Social Enterprise & Housing. What is next for housing and social enterprise?

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1 Social Enterprise & Housing 19 th June 2012 What is next for housing and social enterprise? Dr Chris Handy Accord Group Chief Executive

2 About Social Enterprise It is estimated there are over 50,000 social enterprises in the UK 14% of social enterprise start ups are less than 2 years old Median annual turnover of social enterprises is 240,000 Social enterprises employ more people relative to turnover than private sector companies Social enterprises grow faster than SMEs in the private sector (58% compared to 28%) Research by UnLtd shows each social enterprise generates 6 jobs, 15 volunteering and 34 training opportunities

3 About Social Enterprise 40% of all social enterprises work in 20% of the UK s most deprived communities Many social entrepreneurs come from disadvantaged backgrounds and are motivated to do something about a specific issue School for Social Entrepreneurs Fellows Programme resulted in 12m social value to beneficiaries in 2010 and 70% of their organisations were working in 20 most deprived areas of UK Research by Social Enterprise UK shows a third of social enterprise start ups in 2011 were in the most deprived parts of the country 2010 report on social enterprise suggested 480,000 people in UK were considering setting up a social enterprise

4 Context Accord Group Seeing growth in the number of Accord s customers not in employment Figures rising from low 60% to mid/high 70% of customers receiving direct benefits Growth has occurred in just over 12 months Disproportionately affected by recessionary forces People must be actively seeking work otherwise benefits adversely affected Reduction in income due to benefit changes this year and deepening over following years

5 Context Communities Not just our tenants affected Accord is a locality-driven organisation (predominantly inner-city) people and communities with whom we work also disproportionately affected same as our customers Evidence from our work across different communities increasingly highlighting this In 2011, 56% of working age social housing residents were not in work, a total of 3.5 million people nationally

6 Context Black Country A significant area of operation for the Accord Group Characterised by Significant reduction over the last 20 years of the main industrial bases of engineering and steel Compared to national average, Black Country has 5.9bn output gap Gross Added Value per head in the Black Country is 14,764 which is 5,424 lower than the national average 20,188 Output gap primarily driven by two main factors: Too few people in employment Number of business births 1,332 lower than UK average Enterprise Creation required to increase number of business births and generate employment opportunities Black Country LEP range of initiatives to stimulate local jobs and enterprise including creation of Social Enterprise Zones in those areas of low business births

7 Accord s Approach 1. Incubate businesses within the Accord Group along lines of Tides USA model and links with national sister model in Manchester e.g. Planning For Real, Greenscape, LoCal Homes factory 2. Purchase of businesses which can provide growth, training and jobs potential e.g. care company providing training/employment opportunities for our tenants and their families Neighbourhood Initiatives Foundation 3. Support and help for tenants to form their own businesses, in 3 phases: explore idea/business planning operationalise leading to self-sufficient and sustainable businesses

8 Case Study LoCaL Homes our timber frame homes factory providing 30 jobs for tenants and local community members particularly targeted the young and our residents who are out of work a commercial enterprise

9 Accord s Approach Board driven targets and outcomes Commitment to resources - 600,000 per year over 3 years to invest in this initiative Accord s Procurement strategy to support local economies Restructuring of front-line services to deliver the 3 strands Release capacity enabling staff to provide support to tenants on training, jobs and enterprise Staff Development Programme (Social Enterprise Champions across the Group)

10 Accord s Approach Partnerships e.g. UnLtd to provide additional funding and mentoring Roadshows and workshops for tenants to explore their business ideas Mutualism unemployment lower in housing co-ops Getting tenants to run things themselves, raising skill levels, increasing confidence, greater number of residents in work, improved health, well-being and more positive housing management Partnerships, courses and accreditation with Further Education establishments e.g. Professor David Auckland

11 Challenge Scaling up

12 Dr Chris Handy Accord Group Chief Executive accordgroup.org.uk For more information about Accord AddVentures, please contact Edward Evans on or