We've entered 2014 with signs of UK economic growth, but Robert Ashton says the civil society sector is still in the doldrums. He looks at how it can prosper too.
As the sun of economic prosperity emerges from behind the dark clouds of recession, I find that the social economy remains shaded by a tree. You can't possibly have missed the signs that the UK economy is fast recovering. Output is rising, consumer confidence is growing and inflation appears under control, which means interest rates can remain low.
But if you're working in the social economy, either as a charity or social enterprise, it probably still looks very bleak. Councils are right now deciding where to make more spending cuts to balance their reduced 2014-15 budgets. If this is where you get your income, you're still experiencing a deepening recession.
So how can we slow this divergence, with the for profit becoming more profitable and not for profits going bust? I think the answer is called 'business support.' Let me tell you why.
For perhaps 15 years, between the early 90s and the 2007 crash I made a good part of my income delivering government funded, or at least heavily subsidised business support.
I and many others worked hard to translate the various funded programmes into meaningful experiences for business owners. Often we had to be quite creative, particularly when it came to demonstrating that the organisation qualified for the support. The skill was in making sure both funder and funded got what they needed, even if this sometimes differed from what they thought they wanted!
The recession ended just about all funded business support. Those who delivered it either started charging full rate for their time (the good guys), or found another way to earn a living (the lacklustre guys). Oh and yes, some of the guys were of course girls!
But now government subsidised business support is back and it's rather taken me by surprise. I'd grown so accustomed to its absence, that I'd forgotten just how important it can be. Moreover, many of those in the social economy can qualify for help and that might be just what they need.
Take the BIS funded 'Growth Accelerator' programme for example. For a modest investment, businesses committed to growth can receive a healthy amount of coaching for their senior team. This will usually involve visioning, goal setting and creating simple, visual one page plans that will enable everyone to see their opportunity to make the right things happen. Moreover, management training to help deliver these goals can attract 50 per cent funding, making it affordable. To qualify you need to be incorporated, either as a limited company or CIC ( which of course even most charities are).
Growth vouchers, that can get you a 50 per cent grant towards the cost of business support, launch next week (Mon 27) see These are perfect for getting things done that your growth accelerator coach has helped you identify, that you cannot do yourself.
As you might expect, I've signed up to deliver both programmes. My focus will be on voluntary & community based organisations that are replacing grants with earned income. But my important message to you today us this. Business support is for all businesses and you may need to push a little to get noticed if you're in the social enterprise sector. Not everyone will see you as a market for funded support, even though right now your need, and your opportunity is probably huge. Go for it!
