Beware the cowboys
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Social enterprise is increasingly commanding the attenion of entrepreneurs, business and charities, and embedding itself on political, economic and social agendas. But, beware as the cowboy consultant jumps on the band wagon.
Since its rise to increased prominence on political, social and economic agendas, social enterprise has created a positive energy that has transformed concepts of organisation, social innovation and social financing. At the same time it has contributed to an increased awareness of the need to integrate social values and community involvement in the achievement of exponential organisational impact through the triple bottom line.
The rise of social enterprise has created a positive shift in attitude towards and understanding of the third sector, social investment and socially responsible business. But, there have also been adverse effects prompted by the number of social enterprise advisors and consultants providing ill-informed advice to new and existing social enterprises.
An industry has been created in social enterprise consultancy and support which provides generalist and vague services for social enterprises incongruent with the nature and spirit of social enterprise itself. Too often, individuals and organisations seeking profit generation provide short-term and superficial business advice and support, which fail to meet social enterprise aims and needs.
The social enterprise environment is not always easy to navigate. The variety of organisational models, including co-operatives, mutuals and community interest companies require a clear and structured approach to adoption and development, together with a deep understanding of both the opportunities and challenges that arise from embarking on and striving towards social enterprise excellence.
Robust, effective and often unique governance and operational frameworks are required to ensure the social enterprise meets constitutional, regulatory and legal requirements. In this space mis-information can create hazard for social entrepreneurs and enterprises. Social enterprise formation and annual reporting, for example, may require specialist legal advice and support as opposed to generalist consultancy, in order to avoid some of the common pitfalls experienced by new social enterprises and particularly where social enterprises are converted from other organisational forms.
It is important that those providing social enterprise support are informed through the practical and actual experience of forming and developing social enterprises, in addition to understanding the theory. And, it is essential that new social enterprises and organisations considering the social enterprise model are aware of policy and process initiatives and developments that offer opportunity and advantage.
Healthcare leaders also have a role here. The government "right to request" initiative – inviting proposals from staff to spin ou of the public sector through forming mutuals and social enterprises providing healthcare services – was not positively communicated (and in some cases ignored) by ex Primary Care Trust (PCT)/NHS leaders who could play a key role in supporting employee ownership and staff engagement in social enterprise understanding and development.
Social enterprise is not the answer to all questions. But, the importance of staff and public involvement, was highlighted recently in the Francis Report, published by Robert Francis QC following an extensive inquiry into failings and patient suffering at Mid-Staffordshire NHS Foundation Trust. Greater staff and public involvement in the healthcare system can be met in part though attention to the core principles and organisational requirements of social enterprise. In this way, social enterprise could and should be more actively considered as a keystone in strategic and operational thinking and delivery.
Social enterprise is based on delivering social as well as business gain, it is important that those supporting social enterprises in a consultancy and advisory role understand this and also commit to delivering sustainable benefits for social enterprises to avoid dilution of the concept, and avert social enterprise failure as a result of ill advice and support.
Social enterprise organisations should take advantage of any support services brought in, and make sure they understand and are committed to the social enterprise value-base, and willing to explore payment models based and dependent on delivery of shared and agreed objectives and outcomes, in addition to utilising the vast array of free and pro-bono services in existence that support the social enterprise agenda.
