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![Page 1: Social Enterprise and Public Services Craig Dearden-Phillips MBE Smarter Funding Better Outcomes 15 th July 2015 The Apex Bury St Edmunds.](https://reader036.fdocuments.net/reader036/viewer/2022062314/56649de55503460f94addf89/html5/thumbnails/1.jpg)
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!
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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
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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
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Success (eventually)
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Setting Out
Stepping Out
Staying Out
3. Public sector Spin Outs
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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?
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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
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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’