introduction to social firms in economic development

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Social Firms in Economic Development g A business model for social inclusion

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Page 1: Introduction to social firms in economic development

Social Firms in

Economic Developmentg

A business model for social inclusion

Page 2: Introduction to social firms in economic development

Third Sector (Civil Society Organisations)

Social Enterprises

Social FirmsEmployment Social Firms Employability Social Firms

Introduction to Social Firms

Social Firms are a subset of social enterprises that focus on employment and employability They seek to employ, train and support the most job-disadvantaged

This focus on the most intractable barriers to work distinguishes social firms from the wider social enterprise sector

Page 3: Introduction to social firms in economic development

Definition of a Social Firm

Employability Social FirmsEmployment Social Firms

25% employees have experienced job-disadvantage:• Physical disability• Learning disability• Ill mental health• Homelessness• Offending• Substance mis-use50% of income is trading from the business operation

They offer a personalised and supportive environment

They have a focussed goal to get the most job-disadvantaged into work

They offer work placements, training, coaching and/or mentoring

Often Social Firms are both

Page 4: Introduction to social firms in economic development

Social Firms Values

Enterprise

Social Firms are businesses that

combine a market orientation

and a social mission.

They are not “projects that trade”.

Employment

Social Firms are committed to the social and

economic integration of

severely job-disadvantaged people through employment.

Empowerment

The Social Firm environment provides

all with

support, opportunity and meaningful work,

and for employees, pay the

market wage.

Page 5: Introduction to social firms in economic development

What kind of businesses are Social Firms

Limited only by market and imagination.

Page 6: Introduction to social firms in economic development

Social Firms are Vital

Social Firms are very firmly focussed on job creation for sections of the community that rarely, even in times of plenty, get access to jobs and training.

73%

48%

33%

24%

15% 14%11%

6%

Employment Rates for Job-disadvantaged Groups

All Labour Force

All Disab-ility

Visual Impairment

Autism Homeless Ill Mental Health

Ex Of-fender

Learning Disability

Page 7: Introduction to social firms in economic development

Social Firms: Good for Social Inclusion

Social firms' provision of employment opportunities for people with mental ill health: a UK survey. Gilbert E, Marwaha S et al. 2013

Social Firms as a means of vocational recovery for people with mental illness: a UK survey. Gilbert E, Marwaha S, et al 2013

Social firms: building cross-sectoral partnerships to create employment opportunity and supportive workplaces for people with mental illness. Paluch T, Fossey E, Harvey C.. 2012

Social firms: sustainable employment for people with mental illness. Williams A, Fossey E, Harvey C.

Social firms: a means for building employment skills and community integration. Lysaght R, Jakobsen K, Granhaug B. 2012

How do social firms contribute to recovery from mental illness? A qualitative study. Svanberg J, Gumley A, Wilson A. 2010

An update on affirmative businesses or social firms for people with mental illness. Warner R, Mandiberg J.2006

Social firms have a vital role in enabling job-disadvantaged people to experience the self- esteem, independence and other positive rewards that employment brings.

Academic research tends to focus on therapeutic benefits for people with ill mental health.

Page 8: Introduction to social firms in economic development

Social Firms: Good for the Economy

It is becoming more and more important not just for individuals, but for the economy that more social firms are set up, and that they win contracts

Savings in Welfare

£40,000,000

Savings in Healthcare

£20,000,000

Savings in Social Services

£1,000,000

Based on fiscal value of employment set out in David Freud’s independent report to the Department for Work and Pensions “Reducing Dependency, Increasing Opportunity: options for the future of welfare to work”; social return on investment (SROI) methodologies; and a series of SROI studies of social firms employing people with mental health problems.

Page 9: Introduction to social firms in economic development

Introduction to Social Firms EnglandMembership

Our members are employment and employability social firms, charities, public authorities, educational establishments,

specialists and supporters. Together we work for the growth and development of the social firm sector.

Promotion

We promote the goods and services that social firms produce, through our trade website

www.justbuy.org.uk.We also encourage the private and public

sector to include social firms in supply chains.

Support

Social Firms England is the go-to expert for specialist business support and resource

material to develop social firms.We provide consultancy and information to

social firms, public authorities, housing associations, and others to support job

creation.

Lobbying

We promote and support the social firms model at strategy and policy level.

We work at local and national level to ensure that the contribution of social firms to the

economy is understood and valued.

Social Firms England replaced Social Firms UK in April 2015. Social Firms UK was founded in 1999

Page 10: Introduction to social firms in economic development

InWork consists of a Toolbox and a Best Practice collection. The Toolbox provides potential social entrepreneurs and local authorities with an overview of opportunities and methods for developing meaningful and sustainable work programmes for marginalised and vulnerable groupsThe Best Practice Collection gives examples and ideas for the development and the implementation of sustainable social inclusion programmes.

Resources and Information

InfoMine – Online Support Tool InWork – Best Practice Resource

InfoMine guides the social entrepreneur through a series of questions to determine what they need. Then it provides a detailed report with tailored information, links and resources to help set up, run and grow a successful social firm. It’s that simple.

Other resources and courses are available.We have a range of case studies, and other material to support the development of social firms.

Page 11: Introduction to social firms in economic development

Strategic Support for Social Inclusion

We offer the above as examples of our services. We are always happy to discuss a bespoke package that meets local needs

The Social Firm Model• Introduction & training• Local Examples• Best Practice Examples• Successes & Challenges• Social Firm Recognition• Benefits and Drawbacks• Products and services• Bespoke visits to local

social firms

Strategy Development• Strategic alignment• Feasibility and Direction• Social Firm Strategy

Development• Planning & Monitoring• Strategic Partnership

Development• Identifying resources• Identifying local partners• Sustainability Check

The Next Steps• Working with local

partners• Identifying markets• Growing existing social

firms• Proposal Development• Proposal Feasibility• Setting up new social

firms• Influencing supply chains

Within the ESI Funds programme 2014-2020, LEPs address social exclusion and combat poverty.

Social Firms England works alongside local partners, and offers proven successful methods to get results.

Page 12: Introduction to social firms in economic development

Create Social Inclusion

The many social firms that exist are not just evidence of the ability of those previously written off by society

to actually make their contribution to it.

They also are evidence of the failure of the wider business world to create employment where it is most

needed.

Social firms fill the gap.

Social firms: create social inclusion

Page 13: Introduction to social firms in economic development

[email protected]@socialfirmseng01737 231 360

www.socialfirmsenglandwww.justbuy.org.uk

www.socialfirmsinfomine.org.ukwww.inworkproject.eu

For Further InformationMichele Rigby

CEO