8 aspects of good practice in support for wises
DESCRIPTION
8 aspects of good practice in support for WISEs (work integration social enterprises) - lessons from EQUALTRANSCRIPT
European Social Fund1
Eight aspects of good practice in
support for WISEs Lessons from EQUAL
Toby Johnson, AEIDL/DIESIS, Brussels
European Social Fund2
Outline
1. What are WISEs?
2. EQUAL and WISEs
3.Eight aspects of good practice
4. Recommendations
European Social Fund3
1. What are WISEs?
European Social Fund4
WorkIntegrationSocialEnterprises
= ‘social firms’
European Social Fund5
Terminology
Social economy
WISEs
Social enterprises
European Social Fund6
Social economy
economic activity for a social goal 4 families:
co-operatives mutuals associations foundations
11 million jobs in EU-25 8% of jobs
European Social Fund7
Social economy employment
CountryCo-ops’000s
Mutuals‘000
Associa-tions‘000
Total FTE‘000
% FTE
AT 52 7 174 234 8.1%
BE 33 11 162 206 7.1%
DK 78 - 211 289 13.8%
FI 76 - 63 139 8.2%
FR 294 91 830 1,215 6.8%
DE 448 131 1,282 1 861 6.5%
EL 12 1 56 69 3.5%
IR 32 1 119 152 15.9%
IT 480 - 667 1,147 8.2%
LU 2 - 5 7 4.6%
NL 109 - 660 769 16.6%
PT 49 1 61 111 3.5%
ES 403 1 474 878 10.0%
SE 91 7 83 181 5.8%
UK 128 22 1,473 1,623 8.4%
TOTAL 2,286 274 6,319 8,880 7.9%
European Social Fund8
Concepts of social enterpriseOECD, 1999
different legal forms in different countriesentrepreneurial spiritboth social and economic goals, e.g.:
training & integration of disadvantaged people revitalisation of deprived areas provision of new products & services innovative solutions to unemployment & exclusion
UK – Social Enterprise Unit, 2002 competitive business primary social objective [but only 1 CIC refused!] surpluses principally reinvested in business or community no criteria of ownership or participation
European Social Fund9
Concepts of social enterpriseFrance – AVISE, 2004
social values & objectives, as regards: employees (work integration) users/clients (disadvantaged, poor ...) products & services (fair trade) legal status (co-op, association, social co-op)
Finland – Ministry of Labour, 2004on official register>30% employees disabled / unemployed no non-profit criterion no criteria of ownership or participation
European Social Fund10
Concepts of social enterpriseItaly – 2005
non-profit
private organisation
mainly perform a stable economic activity in prodiction, exchange of goods or social benefit services
aimed at solving issues of general interest
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Social enterprise characteristics
hybrid of co-operative/mutual and voluntary/associative sectors multi-stakeholder: users, workers, volunteers, community, funders… resource mix: earned, grant, donations, voluntary time social capital: trust & co-operation strong user linkages worker involvement
www.emes.net
European Social Fund12
Social enterprise ideal type4 economic criteria
continuous trading activity autonomy economic risk paid workers
5 social criteria explicit aim of community benefit citizen initiative decision making not on basis of capital participation - user involvement limited profit distribution
www.emes.net
European Social Fund
Types of WISE
ELEXIES study (EMES 2003, 12 MSs)
44 types
in 4 groups: permanent wage support
self-supporting / tapering wage support
(re)socialisation through work
transitional wage support
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European Social Fund14
4 groups of WISEs (EMES)
EIf
AIf
ETTIf
GEIQf
EFTb
LVdk
BWg
KBg
BLUIg
VOfin
ONCEs
EIs
CEEs
STOfin
ILMOuk
VOukCOSOi
RQf
CBuk
WCOuk
SBGg
EIp
EIb
IBb
EINf
sw
SFuk
Ruk
ETAb
BWb
SWb
SHsw
EPp
SEirl
SKsw
AZCb
CAVAf
COs
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Social objectives
3 broad fields:
inclusion through work
service provision: social,
environmental, cultural...
value-based activity, esp. fair trade
European Social Fund16
Social enterprises in the UK
55,000 enterprises, €40 bn turnover, ½ m jobs
European Social Fund17
Social firms in the UK
10m people in UK have a disability!
5 150 in 10 years – growth 10% p.a.
half >25% severely disadvantaged
1,700 fte jobs (52% for disadvantaged)
catering 52%, recycling, horticulture
largest = Pluss: 470 jobs, t/o €30m p.a.
funding largely by social services
trade directory: www.trade.socialfirms.co.uk
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Social Firms UK
Strategic partnership with Office of Third Sector
5-year MoU stipulates:represent views & experience of sector
raise awareness of social enterprise
spread good practice (Star scheme, visits)
influence government policy
remove barriers to growth
reach out to BAME
separate financial agreements
European Social Fund19
Star social firms standard (1)
Enterprise + Employment + Empowerment
Enterprise:non-profit / co-op
trading structure
employment objectives
half income from market
independence (desirable)
European Social Fund20
Star social firms standard (2)Employment:
25% of workers severely disadvantaged
parity of treatment between all workers
contract of employment
market or minimum wage
staff development
legal compliance (EO, H&S etc.)
“acknowledged as good employer”
disadvantaged at all levels (desirable)
IIP accreditation (desirable)
European Social Fund21
Star social firms standard (3)Empowerment:
adjust to employees’ needs
volunteer agreements
stress management procedures
staff development a priority
participation in decision-making
confidentiality
disability, equality & awareness training
training for disadvantaged staff
social accounting (desirable)
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2. EQUAL & WISEs
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EQUAL – scale & scope
R&D dep’t of the European Social Fund Community Initiative – experiments to make mainstream more effective Budget: €3 billion / 6 years 3 ‘actions’ Development partnerships:
Round 1 (2002): 1,399 Round 2 (2005): 2,081 Total: 3,480
European Social Fund24
Social economy in EQUAL
3rd most popular of 9 themes9% of EQUAL budget424 development partnerships7 partners on average 3,000 organisations involvedaverage DP budget €1.3m (UK ave €2.2m ... SK ave €0.2m)
European Social Fund25
159 265 social economy DPsCountry Round 1 Round 2
Italy 71 111Poland - 25Slovakia - 24France 28 24Finland 6 13Greece 5 10UK (GB) 8 10Czech Republic 2 9Germany 8 9Netherlands 6 9Austria 16 8Portugal 6 7Flanders 3 4Wallonia - 2
European Social Fund26
Main themes of EQUAL 2 DPs
All DPs - Main theme (N=265)
158
59
35
13
0
20
40
60
80
100
120
140
160
180
Businessdevelopment
(60%)
Individualdevelopment
(22%)
Institutionalframew ork (13%)
Territorialdevelopment (5%)
European Social Fund27
Main clusters in EQUAL 2
0
10
20
30
40
50
60
70
80
Institutionalframeworkconditions
Business start-up &incubation
Sector & clusterdevelopment
Work integration
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Activity chain – round 1
workshops, Brussels, October 2003 Strengthening the Social Economy, Antwerp, May 2004 workshops, Brussels, June 2004 European social economy conference, Kraków, October 2004
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Activity chain – round 2 Building the case for, and the
capacity of, the social economy: Showcase, Warsaw, 10-12 May 06
Local development, Rome, 4-5 Dec 06
Social enterprise, Helsinki, 5-6 Feb 07
Policy forum, Hannover, 5-6 Jun 07
Procurement, Antwerp, 10-11 Apr 08
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3. Eight aspects ofgood practice in support for WISEs
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8 aspects of support to WISEs
1. government strategy
2. legal & financial framework
3. local partnerships
4. business support
5. sectoral development strategies
6. access to larger markets
7. impact measurement
8. community of practice
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1. UK social enterprise strategy
ambitious: aimed to achieve a step change
proactive: defined the concept
comprehensive & integrated
participative
capacity-building (SEC)
accountable
partner-oriented (EQUAL)
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UK social enterprise strategyCreate an enabling environment
Government role: interdepartmental, enabling, direct support e.g. Social Enterprise CoalitionLegal and regulatory, e.g. Community Interest CompanyPublic procurement
Make social enterprises better businessesBusiness support and trainingFinance and funding
Establish the value of social enterpriseEstablish knowledge base (research)Recognise achievement and spread the wordCreate trust: social audit and quality
European Social Fund34
Scaling New Heights (2006)Aims:
engendering cultural change
improving the supply of advice and finance
improving relations with the public sector
Activities:fostering a culture of social enterprise
ensuring the right information and advice are available
enabling social enterprises to access appropriate finance
enabling social enterprises to work with government
European Social Fund
2. Legal frameworks
Germany – Integrationsfirma
Italy – type B social co-operative
Austria – Beschäftigungsbetrieb
Greece – KoiSPE
UK – social firm
France – SCIC
Finland – social enterprise
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Community Interest Company (UK)
permissive, flexible, popular (1,650)
light regulation
any type of company
no tax relief
community interest test
reasonable investor return
dividend cap & asset lock
possible access to public contracts
European Social Fund37
Social firms for the mentally ill Synergia, Greece
KoiSPE dual status: business + mental health unit
membership by MH professionals
investment shares
in-kind support
local development impact
European Social Fund38
3. Local co-planning
Agenzia de Cittadinanza, Milan
broad partnership (91 partners)
build SE capacity – bilancio sociale
defragment social service delivery
4 local piani di zona
local tavoli changed the balance of power
procurement via negotiated procedure
European Social Fund39
Neighbourhood services Werk.Waardig, Kortrijk
jobs, services, quality of lifebase on needsanalysismultiple activities,multiple financing= ‘cloverleaf model’service voucherspublic recognition ofnew needs, e.g.flexible childcare
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19 new sources of jobs
Everyday services
Home help, childcare, ICTs, young people in difficulty
Improving the quality of life
Housing, security, transport, public spaces, local shops
Culture & leisure
Tourism, audiovisual, heritage, local culture, sport
Environment Waste, water, protect natural areas, pollution, energy
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The cloverleaf model
EmploymentE.g. wage subsidy for hiring risk groups such as LTU, compensation for lower productivity and/or extra guidance
ClientUser charges (plus sometimes consumer subsidy through service vouchers)
Other policiesE.g. childcare, homecare, tourism, mobility, culture
Local authoritye.g. social tender for community added value, cohesion, community development, poverty
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4. Dedicated business supportCoompanion (FKU), Sweden
25 local agencies total income €6.7m baseline state funding – stability local matching funding – rootedness & partnership loose federal structure community of practice – 85 workers political voice
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Mainstream business supportQUASAR,Italy
social enterprises are a market! national partnership between co-op consortia & chambers of commerce 8 local observatories 7 working groups enterprise check-ups training for advisers
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Co-operative incubatorsBusiness & employment co-operatives,
France
A 3-phase career: supported entrepreneur salaried entrepreneur member entrepreneur
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5. A successful sectoral strategy Electronic waste (WEEE)
seize new opportunity(EU regulation)
stress social added value
multiple benefits for multiple stakeholders
multiple finance sources for multiple activities
public and private partners
European network (RREUSE)
EEIG (SerraNet)
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RecyclingÖkoservice, Graz
value driven: waste / jobs / locality 3-way partnership complementary activities entrepreneurial corporate status wage subsidy network of contacts in local authorities national + European networks + EEIG
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6. Social franchising
open source vs. patentedmobilise idle localresourceslocal capacity building
Le Mat (IT – hotels) CAP Märkte (DE – supermarkets) CASA (UK – home care) Vägen Ut! (SE – halfway houses)
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Home careSunderland Home Care Associates
185 employees
employee ownership – annual share bonus
low staff turnover higher quality care
franchisor CASA – reciprocalshareholding withfranchisees
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Social franchising methods
return to innovation
patent or open source
licensing / social franchising
conditions: (socially) profitable business idea
support from franchisor
professional enough team
enough money to invest
European Social Fund50
Self-help sectoral development
marketing / branding / internet
joint purchasing
specialisation
development fund
supply chain integration
transnational trading
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Public procurementBEST Procurement, East Midlands,UK
act on both supply & demand
build capacity through training & consortia
build technical skills of procurement professionals
make ‘business case’ for achieving best value
leadership from EU & MS governments
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Public procurement (2)
get in early
use negotiated procedure more?
target development work on identified market opportunities
division of benefits joint commissioning outcome-focused procurement
interdepartmental learning platfroms
ministers take initiatives to get synergies
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7. Quality & impact measurement
shared values quality indicators (qualitative + quantitative) branding, visibility simplicity don’t make it a burden
www.proveandimprove.org
New Economics Foundation,UK
European Social Fund54
Impact measurement
Socio-economic reporting (Sweden)
Nilsson & Wadeskog studied 2 social co-ops for ex-addicts in Göteborg in 2005: Basta (65 mainly men) & Vägen Ut! (19 mainly women)mapped 130 factors in 5 clusters: income, treatment, crime, housing and children – each addict in effect employs 2½ peopleif someone stays 3 years, the municipality pays out €31,500 but society saves €595,000 – a return of 1,890%.social profit of €110,000 per employee per year
www.seeab.se
European Social Fund55
Social firms for ex-addictsEgenmakt för
Framtiden,Sweden
Basta, Basta Väst ...competitive enterprisepeer supportempowerment – colleagues not clientssocial return – reduced cost of crimepractical basis for qualifications
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Impact measurement
Socio-economic reporting (Finland)A workplace has 33 disabled employees, of whom 24 paid a wage, 6 pension + wage and 3 wage + wage subsidy.It receives a subsidy of €297,000, but pays €391,000 in tax and national insurance, resulting in a net benefit to society of €95,000.Deduct: costs that would have been incurred if the workplace had not existed. (It is estimated that 20 of the employees would be on unemployment benefit, 4 working on the open market and 3 working but receiving a wage subsidy.) = €121,000 in expenditure, of which €75,600 flows back to the state, leaving a net cost of €45,400.Adding these two together, the workplace generates a social benefit of €140,000, equivalent to €4,300 per disabled employee per year.
European Social Fund
8. Community of practice
COPIE = Community of Practice on Inclusive Entrepreneurship
“A group of people who share a concern, a set of problems, or a passion about a topic, and who deepen their knowledge and expertise by interacting on an ongoing basis”
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European Social Fund
COPIE online tools
COPIE = Community of Practice on Inclusive Entrepreneurship
wiki: www.wikipreneurship.eu
best practice database: www.copie.esflive.eu
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4. Recommendations
European Social Fund
Conclusions & issues
level playing field
compensate WISEs for lower productivity: “3 Cs”: compensation, capital, consultancy
encourage entrepreneurial behaviour
be permissive not restrictive
definition of disadvantage
percentage of disadvantaged people
issue over labour law and minimum wage60
European Social Fund61
Government recognition
measure socialadded value
compensate for costs of integration
more rational public procurement
braided support system