Social Enterprise and Public Services

Craig Dearden-Phillips MBE

Smarter Funding Better Outcomes

15th July 2015

The Apex Bury St Edmunds

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Why I think I am here

• I have set up charities and social enterprises

• I do both big stuff and small stuff

• I have been a Councillor• I am a Social Investor• I believe in the

voluntary and community sector

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My Main Messages

1. Government is about to get a LOT smaller so hold on to your hats.

2. There will be space for local organisations who work in a more business-like way.

3. But you will need to work in partnerships to do this properly

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What Life So Far has Taught Me

• Money is important but isn’t your main resource

• The future has always been challenging!

• Don’t get into a dependency mentality

• Don’t be beaten!

My first and biggest enterprise

• Started in a community centre in Cambridge in 1994.

• Started without money!• Now gives people a

Voice• Helps 5000 people each

year• Works across the UK• Winner of many awards• 250 staff, £10m

turnover

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Empowerment has been the theme of all my business ventures

• Good things can only happen when power and control and responsibility is handed back to people

• This has a big effect on personal & social well-being

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The First Five Years –Developing grant-based local charity

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Why I cut down on short-life grants

• Grants leave you with unsustainable projects that have to end within 3 years

• They leave you feeling dependent

• The only grants I think are worth having are as start-up capital for a better income model

• Contracts are better if you need money to do things

I thought about our venture as a business – a social business!• We replicated

SU in five major UK locations

• We attracted a social investor over five years

• We grew from 500 clients to 5000 and £500k to £5m

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Learnings for me• Invest in organizational skill-base• Focus on impact not on activity• Be ambitious• Find allies beyond your organisation

Success (eventually)

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Setting Out

Stepping Out

Staying Out

3. Public sector Spin Outs

Stepping Out: Using Enterprise to Transform Public Services

Setting Out Stepping Out Staying Out

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Local Examples of Public Sector Spin Outs

• Suffolk Libraries• Leading Lives (former

learning disabilities services)

• Realise Futures (former employment support services)

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The Results?

• They save money• The services improve• The staff are happier• The business grows• Services are saved • They treat their users

like customers

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• Staff are freed up• Citizens give their time

more freely• Council can’t interfere in

day to day management• Financial long-view can

be taken• Brilliant Board and

Director Leadership• Clear single purpose

How does this Happen?

There are enough resources for all the

public services we need in the UK

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My Social Investment Roles

• We look for best models, best teams, biggest impact

• Grants are NOT for programme but for capacity

• We look for disruptive business models with new takes on problems

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Chair - Stepping Out Foundation

• Tiny start-up investments in individuals

• Pre-start-up often• For credibility• To develop an idea• To pilot something• To encourage exploration• Evergreen

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What do Investors Look For?

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The Leadership – it’s about YOU

• Are you sticking around?

• Are you resilient?• Are you open to

change?• Can you work with

others?

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The Proposition

• Do we understand it?

• Is there a proven income model?

• How will we get our money back?

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3 Challenges to You as Local VCS Leaders

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1.Don’t rely on Grants!

• Philanthropy has natural limits and we may be approaching them

• This doesn’t address the fundamental problems in a sustainable way

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2. Find Your Partners!

• Partnerships make it easier to get big things done because they have credibility with backers

• Partnerships based on neighbourhoods make for a better whole-place approach

• Partnerships can build trust and shared understanding

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3. Take a business-like approach

• Grants tend to encourage dependency

• You can achieve more by thinking of what you are doing in terms of a business – even if you measure success differently

• People like Bob Jones (on next) will show how this can be done

ENJOY MY REASONABLE-SELLING BOOKS:

‘Your Chance to Change the World – The No Fibbing Guide to Social

Entrepreneurship’

‘How to Step Out – Your Guide to Setting Up a Public Service Mutual’