Summary
This report examines the evolution of state-provided business support in England and its relationship with social innovation and the growing social economy. It explores how different approaches to business development have been employed to address the economic and social challenges faced by deprived and declining areas. The report specifically focuses on business support models that promote co-operatives, social enterprises, and community businesses, which are associated with the generative economy.
Additionally, the report serves as a literature review to support the broader research associated with the Empowering Places program. This program, funded by Power to Change and implemented in collaboration with Co-operatives UK, New Economics Foundation, and the Centre for Local Economic Strategies, was a five-year initiative aimed at empowering communities. It aims to test the concept that establishing and nurturing networks of social businesses can effectively address economic inequality in England’s most deprived areas.
The report analyzes the historical context of state-provided business support, highlights approaches for supporting communities facing economic challenges, and underpins the ongoing research conducted by the Empowering Places program via Innovation in Business.
Recommendations Summary
- Wider social impacts and qualitative evaluation need to be given greater weight when commissioning business support programmes. Meaningful evaluation of support initiatives must become an intrinsic part of their design, rather than an afterthought
- Innovative solutions need to be given the space, time and support to demonstrate their impact. Lessons drawn should inform future programme design, particularly value added to the wider business support eco-system and reach into communities
- Support organisations should seek to become transformational rather than transactional. Relational approaches have been written off as too expensive, so finding cost-effective ways to rebalance support must be a priority
- The inclusive growth agenda needs to be fully embraced, breaking down silos between organisations and departments which do not see themselves as part of the business support infrastructure
- Key partnership bodies involved in business support provision, such as MCAs and LEPs, need to make firmer commitments to resourcing business support that directly caters to the social economy
- Viewing business support as a standalone industry, with fixed methods, leads to a lack of collaboration which is unable to harness the creativity and value that exists in the UK. Create the conditions for service design which meets need in a more holistic way
- Educating business support providers on the range of social business models, particularly co-operatives and the support needs of those who drive them, would go some way to bridging the perceived divide between local actors and the privileged organisations that serve them
- Bold local leaders could enable social purpose businesses to ‘scale across’ and ‘scale up’, rather than just continuing a myopic focus on ’scaling up’ firms in a few growth sectors
