ࡱ>  n)bjbj n!<7(666666698<6"66666'2p[5bbZ366073=j=8[5[5=o5$66Fj7= :  Report of the Intermediary Members Meeting with the Scottish Government to discuss the Enterprising Third Sector Action Plan. Wednesday 19 May 2010 Thorn House 5 Rose Street Edinburgh EH2 2PR 0131 243 2654 HYPERLINK "http://www.scottishsocialenterprise.org.uk"www.scottishsocialenterprise.org.uk Introduction The Scottish Social Enterprise Coalition is the national collective voice for social enterprise in Scotland, and a strategic partner of the Scottish Government, bringing together social enterprise and its supporters into a strong force for change. Over 22 intermediaries were represented at a meeting on 19th May 2010 with Gareth Allen and Geoff Pope of the Scottish Government Third Sector Division. Key Messages There was a unanimous agreement that the Action Plan has significantly developed the movement. More through-care and support could provide enhance capacity and success rates of social enterprises applying for public sector contracts. Current support available is insufficiently targeted at different stages of organisational development. The Action Plan has not sufficiently emphasised commercial enterprising activity. Business Gateway must proactively make its services accessible to social enterprises, particularly smaller organisations. The Government must consider the potential market for older social entrepreneurs as well as young people in its policies. The Government should consider new markets besides the public sector, such as export markets. Lack of research data on social enterprise as opposed to the wider third sector has inhibited monitoring the success of the Action Plan and properly assessing the economic contribution of the social enterprise movement. The Third Sector Enterprise Fund should be re-designed for social enterprises with more modest income needs. Measures are needed to access smarter co purchasing to cut costs. Background Over the two years the Scottish Government has worked, with partners across the third sector, to increase the size, capacity and capability of the third sector by focusing on the development and progress of seven key objectives. Opening markets to an enterprising third sector Investing more intelligently Promoting social entrepreneurship Investing in skills, learning and leadership across the third sector Providing support for business growth Raising the profile of enterprise in the third sector Developing the evidence base Opening markets to an enterprising third sector Over the last two years the Government has been working with Scotland Excel, COSLA and Scottish Procurement Directorate to ensure that public sector purchasers have appropriate training in: the use of community benefit clauses, the benefits of market engagement involving all sectors in designing services Issues discussed included the lack of research data specifically on the social enterprise sector i.e. legal definitions, numbers of organisations, employees, turnover and sectoral customers. This is inhibiting the monitoring the success of the Action Plan with regards to social enterprise. Although there are positive examples of Community Benefit clauses being used by the Government, such as on the Energy Assistance Programme and the Scottish Crime Campus, these do not add significantly to the data available about social enterprise. It is noted however the ability of organisations to register as third sector organisations at the online procurement portal should provide some commercial data over time. There are concerns about the tender writing training and support. While the Government is investing in the area, with 400 courses planned for 2010, the lack of through-care throughout the tendering process is an ongoing concern. The ability to access practical coaching support from people in the supply chain, who understand tendering processes, would provide a level of expertise missing from training at present. There is common agreement that public procurement opportunities for social enterprises are key to scaling up the capacity of the sector, although the potential for growth from the export market requires investigation. The Government looking at the next action plan (2011-2014) believes that success will be demonstrated by: Public bodies engaging and co design and co delivery of services Public Bodies assessing contracts for Community Benefit Clauses applicability as standard. Investing in skills, learning and leadership across the third sector Despite the progress made to identify the skills and leadership needs of the third sector, there are concerns that the Governance support available is not targeted for organisations at different stages of development whether new start businesses or larger enterprises. Different skills are required at each stage and should be reflected in governance training. There is also the concern that the action plan currently does not focus enough on enterprising activity; supporting organisations and individuals to understand risk properly and how to grow their businesses. Providing support for business growth There is concern that the current support arrangements are not sufficient to ensure the sustainable growth of the sector. In particular the lack of support for organisations that are too large to access Firstport assistance, but too small to qualify for Business Gateway support, if their turnover is less than 60,000. Business Gateway must tailor its assistance for social enterprises. There could also be specialist sectoral support e.g. for retailers or cafes. Lack of appropriate support and knowledge is also apparent with single interface partners, despite their remit to assist social enterprises. Promoting social entrepreneurship There is appreciation of the initiatives the Government has taken to support social entrepreneurship in education, but also concerns that older people (50 and over) as well as the young people could also prove to be successful social entrepreneurs currently being demonstrated by a current  HYPERLINK "http://www.nesta.org.uk/areas_of_work/public_services_lab/ageing/age_unlimited_scotland" NESTA project. Investing more intelligently It is accepted that in future, reduced resources will need to be carefully targeted. One mechanism for investigations are Social Impact Bonds which channel private investment into the third sector, protecting investors capital, while providing a return if the project is successful. Government commits to use a proportion of the savings that result from improved social outcomes to reward non- government investors funding early intervention activities. SROI and PSPs allow the sector to demonstrate the savings it can make for the public purse. Funding streams in the future must be designed to meet real need. For example Third Sector Enterprise Fund offers awards of between 25,000 to 100,000 to third sector organisations, but many organisations would welcome 10,000 or 15,000 as a grant or micro loan. Discussion also centred on smarter group buying and service sharing between large and smaller social enterprises. Evaluation It was noted that evaluation, whether SROI, social accounting or other methods should be undertaken as a priority, though bearing in mind capacity. Attendees Gareth Allen Scottish Government Beth Brewis Forth Sector Graham Campbell The African & Caribbean Network Norman Chipakupaku CEMVO Scotland Callum Chomczuk Scottish Social Enterprise Coalition Ian Cooke Development Trusts Association Scotland Alastair Davis Social Investment Scotland Sarah Deas Co-operative Development Scotland Donna Ferguson Scottish Social Enterprise Coalition Mike Geraghty Argyll & Bute Social Enterprise Network Pauline Graham Social Firms Scotland Pauline Hinchion Community Recycling Network for Scotland Naomi Johnson Firstport Alan Kay CBS Network Jeanice Lee CEMVO Scotland John MacDonald Community Transport Association Neal Mackay Forth Sector Frank McKillop Association of British Credit Unions Limited Neil McLean Scottish Social Enterprise Academy Alan Morris R.I.E.R. 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