29 January 2009

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Social enterprise: more a homecoming than a new departure
No apologies for returning to the theme of social enterprise, which featured at the national World Class Commissioning event in London earlier this week for PCT and SHA heads. Among the speakers was Victor Adebowale, the head of Turning Point, a large social enterprise with 2,500 people spanning 250 locations, which specialises in drug rehabilitation and other types of community care in some of the areas – geographically and demographically – where mainstream services are often thin on the ground. Another speaker, Emma Wilson, is chief executive of Local Care Direct, a Yorkshire based community enterprise running 11 primary care centres with a staff of 1000. Their stories deserve more space than we have here, but several common themes emerged. First, social enterprise is not weird or marginal or 'alternative' in the derogatory sense of the word. It is just a different model for enterprise, a different way of doing business that has a strong ethical dimension. Typically, this is the simple belief that earnings should not go to shareholders or be siphoned into offshore accounts but should stay in the business and in the community the business serves. Second, social enterprise does not, in itself, confer virtue or value. Setting up as a social enterprise does not de facto mean the business is 'good' either in the business or moral senses of the word. Third, not everybody gets it. The audience at this event contained fans and sceptics in what appeared to be roughly equal measure. Fourth, not for profit does not mean for deficit. Local Care Direct has turnover approaching Ł20 million. There are hundreds of other examples of highly successful business that collectively contribute an estimated 5% of GDP. What is very clear is that social enterprise is a growing movement that is rapidly acquiring credibility. PCTs are becoming more confident about commissioning services from social enterprises, though as Victor Adebowale pointed out, with budgetary constraints looming, PCTs doing business with social enterprises will also face the challenge of decommissioning elsewhere. What is also clear is that while social enterprise may not be a model that suits hedge funds or arms dealers, it makes a comfortable fit with the NHS, which was arguably founded as a form of social enterprise by a GP collective 60 years ago. From that point of view, social enterprise is not so much a new departure as a homecoming for the NHS. The next New@Networks will be sent out on 5 February.
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