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Report into the Feasibility of developing a Social Enterprise

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					19/02/201019/02/2010




                              Report into the

                       Feasibility of developing

                  a Social Enterprise Incubator Unit

            for the West Howe area of Bournemouth.




      Produced for
      Dorset Co-operative Development Agency (CDA-Dorset)
      By
      Co-operative Assistance Network Ltd, And
      Upstart Services Ltd
      12th August 2004
 Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth



                                   ACKNOWLEDGEMENTS


    Thanks are due to the South-West of England Regional
  Development Agency and the University of Bournemouth for
           their financial support for this project.

 Thanks are also due to Jane McWilliams of CDA-Dorset for her friendly and unobtrusive
project management, to Bev Hepting and Steve Tarrant of WHIPS for sitting patiently while
their brains were picked, to the Planning Department of Bournemouth Borough Council for
  their idiots guide to use-classes, to Joy Reynolds Director of Planning at Bournemouth
  Primary Care Trust, Colin Crooks Chief Executive of Green-works, James de Bathe of
Beneficial Green-works (Portsmouth), Gary Platt of Bournemouth Borough Council Estates
            Department, and the members of the social enterprises in West Howe.




                           Co-operative Assistance Network Ltd and Upstart Services Ltd
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  Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth



                                                                 Contents
I. EXECUTIVE SUMMARY .............................................................................................................. 4
II. INTRODUCTION ............................................................................................................................. 5
III.   TERMS OF REFERENCE ........................................................................................................... 6
IV.    METHODOLOGY ........................................................................................................................ 7
V. BACKGROUND TO THE STUDY ................................................................................................ 8
   A. SOCIAL ENTERPRISE ............................................................................................................... 8
   B. Social Enterprise Development .................................................................................................... 9
   C. Business Incubation ..................................................................................................................... 10
     1. United Kingdom Business Incubation ................................................................................... 11
   D. The Policy Framework ................................................................................................................ 12
   E. Planning Framework ................................................................................................................... 13
     1. The Structure Plan ................................................................................................................... 13
     2. The Local Plan ......................................................................................................................... 14
VI.    FINDINGS ................................................................................................................................... 15
   A. Identify existing social enterprises ............................................................................................. 15
     1. Existing social enterprises which are trading ........................................................................ 15
     2. Emerging Social Enterprises................................................................................................... 16
   B. Identify opportunities for additional social enterprises, based on local needs ........................ 16
     1. Housing Stock Options ........................................................................................................... 16
     2. Community Options ................................................................................................................ 17
     3. Health-related options ............................................................................................................. 18
   C. Assess learning and support needs for further development of social enterprises .................. 19
     1. General ..................................................................................................................................... 19
     2. Social Enterprise Portal Study ................................................................................................ 19
     3. Going It Together – Business Support to Co-operatives ...................................................... 20
     4. Social Enterprise Management Training ............................................................................... 22
     5. Web-based training ................................................................................................................. 22
     6. The West Howe survey ........................................................................................................... 23
     7. Pinball wizardry....................................................................................................................... 24
   D. Research other models of social enterprise incubation units and recommend an appropriate
   model for West Howe .......................................................................................................................... 25
     1. The Models .............................................................................................................................. 25
     2. Other Social Enterprise Incubation Units .............................................................................. 25
     3. A recommended model for West Howe................................................................................. 29
   E. Identify resources needed at start-up and to ensure sustainability ........................................... 30
     1. The Range of services needed ................................................................................................ 30
     2. Proposed form for incubator ................................................................................................... 33
   F. Assess options for location of Incubation Unit ......................................................................... 34
     1. Possible Options ...................................................................................................................... 34
     2. Recommended Option............................................................................................................. 36
   G. Develop an action plan with fundraising strategy ..................................................................... 38
     1. Phase One ................................................................................................................................ 38
     2. Phase Two ................................................................................................................................ 38
     3. Phase Three .............................................................................................................................. 39
     4. Fund-raising Strategy .............................................................................................................. 39
VII. CONCLUSION ........................................................................................................................... 43
VIII. RECOMMENDATIONS ............................................................................................................ 45



                                    Co-operative Assistance Network Ltd and Upstart Services Ltd
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 Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth



I.              EXECUTIVE SUMMARY
       A. Background
West Howe is a community considered disadvantaged. The Wallisdown ward is in the top
ten worst wards for unemployment in the south-west and in the poorest 25% of wards
nationally. There are high numbers of the residents on benefits and a high proportion of
young single mothers. Skill levels are relatively low and there are problems of exclusion
and disaffection. There is an existing Sure Start project and there has been a community
worker in place since 2000. A local credit union has an office and there are apparently
opportunities for social enterprise. It is believed that a social enterprise incubation unit
would greatly assist in the formation of these social enterprises.

       B. Social Enterprise
There is a favourable environment nationally for the support of social enterprise. Many
policy initiatives support the concept, although not all are clear in their own minds about it.
West Howe itself offers a fruitful environment for the development of social enterprise,
building on the work already carried out by WHIPS, and the other community development
initiatives which have taken root there including Sure Start. There are a small number of
potential enterprises already in development.

       C. Business Incubation
Business Incubation is a proven method for increasing the rate of both enterprise formation
and survival. It works particularly well where there is a sector focus, e.g. bio-technology or
ICT. Its application to social enterprise is not so well-known or researched but there are a
number of examples around the UK. Investigation into these social enterprise incubation
units reveals that they are generally successful. This is normally founded on strong local
leadership, a community asset base, and strong roots in the community.

       D. Opportunity
An opportunity is available at West Howe based on the combination of the work already
done by WHIPS, the potential availability of a purpose-built building, and a favourable
planning and policy framework towards employment development in West Howe. The
proposed use of state-of-the-art ICT solutions means that a relatively small unit can have
an effect far greater than its physical capacity, and contribute towards a learning
community. In combination with a managed workspace facility for second-stage
accommodation the potential exists for a significant social enterprise sector in West Howe.

       E. Conclusion
The development of a social enterprise business incubation unit in West Howe is a feasible
proposition. It will address the need for employment that achieves work-life balance for
lone mothers, and for employment that does not exclude those lacking in formal
educational qualifications. It will assist in the policy objectives of the Regional Development
Agency and also those of the Primary Care Trust. It is our conclusion that the proposal
should be supported.




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 Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth




II.             INTRODUCTION
West Howe is a large housing estate in the Wallisdown ward of Bournemouth. Residents
of the West Howe community are amongst the most deprived in Bournemouth, Dorset and
Poole and feature high on national indices of deprivation. A high level of residents are
dependent on benefits; there are a high proportion of young single mothers and various
social problems amongst the community associated with exclusion and disaffection. A
high proportion of residents have basic skills needs.

A community development worker was employed in 2000. Following successful work
relating to healthy living and health, employment and learning are now the primary focus of
her work. A charitable company (WHIPS – West Howe Investing in People) was set up to
support the local community in developing a variety of regeneration initiatives. WHIPS
took on the lease of a shop for the community and this serves as a base from which basic
skills training, advice and support is given. A credit union facility which serves the local
community also operates from here.

The potential for developing community enterprises was identified and led to a Business
Awareness day delivered by CDA Dorset and Dorset Community Action in December
2001. A number of ideas for social enterprises to deliver some of the services needed on
the estate were generated including:
            a launderette
            childcare
            landscaping service
            food co-operative
            community café
            cleaning service
            community consulting
            children‟s educational packs
            community transport services.

The vision is for Enterprise West Howe to assist in the development of enterprises on the
West Howe Estate in Bournemouth through a Social Enterprise Incubation unit. T his will
provide local jobs, develop individual, transferable skills, increase employment
opportunities and provide services needed or required by the community.




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 Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth




       A. TERMS OF REFERENCE
Co-operative Assistance Network Ltd (CAN) were commissioned to carry out research into
the feasibility of establishing a Social Enterprise Incubation unit as described above. It was
specified that the work should be undertaken in close liaison with residents and the
Community Development Worker who has built up the trust of the community. CAN
submitted their tender in conjunction with Upstart Services Ltd who were engaged to carry
out agreed parts of the project.

The objectives of the study were to:
       Liase and network with Community Development Worker for West Howe and
         WHIPS
       Identify existing social enterprises
       Identify opportunities for additional social enterprises, based on local needs
       Assess learning and support needs for further development of social enterprises
       Research other models of social enterprise incubation units
       Recommend an appropriate model for West Howe
       Identify resources needed at start-up and to ensure sustainability
       Assess options for location of Incubation Unit
       Develop an action plan with fundraising strategy
       Liase with stakeholders, assess any current support and advice available and
         identify any assistance which may be available in the future




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 Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth




       B. METHODOLOGY

Preliminary Research carried out by internet.

Survey work carried out on West Howe into existing enterprises.

Meeting held with Bev Hepting on 30th June 2004.

Desk Research carried out by internet, by review of documents and by interview with key
stakeholders. Identifying generic needs of social enterprises.

Progress meeting with Bev Hepting on 20th July.

Visit to Borough Planning Department on 20th July to identify Planning Framework for area.

Survey of existing Social Enterprises held on 3 rd August 2004.

Workshop held on 5 th August 2004 to identify the location of the proposed incubation unit.

Workshop held on 9 th August 2004 to identify a development plan and fund-raising
strategy.

Write up of report.




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 Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth




III.            BACKGROUND TO THE STUDY
       A. SOCIAL ENTERPRISE
       There has been much discussion recently in political and economic circles about the
       concept of Social Enterprise. There is a great deal of confusion about this term. The
       DTI definition provided by their Social Enterprise Unit describes “a business with
       primarily social objectives whose surpluses are principally reinvested for that
       purpose in the business or in the community, rather than being driven by the need to
       maximise profit for shareholders and owners.” However other definitions would
       include “a business which is socially owned and controlled” (emphasis added).
       Government policy on Social Inclusion identifies the lack of control that many people
       have over aspects of their own lives as a major concern. As a practising social
       enterprise CAN supports this interpretation. Accordingly this report will accept a
       definition of social enterprise that includes social control.

       Social Enterprises:
              are Enterprise Oriented;
              have Social Aims; and,
              have Social Ownership.

       Social Enterprises therefore comprise: co-operatives of all types; community
       businesses; social firms; Development Trusts; community groups; local exchange
       trading schemes; credit unions; trading arms of charities; development and support
       agencies.

       Within the range of enterprises that qualify for the epithet of social enterprises then,
       there are two basic approaches with a range of dimensions:
       Self-Help                                Philanthropic
       Democratic                               Consultative
       Members                                  Trustees
       Bottom-up                                Top-down
       Co-operative                             Charitable

       Although we accept that there are occasions when the approaches summed-up in
       the right-hand column are appropriate and have value, it is our experience that the
       approaches taken from the left-hand column offer greater benefits in the long run
       even if they may require additional inputs (e.g. empowerment training).

       Social Enterprises make a meaningful contribution to the fabric of many local areas.
       Economies with strong social enterprise elements include: Emilia-Romagna, Italy;
       Mondragon, Spain; and Davis, California, USA. These local economies feature
       strong economic activity and other social benefits, which have been linked to the
       prevalence of social enterprises in the economy. The identified social benefits of
       social enterprises include: improved entrepreneurial awareness; improved attitudes
       to education and training; a community asset base; locally responsive services and
       more cohesive communities.




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    Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth


            The Government believes that “successful social enterprises can play an important
            role in helping to deliver on many of its key policy objectives by:
                   • helping to drive up productivity and competitiveness;
                   • contributing to socially inclusive wealth creation;
                   • enabling individuals and communities to work towards regenerating their
                     local neighbourhoods;
                   • showing new ways to deliver and reform public services; and
                   • helping to develop an inclusive society and active citizenship. 1”

            The Prime Minister has said “Our vision is bold: social enterprise offers radical new
            ways of operating for public benefit. By combining strong public service ethos with
            business acumen, we can open up the possibility of entrepreneurial organisations -
            highly responsive to customers and with the freedom of the private sector - but
            which are driven by a commitment to public benefit rather than purely maximising
            profits for shareholders. Many social enterprises are already showing how this can
            be done. But we recognize that they are currently only a small part of our economy.
            We want to build on this foundation and create an environment in which more
            people feel they are able to start and grow such businesses 2.”

            It is not however enough to will the ends. This report will examine the practical steps
            necessary to provide the means.

            B. Social Enterprise Development
            There are a number of steps that enterprises go through in development. At the first
            level there is the voluntary or hobbyist activity. The next level, where money
            changes hands, requires record keeping.




            The level beyond, with one or more p/t or f/t employees requires payment of wages,
            PAYE etc. At the next stage, with five or more employees, a whole range of
            legislation kicks in and it becomes very real.

            The crucial development need is to focus support activity on the vital early stages.
            An enterprise with five or more employees is either established or requires a
            bespoke development programme to itself. In either case it may not be the best
            client for an incubator.
1
     Social Enterprise: A Strategy for Success p 19
2
    ibid p 5

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    Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth




          Even more pertinently, an enterprise that is being planned will proceed through a
          number of stages: clarification of idea; feasibility study; business plan development,
          and resource acquisition. Then there comes registration, trading, then the two-year-
          trading benchmark. Support at all of these critical development points will improve
          the prospects of getting the enterprise through these stages to the two-year trading
          benchmark. The task is to “incubate” these enterprises through these risky stages
          and into a stable “adulthood.”


          C. Business Incubation
          A survey for Cambridge CDA in 2003 3 examined the feasibility of a Social Enterprise
          incubator in Cambridge. In the survey of existing social enterprises 60% of the
          respondents stated that access to affordable, appropriate premises had been a
          major problem in setting up their businesses.

          Social Enterprise London (SEL) has also identified this barrier. “Within the
          community development strand a common strategy is asset-based development.
          This development strategy recognises that the possession of tangible assets – land,
          buildings or a dedicated income – is one means of achieving the goals of self-
          sufficiency, independence and sustainability, which underpin community-based
          regeneration organisations. …..asset-based approaches have also included the
          development of business incubators or social enterprise centres to assist new social
          enterprises. These offer access to peer groups, networks and mentoring as well as
          provision of premises, advice and access to funding and expertise, including micro
          credit schemes, business training, pre-start-up and start-up grants and outreach
          work. 4”

                    1.     What is an incubation unit?
          The South-West Regional Development Agency states that “Incubation is as much
          about people and networks as workshops and laboratories. Only by developing a
          holistic approach that combines infrastructure and support services to create a
          positive economic environment will we see successful growth businesses emerge
          that will make a real contribution to the region‟s economy 5.

          SWRDA accepts a definition of Business Incubation as “A process that helps to
          reduce the failure rate of early stage companies and speed the growth of companies
          which have the potential to become substantial generators of employment and
          wealth. The process spans creation of the business idea through company
          formation, to assisting the company finding appropriate accommodation outside the
          incubation centre in grow-on facilities and until the company no longer actively
          seeks assistance. A project without all of the essential features below cannot be
          called a business incubator and should be called a managed workspace 6.”




3
  “Feasibility Study for a Regional Flagship Incubator in Cambridge for Social Enterprises”
4
  London Social Enterprise Strategy p57
5
  SWRDA Incubation and Science Park Strategy p4
6
  SWRDA Incubation and Science Park Strategy p20

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    Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth



           Essential Features                                  Important Features
           Access to networks                                  Communal areas
           Mission statement/strategy/objectives               Focal point or physical presence
           Access to finance and mentors                       On-site management and daily
                                                               contact
           Company selection and exit policy                   Access to specialist facilities
           Direct guidance/assistance available
           Flexibility of space and terms
           Realistic and sustainable business
           plan
           Singular or complementary sector
           focus



                    2. United Kingdom Business Incubation
                    The UKBI is the national body launched by DTI and Treasury Ministers in
                    1998 to promote and facilitate the development of business incubation in the
                    UK. It has a membership network, which requires member institutions to
                    maintain certain standards and quality levels in the provision of their
                    incubation services. It provides members with access to information, advice,
                    contacts, message boards, etc. Members also have access to advice and to
                    other regional and national events. The UKBI has endorsed the following
                    projects in the South West:
                                   • Exeter Innovation Centre
                                   • Bournemouth University Innovation Centre
                                   • Tetricus Incubation Centre, Porton Down
                                   • Gloucestershire Innovation Centre
                                   • Bristol Enterprise Centre
                                   • Goshen Business Advice Centre, Plymouth
                                   • Winfrith Innovation Centre, Dorset
                                   • Oakfield Incubation Centre, University of Bath at Swindon
                                   • Tamar Science Park, Derriford, Plymouth
                                   • Cotswold Innovation Centre, Gloucestershire
                                   • Innovate Centre at the University of the West of England
                                   • The Coach House, Small Business Centre, Bristol
                                   • Carpenter House, Bath 7.

                    There is as yet no similar network of Social Enterprise incubators that we can
                    identify. It may be that the research for this report gives the proposed
                    incubator sufficient information to play a role in developing such a network.

                    The UKBI commissioned the “National Best Practice Study in 2001.” This
                    report is the outcome from the second phase of the first UK study on
                    business incubation by UKBI in 2001. Phase One involved an extensive
                    review of research into incubators worldwide. Seven UK incubators were
                    investigated. A total of 82 interviews were conducted with managers,

7
    SWRDA Incubation and Science Park Strategy p16

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    Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth


                     directors, tenants and graduates in each to establish what effects location in
                     a business incubation unit has had on the performance of businesses.

            The research produces evidence that:
                 tenants and graduates of incubators grow and change (e.g. in particular they
                  exhibit significant increases in turnover)
                in the views of tenants and graduates, being in an incubator has been
                  important to the development of their businesses
                having an incubator address has been an advantage to their businesses, and
                  the prestige effect of the address specifically has been particularly useful
                in the views of tenants and graduates, the provision of premises, together
                  with common facilities and the way that they are managed, are significant
                  advantages that incubators offer: important facilities include quality reception
                  services, location of the incubator and flexibility of management approach:
                  however, different elements appeal to different firms and at different stages of
                  development
                the provision of management support services is regarded with mixed views:
                  in general tenants and graduates rate it slightly more important than both the
                  address and the premises-related services, but business support services are
                  not frequently used, and ratings of their usefulness are moderate: there is a
                  likely relationship between type of firm, stage of development and service
                  take-up: fast/high growth firms are less likely to use support services than
                  slower growth firms.
                co-location is not significant to the development of tenants and graduates,
                  and there are few linkages/trading relations between them
                the extent and nature of the involvement of incubator managers with tenants
                  may have a bearing on incubator outcomes; but the picture is mixed because
                  some have less contact with tenants than do their management colleagues,
                  different styles of involvement may have different effects, and managers have
                  more significance for some types of firm than for others
               the specific effect of selection policies on the outcomes of different incubators
                  is unclear; their application in practice does reveal favoured tenant profiles
                  but it is not always clear how accurately they fit with formal incubator policies
                  or targets
                knowledge of exit policies among tenants is moderate, and the influence they
                  have on tenants‟ plans is (in their own views) slight: it may have more effect
                  at the entry stage, deterring those who are uncomfortable with a limited term
                  in the incubator. 8

            D. The Policy Framework
            The Government has a major National Strategy for Neighbourhood Renewal
            (NSNR), which includes:
                 1. The New Deal for Communities Programme
                 2. Local Strategic Partnerships (LSPs),
                 3. A targeted Neighbourhood Renewal Fund (NRF)




8
    UKBI National Best Practice Study 2001

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     Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth


           In 2001 the Neighbourhood Renewal Unit (NRU) was formed to join together these
           strands of work and to drive forward the overall strategy. This takes place within a
           funding framework, which includes:
                  • Single Regeneration Budget – SRB.
                  • Health Action Zone – HAZ.
                  • Education Action Zone – EAZ.
                  • Employment Zone – EZ.
                  • Excellence in Cities – EiC.
                  • Sure Start.
                  • European Union Funded Area-Based-Initiatives – EU.
                  • Small Education Action Zones – SEAZ.
                  • Sports Action Zones – SAZ.
                  • Youth Inclusion Projects – YIP.

           Of these, Sure Start has an effective presence in the West Howe area.

           The Regional Development Agency has a clear strategic commitment:“

               to increase economic inclusion, so that all parts of the region - including those
                       currently most deprived - can benefit from increased prosperity. 9

           A major policy in support of the strategic aims is to promote the development of the
           region through the use of business incubation units. Policy 3a) states that the RDA
           will “Support the building of new science parks and incubators where clear demand
           exists. Develop and enhance existing provision by installing specialist research
           equipment and facilities, paying special attention to increasing the possibilities of
           shared use between businesses at different locations, including the refurbishment
           and enhancement of existing facilities 10.


           E. Planning Framework
                    1. The Structure Plan
                    The Bournemouth, Dorset and Poole Replacement Structure Plan is currently
                    on deposit from July 2004 to September 10th 2004. This contains the policies
                    governing land use in the County Area. It states that:
                    “It will not be sufficient simply to demonstrate that sites exist to meet
                    Structure Plan requirements. It is also very important that there should be a
                    wide variety of sites available, capable of accommodating premises ranging
                    from small starter units or office suites to major industrial facilities and
                    international office headquarters. 11”

                    Within this there is Economy Policy B –Employment Land Locational Criteria
                    which states that:
                    “New employment development should be directed to locations:
                           -providing the opportunity to reduce commuting by car;
                           -well related to residential and associated facilities;
9
  SWRDA Strategic Objective (second of three)
10
   SWRDA Incubation and Science Park Strategy
11
   The Bournemouth, Dorset and Poole Replacement Structure Plan Para 4.21

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 Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth


                        -accessible by public transport, with good road and, where possible,
                        rail access; and
                        -using derelict, under-used or previously developed land where
                        possible.
                Sites with an established employment use which meet these locational
                criteria and are, or could be, significant in accommodating employment for
                the local area should be protected from other uses...”

                The reduction of commuting by providing employment locally would therefore
                satisfy the first two and the third criteria for new employment development.

                2.    The Local Plan

                The District-wide Local Plan was adopted in February 2002. It contains a
                presumption towards development intended to tackle the Borough
                unemployment problem which is perceived as worse than neighbouring
                Boroughs e.g. Poole. Wallisdown ward itself is listed among the worst ten
                wards in Dorset for unemployment and the worst 25% nationally. Policies 5.1
                and 5.2 support job creation in general and small business job creation in
                particular. However this is not to be at the expense of housing, as Policy 6.3
                creates a presumption in favour of retention of residential use except in
                certain circumstances. Another major local constraint is the number and
                extent of sites of special scientific interest locally, (Policies 3.13, 3.14) with
                much of Turbary Common and its extensions east of Verney Road/Close
                protected under this heading. However the land east of Verney Road/Close
                can be used if it is established that a business incubator would have benefits
                that clearly outweigh the intrinsic conservation or scientific value of the land
                itself. The plan therefore supports potential development if the other criteria
                can be satisfied.




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 Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth




IV.             FINDINGS
       A.       Identify existing social enterprises
                1. Existing social enterprises which are trading
                West Howe Investing in People (WHIPS) is a charitable company
                incorporated in April 2002. Its main activity is to promote and provide
                education and training for community workers in either professional or
                voluntary settings, and to raise standards and effectiveness of community
                work within West Howe. It has not been registered as a charity. Its turnover in
                2002/2003 was £24,600. Some £21,425 of its income was grant funding. It is
                investigating ways to develop trading income as grant funding decreases. It
                acts as the base for a number of other social enterprises in West Howe which
                it has helped to develop. These are not yet formally constituted and they
                operate with support from WHIPS.

                Credit Union of Bournemouth (CUB) have a staffed collection point in the
                West Howe Network shop, in addition to their main branch in Boscombe.

                Shape Up is a keep fit training service run from the West Howe Network
                shop, using nearby community rooms for its exercise sessions. It is run by
                two women, who recently obtained grant funding to develop the enterprise.

                Bournemouth (West Howe) Travel and Transport Club is based at the West
                Howe Network shop. It runs competitively-priced day trips and holidays to
                destinations such as Blackbushe Market, Dartmoor and Blackpool. Many of
                its customers, and also its organisers, are pensioners. It is currently run on a
                voluntary basis; organisers are not paid for their time. It also runs a travel
                savings club and provides information on local public transport.

                West Howe Printing Resource provides colour and black and white printing
                and photocopying; laminating, design and photography. It is based at the
                West Howe Network shop and its equipment belongs to WHIPS. It provides
                training to its volunteer workers who are paid the maximum amount they may
                earn on top of their benefits. It has just won a contract to provide
                Bournemouth Borough Council with a travel timetable accessible to people
                with learning difficulties, which they designed with the WHIPS staff. A number
                of other local authorities are interested in contracting them to produce
                accessible timetables. It provides printing and other services to many of the
                other social enterprises in West Howe.

                A Web Design Service has recently been started by a local woman with the
                help of WHIPS. So far, a web site for West Howe containing community
                information has been established, including some income from advertising.


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                The public park at Moore Avenue was recently gifted to the c ommunity by the
                council. Friends of Moore Avenue Park was formed with the support of
                WHIPS to manage and improve the park. It operates from the West Howe
                Network shop. Funding has been secured for park improvements which are
                under way. The next stage will be to obtain funding to train and employ park
                keepers and maintenance workers.

                “Gardening, Cars, Decorating, Bikes,” is run by a local woman using the West
                Howe Network shop as a base. It provides household repairs and
                maintenance to single or young mothers and to elderly and disabled people.

                “Kay & Jay Books” is run by a local woman, with support from WHIPS. She
                writes children‟s books with a parallel sign language translation for families
                who use signing.

                There are already therefore a number of embryonic social enterprises
                requiring support services and who would benefit from the presence of an
                incubation unit.

                2. Emerging Social Enterprises
                The cafe in the Sure Start building in Moore Avenue is to be taken over and
                run by the community. The cafe is also a training provider. The Manager, who
                is at present employed by Sure Start, is currently developing and expanding
                the business.

                The community, led by WHIPS, is in the early stages of taking over the
                management of the clinic from the Primary Care Trust and developing it as a
                combined clinic and learning and health centre.

       B.       Identify opportunities for additional social enterprises, based
                on local needs
                1. Housing Stock Options

                         a) Local Estate Management
                         Bournemouth Borough Council is presently reviewing its stock options
                         as required by Government. Bournemouth Council Housing Tenants
                         and Leaseholders Group (BCHTLG) has recently appointed
                         independent tenant advisors, Tenant Participation Advisory Service, to
                         gather information on the views of tenants regarding housing stock
                         options. BCHTLG has some active members in West Howe who are
                         interested in exploring a tenant-managed option. However, not all
                         tenants in West Howe may trust or want this option, and it is likely that
                         many will vote to remain direct tenants of the council. One of the
                         possible options is to transfer the housing stock to a tenant-managed
                         organisation. Alternatively the local authority could retain ownership
                         while introducing tenant-management. Both of these options would


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                         require a substantial amount of training and development for the
                         tenants.

                         b) locally-based repairs service
                         The Borough Council currently operates the repairs service. The time
                         taken to carry out repairs is one of the main concerns for council
                         housing tenants in West Howe. A locally based repairs service could
                         be developed as a social enterprise under contract to the Borough
                         Council. Using a local depot on the Industrial Estate local employment
                         could be created.

                2. Community Options

                         a) Food Co-operatives
                         The volunteers at WHIPS have looked at setting up food co-
                         operatives, and concluded that although this would meet a need,
                         running a food co-operative was too time consuming to be feasible.

                         b) Co-operative Cleaning
                         WHIPS staff and volunteers investigated the possibility of setting up a
                         co-operative cleaning service to take on a contract to clean the
                         communal areas in flats on the estate, rather that seeing that contract
                         awarded to a company from a long distance away. This initiative
                         foundered because the potential employee members were not
                         confident they could earn enough to replace their benefits. However,
                         contracts to clean local public buildings are put out to tender on a
                         regular basis. This co-operative enterprise could include cleaning
                         private houses. This would give individual cleaners better bargaining
                         power; provide cover for childcare, holidays or sickness, and improve
                         the availability of the service to customers.

                         c) Recycling of furniture
                         A Green Exchange scheme, providing recycled furniture and
                         household goods, formerly operated in West Howe but foundered due
                         to storage problems. It aimed to meet the needs of new tenants on low
                         incomes moving into West Howe, many of whom are young pregnant
                         women living alone for the first time. It is now run by matching offers
                         with needs, bypassing the need for a storage area. This could be
                         developed along the lines of Recycling In Ottery, a social enterprise
                         which provides both training and refurbished furniture and electrical
                         goods. It could use premises in Elliot Road or similar and could be run
                         by Greenworks. In addition recent EU regulations regarding Waste
                         Electrical and Electronic Equipment (WEEE) offers massive
                         opportunities for social enterprise involvement in the recycling and re-
                         use of electrical goods.

                         d) Market Research and Community Consultation
                         In January 2004 WHIPS provided training to a group of its volunteers
                         in carrying out community consultations and surveys. One of the aims

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                         was to enable the trainees to obtain employment and work experience
                         in surveys carried out on the estate and in other parts of Bournemouth.
                         Setting up a community survey company has been considered.

                         e) Fernheath Play Association
                         Fernheath Play Association, a registered charity, provides a staffed
                         play centre including an accessible playground and a specialist worker
                         for disabled children. It is about to start building an annexe with a fully
                         equipped kitchen. Established in 1974, it has built up a considerable
                         body of expertise. Dependent on grant funding, it would benefit from
                         an independent income stream. Due to its location on the well-used
                         Fernheath sports field there is an opportunity to open a cafe serving
                         the teams and spectators who use the field, once the annexe is in use.
                         Another income generating opportunity would be providing
                         consultancy on play facilities.

                         f) Other Possibilities
                         Other ideas for new social enterprises, generated in a local survey in
                         December 2001 (see Section II) include providing childcare; a
                         landscaping service; community transport services; producing
                         educational packs for children; and a cyber-launderette. There may be
                         potential for developing social enterprises with Oak Mead secondary
                         school, which currently runs a video project. West Howe has a high
                         incidence of vehicle arson and the estate would benefit from a social
                         enterprise, such as a mechanics‟ training scheme, or “hot wheels”
                         project, targeted at those responsible for car thefts.


                3. Health-related options

                         a) Care co-operatives
                         With an elderly population the need for care in West Howe is likely to
                         grow. Care is an area where the social enterprise sector has been
                         growing rapidly in recent years and many initiatives favour this
                         development. The introduction of and move towards direct payments
                         allows many recipients of care to employ their own carers. There are a
                         number of social-enterprise structures which would be suitable in this
                         field including: people requiring care establishing a purchasing co-
                         operative to control the process; care workers setting up a worker co-
                         operative to deliver care; or various hybrids and combinations
                         including a multi-stakeholder social enterprise.

                         b) Innovation in Health Care Delivery
                         The Primary Care Trust is very keen to explore ways of involving the
                         community in service delivery, and there may be possibilities for
                         patient co-operatives to manage a range of primary services including
                         dentistry.



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            C.        Assess learning and support needs for further development
                      of social enterprises
                      1. General
                      The social enterprise sector as it is currently presented is a relatively new
                      phenomenon. However many of the component parts of the SE sector such
                      as co-operatives, have been established and thriving for many years. As a
                      result the needs of the sector vary, from developing new solutions to new
                      problems, to the better dissemination of information and best practice that
                      has been around for decades.

                      2. Social Enterprise Portal Study
                      In February 2004 Worth Media was commissioned by the DTI‟s Social
                      Enterprise Unit (SEnU) to undertake a study into the feasibility of a social
                      enterprise portal working in conjunction with the SEnU and the Social
                      Enterprise Coalition (SEC) 12.

                      Although the study was directed towards the need for a Social Enterprise
                      Portal, the information needs identified by the report were generic. The
                      survey results on the information needs of the sector showed a very high
                      level of unmet need. The key information gaps concerned:
                              Funding, (where 72% indicated problems in accessing information);
                              Professional Services (62%);
                              Mentoring and support 56%;
                              Networking 54%;
                              Technical Expertise 49%; and,
                              Supply chain management 33%.
                      A majority of respondents were therefore not having their information needs
                      met in a wide range of business areas. It should also be noted that these
                      needs were related to their specific circumstances as social enterprises.
                      Finding a solicitor is easy, finding one with specific knowledge of social
                      enterprise legal structures, culture and priorities may be well nigh impossible.

                      More detailed analysis revealed even deeper gaps: within the category of
                      funding, 93% required information on sources of finance and 83% information
                      on accessing finance. Within professional services the needs were for
                      information on:
                             Legal services (81%);
                             Accountancy (58%);
                             Insurance (42%); and
                             Banking services (27%).
                      Mentoring and support again broke down into specific needs for:
                             Mentoring 77%;
                             Support organisations 58%; and,
                             Consultancy services 50%.
                      Networking needs were disaggregated into:
                             Networking with similar individuals and organisations 79%;
12
     DTI SEnU social enterprise portal study report 26 MARCH 2004



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                           Networking for sales 54%; and,
                           Awareness of social enterprise award schemes, 50%.
                    Technical expertise requirements were for information on:
                           Marketing 73%;
                           Human Resources 64%;
                           Training 59%; and,
                           Procurement 50%.
                    Finally, in supply-chain management, needs were for:
                           Ethical supply-chain information 79%;
                           Suppliers 79%; and,
                           Retailers for goods and services 36%.

                    The point on context above bears restating. Although many of these needs
                    are comparable with conventional business needs, e.g. marketing, it
                    nevertheless must be understood that these needs arise in a social
                    enterprise context, which must also be understood by the information
                    provider, e.g. the supply-chain information relates to sources of ethical
                    supply, the HR need relates to human resources in a people-focused
                    organisation, marketing may focus on marketing our co-operative advantage.
                    Problems in the use of mainstream services by social enterprises are well-
                    documented:

                    Earthwise Environmental Consultants Ltd initially went to a solicitor to seek
                    advice on registration as a company. They asked three times if a co-
                    operative structure would be appropriate. Three times the solicitor said
                    dismissively “I could not possibly recommend that.” Eventually he was asked
                    “why not” and replied that he “didn’t understand what one was and couldn’t
                    recommend what he didn’t understand.13”

                    After a meeting with a Consultant from the local Training and Enterprise
                    Council, Southern Archaeological Services Ltd summed up: “I don’t think he
                    understood a word we said, we certainly couldn’t understand a work he said
                    although we got the impression he thought the whole thing was a joke- he
                    kept looking around for the Candid Camera. 14”

                    When Total Coverage Ltd returned from a visit to a Business Link consultant
                    they said: “We think we should invoice for the training he received. He had no
                    idea what a co-operative was when he arrived. By the time we had defined
                    the terms he had run out of contract time. He didn’t have anything to offer. 15”

                    A service for social enterprises must fully-understand the culture and mission
                    of social enterprise.

                    3. Going It Together – Business Support to Co-operatives

                    The Going It Together project set out to investigate the business support
                    needed by both new and established co-operatives and to develop an action

13
   private conversation between the authors and Dr Sue Johnson
14
   Private conversation between the authors and Mr Pete Higgins
15
   private conversation between the authors and Mr Graham Mitchell

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                plan for advancing co-operation as an effective business solution. The project
                was a joint initiative between Co-operativesUK, Coventry and Warwickshire
                Co-operative Development Agency, Aegis Associates, cbc and the
                Herefordshire Partnership, funded by Advantage West Midlands.

                The findings of the 18-month research project carried out in 2002-2003
                showed that mainstream business advisors needed to be made more aware
                of the co-operative option and who they should refer potential co-operatives
                to for specialist support, and that poor awareness of co-operatives among
                business advisors impedes the development of co-operative businesses.

                The report highlighted the following factors:

                    Co-operatives sought empathetic advisers who were familiar with issues
                     relating to their business, and also understood the issues related to being
                     a co-operative, especially the development of co-operative working skills,
                     and who understood funding for the co-operative sector. The adviser was
                     considered to have an important role in supporting the group, especially in
                     the pre-start and start-up phases of development, and particularly when
                     dealing with people who may lack self-esteem or have no educational
                     qualifications. The personalised business support approach appears to be
                     a key factor in building the confidence of client co-operatives. This
                     contrasts with the conventional understanding of business support that
                     relates specifically to business skills around specific functional topics,
                     such as in marketing and finance.

                    Poor access to finance, in comparison with investor-led businesses, is a
                     key issue for co-operatives. Banks view co-operatives as a bigger risk
                     because of their limited liability structures, and seek collateral from
                     individual co-operative members to compensate for this. Many co-
                     operatives are formed by people with no access to capital who cannot
                     comply with banks‟ requirements and therefore the sector is under
                     resourced.

                    When devising programmes to support the growth of the co-operative
                     sector within a community, approaches to risk need to be addressed. A
                     new mindset needs to be adopted within community-based support
                     organisations and their funding bodies, if there is to be a wider
                     engagement of co-operatives within the social economy as a whole. An
                     example is the DRIVE entrepreneurship training programme carried out
                     by Coventry and Warwickshire CDA.

                The research also provided evidence that co-operatives are more sustainable
                than other types of social enterprises and mainstream business start-ups.
                The reasons include an equal commitment from co-operatives to both
                economic and social objectives; democratic and participative structures
                enabling employees to feel valued and involved, and commitment of
                members to sustaining the business because it met their individual needs
                and aspirations.


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                The report made recommendations which included increasing access to
                finance, through CDFIs and other specialist forms of finance; raising
                awareness of co-operatives among mainstream business advisers;
                developing    technical   competence amongst co-operative     support
                organisations; encouraging networking and partnership working, and
                developing cluster-based support.


                4. Social Enterprise Management Training

                The co-operative and social enterprise sector has long demanded training
                and advisory services relevant to its needs. These needs have usually been
                met from within the sector itself. In 1992 the then Industrial Common
                Ownership Movement published “Organisational Issues in Democratically-
                Managed Businesses” and in 1994 published “Strategic Management in
                Social Enterprises,” both of which were resource packs tailored to co-
                operative needs. In 1993 the then London Co-operative Training developed
                the Certificate in Co-operative Co-operative Business Administration
                accredited to NVQ Level III. In 1997 Southampton Co-operatives collectively
                developed the “Training for Growth” programme aimed at social enterprises
                who had become established and were looking to take the next step forward.

                As a result of many years working with new-start co-operatives, CAN has
                developed the Corporate Governance Training Programme which is a four-
                day course featuring: an Introductory day; A Financial Directors Day; A
                Company Secretaries Day; and, a Democratic Management Day. They also
                provide the Social Enterprise Start-up Programme (SESUP), for people
                interested in starting up and running social enterprises, delivered in a variety
                of formats: intensive, one day per week or evening course style depending on
                how it best integrates with the development process.

                Norfolk-based co-operative The Guild also offer a three-module course in
                Managing a Social Enterprise. This is a comprehensive range of programmes
                designed to guide participants through the processes required to start and
                sustain a social enterprise.

                Economic Partnerships Ltd is a Registered Centre for NEBS, NCFE and
                OCR qualifications and our accredited training programmes typically lead to
                the Preparation for Business Certificate or the Advanced Diploma in the
                Organisation of Community Groups (NVQ3 equivalent). Design and delivery
                of business training and development programmes


                5. Web-based training

                One of the ways in which access to training can be achieved readily is
                through the use of web-based training packages. The great advantage of
                this is that participants can learn in their own style, in their own time, and at
                their own pace. It will be very important for the new incubation unit to take
                advantage of the many online courses available. For example Co-operative

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                Assistance Network Ltd offer the Social Enterprise Start-up Programme
                (SESUP), Learners access modules of training materials by accessing the
                password protected "CAN Campus" via the internet. They are further
                supported with three 4-hour seminars held at the start, middle and end of
                each course run. Learners are assigned a tutor, who will provide an average
                of 12 hours email support during the course. Learners also receive 12 hours
                individual or small group support from a professional social enterprise
                development worker.

                Worker Co-operative “The Guild” provides a continuous programme of
                flexible learning across the East of England to support the development of
                the social economy. The rolling programme, “Managing a Social Enterprise”,
                seeks to offer inspiration to all social enterprises. Unlike other training
                courses this management training is delivered as an ongoing rolling
                programme that participants can opt in and out of at whatever times best fit in
                with other commitments and at whatever venue is most convenient. This can
                be delivered locally by agreement with The Guild.

                6. The West Howe survey
                The general picture in West Howe is that residents have good practical skills
                and considerable entrepreneurial acumen, but are lacking in educational
                qualifications and confidence about formal learning. Most are below NVQ
                level 2 but have skills such as mechanics, sewing, or catering. WHIPS runs a
                community learning scheme and WHIPS volunteers earn NVQ credits for
                their voluntary work.

                A survey of the development needs of four existing social enterprises was
                carried out on 3 August 2004, using the CAN Standard Business Parameters
                Development Tracker as a tool.

                The four enterprises surveyed were Bournemouth (West Howe) Travel and
                Transport Club; West Howe Printing Resource; Web Design Service, and the
                Sure Start Cafe. Out of 100 they reached 52, 55, 33 and 61 respectively on
                the development tracker.

                A common feature of all four enterprises is that they have no legal
                registration and are not yet independent of their host organisations, WHIPS
                and Sure Start. A number of other social enterprises not surveyed have also
                been set up with the support of WHIPS, which has played a pivotal role in the
                development of social enterprise on the estate. Many residents are involved
                in small scale social enterprises but don‟t necessarily understand what social
                enterprise means or identify themselves as such.

                None of the three enterprises hosted by WHIPS have paid employees. Two
                of these rely on their host for financial administration, financial management,
                equipment and ICT. All are trading at a level which covers their current
                outgoings but require increased income in order to provide paid employment.

                All these enterprises require support and training to understand and develop.
                They would require support and training in order to carry out financial

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                administration and management, personnel administration and human
                resource development independently of WHIPS.

                Most would benefit from additional training, support and advice to assist them
                to carry out fully independent business planning, market research, market
                development and human resource development. WHIPS has provided health
                and safety training to all members of the social enterprises surveyed through
                its volunteer programme.

                The enterprises surveyed have good relationships with their customers but
                would benefit from additional information on establishing formal systems of
                customer care and quality assurance. All currently rely on WHIPS for
                premises and most for equipment.

                The Sure Start cafe is in a similar position, not yet independent and without
                legal registration. Its staff are employed by Sure Start, but the enterprise only
                supports the wages of one permanent and one casual employee, with the
                Manager‟s salary being funded by Sure Start. Sure Start is committed to
                handing control and management over to the community. Its business
                planning, personnel administration, human resource development, health and
                safety, and financial administration and management are carried out by Sure
                Start. When handed over to the community, full training and ongoing support
                would need to be provided on all of these matters plus training and support to
                develop an independent structure, legal registration and equal opportunities
                policy and practice. Similarly, support and training on marketing and product
                development and to achieve full internal democracy would be needed. The
                premises and equipment however, are newly purpose built giving the cafe a
                significant advantage.


                7. Pinball wizardry
                A key issue, which has emerged in our surveys of other social enterprise
                incubators and estate-based economic development projects, is the need for
                a wide range of services to be available, and for quick and easy referral
                between them. For example assistance with cv preparation may lead to a
                strengths and weaknesses appraisal which may point towards an opportunity
                for self-employment. This may lead in turn to a need for business support,
                training, finance and premises. The individual should move around the
                system acquiring resources as they go until able to exit in a positive direction.
                This is analogous to the way in which a pinball moves from one target to
                another scoring points as it goes.         As everyone knows, the most
                advantageous strategy is simply to stay within the system.

                There will therefore be a number of pathways that individuals can take in
                progressing through the integrated system of support services. Appendix Two
                sets out a list of sample pathways that will be available.




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       D.       Research other models of social enterprise incubation units
                and recommend an appropriate model for West Howe
                1. The Models
                         There are three management models available for the day-to-day
                         running of a Social Enterprise Business Incubator. These are the
                         owned-and-managed model, the Community Business Model and the
                         Self-managed model.

                         a) The Managed Model
                         In the owned-and-managed model the incubator is owned by an
                         organisation from outside the area, often the local authority, a
                         development agency or a trust. The incubator is then either managed
                         in-house or a contract is awarded to another agency for management.
                         Rents and other charges are set by the owner, usually on a cost-
                         recovery basis. Other services are either provided in-house as part of
                         the management contract, bought-in from outside, or provided by other
                         agencies through networking.

                         b) The Community Business Model
                         The Community Business model takes as its starting point the need for
                         local ownership and control. A locally controlled agency is gifted the
                         incubator as a “community asset base”, and then sets the rents and
                         other charges as an income stream for itself. In this way income from
                         rents and other charges is returned to the community in the form of
                         services, which are funded out of the revenue received. This allows
                         the Community Business to move towards self-sustainability through
                         sale of services and using revenue to lever-in additional funding
                         through the match-funding process used by many funding agencies.

                         c) The Self-Managed Model
                         The self-managed model takes as its starting point the provision of
                         services by and for the service users. Under this model the incubator
                         would be owned and controlled by the tenant social enterprises. If the
                         chosen model were to be a fully mutual one then the tenant
                         enterprises would gain from the capital appreciation in the building.
                         The argument in favour of such an approach is that the services
                         delivered to the businesses would be chosen by the enterprises
                         themselves, and that the rent and charges structure would reflect a
                         balance between the developmental needs of the enterprises and their
                         ability to pay.


                2. Existing Social Enterprise Incubation Units

                         a) Lambeth Co-operative Centre
                         Lambeth Co-operative Centre was established in 1985 using grant
                         funding from the Department of Employment and Lambeth Borough

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                         Council. The building was formerly a church and is leased from
                         Christchurch, Brixton, originally on a twenty-year lease, which expires
                         in 2005.

                         The centre was originally the offices of Lambeth Co-operative
                         Development Agency at a time when the CDA was relatively well
                         funded by the local authority. It has sixteen to seventeen units (the
                         number varies according to usage) ranging in size from 110 ft2 to just
                         under 1000 ft2. Units are available on monthly licences at rates set on
                         a cost-recovery basis.

                         Originally the centre was only for new-start co-operative enterprises
                         that were encouraged to move on once they became established in
                         order to create premises opportunities for further new-starts. However
                         in 1990 the increasing costs of monitoring decreasing funds led to the
                         CDA withdrawing from the Borough Council funding programme,
                         which had acted as a rent subsidy, and the centre had to become self-
                         financing. Since then the policy has been to maintain high occupancy
                         rates to maximise rent income and minimise voids. As a result
                         voluntary and charitable bodies have become accepted as tenants,
                         provided that they deliver locally based services. However due to the
                         flexible nature of the workspace, including use of partitions, and
                         shared desk-space, no co-operative business in need of premises has
                         yet been turned away.

                         The centre is still managed by the CDA, which continues as a lobbying
                         and representative body, although funding for services ceased in the
                         1990‟s as the local authority withdrew revenue funding completely.
                         The CDA employ a centre manager and part-time bookkeeper to
                         exercise day-to-day control.

                         The lease expires in 2005 but indications are that a further ten-year
                         lease will be agreed.

                         The resources available were formerly very significant when the CDA
                         had a number of specialist support staff available. At present there is
                         very little available. The centre manager tries to help with some
                         business issues but there is no specialist social enterprise adviser
                         available. One of the co-ops formerly in the centre (Green Marque)
                         also assists with advice although they have now moved to new
                         premises. As a result the centre is now becoming in some ways more
                         managed workspace than an incubator.


                         The Lambeth Co-operative Centre is a good example of the need to
                         ensure that adequate specialist support and advice is available for an
                         incubator to be successful in creating new social enterprises. In order
                         to survive it has needed to be flexible and adapt, however it still
                         believes that it is important not to forget the people it was set up for in
                         the first place.

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                         b) Pennywell Community Business
                         Pennywell is an outer estate in the City of Sunderland. Although never
                         enjoying a high reputation, it was badly hit by the closure of the
                         Wearside shipbuilding yards in the 1970‟s and eighties and by 1990
                         was experiencing massive problems with unemployment and the
                         consequent social ills that accompany it. Pennywell Community
                         Business began in 1989 with a Job Linkage office at nearby Hilton
                         Road offering a Jobclub and appraisal with cv assistance. In 1992 the
                         Pennywell Business Centre was built on public open space in the
                         centre of the estate. It comprised 10 units of 40 m 2 although removing
                         internal walls created two units of 80m 2. The centre was built with
                         ERDF, Local Authority and Central Government funding and then
                         gifted to PCB as an asset base.

                         As part of the Business Centre there is a training room, office and
                         private counselling area. The kitchen was turned from an in-house
                         facility into a co-operative using the food preparation area for a
                         sandwich round on neighbouring industrial estates. A crèche was
                         developed to provide services to the centre and the wider estate.

                         The premises were extended in 1998 and now comprise 30 units. Not
                         all of these are social enterprises but are all owned and managed by
                         people from the Pennywell estate. PCB staff are pro-active in
                         identifying market opportunities and assisting local people in
                         developing businesses to fit these niches. (One of the worst serial
                         offenders in the area now runs a wheelie-bin cleaning service from the
                         centre.)

                         The Business Centre now offers modern apprenticeships, an
                         electronic village hall, an on-site business counsellor, education and
                         training, advice on accessing finance from the centre accountant; and
                         still has the original job-linkage. The crèche has been superseded by
                         the local “SureStart.”

                         The centre advises some thirty off-site businesses. Some of these
                         may have moved-on from the centre, others may have required
                         premises which the centre was unable to provide. Pennywell
                         Community Business Ltd now employs some 84 people including
                         tutors and advisers with most however on modern apprenticeships
                         employed directly by PCB.

                         The centre is owned and managed by Pennywell Community Business
                         Ltd, which collects the rents from the centre as well as receiving
                         payments for other services. This income stream is then matched
                         against other funding to generate a turnover of £1.1m. We feel that
                         this is a good model and worth replicating.




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                         c) Thorney Close Action and Enterprise Centre
                         The Thorney Close Action and Enterprise Centre was built on an
                         adjoining estate to Pennywell in Sunderland. The concept was to
                         mainstream economic development into normal day-to-day activities
                         on the estate. The centre was therefore to feature a Local Housing
                         Office, café, crèche, advice services, and community hall. Upstairs
                         featured conference facilities, an IT suite and a community economic
                         development function. The whole centre was to be managed by an
                         Independent Trust. However management problems meant that the
                         centre was soon taken back into management by the City Council, and
                         the Trust was dissolved. In 1997 however a new Company Limited by
                         Guarantee was set up, so an independent body once again runs the
                         centre. The concept of combining economic development with other
                         functions has been successful although the economic development
                         function now mainly consists of job brokerage.

                         The Thorney Close episode underlines the importance of effective
                         local control in developing a successful project.

                         d) Bristol Coach House
                         The Coach House, BRAVE Enterprise Agency has 25 office units, plus
                         one 1 incubator unit for 4 self-employed people “hot-desking.” The
                         Office units range 100-500 sq ft. The incubator unit is 270 sq ft. For
                         the office units, rent is charged at £10.36 - £16.61 per sq ft per month.
                         Most of the rents are at £14.86. This includes business rates but does
                         not include electricity. The £16.61 rate does also include electricity
                         (these units do not have their own electricity meter). For the incubator
                         units, rent is charged at £125 pm – includes electricity, business rates,
                         broadband, computer, phone (not line rental and calls), desk, chair
                         and shared printer.

                         BRAVE has been managing the Coach House lettings for the past 25
                         years, (since BRAVE incorporated). The Coach House was renting out
                         space for a while before this but this was not a very significant length
                         of time – possibly three years.

                         Premises are only available for office use, not workshop (there is a
                         take-away and a hairdressers in the court yard). There are no other
                         criteria for what type of business to let to, but no „immoral businesses‟
                         (e.g. brothel) are permitted. The Terms of Letting are that each tenant
                         has a “Tenancy at will” pays 2 months deposit plus 1 month in
                         advance. Termination is by 1-month notice on either side. The
                         incubator unit has the same terms.

                         Bristol City Council Planning Dept. owns the building, and the
                         administration for BCC is handled by the BCC Estates Dept. BRAVE
                         rent the Coach House for a peppercorn rent (literally, there is a
                         peppercorn in BRAVE CEO‟s desk for payment if required). BRAVE is
                         not currently responsible for upkeep of the building but it has invested
                         significant amounts into its upkeep –believed to be in excess of £25k
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                         last year on improvements and repairs alone. When BRAVE took on
                         the Coach House it was understood to be in a bad state of repair.
                         However BCC is now negotiating a new 10-year full repairing lease
                         with rent fixed at zero for the first five years then a rent review – the
                         negotiation continues.

                         The Coach House is administered by BRAVE and managed by
                         BRAVE. There is currently no place for tenants in the governance, the
                         BRAVE board controls it all ultimately.

                         Tenants have access to all BRAVE services, including the services of
                         the Co-operative Development Agency, which is located on-site. Other
                         services include access to local loan finance through Bristol Economic
                         Development Fund (BEDF), and Avon and Bristol Co-operative
                         Finance (ABCF).

                         The Coach House does not just have incubator units. When
                         businesses in the incubator units seek to move into larger units,
                         provided there is space they can move into one of the BRAVE office
                         units. Businesses do also move onwards and upwards from the office
                         units once they have outgrown what BRAVE can offer although there
                         is no compulsion.

                         The renting out of office units generates income for BRAVE. This
                         enables BRAVE to provide its services. It also provides good
                         networking between tenants.

                3. A recommended model for West Howe
                The starting point in recommending a Business Incubator model for West
                Howe is the established presence of WHIPS in the area. This gives a basis
                for adopting the Community Business Model. WHIPS already has a pro-
                active role in developing social enterprises, and the additional benefit of
                developing tenants for its own premises simply adds to this.

                The survey of existing social enterprises found that only three had been
                trading for more than two years. The rest were still at a developing stage. In
                addition all were small and unlikely to be able to spare management
                resources for the management of the incubator itself. However much we are
                attracted to the idea of a self-managing social enterprise incubator we do not
                see this as a viable model at present.

                The managed model does appear attractive given the institutional strength of
                a lot of prospective candidates. However we feel that the appearance of an
                outsider organisation with no previous involvement in West Howe, at the
                point at which the initial efforts of WHIPS and Sure start are beginning to get
                results, may lead to resentment and the impression of “bandwagon-jumping.”

                The best option therefore would appear to be to develop the Community
                Business Model using WHIPS as the locally-controlled agency. This is in line
                with Kendall‟s findings that “as a general rule, if existing organisations have

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                    the capacity and qualities required, or can be developed so that they do, it is
                    better to make use of them rather than start a new one with the attendant
                    delays in achieving credibility and effectiveness. 16” The incubation unit would
                    provide WHIPS with a ”community asset base,” which would enable it to
                    begin developing its own income streams from rents and services.

           E.       Identify resources needed at start-up and to ensure
                    sustainability
                    1. The Range of services needed
                    In contrast to other forms of small business premises-based support, a
                    Business Incubator typically features a low level of technology and a high
                    level of Management Support. In assessing the range of services needed to
                    be provided in the social enterprise incubator a useful starting point is the list
                    of features set out by the RDA themselves. These are:

                             Essential Features
                                    Access to networks
                                    Mission statement/strategy/objectives
                                    Access to finance and mentors
                                    Company selection and exit policy
                                    Direct guidance/assistance available
                                    Flexibility of space and terms
                                    Realistic and sustainable business plan
                                    Singular or complementary sector focus

                             Important Features
                                    Focal point or physical presence
                                    Communal areas
                                    On-site management and daily contact
                                    Access to specialist facilities

                    Taking these in turn we can establish how they are to or may be provided.

                             a) Essential Features
                                      (1) Access to networks
                                      The essential networks to which social enterprises require
                                      access is the whole range of social enterprise networks. These
                                      comprise Co-operative Networks (Co-operativesUK , Co-
                                      operativesSouth-West and Dorset CDA), Social Firm Networks
                                      (Social Firms UK and Social Firms South-West), Development
                                      Trust Networks (Regional and National), Social Enterprise
                                      networks such Regional Infrastructure for the Social Economy
                                      (RISE), and Social Enterprise Consortium. At present all of
                                      these links are made through the CDA and their continued
                                      involvement in the project will be essential.



16
     Kendall “Co-operatives in Southampton” August 1999. p7

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                                  (2) Mission Statement
                                  The purpose of establishing a Business Incubator is not to earn
                                  money from lettings, or to provide workspace, important though
                                  those factors may be. It is in fact to concentrate support and
                                  resources at the critical new-start stage in business
                                  development. The incubator will need a strong Mission
                                  statement to avoid “Mission creep” into areas which although
                                  worthy, are tangential and even threatening to the purposes for
                                  which the incubator was established. This should be drawn up
                                  by WHIPS, in consultation with the Steering Group.

                                  (3) Access to Finance and Mentors
                                  Social Enterprise Start-ups need to have access to mentors
                                  who can assist in the development of business ideas, and also
                                  need to have access to appropriate kinds of finance. Very-often
                                  this is administered through a local specialist loans fund as at
                                  Bristol and the development of a similar loan fund for West
                                  Howe would be an important addition to the range of services
                                  offered. Each social enterprise will need to be assisted in
                                  preparing funding and loan applications so support workers will
                                  need to be available for this task. This was the biggest
                                  information gap identified by Worth Media.

                                  (4) Enterprise selection and exit policy
                                  In order to ensure best allocation of resources it will be
                                  necessary to assess the needs of each individual enterprise.
                                  Those Social Enterprises which are well-supported and well-
                                  funded may not need to pass through the incubator stage at all
                                  but could be established in separate premises from day one.
                                  Conversely there is also a point at which established
                                  enterprises will no longer need the concentrated support of the
                                  incubator, and at this point it is appropriate for the business to
                                  move on. In the middle will be the enterprises who are able to
                                  benefit most from the presence of the incubation unit. The day-
                                  to-day operation of the unit should reflect these realities in order
                                  that the services of the incubator are concentrated on those
                                  most in need of them. The Selection and Exit Policy should be
                                  drawn up by WHIPS in consultation with the Steering Group.

                                  (5) Direct Guidance and Assistance available
                                  New-start social enterprises require a range of different forms of
                                  advice and support. As the Worth Media study shows there
                                  were identified difficulties in obtaining appropriate professional
                                  services and technical expertise. (62% and 49% respectively.)
                                  It is essential for the incubator to have staff with the requisite
                                  skills available, whether on site or provided by another agency
                                  by agreement. We recommend a two-tier approach, with day-to-
                                  day information and support provided by a worker on-site,
                                  supported by additional specialist and expert knowledge


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                                         provided on a consultancy basis by visiting development
                                         professionals.

                                         (6) Flexibility of space and terms
                                         One size does not fit all, in business or anywhere else. The
                                         range of premises needs for businesses can be very wide,
                                         including the virtual enterprise which may only require a post
                                         box for mail; a service organisation which may require a desk,
                                         telephone, computer and filing cabinet; or a firm requiring
                                         storage, “dirty” space and or yard access. As enterprises
                                         develop they may well need to move from one workspace to
                                         another in line with their needs. Some will require “easy-in,
                                         easy-out” terms, others may wish to see some security of
                                         tenure. The range of terms and spaces needs to reflect this.

                                         (7) Realistic and sustainable business plan
                                         The incubator will need to show clearly how it is going to
                                         balance the revenues received from the necessary outgoings.
                                         The plan will need to show the reasonably attainable grant
                                         support and service delivery contracts. Projections should show
                                         rate of social enterprise formations, occupancy levels and
                                         move-on rates. It will be important to balance the financial need
                                         for maximum occupancy against the social need of ready
                                         availability of premises. The Business Plan should be
                                         developed by WHIPS with the support of the Steering Group.

                                         (8) Singular or complementary sector focus
                                         This arises out of the very concept of a social enterprise
                                         business incubator. Whereas conventional businesses cluster
                                         by industry sector, social enterprises tend to cluster by business
                                         culture17. As the quotes above show, the culture and values of
                                         social enterprises are very different from those of other
                                         businesses, and this normally leads to a desire to co-locate with
                                         like-minded enterprises.

                               b) Important Features
                                         (1) Focal point or physical presence
                                         As we have observed, the critical factor in location is to place
                                         the centre where there will be heavy “footfall” either by co-
                                         locating with a substantial “attractor” such as a school, clinic or
                                         shops, or on a well-used thoroughfare.

                                         (2) Communal areas
                                         The ability for users of the unit to meet informally and/or socially
                                         within the centre will greatly assist in promoting interaction and
                                         networking within the unit.


17
     Oxford Mutuality Task force Report 2000

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                                  (3) On-site management and daily contact
                                  A manager who calls once per week to collect the rent will not
                                  achieve the level of contact with the users of the unit that is
                                  necessary to avoid the isolation that often accompanies new
                                  enterprise development. The manager and other workers
                                  should be on-site and encourage an “ever-open-door”
                                  environment.

                                  (4) Access to specialist facilities
                                  Further to V,E,1,a,(5) above, the direct support available at the
                                  unit will need to be augmented by specialist advisers. There
                                  may also need to be arrangements in place for research and
                                  development with e.g. the university and local colleges, for the
                                  testing of new products etc.

                2. Proposed form for incubator
                The land-use constraints in the West Howe area, impose restrictions on the
                type of incubator that is feasible. At one extreme there is no suitable location
                centrally for an incubator including workshops, labs or anything similar.
                Alternatively the industrial estate is not on any pedestrian thoroughfares and
                therefore would not support the type of welcoming, drop-in, easy-access
                facility that would recruit many excluded groups. On balance we feel that the
                need for a local presence, generating heavy “footfall,” is the critical factor in
                designing the incubation unit.

                A newly-formed social enterprise will need to work through a number of
                critical stages (see V, B above). We take the view that a business that has
                proven the idea and reached the two-year trading mark will then be able to
                seek out more appropriate premises on its own. Alternatively an enterprise
                which requires warehousing, laboratories, workshops etc will need to be
                supported on a project basis. The aim of our incubator is to capture the social
                enterprise opportunities that arise from relatively simple ideas based on the
                observations and experiences of ordinary people and which can be then be
                developed, tested and implemented with time as the key investment.

                The social enterprises that exist in West Howe at present are all small and
                relatively weak. None of them are yet earning more than 50% of their income
                from trade, and few employ anyone full-time. The need may therefore be for
                very basic facilities. A significant proportion of the West Howe population is
                lone-parent or retired and therefore likely to be seeking part-time work only. It
                will be necessary to keep costs to a minimum in order to provide a basic
                service for the clients. The quality of the mentoring advice and training
                available is of much greater importance than the quality of the fixtures and
                fittings. Once the enterprise is earning money from trade it will be able to
                obtain its own suitable resources.

                The likely floorspace needs can be looked at as follows.
                       1 x 40m2 WHIPS office
                       1x 15m2 interview room

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                         1 x 40m2 training/meeting room
                         1 x 50m2 Incubator space containing:
                               8 x desks
                               8x PIN-controlled telephones (with user accounts)
                               8 x workstations linked to VOH
                               16 x 2 drawer cabinets or 32 x 1-drawer cabinets (lockable for
                                       individual use)
                               1 x scanner
                               1 x printer
                               1 x photocopier
                         1 x 60m2 domestic facilities (kitchen, toilets)

                Staffing needs
                       1 Centre Manager
                       1 Community Development Worker
                       1 Social Enterprise Support Worker
                       1 Admin worker

                         The incubation unit does not need to have all information to hand.
                         Access to networks, real or virtual, will be a crucial part of the service.
                         The use of virtual office systems hosting will enable a client to access
                         their own files from whichever workstation they happen to be using
                         that day. Indeed it will also allow those with their own computer
                         facilities to access the full network of support services from their own
                         home, greatly expanding the capacity of the incubator. Access to the
                         virtual office host can also be arranged from within Surestart, the
                         Library, 32 Cunningham Road and the schools.

                The small size of the planned incubation unit means that it will be possible to
                locate it very centrally within West Howe. A larger unit with more facilities
                would be more unwieldy and less likely to be locatable within the central
                area. The small “hub”-type incubation unit we recommend will be well-placed
                to attract users and will therefore be able to generate high numbers of
                business ideas. Having received initial encouragement, backing, training and
                advice the service users will be able to use the virtual office host to access
                the service from a wide range of outlets, and at any time of day. With eight
                deskspaces, 16 (or 32) cabinet users, and the associated training rooms,
                interview rooms and development worker support, there will be capacity for
                literally dozens of participants at any one time to be training, researching,
                issuing correspondence, making and taking calls, collecting messages from
                the admin desk, etc.

       F.       Assess options for location of Incubation Unit
                1. Possible Options
                The location of a social enterprise incubation unit is not as straightforward as
                other location decisions. While it needs to provide premises suitable for a
                wide range of business uses, potentially covering use classes A2, A3, B1,
                B2, B8, it also needs to be close to the main residential and community
                facilities to promote accessibility for residents. West Howe does appear to

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                have a fairly strong “village centre” comprising the shops, Community Centre
                and Library in Cunningham Crescent, and the Moore Park and Surestart
                facilities in Moore Avenue. Indeed if we include the Heathlands school and
                the clinic off Grower Gardens, there is a clear “civic centre” for the area. It is
                within this area that most of the pedestrian traffic takes place as residents go
                about their daily business. Accessibility will be a key factor in the location
                decision.

                Unfortunately within West Howe there is very little unused land. Unusually for
                an estate considered disadvantaged, there is almost no derelict land, or
                underused public open space. Of our examples Pennywell Business Centre
                and Thorney Close Action and Enterprise Centre were built on under-used
                public open space, Bristol Coach House and Lambeth Co-operative Centre
                were converted from redundant buildings. In order to find land and/or
                buildings suitable for use as an incubator without creating a non-conforming
                land use, we have had to consider the possibility of location on the Industrial
                Estate at Ringwood Road/Elliott Road. This site is the former Bournemouth
                Training Centre at “Forest View,” Elliott Road, Bournemouth. It comprises
                2231m2, (24017 ft2), on land comprising 0.78ha, (1.93 acres). It has planning
                permission for D1 use (places of worship, church halls, clinics, health
                centres, crèches, day nurseries, consulting rooms, museums, public halls,
                libraries, art galleries, exhibition halls, non- residential education and training
                centres) and is deemed suitable for B1, B2, and B8 uses. (B1 includes office
                uses, research and development, studios, laboratories and light industrial
                uses. B2 includes general industrial uses, such as manufacturing. Uses that
                fall within the B8 use class include wholesale warehouses and distribution
                centres.) Although this is out-of-the-way for most residents, it may be the
                best option.

                Another potential site is the former Kinson Baths swimming pool site at the
                junction of South Kinson Drive and Kinson Road, identified on the District
                Plan as Policy 6.7(G). However given the housing pressure which exists in
                Bournemouth, we feel that planning permission for development of this site
                would be unlikely.

                A windfall opportunity exists at the site of the West Howe Clinic. This is
                situated on land behind Cunningham Crescent, off Grower Gardens. There
                are plans in existence to redevelop this site and create a new Health and
                Learning Centre, which would be managed by WHIPS, and could even by
                owned by them. The Primary Care Trust wishes to involve residents in
                service management and this new proposal could complement the social
                enterprise incubator.

                The land between Verney Road and Fernheath Road (Fernheath Playing
                Fields) is presently used for sports facilities and a play scheme. The sports
                pavilion is in poor repair and is due to be replaced soon, which does offer a
                development opportunity. It also has the advantage of being quite close to
                the active centre of the community.



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                Moore Park is a very central area within the bounds of Moore Avenue and
                Cunningham Crescent. It was formerly the site of a community centre but this
                has been converted into a Surestart centre. The Surestart facility is very well-
                used and is apparently strongly-supported by the residents. The
                management of Moore Park itself is in the process of being transferred from
                the District Council to the residents, through the Moore Park Association. The
                capacity of the site is probably limited to existing and related activity which
                may not fit well with an open-access facility.

                2. Recommended Option
                As stated above we feel that the most important consideration is for the
                incubation unit to be accessible locally. Ease of access to the advice services
                has been demonstrated to be a key determinant in the success of Pennywell
                Community Business and Lambeth Co-operative Centre. The library, shops,
                Henry Brown Youth Centre, Surestart (Moore Park) and the West Howe clinic
                together form a “civic centre” for the community and location within this small
                cluster of facilities is essential. Although the Fern Heath Play Centre and
                Playing Fields site does offer possibilities we feel that the opportunity is not
                as obvious as at other sites, and that the sports activities are not sufficient an
                “attractor” to draw people in numbers to the site from other parts of West
                Howe. Additionally the co-location of a business incubator with sports
                facilities does not offer the range of complementary activities that could be
                achieved elsewhere.

                The shops in Cunningham Crescent are fully-occupied and there is little land
                available for extensions or new-build in that area. The West Howe Network
                already occupies one of the shop units and is already pushed for space at
                current levels of activity. The increase in activity required by the incubation
                unit will be too much for any of these shops individually, and it is unlikely that
                two adjacent shop units will fall vacant in the near future. Although it may be
                possible for WHN and WHIPS to carry on some activities at 32 Cunningham
                Crescent once the incubation unit is established, further provision of space
                for the unit is essential.

                The “pushing at an open door” option would be to build on the existing plans
                of the Primary Care Trust to develop the clinic at West Howe into a Health
                and Learning Centre. There are many health-related opportunities for social
                enterprise as set out above, and co-location with the Health and Learning
                Centre does offer a better fit than other options. A capital asset base would
                be achievable as the PCT would be amenable to the centre being owned by
                WHIPS with the PCT renting the space they needed. As the PCT is a
                revenue-based organisation with little capital, unlike other NHS units, this
                option would appear to be suitable for them.

                As the PCT has not finalised plans to redevelop the site the opportunity exists
                to design the needs of the incubator into the building. Suitable space can be
                easily provided for the incubation unit needs, and other factors could also be
                taken into account. For example it would be a useful central site for the
                laundrette that has been mentioned, with the incubation room and its
                workstations providing the cyber-element.

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                The purpose of the incubator would not be to provide all necessary facilities
                on-site but to act as a central point for a whole range of learning and
                enterprise activity. The use of a virtual office hosting facility would mean that
                participants would be able to access personal secure files from any
                workstation. With the incubator acting as the hub of a range of access points
                from home, the library, Surestart and the Youth Centre, ease of access will
                be highly achievable. This will create the flexibility for participants to work
                from home while looking after children; from Surestart while using the
                services there; and, from the centre while doing the laundry or having free
                time.

                The siting of the incubator at the clinic will serve the first few steps of the
                social enterprise development process. As enterprises develop however they
                will usually require “move-on” accommodation locally. In many cases they
                may be able, depending on need, to find their own premises unaided. For
                example there is a parade of shops in Cunningham Crescent, which will be
                suitable for any enterprise requiring retail-type premises. The Credit Union
                collection point, the travel club, the printing resource; all could benefit from
                shop front prominence. Each one of these would need to be treated on its
                merits subject to the strength of the business plan.

                There would remain however a need for “heavier-duty” business premises.
                Social enterprises such as community transport, car repair, car club, printing
                and any manufacturing or maintenance function would require land-use
                classes incompatible with the mainly residential nature of West Howe. In view
                of this we believe that the option of acquiring the Elliott Road site (the former
                Bournemouth Training Centre), or similar, as managed workspace for social
                enterprises that have learned to stand on their own feet, should be
                considered. This may in fact be problematical as at time of writing we
                understand that the Borough Council has accepted an offer for the premises.
                In this event similar premises may be required. These should also be owned
                and managed by WHIPS as part of their community asset base.

                In the early stages there will not be a stream of social enterprises ready to
                move into such accommodation. It may therefore be prudent to identify a
                large national social enterprise able and willing to establish a function within
                the managed workspace, whether at the Elliott Road Building or elsewhere.
                This action would serve to secure the site for social enterprise until such time
                as new social enterprises were developed to occupy the additional space.
                Beneficial Green-works in Portsmouth, who recycle office furniture, have
                been approached and have indicated that they are receiving increasing
                requests from the Bournemouth Area, and would be favourably inclined
                towards an opportunity to establish a satellite depot in any proposed social
                enterprise managed workspace subject to a workable business plan being
                developed. This would automatically provide employment in social enterprise
                for interested people in West Howe.




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       G.       Develop an action plan with fundraising strategy
                1. Phase One

                         a) Establish Steering Group
                         The project should set up a steering group to manage the process of
                         development. This is not to take control of the project from the
                         residents but to support WHIPS in developing the capacity to build and
                         manage the centre. The members of the Steering Group should be:
                              WHIPS as the lead body and the key local stakeholder
                              SWEDA as the policy driver for incubation units
                              CDA-Dorset as the key social enterprise development body
                              Bournemouth Borough Council as the local authority
                                   o Economic Development
                                   o Planning
                              Bournemouth Primary Care Trust (if the clinic option is followed)
                              Dorset Learning and Skills Council as the lead training funding
                                body
                              Three representatives of existing social enterprises
                         The Steering Group needs to develop the management structure for
                         the project.

                         b) Establish Service Range
                         The full range of services that will be provided by the incubator will
                         need to be established and a source for each service identified. It is
                         advisable that the full range of services is available in existing
                         premises before the new premises come “on-stream.” It is a common
                         failing of new service premises that the demand is not managed
                         upwards before the increased capacity comes on stream.

                         c) Obtain Necessary Funding
                         The Steering Group will need to develop and approve a full Business
                         Plan for the incubation unit. This will have to cover the capital
                         acquisition of the clinic building

                         d) Redevelop Clinic Building
                         The Steering Group will need to approve plans for the combined
                         Health, Learning and Enterprise Centre taking into account the needs
                         of the PCT and the suggested specification for the incubation unit at
                         V,E,2 above.


                2. Phase Two

                         a) Expand into new building
                         The services, which have been steadily expanded in the run up to the
                         opening of the incubation unit, are then transferred to the new centre.


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                3. Phase Three

                         a) Develop Managed Workspace
                         As stated above, there is a need for a managed workspace facility to
                         complement and further the social enterprise development in West
                         Howe. Although the real need for this facility will not be felt until there
                         are a number of social enterprises ready to move on from the
                         incubation unit, the availability of the former Training Centre in Elliott
                         Road is a great opportunity. The key to this development will be the
                         identification of a suitable large-scale social enterprise to occupy the
                         premises and contribute a significant proportion of the costs of the
                         building. The freehold of this building is valued at approximately
                         £400,000. It may be that this phase occurs at roughly the same time
                         as Phase One depending on the availability of prospective sites.

                4. Fund-raising Strategy
                The fund-raising strategy needs to differentiate between the capital costs of
                setting-up the new unit, and the revenue costs of maintaining the level of
                service that is likely to be generated. It is one of the common errors of
                regeneration that funding is withdrawn or expires just at the point at which
                demand from the community is reaching critical mass. An additional
                consideration is the supply of funds likely to be needed by the new
                enterprises to be established.

                Capital funds need to be raised from organisations such as Tudor Trust, the
                RDA, the Primary Care Trust, the local authority, Lottery Fairshares and local
                organisations such as Portman Building Society.

                Equipment grants can be obtained from the Co-operative Group, the Lottery
                New Opportunities Fund, Community DirectPlus and other sources,
                especially local private companies.

                Revenue funding for the continual development of services can be obtained
                from the learning and skills council, Esmee Fairbairn Foundation, ESF,
                Phoenix Development Fund, RISE.

                Support for individual enterprises can be obtained from UnLtd, Bridges
                Community Ventures (Wallisdown qualifies for assistance) and other bodies
                such as the Calouste Gulbenkian Founbation and the Allen Lane Foundation.

                A representative contact list is detailed below.

                         a) Charitable Trusts:
                                  (1) Esmee Fairbairn Foundation
                                  Social Development Programme, Funding priorities include
                                  enterprise: helping new and developing community and social
                                  enterprises to realise their potential; applications should show
                                  they will: bring about lasting change for people and

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 Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth


                                  communities facing disadvantage; add value such as levering in
                                  other funding, showing good volunteer involvement. The
                                  Foundation does not make capital grants, and only funds
                                  equipment purchases when part of a wider proposal. It funds
                                  project and core costs. Applicants do not have to be charities,
                                  but should be properly constituted organisations, doing work
                                  which is legally charitable. Average Grant £33,000 but some
                                  are bigger, up to £100,000.

                                  (2) The Tudor Trust
                                  Funds practical projects benefiting communities, especially
                                  where unrealised potential exists; prefers active involvement of
                                  local people; interests include marginalised communities,
                                  education, training and employment, and charitable/ not-for-
                                  profit schemes stimulating the local economy. Revenue or
                                  capital grants made, up to £1million. Will fund organisations
                                  which are not charities.
                                  11 Park Place, London SW1A 1LP 0207 297 4700

                                  (3) The Calouste Gulbenkian Foundation
                                  Has funded social and community enterprise projects. Will fund
                                  non-charities.
                                  98 Portland Place, London W1B 1ET 0207 636 5313

                                  (4) Allen Lane Foundation
                                  Has funded community enterprise development projects. Will
                                  fund non-charities. 90 The Mount, York YO24 1AR

                         b) Local Government:
                                  (1) Bournemouth Borough Council

                                  Economic Development Unit
                                  Tel: 01202 451109 Fax: 01202 454751
                                  e-mail: edu@bournemouth.gov.uk

                                  Nigel Higgins, Director of Environment and Community
                                  Services, 01202 451165
                                  Corin Brewer, Principal Community Development Officer
                                  Bournemouth Council 451433
                                  Corin Brewer is the person to talk to initially.

                         c) Co-operative Funding
                                  (1) The Co-operative Bank –
                                  Paul Mallett, Public Sector and Community Development
                                  Manager for the South West, Co-op Bank, 23a St Aldate Street,
                                  Gloucester GL1 1RU, for major funding


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 Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth


                                  (2) Community Directplus
                                  Customer Donation Fund, maximum £1,000 Co-op Bank, PO
                                  Box 101, 1 Balloon St, Manchester M60 4EP

                                  (3) Co-op Group Community Dividend Fund
                                  Maximum £5,000, have funded Fernheath Play Association in
                                  West Howe. South West Region, Admail 3672, Limesfield,
                                  Broad Rd, Dulford, Cullompton, Devon EX15 2FA

                         d) Government Funding
                         Phoenix Bursaries and RISE Bursaries are available to cover the costs
                         of capacity development of social enterprise support organisations;
                         typically these will fund the costs of training, conferences, exchange
                         visits (such as to other social enterprise incubation units) but will not
                         cover salaries. Phoenix Bursaries will fund up to 70% of costs,
                         maximum £10,000 and RISE up to 50%, maximum £2,175.

                         Phoenix Bursaries 0870 458 4161 or email phoenix@mci-group.com

                         RISE, Unit 1, Cranmere Court, Lustleigh Close, Matford Business
                         Park, Exeter EX2 8PW
                         Tel: 01392 473465

                         Capital and revenue funding for start-up is likely to be available from
                         the South West RDA.

                         e)    European Funding
                         A social enterprise incubation unit in West Howe may be eligible for
                         European Social Fund money under Objective 3, which covers all the
                         SW region, priority 4.3 covering entrepreneurship and SME
                         development. Other priorities relate to training etc. Usually funding has
                         to be matched in a 45% / 55% split. Contact GOSW for more
                         information. Match funding can come from charitable bodies or private
                         sources, but 10% must be from public sources. It probably won‟t cover
                         capital expenditure.

                         f) Other Funding
                         Bridges Community Ventures: “We aim to harness the entrepreneurial
                         spirit in under-invested communities to stimulate economic growth and
                         create jobs, wealth and role models of business success.”
                         BCV invests in and supports outstanding entrepreneurs, helping them
                         realise their vision and create wealth for themselves and their
                         communities and aims to:
                            Invest in ambitious businesses in the most under-invested areas
                                in England West Howe Qualifies!
                            Provide hands-on support to help these businesses grow
                            Make a financial return for our investors that will attract private
                                sector investors into future funds of this type

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 Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth


                               Make a difference in our target areas by creating jobs,
                                stimulating economic dynamism and fostering entrepreneurs
                                who can become role models of business success in these
                                areas.




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 Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth




V.              CONCLUSION
The West Howe community has a need for employment development that stands outside
the mainstream business development programmes currently on offer. The large number
of lone-parent families, particularly young mothers, the high proportion of elderly people,
and the low level of formal qualifications indicate a high level of need not normally catered
for in business development.

However the combination of high local needs in terms of services, and the needs in terms
of jobs and income, offer a great opportunity for social enterprise as a means of meeting
local needs through local provision of goods and services. The very name of the local
organisation West Howe Investing in People indicates the people-based nature of the
economic development, which is currently taking place.

The success of the Sure Start initiative, and the work done by West Howe Network and
WHIPS indicates a readiness of the community to engage in the development of activities
that offersw a strong platform on which to build future initiatives. This is being met half -way
by the approach of statutory bodies such as the Primary Care Trust which is prepared to
consider radical new approaches to the delivery of services to the area.

We consider then that a favourable environment exists for the introduction of a business
incubation unit to increase the rate at which resident-led initiatives can be turned into
trading social enterprises. Given the favourable environment we believe that there is the
potential capacity for this to be a resident-managed process, and conclude that WHIPS is
the organisation in the Community best-placed to mobilise and co-ordinate the resident
activity necessary to achieve success in this project.

Given that the clinic building is planned to be modified and developed as an initiative in
resident-managed services in any case, we see great value in broadening this concept into
a “Health, Learning and Social Enterprise Centre” especially as many of the potential social
enterprises in the area involve some form of health-related issue. Its central location and its
own value as an “attractor” is of crucial importance in being able to generate the “footfall”
necessary to create an thriving incubation unit. Due to the proposed use of virtual office
hosting, the incubator will be able to retain an involvement with far more people than are
capable of being accommodated within the building. This will emphasise the concept of the
“learning community” and reverse the present under-confidence of residents.

Should the clinic option not be successful then we see a similar but slightly-less-effective
position being achieved through the location of the incubation unit in a new “sports and
enterprise” facility at the Fern Heath site.

Once enterprises are established and have a momentum of their own then they will have a
need for “move-on” premises. Indeed some of these enterprises may by-pass the
incubation unit in any case due to having greater resources behind them. Location will be
less important for these established enterprises, therefore a facility on the industrial estate
would suffice. It is unfortunate that the best option on the industrial estate, the former
Bournemouth Training Centre in Elliott Road, has just been sold by the Borough Council.
However we consider that it may be possible to identify a similar facility locally. It may be

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 Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth


advantageous to involve Beneficial Green-works or similar organisation in the initial
location search as this will increase the likelihood of the “move-on” unit achieving economic
viability quickly.

The project will be multi-agency and locally-based, therefore it is advisable to establish a
steering group to assist in the development process. This should co-ordinate existing
resources as well as lead the process for the obtaining of new ones.

The funding strategy needs to differentiate between the capital needs of the project and the
revenue needs. If WHIPS owns the building then the rental paid by the Primary Care Trust
for the use of the clinic space will make a substantial revenue contribution to the business
plan. The incubation unit will generate income through rental of desk space, cabinet space
and administration services. It will also be able to create trading income through courses
and funded projects.

We conclude then that there is a viable incubation unit to be had, which can be locally-
owned and controlled, using innovative technology to involve residents in many different
ways, and which will assist residents in meeting their needs through social enterprise.




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 Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth




VI.             RECOMMENDATIONS
       A. That this report be accepted

       B. That the Steering Group be convened by SWEDA to consider
       the report

       C. That all partner organisations sign-up to the proposal
       D. That the Primary Care Trust commission architects to produce
       plans for the centre incorporating the proposed business
       incubation unit
       E. That the Steering Group support WHIPS in developing the
       Business Plan
       F. That the Steering Group support WHIPS in making appropriate
       funding applications




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 Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth


Appendix One: Proposals for a Social Enterprise Incubator, West Howe
Services          Facilities         Tenants           Users            Partners         Jobs           Contracts
Training          Individual         Transport and     Trainees         West Howe        Travel club    Cleaning the
provider          Desk space         travel club                        Investing in     staff          building
                                                                        People
Printing          Individual         Printing /        WHIPS            West Howe        Admin/         Maintenance
service           units              copying           Volunteers       Network          reception      of building
                                     service                                             staff
Cyber-            Shared units       Gardening         Individual       Jobcentre        Incubator      Running
launderette                          Cars Bikes        entrepreneurs    Plus/ New        Manager(s)     cafe
                                     Decorating                         Deal
Cafe/ snack       Community          Shape-Up          Existing         Bournemouth      Trainers       Running
bar               space                                social           Borough                         cyber-
                                                       enterprises      Council                         launderette
Debt advice/      Training           Cyber             Emerging         RDA              Community      Debt
counselling       rooms              launderette       social                            Transport      counselling
                                                       enterprises                       drivers etc
Benefits          Parking            Cafe/ snack                        CDA Dorset
advice            space              bar
Careers           Workshops/         Friends of                         Shelter
advice, link to   light              Moore
jobcentre         industrial         Avenue Park
Community         Retail space       Credit union                       New
learning                                                                Economics
                                                                        Foundation
Business          Photocopying       Community                          Esmee
advice, social    Printing etc       Transport                          Fairbairn
enterprises                                                             Foundation
Business          Creche/ child      Community
advice to         friendly           Survey co-op
individuals       space
Training to       Launderette        Food co-op
run social
enterprises
Art and           Computers/         Training
photography       internet           provider
classes           access
Computer                             Car pool
training
Creche/ child                        Childcare co-
care                                 op
Support/                             LETS
discussion                           scheme/
groups                               Timebank
Support for                          West Howe
individual                           Network
entrepreneurs
LETS                                 A few
scheme /                             individual
Timebank                             entrepreneurs




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    Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth


Appendix Two: Possible progression routes for individuals


1      Childcare,     Volunteering/     Formal          Apply for job    Paid worker     Come off out
       and            community         training        in Enterprise    member of       of work
       benefits       learning                          incubator        incubator       benefits
       advice, if
       needed
2      Childcare,     Volunteering/     Help start      Training for     Move into       Business         Trading
       and            community         cyber           co-op            unit in         and              providing
       benefits       learning          launderette     members          incubator       development      service and
       advice, if                       etc                                              support          earning
       needed                                                                                             income
3      Childcare,     Volunteering/     Form new        Training for     Move into       Business         Trading
       and            community         co-op or        proposed         unit in         and              providing
       benefits       learning          social          co-op            incubator       development      service and
       advice, if                       enterprise      members                          support          earning
       needed                                                                                             income
4      Childcare,     Volunteering/     Formal          Apply for job    Paid worker     Come off out
       and            community         training if     in local         member of       of work
       benefits       learning          needed          social           enterprise      benefits
       advice, if                                       enterprise
       needed
5      Childcare,     Business          Start or        Use              Rent unit in    Earn living
       and            advice and        develop         incubator        incubator if    from
       benefits       support           own             facilities       in policy       business
       advice, if                       business
       needed
6      Childcare,     Volunteering/     Formal          employment       Paid worker     Come off out
       and            community         training if     in relevant      member of       of work
       benefits       learning in       needed          enterprise       enterprise      benefits
       advice, if     new social
       needed         enterprise




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 Report into the Feasibility of developing a Social Enterprise Incubator Unit for the West Howe area of Bournemouth




Appendix Three: Lettings policy proposals
Social          Move on          Incubator         Incubator        small            Small
enterprises     policy           negotiates        may include      businesses:      businesses
charged by      according to     favourable        links to         only West        can use
unit size and   income and       lettings policy   commercial       Howe             facilities if
income level    whether          with council      property         residents,       West Howe
                service          for move-on       lettings         limited          residents
                essential to                                        period, rent
                West Howe                                           according to
                                                                    income level




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