Enterprises are ‘overlooked’

February 27 2009

The Social Enterprise Coalition’s Chief Executive has challenged the Government to improve its offer to the third sector following a cash promise of £42.5 million from the Cabinet Office.

The pledge from the Government was designed to help volunteers, charities and social enterprises deliver help during the global economic downturn.

However, Jonathan Bland from the SEC was disappointed with the Government’s lack of focus on the social enterprise sector. He said: “We are disappointed that social enterprises have been largely overlooked by this action plan. Social enterprise should be an essential part of the plan to rebuild the economy, and currently it is not. We challenge the Government to do more and to take advantage of the solutions that social enterprises are already delivering.

“It’s a missed opportunity to expand the role that social enterprises are already playing in tackling the most critical aspects of the recession, particularly in job creation, economic development, and anchoring wealth in communities.”

The Government strategy includes a £500,000 investment in the School for Social Entrepreneurs, which Mr Bland said he was pleased with. The extra funding is set to double the number of people the school trains to become social entrepreneurs, particularly those working in deprived communities.

However, Social Enterprise London Chief Executive Allison Ogden-Newton welcomed the plan. She said: “At a time when our economy and society are facing such challenges, it is deeply encouraging to see social enterprise at the heart of the Government’s plans for recovery. The time for social enterprise is now and with this kind of support we can ensure London continues to lead the world in running business for social purpose.”

The Real help for communities plan will deliver a £16.5m funding package to 3,000 third sector organisations to help with the cost of mergers and partnerships. Around £10m will be invested in a volunteer programme for 40,000 unemployed people to teach new skills and £15.5m will enable grants to be given to small and medium providers in deprived communities.

The report says £8.5 million of the £42.5 million will be directed at new and expanding social enterprises, while the remaining funds will go to small and medium third sector service providers.