3. Executive Summary
Social enterprises
can enable Scotland
to protect public
services and create
a prosperous,
sustainable
economy inspired
by our national
values of fairness
and social justice.
Social Enterprise in Scotland
Enterprising Community Solutions
Priority 3 – Creating Sustainable
Priority 1 – Enhancing Public Services Communities through Social Enterprise
through Social Enterprise We believe the promotion of community Actions for a National Culture
We call on the future Scottish Government to ownership through social enterprise delivery of Social Entrepreneurship
recognise the added value social enterprises can underpin the economic and social •Supportthefuturecapacityofcreditunions
deliver in providing quality public services. cohesion of communities, delivering local skills Priority 5 – Supporting Social to lend to social enterprise
and local jobs. We call on the future Scottish Enterprise Businesses •Createabespokeloanguaranteeschemefor
• esigningandcommissioningofservices,
D Government to: We call on the future Scottish Government social enterprise in Scotland
through Public Sector Partnerships to ensure: •EngagewiththeUKTreasurytoensure
•EnsuringthatCommunity Benefit Clauses
•Recognisetheroleofsocialenterprise
Community Interest Tax Relief (CITR) is
become an unarguable norm in public sector in regeneration •Scotland’ssocialenterpriseshaveaccessto
simplified and extended to encourage longer-
procurement practice; achieving wider •Tacklepublicassettransferdelays
quality tailored business support, with clear term investment, and that other existing tax
social outcomes in the procurement process •Restoremomentuminthelandreform
signposting for social enterprises whether relief included in the Enterprise Investment
offersSMEsandsocialenterprisesreal agenda start-ups or established SchemeandVentureCapitalTrustsare
opportunities in the supply chain •Learningaboutsocialenterpriseforms
amended along with the provision of clearer
•Identifyingsolutionstothebarriers
part of school life and further and higher guidance for social investors
presentedbyTUPEarrangementsinrelation Priority 4 – Achieving Green education •ConsidertheprinciplethattheScottish
to public sector pension fund deficits Communities through Social Enterprise Parliament should have powers to amend
Social enterprises have a crucial role working the basic rate of income tax for third sector
in community based renewable energy Priority 6 – Access to Capital for workers to aid sustainable growth
Priority 2 – Building a Skilled Inclusive projects and reducing landfill through waste Scotland’s Social Enterprises •Introduceinvestmentmechanismssuchas
Workforce through Social Enterprise disposal and recycling. Profits are reinvested To enable social enterprises to fulfil their Social Impact Bonds which channel private
We call on the future Scottish Government to in communities to provide local amenities, potential requires imaginative financial investment into projects run by social
recognise and increase the contribution social local jobs and increased opportunity. We call solutions involving both public and private enterprises and third sector organisations
enterprises make in creating quality jobs and on the future Scottish Government to: sectors. We call on the future Scottish
skills training. Government to: Thank you for your support.
•IntroduceaCommunityEnergy
•Scopingourcontributiontoinformfuture
InvestmentStrategy •Engagewithcommercialbanks,particularly
policy making •Allowlocalcommunitiestogenerate
those in majority public ownership, to ensure
•WorkingtowardsgreateralignmentwithUK
income through local waste that lending to social enterprises is both
Government programmes in skills training •Incentivisecommunityownership
sustained and increased
and job creation of renewable energy developments
2 3
4. Social Enterprise in Scotland
Enterprising Community Solutions
Delivering public services in the face of constrained public spending
and rising expectations remains the biggest challenge for Scotland’s
policymakers. However, we believe that social enterprises are part of
the solution. They have a proven track record of providing quality,
cost effective solutions to deep seated society problems, through
innovative business practices and successfully unlocking hidden
assets of local knowledge and resource normally overlooked in the
conventional marketplace.
2014CommonwealthGames.Community
benefits can be incorporated into contracts case study
Priority 1 – Enhancing Public Services to include: targeted recruitment and training
Third Sector organisations work with public (TRT),equalopportunities,training Community Benefit Clauses
through Social Enterprise
sector purchasers to design public services. existing workforces, supply chain initiatives – Unity Enterprise, Glasgow
By reforming public service design to involve and community consultation.
We believe that service design and the end users and providers, improved quality The Community Benefit Clause for
commissioning process should take account can be built round the needs of people and We call on the future Scottish the building of the Velodrome for the
of how social enterprises operate, recognising communities. GovernmenttoensureCommunityBenefit CommonwealthGamesinGlasgowprovided
the value of the role they play in regenerating Clausesbecomeanunarguablenormin an opportunity to submit a tender to operate
communities and enriching the skills and lives We call on the future Scottish Government public sector procurement practice, through an on-site catering facility serving 500
of local people. to commit to a continuous programme of working with all public agencies and with workers.UnityEnterprisewasinvitedto
Public Social Partnerships to deliver a radical effective monitoring of national data to set up the operation after a tender process
We call on the future Scottish Government new approach to quality service design. ensure progress is being made. exclusively involving social enterprises.
to champion the added value social
enterprises deliver in providing quality public While the main building contractor assisted
services. Mainstream Community Benefit Clauses Remove Barriers with setting up the accommodation, Unity
Enterprisehadtomakeaconsiderable
CommunityBenefitClauses,socialclauses Social enterprises and other businesses can investment in equipment and infrastructure.
Rolling out Public Social Partnerships that can be included in public contracts, are experience barriers in public sector contract To date the operation has enabled Unity
of increasing interest to the public sector in delivery,withregardtoTUPEarrangements Enterprisetoemploy10peoplewhowere
The public sector in Scotland spends £8bn Scotland.Achievingwidersocialoutcomes which encompass the liabilities of public not only unemployed but also to provide
on procurement each year. Social and intheprocurementprocessoffersSMEsand sector pension fund deficits. employment and training opportunities for
environmental outcomes can be achieved social enterprises real opportunities in the some of our current service users.
alongside financial efficiency through rolling supplychain.CommunityBenefitClauses We call on the future Scottish Government
out Public Social Partnerships, in which have already played an important role in to identify solutions to this growing The agreement is to last over the next few
achievingtheprincipleoflegacyinGlasgow’s challenge. We also ask for improved routine years until the site is completed and this
social enterprise data collection to raise experiencewillenableUnityEnterpriseto
awareness of the economic impact and reach tender for similar work in the future.
“A charity dollar has one life, is used once, of the sector, including the introduction
of features to identify social enterprises in
and then dies. A social business dollar is public sector procurement portals.
recycled and has an unlimited life.”
Muhammad Yunus on BBC Radio 4’s Today programme
4 5
5. 74% ThINk social
enterprises are
important to the future
of Scotland’s economy.
IpsosMORI–August2009
Priority 3 – Creating Sustainable
Tackle Public Asset Transfer Delays
Priority 2 – Building a Skilled Inclusive Communities through Social Enterprise
We call on the future Scottish Government
Workforce through Social Enterprise
to recognise and increase the contribution Communitymanagementandownershipof
social enterprises make in delivering quality Social enterprises in Scotland already play public assets can support the wider public
Scotland’s geography requires greater jobs and skills training and to scope our a defining role in developing sustainable interest and create community owned social
dependence on local delivery from smaller contribution to inform future policy making. cohesive communities. However at a time enterprises working for the community good,
providers of employability skills training and of constrained public spending and with our without incurring unmanageable risk and
job creation. Social enterprises are already We also call on the future Scottish communities facing so many challenges, we opportunity costs.
part of the solution to this need and are ready Government to work towards greater believe the proactive transfer of public assets
to go further. There is also a role for the size, alignmentwiththeUKGovernment to community ownership can underpin social We call on the future Scottish Government
scale and capital of larger social enterprises, programmes in skills training and job enterprise delivery of local skills, local jobs to work with all public bodies to tackle asset
working in partnership to provide tailored creation,inordertotackleScotland’s and amenities. transfer delays, in particular to introduce
local solutions. current high unemployment in a cohesive a legislative change to permit the transfer
and coordinated approach. of underused assets below market value to
Social enterprise can also be a successful Recognise the Role of Social Enterprise local people.
model for individual entrepreneurs, who can in Urban Regeneration
be encouraged to set up their own businesses OvER 70% of people
to provide opportunities for themselves and believe that, when buying Largescaleurbandevelopmentscanoffer Restore Momentum in the Land
others in their communities. goods or services from significant opportunities to empower local Reform Agenda
suppliers, ensuring that communities and create local jobs through
the supplier passes on community ownership of assets. Landownershipisthecatalystfordelivering
some additional benefits community-led regeneration and growing
to the local community We call on the future Scottish Government community confidence and self reliance. We
should be most important to ensure all new developments include call on the future Scottish Government to
in their decision. asset transfer provisions to an independent review and extend community right-to-buy
community trust. legislation with a re-established Scottish land
IpsosMORI–August2010
fund to assist community land acquisition.
6 7
6. Priority 4 – Achieving Green
Actions for a National Culture
We further call on the future Scottish
Communities through Social Enterprise Government to publish a local energy of Social Entrepreneurship
investment strategy which sets ambitious
Social enterprises have a crucial role targets for community energy production
If social enterprise in Scotland is to fulfil its potential and be allowed
inScotland’sgreenagenda,workingin across the country with mechanisms for
community based renewable energy projects establishing capital investment. to create jobs and address the deep seated social and environmental
and reducing landfill through waste disposal needs of its citizens, it requires a range of quality business support
and recycling. Yet their purpose goes beyond and access to investment.
the green agenda, with profits reinvested in Allow Communities to Generate
their communities to provide local amenities, Income through Local Waste
local jobs and increased opportunity.
Social enterprises have established
successful recycling businesses across
Introduce a Community Energy Scotland, diverting waste from landfill while Priority 5 – Supporting Social
Investment Strategy delivering local jobs and community skills. Enterprise Businesses
Inthenexttenyears,significantinvestment We call on the future Scottish Government With the current high levels of
in renewable energy could create a source toworkwithLocalAuthoritiessothatfirst redundancy and unemployment, we
ofincomeforlocalcommunities.Community preference is given to communities to utilise believe that social enterprise is an
owned energy projects are already proving local waste for local economic, social and attractive option for those seeking to Support the Next Generation of
successful engines for change, allowing environmental benefit. create employment for themselves as social Social Entrepreneurs
local people to improve their quality of life entrepreneurs, or for individuals changing
while working with Government in tackling case study careers and looking to start new businesses. Young people are increasingly interested in
climate change, fuel poverty and energy social enterprise as an ethical business career
security. However, at present communities Community Energy – Eriskay Scotland’sestablishedsocialenterprisesalso which transforms lives and local communities.
are not always included in arrangements Community Hall, Western Isles require the business skills to scale up, acquire
between local authorities and energy assets and to create consortia to trade and We call on the future Scottish Government
companies, while uncertainty around long Eriskay Community Hall facilities provide expand into new markets. to ensure that learning about social enterprise
term investment in community owned energy a much needed community facility for the forms part of school life and to explore with
projects is currently sapping community and residentsofEriskay.Itisusedregularly We therefore call on the future Scottish further and higher education institutions how
volunteer morale. for social functions, weddings, sport GovernmenttoensurethatScotland’ssocial awareness of social enterprise, as a business
events, and is used frequently by the local enterprises have access to quality tailored model and a career option, can be increased.
We believe the connection between community. High electric running costs business support, with clear, easy signposting
community and energy production is vital to of around £3000 per annum and poor for social enterprises whether start-ups or
endow communities with the means to thrive. heating resulted in the group deciding to established.
install roof insulation and a 6kW on grid
We therefore call on the future Scottish wind turbine behind the hall to provide We further call on the future Scottish
Government to incentivise energy providers direct heat to the storage heaters. Government to consider supporting
and local authorities through the planning mechanisms for social enterprises to trade
process to engage with local communities. The group developed the project with the knowledge and expertise with each other.
assistanceofCommunityEnergyScotland
development officers who also granted
85% ThINk it is possible moneyfromScottishGovernment’sgrant 67% ThINk social
for companies to make scheme at the time. Savings per annum enterprises should have
a profit and also make a are over £2000 along with additional
a role in the delivery of
positive contribution to income of around £600 per year. Heating
public services.
Scotland’s communities. costs for this community facility have now
IpsosMORI–August2009
reduced to about £300 per year resulting IpsosMORI–August2009
in a thriving community facility.
8 9
7. case study
Priority 6 - Access to Capital for A Culture of
Scotland’s Social Enterprises Create a Bespoke Loan Guarantee Consider the Argument for Reduced Social Enterprise – Haven
Scheme for Scotland Income Tax for Scotland’s Third Sector Products, Inverness Glasgow
All businesses need finance. Scotland’s We believe a loan guarantee scheme for InlinewiththeCalmanCommission
social enterprises are now at a vital point in social enterprise would encourage financial recommendations for greater fiscal and Haven Products provides employment
their development, with high expectations institutions to make finance available to financial self determination – we ask the and training opportunities for disabled
of their capacity to deliver quality services supportgrowthandworkingcapital.TheUK future Scottish Government to consider the people; around 80% of its workforce has
in their communities at a time of maximum EnterpriseFinanceGuarantee(EFG)Scheme principle, already successfully established adisability.Itoperatesasacommercially
economic constraint. Fulfilling their potential is irrelevant for most social enterprises as inAustralia,thattheScottishParliament viable and efficient business, providing
requires imaginative financial solutions the guarantee levels are low and charges are should in future have powers to amend the high-quality services and solutions to
involving both public and private sectors, as high. We therefore call on the future Scottish basic rate of income tax for workers in the companies looking to outsource their
well as unlocking the reserves of untapped Government to ensure a bespoke scheme is Third Sector, to aid sustainable growth, production processes.
wealth within the sector itself. We call on the created to increase the flow of capital into deliver a step-change in innovative public
future Scottish Government to consider good this expanding sector. service delivery and ensure that Scotland The firm operates from three sites
practice elsewhere to attract a diversity of is positioned as a world leader in social across Scotland: Hillington, Ballieston
funding. enterprise business. andInvernessandworkscloselywith
Engage With the Uk Treasury on Tax the private and public sector through its
Relief for Social Enterprise Investment ComplementaryWorkforcewhichseeks
Engage With Lenders Introduce Social Impact Bonds to outsource skilled and trained Haven
Incentivisinginwardinvestmentfromprivate staff to some of the countries largest
Bank lending continues to play a big role sector institutions and High Net Worth We call on the future Scottish Government businesses,includingIBM,StandardLife
in supporting the sector. We call on the individuals concerned with community well to introduce investment mechanisms such and National Semiconductor.
future Scottish Government to engage with being,isakeypriority.Atpresentthereis asSocialImpactBondswhichchannel
commercial banks, particularly those in no equality of investor tax relief between private investment into projects run by social
majority public ownership, to ensure that social enterprises and the private sector. enterprises and third sector organisations.
79% AGREEd
lending to social enterprises is both sustained We therefore call on the future Scottish The Scottish Government would provide a
and increased. When the reforms to credit GovernmenttoengagewiththeUKTreasury financial return to investors, by paying out a
that people who
unionlegislationcurrentlybeforetheUK toaskthatCommunityInterestTaxRelief proportion of the savings to the public purse invest in social
Parliament are passed, we ask the future (CITR)issimplifiedandextendedto that result from improved social outcomes. enterprises should
Scottish Government to support the capacity encourage longer-term investment in social The more successful the project, the more be given tax relief
of credit unions to lend to social enterprise to enterprises, and that other existing tax relief public money is saved and the higher the equal to that
diversify sources of investment in the sector. includedintheEnterpriseInvestmentScheme return for the investor. received by people
andVentureCapitalTrustsareamended who invest in
along with the provision of clearer guidance, private companies.
for investors in organisations delivering social IpsosMORI–February2010
or environmental benefits.
10 11
8. Scottish Social Enterprise Coalition
Members Associates
Members Forth Sector UKCreditUnions
AberdeenDayProjectLtd GrampianHousingAssociation UnityEnterprise
(TheBreadMaker) GRECGraphics With People
AberdeenFoyer Haven Products YouCanCook
What’s next? AberlourChildCareTrust
ACECreditUnionServices
ActionforChange
HealthInequalitiesAlliance
HebrideanChocolates
HighlandsIslandsSocial Associates
AgeConcernEnterprises EnterpriseZone ACOSVO
We ask all parliamentary candidates to sign up AlbynHousingSociety
AlloaCommunityEnterprises
ImpactArts
Inspiralba
CreationLtd
FifeSocialEconomy
ArgyllButeSocial InspireVentures
to the Social Enterprise in Scotland Charter EnterpriseNetwork InstituteofLocalTelevision
InstituteofOccupational
Partnership
GlasgowCaledonianUniversity
AssociationofBritishCredit GlasgowEastRegeneration
to demonstrate their support for social UnionsLtd
AutismInitiatives
Medicine
InverclydeAssociationfor
Agency
Glasgow South West
Mental Health
enterprises and the policies set out in this Bookdonors
BRAGEnterprises LanarkshireEnterprise
RegenerationAgency
KeeganPennykid
BuchanDial-a-Community Services MacRoberts
manifesto for social enterprise. Bus
CalmanTrust
LinkGroup
LinkedWorkTrainingTrust
R.I.E.R.SocialEconomy
Partnership
CamphillScotland McSence RoyalBankofScotland
Mediaco-op
To view our Charter, please visit CBSNetwork
CDA(Scotland)Ltd MoraySocialEnterprise
ScottishChambersof
Commerce
CEiS Network ScottishCouncilfor
www.scottishsocialenterprise.org.uk/ CEMVOScotland
CentreofHealthWellbeing
MullIonaCommunityTrust
North Glasgow Housing
DevelopmentIndustry
ScottishFinancialEnterprise
2011holyroodelections ClaverhouseGroup
CommunityCareProviders
Association
PortofLeithHousing
ScottishUrbanRegeneration
Forum
Scotland Association ShellUK
CommunityEnergyScotland RealWorkSkills SocialEnterpriseAlliance
Thank you for your support. CommunityEnterprise
CommunityFoodInitiatives
Scottish Borders Social
EnterpriseChamber
Midlothian
StandardLife
NorthEast ScottishChurchesHousing TheCo-operativeBank
CommunityRecyclingNetwork Action TheFacultyofAdvocatesFree
for Scotland Scottish Federation of Housing LegalServicesUnit
CommunityRetailingNetwork Associations The Grange Group
CommunityTransport ScottishLeagueofCredit The Scottish Parliament
Association Unions BusinessExchange
CommunityWoodlands Send-it Triodos Bank
Association Senscot Unity Trust Bank
Compassion‘nAction SKSscotland Voluntary Sector Gateway
Co-operationMutuality SocialEnterpriseAcademy WestLothian
Scotland SocialEnterpriseClydebank
Co-operativeDevelopment Social Firms Scotland
Scotland SocialInvestmentScotland Individual Associates
Co-operativeEducationTrust Speyside Trust (Badaguish
OutdoorCentre) Janet Barnes
Scotland
SpruceCarpets CharlesBrodie
Cornerstone
SupportersDirectinScotland Isobeld’Inverno
CrescentKitchen
TheAfricanCaribbean SteveEbbitt
CunninghameHousing
NetworkLtd DavidHerd
Association
TheBigIssueScotland Martin Meteyard
DevelopmentTrusts
TheCleanCloseCompany Anne-MarieMcGeoch
AssociationScotland
TheEngineShed Jackie Scutt
DunedinCanmoreHousing
The Factory Skatepark Sandy Slater
Association
TheKibbleCentre KennethTomory
EliteLinguists
The Melting Pot PaulZealey
EmployersforChildcare
Firstport The Wise Group
12
9. Social enterprises in Scotland working in...
BuSINESS CENTRES
CATERINg
ClEANINg
CHIlDCARE
CoNSTRuCTIoN SERvICES
CoNSulTANCy
CulTuRAl HERITAgE SERvICES
EmPloyABIlITy TRAININg
ENvIRoNmENTAl mANAgEmENT
FINANCIAl SERvICES
FooD
Join us HEAlTHCARE SERvICES
HoRTICulTuRE
HouSINg
The Scottish Social Enterprise
INFoRmATIoN SERvICES
Coalition is the national collective
lAND mANAgEmENT
campaigning voice for social enterprise
PRoPERTy mAINTENANCE
in Scotland. It represents the needs
RECRuITmENT
and interests of social enterprise to
RESEARCH
politicians, policy makers and opinion
RETAIl
formers through its members.
SoCIAl CARE
Each April, the Coalition runs the S2S SPoRT FITNESS
Social Enterprise Fair which attracts SuRvEyS
more than 500 delegates from across TouRISm SERvICES
TRANSlATIoN SERvICES
the uK. www.s2sfair.com
TRANSPoRTATIoN
Tv, FIlm mEDIA
Contact us for more information and
WASTE RECyClINg SERvICES
for details on how to join to make
WEB DESIgN
youR voice heard:
WElFARE SERvICES
T. 0131 243 2650 E: admin@ssec.org.uk
www.scottishsocialenterprise.org.uk
Championing business with a social purpose
Thorn house, 5 Rose Street, Edinburgh Eh2 2PR
