Developing methods and approaches

The team took the approach that social enterprise business development was not a ‘one off’ phase, rather organisational development was characterised by a series of ‘mini-development’ stages with different needs at each. Each of these ‘mini’ stages was given support through tailored, one-to-one, hands-on services combining business coaching and counselling with technical advice. The team used participatory learning and action methods that referred to, and drew upon, the experience, knowledge and understanding of all the participants involved. Where possible EC helped social enterprises to find funding for small amounts of specialist advice such as HR, solicitors, accountants, architects, planners, IT consultants.

EC developed two core sets of tools that met the needs the two main client groups – emerging and existing social enterprises.

  • Emerging social enterprises were taken through its successful four stages to start-up training programme. Click here for the ‘ Guide to Group Development and Business Planning for social enterprises’ in the tools section of this website. This programme was free of charge to emerging social enterprises in Cumbria, but not cost free to those participating as they invested their own volunteer time and commitment to take part in the programme.
  • Existing social enterprises went through a four stage process:
  • Initial problem diagnosis ( click here for Business Health Check tool)
  • Develop a MOU and action plan with the social enterprises that spelled out the ‘mini’ stages needed to correct the problem
  • Deliver technical support to complete the ‘mini’ stages
  • Monitor progress and re-diagnosis

Three quarters of the existing social enterprises EC worked with received more than one ‘mini-development’ intervention from the project, a few received up to five interventions. The most common interventions were around:

  • Business planning
  • Funding/ finance
  • Human Resources
  • Marketing
  • Governance/ Board training

Click here for the case studies for a detailed explanation of the approach.

Who EC worked with

Over the four years EC worked with over 120 existing social enterprises and supported 46 new rural social enterprises to open their doors for business. They delivered a wide range of goods and services. In sectoral terms EC worked predominately with arts/cultural, social care and child care social enterprises – see Table 1 below.

Table 1 Types of activity delivered by the social enterprises EC worked with.

Type of activity
Percentage %
Arts/cultural
21
Social care: youth, rehab, health, education
21
Childcare
11
Village halls/community facilities
9
Retailing
8
Environmental
7
Food and agriculture
7
Sport
6
Transport
4
Finance
2
Tourism
2
IT
1

Most saw their customers/client base coming from the local population at large, people with physical disabilities and specific health problems (mental health), low income households, those with lack of access to transport, and children and young people.

Apart from the new-starts, EC worked mainly with newer social enterprises. Over sixty per cent were at the consolidation stage, thirty per cent looking towards growth and diversification and less than 10% contracting (often through the loss of major grant funding). The median turnover was £58,000K reflecting the fact that most were young businesses. It also fitted the picture revealed by a recent survey (March, 2006) of social enterprises in Cumbria where 76% of the social enterprises in the survey were established after 1990, with 45% set up since 2000.