Presentation on the contribution of, opportunities and challenges for social enterprise in Ireland. Presented to WIN [West of Ireland Networking].

1. Social Enterprise in Ireland:
Towards a Collaborative Culture
Olwen Dawe
Irish Business Intelligence
www.olwendawe.com
West of Ireland
7th December Networking
2012

2. Social Enterprise in Ireland:
Towards a Collaborative Culture
A Short Introduction & Illustration of
Benefits, Challenges & Opportunities
West of Ireland
7th December Networking
2012

3. Global Recession: Irish Impacts
The Context
• Banking crisis - toxic shock to Irish economy;
• GDP slowed from 6.6% in 2007 to -2.3% in
mid-2008;
• Unemployment remains ‘unacceptably’ high
however economy is on road to stabilisation
[DJEI];
• Policy shifts towards supporting self-
employment, high-potential growth areas,
including social enterprise.
West of Ireland
7th December Networking
2012

4. What is Social Enterprise?
• “Just as entrepreneurs change the face of business, social entrepreneurs
are the change agents for society, seizing overlooked opportunities by
improving systems, inventing new approaches and creating sustainable
solutions to transform society for the better. ...”
Skoll Foundation
• “Social enterprises are part of what is termed the Third Sector or Social
Economy. The Third Sector is comprised of organisations that are
independent of the State, but may receive funding from the State, and
may also contribute to the delivery of public services. They have primarily
social objectives and reinvest any surpluses they generate in pursuing
these objectives.”
‘Exploring Social Enterprise’, A. Clarke & A. Eustace, Eustace Patterson Ltd.
FINAL REPORT, September 2009
• ‘that part of the economy, between the private and public sectors, which
engages in economic activity in order to meet social objectives’.
FÁS
West of Ireland
7th December Networking
2012

5. My Thoughts?
Social entrepreneurs are:
• Change-agents, driving change and adding value to
their local economy with wider positive economic
and social impacts;
• Focused on making a difference and deliver a ‘triple
bottom line’ – financial, social and economic;
• Defined by experiential knowledge – and therefore
are closer to the audiences to whom they can most
support.
West of Ireland
7th December Networking
2012

6. General Observations: UK
“Big Society” – UK
• There are 62,000 social enterprises in the UK, employing
approximately 800,000 people and contributing more than
£24bn to the economy.
• Peter Holbrook, chief executive of Social Enterprise UK
(SEUK), the representative body, says new laws and funding,
and the impetus given by austerity, will help to produce a
£50bn sector.
• “What we are creating in 2012 is a more fertile environment
and 2013 should be good year for significant change,”
West of Ireland
7th December Networking
2012

7. General Observations: European Commission
Recognition of Importance - Policy
• Social economy enterprises represent: 2 million enterprises
(i.e. 10% of all European businesses) and employ over 11
million paid employees (the equivalent of 6% of the working
population of the EU)
• Social economy entities are enterprises - in the majority
micro, small and medium sized enterprises (SMEs) - and, as
such, they are part of the Commission's enterprise policy
aiming at promoting enterprises, in general and more
specifically SMEs, independently of their business form.
• The EU policy in this area aims at creating a favourable
regulatory environment for social economy enterprises so
that they grow and prosper alongside other enterprises.
West of Ireland
7th December Networking
2012

8. General Observations: Ireland
• Ireland has a strong history of social economy organisations
and collective action, notably such organisations as the GAA,
the agricultural co-operative movement, and the credit union
movement, the last being the world’s largest (per capita)
financial co-operative. Although social enterprise arguably is
under-developed in Ireland, relative to other countries
communities and wider interests, such as the State.
• The concept of social enterprise has gained attention in
recent years and increasingly is seen as one viable response
to the economic trauma Ireland has experienced.
Social Enterprise in Ireland: A People’s Economy? Doyle & Lawlor, 2012
West of Ireland
7th December Networking
2012

9. Ireland: The Reality
• The concept of social enterprise has gained
attention in recent years and increasingly is
seen as one viable response to the economic
trauma Ireland has experienced.
• Social enterprise increasingly needs to be part
of the way we do business.
Social Enterprise in Ireland: A People’s Economy? Doyle & Lawlor, 2012
West of Ireland
7th December Networking
2012

10. Tangible Benefits to the Economy
• In general?
– Contribution to local and regional / national
economy through solutions for recognised
needs;
– Services and supports – offerings which
make a difference to the community and
the lives of those dwelling in it.
West of Ireland
7th December Networking
2012

11. Tangible Benefits to the Economy
• Providing affordable services/products to
communities 79%
• Bringing people together 76%
• Creating local jobs 75%
• Providing goods/services previously not available
locally 74%
• Putting money into the local economy 56%
• Buying from local suppliers 48%
• Helping the environment 30%
‘Exploring Social Enterprise’, A. Clarke & A. Eustace, Eustace Patterson Ltd.
FINAL REPORT, September 2009
West of Ireland
7th December Networking
2012

12. Challenges for the Social Entrepreneur
& Social Enterprise
• In my experience...
– Funding
– Strategic planning / appropriate business support
– Support access issues / bureaucracy
– Governance
– Sustainability
– Other managerial issues / staffing
West of Ireland
7th December Networking
2012

13. Actual Challenges
• Funding/Finance 69%
• Sustainability 23%
• Strategic Planning 6%
• Premises/space 2%
‘Exploring Social Enterprise’, A. Clarke & A. Eustace,
Eustace Patterson Ltd.
FINAL REPORT, September 2009
West of Ireland
7th December Networking
2012

14. Opportunities / Improvements
• Policy direction and focus – meaningful and tailored
• Enhanced Interconnectedness:
Networks & Networking – Representation [Diversity]
• Funding & Access to Finance – Clarity
• National Recognition & Appropriate National
Campaigns [2013]
West of Ireland
7th December Networking
2012

15. The Future? What’s Next…
• Enhanced visibility of the positive impacts of
social entrepreneurship;
• National recognition – networks and
representation;
• European-funded projects [LEADER and E.
Commission];
• Collaborative-working – clusters and formal
‘alliance’ building [DJEI].
West of Ireland
7th December Networking
2012

16. The Certainty?
Social enterprise can and will play an
instrumental role in economic and social
development through:
– Provision of much-needed [tailored and
appropriate] supports to communities and groups;
– Employment, services and collaborative gain to
local, regional and national economies.
IF policy and support is enhanced to recognise
the needs and nuances of the sector.
West of Ireland
7th December Networking
2012

17. Locally & Nationally: Some Supports
& Organisations of Note for Social
Entrepreneurs
West of Ireland
7th December Networking
2012

18. Thank you for your time!
Any questions?
West of Ireland
7th December Networking
2012