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Micro enterprise: harnessing community capacity to deliver great outcomes and savings Sian Lockwood, CEO Community Catalysts.

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Presentation on theme: "Micro enterprise: harnessing community capacity to deliver great outcomes and savings Sian Lockwood, CEO Community Catalysts."— Presentation transcript:

1 Micro enterprise: harnessing community capacity to deliver great outcomes and savings Sian Lockwood, CEO Community Catalysts

2 What is Community Catalysts?  A social enterprise and a wholly owned subsidiary of NAAPS UK, the small community services network  Aims to make sure that people wherever they live have real choice of great local social care and health services  Works to harness the talents of people and communities to provide high quality small scale and local support services.

3 Micro providers  Are local people providing support and services to other local people  Work on a very small scale (5 or fewer workers – paid or unpaid)  Use a variety of business models (70% sole traders or partnerships)  Deliver on a continuum from fully voluntary at one end to fully commercial at the other  Are bought by people from their own money or personal budget

4 What types of services do they provide? People buy support and services to help them to live their lives - many micro enterprises deliver services that fall outside health and social care such as:  Supported tenancies  Well being and health  Leisure and arts  Holidays and short breaks  Friendship or good neighbour  Drop in centres and lunch clubs  Advice and representation  Transport

5 Why are micro providers important?  Offer choice of personalised services to help people to live their lives and meet health and support needs  Cost beneficial– help to develop social capital; services on a continuum from fully/semi voluntary (30-40%) to fully commercial.  Bring tangible assets for community benefit  Route into work for local people - encourage self employment and create local jobs  An option for public sector employees (eg: exercising the new ‘Right to Provide’)

6 Why does micro enterprise need support? 90% of unsupported micro enterprises fail in the first year. Business, Start Ups and Economic Churn: A literature review: NIESR: 2009 About half of the micro enterprises surveyed operate sub legally MacGillivray, A., Conaty, P., and Wadhams, C. (2001) Low flying heroes: micro-social enterprise below the radar screen, London: New Economics Foundation. For every 100 people with a good idea only one makes it UnLtd July 2010

7 State of the typical local social care micro market There will already be some micro enterprises Many of them will only be viable because of continuing grant aided funding - remove that and they will fail Good micro enterprises will be closing because of commissioning, regulatory and legislative barriers Barriers to entry will be deterring new enterprise - and 90% of those that set up will fold after a year Existing third sector and business infrastructure organisations will not be able to provide the tailored support needed for the full range of micro enterprise

8 The micro enterprise support agency model Developed and tested with funding from DH  Scopes, identifies and engages with current micro providers. Can help them to regenerate or remodel  Provides a single contact point for local people with good ideas who want to set up services  Links customers and potential providers  Makes best use of existing advice and support agencies by sign posting and information  Gives people help to overcome barriers  Facilitates peer-to-peer mentoring through association membership

9 The micro support agency model in practice: case study from the North West Over three years: 78 would-be micro entrepreneurs were supported. 52% (36) successfully established flourishing enterprises 83% were still flourishing at the end of 3 years 850 disabled and older people were using micro services 140 jobs and 40 volunteering opportunities had been created.

10 Value for money: Comparative cost For enterprises offering day support/activities (using local authority figures): Average charge (including support agency costs) is £32.85pd Typical traditional day centre charge is £45pd

11 For more information Contact : Sian Lockwood sian.lockwood@communitycatalysts.co.uk


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