Focus on Voice09 in Birmingham to show merits of social enterprise
Feb 9 2009 By Honor Baldry
becoming increasingly sensitive about how their money and the taxpayers’ money gets spent – they don’t want it going to impersonal shareholders,” he said.
Social enterprises are also well equipped to help those who have been made redundant get back into work – an imperative need, especially with figures released last month showing the West Midlands’ unemployment rate as above the national average and unemployment among 18-to-24-year-olds up by 55,000.
Jonathan Bland, chief executive of the Social Enterprise Coalition, said: “Not only do social enterprises provide work within the competitive market place, they offer targeted and supportive interventions.
“Social enterprises are positioned to help maintain or grow the skills of those who might have become recently unemployed through training or work placement experience, which is essential to rebuild the economy.”
It is a view shared by Mr Ling. He said: “Social enterprises can really help address the problem of unemployment, as organisations such as housing associations tend to be closer to where the problems are so they can be better at targeting help to those who need it.”
Social enterprises can also provide opportunities and training for those who have recently lost their jobs or are long-term unemployed.
Ms Jarvis added: “We’ve had a lot more people with spare time on their hands who want to do voluntary work.”
However, those running social enterprises in the region are well aware of the financial challenges ahead.
“The difficulty is that social enterprises don’t have a huge capital reserve to plug any gaps,” said Ms Jarvis.
“Our existence is very hand to mouth, but we do have an element of flexibility that enables us to respond quickly to situations.”
Mr Bland added: “Social enterprises are dealing with the same issues of access to credit and financing as are so many other businesses, but as social enterprises are not set up to maximise profit for profits sake, they are well positioned to withstand the recession.”
“They have a central mission at their core which drives the business, they are set up to be flexible, and they often have incredibly loyal customers and employees which goes a long way towards sustaining a business during tough times.”
Mr Ling is also optimistic about the situation. “We’re not recession-proof, but, let’s put it this way, I don’t see any social enterprises making cars,” he said. “They’re supporting people and organisations who need help, providing a great way of supporting society in a commercial way.”
