuals at the start of their journey, we must
recognise the need to continue that support, albeit in a modified form, as they
progress on their economic and independent, and therefore increasingly complex,
journey.
PART TWO
SOCIAL ENTERPRISE AND INNOVATION, issues of development –
from ‘actor to animateur’
Having recognised the
importance of community lead / civic engagement for those furthest from the
labour market, and therefore not involved in an ‘inclusive economic growth’
programme, we have to acknowledge the continued support required for
individuals who, for whatever reason, take longer to become, or in some cases
cannot fully become, economically active, and are continually excluded from
‘norms’ and mainstream activity.
We cannot assume that
all individuals are capable of full time employment within the labour market.
Are these economically excluded individuals not to be included in mainstream
developments and provision, or just managed, cared for, within provision? Are
we to ‘lump’ all these people together or, building on the concept of the individual,
develop community ,of geography or interest, 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 they are comfortable
with?
Social innovation
programmes, community and civically lead, within the social economy, can
accommodate such developments.
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.
This support programme
cannot be achieved within mainstream provision with specific output and impact
measures, aimed at the ‘average’, job ready or other activity, beneficiary /
participant. These programmes cannot
cope with the breadth and rigours of individual need, and variety of support
required, to accommodate individuals comfortably along this journey.
However, social
innovation and social enterprise programmes face many difficulties. The first
is the assumption that all of the above, and the issues identified in part one,
can be accommodated in a ‘one solution fits all’, because it is easy for public
sector finance to accommodate large contracts, not to focus on individual
orientated programmes accommodating specific needs and requirements. Social
Innovation / inclusion programmes may not result in the same economically measurable
outcome - a job / economic activity, but they will have other economic and
social impacts that can be measured.
Social innovation and
enterprise is too reliant on traditional, mainstream, public sector funding and
institutions. This, in itself, is not the problem; public sector funding must
recognise the potential economic, as well as social, impact that these
programmes can have. However it does make them susceptible to changes in
expenditure policies, a risk-averse public sector, differentiated contracts and
regulations to private sector contracts, resulting in a lack of sustainable
funding and therefore stifling of business growth potential from other sources
and markets.
In the development and procurement of ‘mainstream’,
publicly funded, services there is over-reliance on standard impact and output
measures, targeted at the average, mean, beneficiary.
Services and activities, developed to
enable individuals to acquire specific and labour market oriented skills, to
become economically active, are monitored and measured to accommodate ‘middle’ ground
clientele and beneficiaries. Those with greatest need, or furthest to travel,
fail within this process, and, although the process may accommodate the bulk of
its target, those socially excluded, as identified previously, will always fail
or underachieve. Without the appropriate, community / civicly lead informed
support, innovation and belief, such individuals will remain excluded.
One last issue for discussion is that of
public procurement. Because of due diligence, financial and governance evaluations
and liability tests, as well as length and parameters of contracts, procurement
favours the very large social enterprise (FE Colleges, Housing Associations
etc.), or private sector provision. Smaller social enterprises, with the best
opportunity of reaching and supporting those most excluded, are themselves
excluded from ‘competitive procurement’ because of the issues outlined. Smaller
social enterprises are required to comply with public sector services terms of
conditions, as well as public sector regulations and structures. While it is
acknowledged that organisations receiving public funding should be robust and
legally compliant, the ‘one size fits all’ rule cannot apply across the board
if we are to develop socially innovative and community lead solutions to
exclusions.
As some private sector contracts run
over a longer period, investment and borrowing can be set against the contract
– the length of ‘social’ contracts prevents this, therefore investment in
infrastructure, IT and Smart technology, is limited.
A socially innovative, socially inclusive,
community lead, enterprise response must be capable of operating on a level
playing field, measured against set inclusion objectives and subsequent impacts
within robust, yet flexible, due diligence measures.
PART THREE
DELIVERY WITHIN THE ECONOMY – IMPACT AND CSF
OPPORTUNITIES
The social innovation and enterprise, the impact within
wider economic parameters
Up until now the focus
has been on the service provision of social innovation and enterprise,
developing individuals on their ‘journey’ to social and possibly economic
inclusion.
However, social
enterprise and innovation, community-led, does not just have to develop and
deliver services to address social issues. By its very nature, social
enterprise will have a social purpose, but that purpose can include developing
a specific product, or products and activities that compete with ‘mainstream’,
private, provision.
These business activities
widen the remit of social innovation and enterprise to encompass services and
products that may not be reliant on public sector funding. Such companies -
social enterprises, CIC’s, mutuals, co-operatives - have been developed within
retail, and the service sector - cleaning and estate management, fashion and
creative arts sectors etc. While providing a place for ‘socially excluded’
individuals who have the furthest to travel and require additional support to
do so, the business model is a standard open market competitive one. These
companies are businesses, with a social purpose.
While these businesses
can be measured by standard economic criteria, the value added, by the very
nature of their social purpose, should also be acknowledged - this is done
through measuring their social impact.
Social Return on
Investment (SoRI) provides a clear
process for determining which social impact indicators can be measured. The Impact
Reporting and Investment Standard (IRIS) provides a set of performance indicators with standardized definitions. Used
together, these measurements provide an opportunity for social innovation,
inclusion and enterprise programmes to be measured against standardized
performance indicators.
This, in addition to
impact measures conceived though economic and social inclusion programmes,
provide a clear and comparable value, a true value, of these programmes.
AND FINALLY.......
- Social innovation and social enterprises are
the core elements to any social inclusion programme.
- Social inclusion is a principle element in any
economic growth programme, it is not the only one but without a robust
engagement and support programme from those furthest from the labour
market, those with the poorest skills and qualifications economic growth
programmes will underachieve.
- Social enterprises are not looking for handouts
or charitable contributions to be nice to people. Depending on the type of
business, social enterprises seek contracts and aim to develop new markets
and clients, providing services, products and support within competitive
markets.
- Their social purpose means they are people
focused. However, we should not confuse or prioritise the ‘social aspect’
over the economic / enterprise element of their title. They manage their
activities in a traditional economic and business-like manner,
contributing to the local, city / town, region and national economy in the
same way as other businesses do.
APPENDIX AND OTHER
REFERENCES
Alastair
Grier, RBS chief operating officer, business & commercial banking,
introduces the results and analysis of the 2012 RBS SE100 Index
“The RBS
SE100 Data Report is telling us that in a tough economic year this is the
sector to watch as the top 100 enterprises are still growing at an incredible
rate”.
“We
believe that this growth is also sustainable and stable, which makes it a
vitally important sector for the country, not only financially for the economy
but on social and environmental levels too”.
“that leadership
teams are on average made up of 45 per
cent of women”
“social enterprises are measuring
their social and environmental impacts in more sophisticated ways”
“social businesses are finding ways to succeed, build
value and create positive change come rain or shine in terms of the economic or
political climate. The growth rate of
our top 100 fastest growers – the SE100 – has dipped this year from 91% to 60%
– but 60% is still a remarkable achievement”.
“enterprises
on both the Main Index and the Newcomers
Index turned over £778m and created
£19m of profit between them, with average
income from trading (as opposed to grants or fundraising) at 80%”.
“top 100 growers also achieved a considerably higher combined income this year than the top 100
growers from last year – they posted a combined
turnover of £319.4m, which is £146.7m more than the top 100 growers in 2011
– an impressive 85% increase”.
“Almost 58% said that
being a social business gave them a
competitive advantage and 66% said
this advantage was stronger this
year than the year before. Some 82% made a public statement about their social
value, 63% measured their impact, 34% changed the way they did business as a
result of measuring their impact and 34% said they had won new business because
they had been able to demonstrate their impact.”
Fewer entrants to the survey this year than last, 365, compared
with 409 last year and 350 the year before, but the researchers from Bristol
Business School/University of the West of England achieved a greater depth in
this survey than in previous years, with many more questions and much fuller
answers
1 Giving Hope Changing
Lives, Birmingham Social Inclusion Process, Green Paper, October 2012, page 5
2 2012
RBS SE100 Index