SOCIAL ENTERPRISE AND PUBLIC SECTOR PROCUREMENT: Voices from social entrepreneurs and public sector procurement professionals in the UK Sarah-Anne Munoz and Heather George SERC Conference, London South Bank University June 27 th 2008

Introduction Emerging themes in social enterprise-public sector procurement research: Selling to the public sector as a strategy to increase social enterprises’ traded income. Benefits to social enterprise of selling to the public sector,e.g. security of contract. Delivery of services by social enterprises where public/ private provision has failed. Barriers to social enterprises wishing to sell to the public sector. Public sector perceptions of social enterprise.

Methodology Focus groups: Small groups discuss a particular subject. Researcher initiated, but participant-led, discussion. Snowballing recruitment method, utilising local gatekeepers. Theme: Agents for Change – social enterprise and the public sector Participants: 40 social entrepreneurs and 17 public sector staff.

Focus Groups – broad questions Agents for change – the public sector and social enterprise: Who/ what do you think are the current/ potential instigators of change? In particular, what is the role of the social entrepreneur as a driver for change? What types of policy changes could help social enterprises engage with public sector procurement? What are the challenges for social enterprises and the public sector when trying to develop a procurement relationship? (Think about barriers and obstacles to change) How could communication and networking between different public sector bodies and social enterprises be increased? Would this lead to a more mutually-beneficial procurement relationship?

Agents for Change – the Public Sector The public sector – potential to be a very important agent for change. Social enterprise practitioners look to the public sector to review their procurement processes. Some individuals within the public sector feel over-whelmed by this remit.

Agents for Change – the Public Sector The Public Sector – current strategies for change: Simplifying tender documents. Attempts to factor social and community benefits into tender specification. Instigation of staff training in sustainability and the writing of social and environmental clauses. Development of on-line guides to procurement. Organisation of events to explain procurement process to social enterprise workers.

Agents for Change – the Public Sector The Public Sector – priorities for future change: Standardisation of procurement practices and processes. Foster attitude change amongst staff. Promote understanding of procurement processes in the social enterprise sector. Build on the enthusiasm of current ‘key drivers’ of change. Greater marketing of help that is currently available for social enterprises. Greater consideration of added value measurement tools.

Agents for Change – Social Enterprise Social Enterprise Practitioners – valuable agents for change. Commitment to measuring added value/ benefits. “Attitude Change” – consortia and clusters “Culture change” – shift from grant thinking

Barriers to Change (and over-coming them) Larger contract size: working in collaboration; sub-contracting. Budget cuts and efficiency savings: proving the true value of social enterprise; proving that social enterprises can meet public sector objectives. EU Procurement Rules: increasing awareness. Tenders that don’t meet the standard: helping social enterprises write professional tenders. Lack of understanding of social enterprise within the public sector: increased training and dissemination of knowledge at all levels. Lack of communication: networking and meet-the-buyer events. Perception of risk averse culture: strategies for recognising the value of innovation.

Conclusions Public sector and social enterprise can both act as agents for change. Barriers to change require tailored solutions. A culture change is called for within both the public and the social enterprise sectors. Social entrepreneurs are looking towards different ways of working (clusters, consortia). The type of change most called for by social entrepreneurs is a review and adaptation of tendering specifications and processes. Future research – understanding perceptions.

THANK YOU Dr Sarah-Anne Munoz Researcher SDRC