A Dutch man I used to work with many years ago had a saying, “Er bestaat niet zoiets als een probleem, alleen een kans die wacht op een oplossing”. Or “there is no such thing as a problem, just an opportunity waiting for a solution”.
There are two ways of looking at the situation in the country and West Midlands, there is the “it’s all a mess, where do we even start”. Or, “this is an opportunity to rebuild and shape a fairer society.”
There are factions in society who are playing to the first of these by creating scapegoats for our problems in order to gain power. But there are others, like me, who see the opportunities to build back better – in reality, not a slogan.
Central to this, in my opinion, is the social economy. Businesses set up to create sustainable solutions to the inequality in society. Inequality that’s never been deeper. There are almost 10,000 of these businesses in the West Midlands. They consist of Social Enterprises like Jericho, Community owned businesses like York Supplies, Cooperatives, and trading charities like the Colebridge Trust and Community Anchor organisations like Witton Lodge Community Association.
However, I am retired now so I can say it. 15 years of Tory austerity and local government cuts has decimated the once strong infrastructure and left the sector rudderless and hanging on by its fingernails.
But the sector has struggled on, shown great resilience and, if anything, is working harder and having greater impact than ever. It has to. It has grown in number – 20% in the last 3 years. Three quarters of the sector are small and micro businesses with turnover well below £100k pa and too reliant on grant funding and philanthropy.
So, where is the opportunity? The opportunity comes through investment in this sector, particularly in place based focused investment in areas of deep deprivation, the infrastructure to create the direction and engine for growth and the business skills fuel the growth and reduce grant dependency. Other parts of the ecosystem will flow from there.
I had the pleasure of spending the last 3 years working for the West Midlands Combined Authority, as the Social Economy Growth Lead, laying the foundations for growth. The three main areas where investment has been made are:
Business Skills – Social Entrepreneurs are experts in the social issue they are tackling but don’t all have the business skills to create a profitable and sustainable business. There are a few very sharp business women and men but they are in the minority.
Infrastructure – The once strong infrastructure organisations that supported the Social Economy is almost entirely gone due to austerity (see above). So investments have been made and planned to increase in anchor organisations in key areas across the region plus BSSEC operating at a regional and national level.
Finance – Access to the right type of investment finance is key and so a partnership with Big Issue Invest has been established to increase the uptake and improve the suitability of funds.
Between January 2023 and March 2029, a total of £4.3 million will have been invested.
That’s just the beginning. More money is expected to be devolved over coming years and the setting up of the Office for the Impact Economy, reporting directly to Cabinet promises £billions of further investments over coming years. The West Midlands Combined Authority is well placed to take advantage of this. It has a plan and will have the infrastructure to deliver it.
In addition to money, policy and systemic change has also been made in areas such as procurement and where the Social Economy sits within WMCA short, medium and long term plans and how it integrates with inclusive growth and the everyday economy.
The Social Economy is vital in tackling inequality and tackling inequality is essential if real growth foe everyone is to take place.
I feel very privileged to have played a part in this rebirth of the Social Economy and have every faith that my successor will build on these foundations.
This is a personal blog post. Any opinions, findings, and conclusion or recommendations expressed in this article are those of the authors and do not necessarily reflect the view of the Centre for the New Midlands or any of our associated organisations/individuals.
ABOUT OUR AUTHOR:
Charles Rapson is a highly experienced leader in Social Enterprise who set up and ran the School for Social Entrepreneurs in the East & West Midlands for 9+ years, helping individuals and organisations create sustainable and purpose driven businesses. Charles was the Strategic Lead for Social Economy Growth at the West Midlands Combined Authority from 2023-2026, tasked with the delivery a 10 year programme to double the size of the Social Economy.
His experience is based on almost 50 years working in family business, industry, his own business and consultancy, the Third Sector and setting up and running two Social Enterprises. Charles is passionate about Inclusive Growth and how Social Enterprise is well placed to contribute to that goal.
