PROMOTING THE DEVELOPMENT OF SOCIAL ENTERPRISES Pembrokeshire Health, Social Care & Well-being Network Sue Leonard, PAVS Chief Officer 23 rd March 2016

Social enterprises... Cannot be defined by legal structure alone Start from different places But they all: Have a clear social and/or environmental mission Generate income through trading Reinvest surpluses in favour of the social mission Are autonomous of the state Demonstrate democratic/participatory governance in decision making processes

State of the Sector: Mid & West Wales Strong base of social enterprise and third sector activity Company limited by guarantee + registered charity Trading + Grants + Donations Mid-range social enterprises provide a platform for growth Small social businesses – potential to form consortia Local groups operating at community level = solid “core economy”

Measuring the Difference Measuring social impact – creating social value Numerous tools – not utilised by most social enterprises Lack of awareness of what is available Lack of expertise to use the tools Lack of financial resources to purchase the tools Scope for procurement to use social value and local economic multiplier approaches when determining “best value”

Enablers and Barriers Finance – lack of non-repayable finance + social investment packages Grant applications –v- developing sustainable social enterprise markets Lack of access to tailored and co-ordinated packages of support Suitable premises – asset transfer + capacity building support Lack of awareness of and confidence in social enterprise providers Potential to use social enterprise reach and expertise to co-produce new models of service delivery Innovative procurement – recognising social value + FCR

Social Enterprise Support Social Business Wales Support for social enterprises with potential for growth and job creation Pre-start and smaller scale social enterprises are not eligible for support On-line information, downloadable resources and chargeable consultancy and training Social Enterprise kitemark and “badge” – market development Ethical banking, Social Investment Tax Relief, Social Impact Bonds – alternatives to grants and opportunity to use as pump-priming funds No “digital development” support available to third sector organisations

Promoting Social Enterprise Development (1) Improve access to finance Non-repayable financing – Regional Grant Scheme Co-ordinated approach to encouraging social investment Repayable financing - Health & Well-being Social Investment Fund Grow the social enterprise market Develop a collaborative marketing framework “Buy Local, Buy Social” Make use of all available levers within the procurement process Develop social enterprise supply chains across all areas of public sector spend Provide social enterprise development support Tailored for embryonic, emerging and small scale social enterprises

Promoting Social Enterprise Development (2) Facilitate the transfer of assets to social enterprises Establish a regional asset transfer programme Measure social impact and establish “what works” Establish framework + training + support for measuring social impact Developing an evidence base for alternative delivery models (in rural areas) Establish a structured approach to service innovation Establish a Regional Service Innovation Partnership Develop resilient communities, active citizens, community hubs Regional + targeted volunteer recruitment support service Deliver a Digital Development support programme for social enterprises

Finally … and Importantly Work with national, regional and local partners Secure additional financial resources – LEADER, BIG Lottery, Invest to Save, Wales Well-being Bond, social investors, philanthropists, etc

Any questions?