Recommendations for Policy, Practice, and Future Research Opportunities

There is a wealth of reporting and evidence from research that small third sector social enterprises have a vital role to play not just in relation to service delivery, but also contribute to nurturing positive relationships, supporting vulnerable, disadvantaged groups and building stronger communities (Maher, 2015a; Seanor & Meaton, 2007; Smallbone & Lyon, 2004). Most small third sector social enterprises are set up because they have identified a gap in the market. Often, this has meant that there is either a public-service or private-market failure. In order to help these enterprises grow, policy makers need to tailor policy and support aiming to build capacity of these organisations in terms of the scale and volume of their activities; to enhance their contribution at local, regional and national levels. Organisations should advance their business management and procurement skills to enable the creation of sustainable income. This chapter makes recommendations for both policy and practices to help the development, growth, and sustainability of small third sector social enterprises and concludes by making suggestions for future research opportunities.

Impact of Public Policy on Small Third Sector Social Enterprises

This chapter provides important perspectives from key informants about their experiences of the impact of public policy on small social enterprises. Semi-structured interviews were conducted with the 10 Chief Executive Officers (CEOs), 8 HR managers, and 46 operational managers working in small third sector social enterprises in four UK regions to ascertain how government policy framework poses challenges and/or encourages small third sector social enterprises growth and success. There is clear evidence that changes in public policy have had some challenging effect on services development and in several regions, with core services, training and employment support and preventative services are showing a net deterioration.

Legal Framework, Funding, and Procurement Polices to Accelerate the Growth of the Social Enterprise Ecosystem

The purpose of this chapter is to provide an outline and overview legal framework for social enterprises, including funding and procurement policies to accelerate the growth of social enterprise ecosystem. The legal framework specifically designed for UK social enterprises is known as Community Interest Company (CIC). The internal governance rules, the permissibility of direct economic activities and the rules governing profit distribution for a CIC are discussed. The chapter explains procurement policies introduced in the United Kingdom to ensure deliver and accountability for services provided by social enterprises. Procurement is increasingly seen as the key to delivering desired outcomes for government funded programmes and it provides the link between policy and delivery. The chapter also discusses a number of funds and loans structures established by the government such as: Future Builders, The Social Enterprise Investment Fund, and Big Society Capital (BSC) to encourage the development of third sector social enterprises.

Public Policy Propelling the Development of UK Third Sector Social Enterprises

This chapter provides an overview of political developments and public policies which enabled the development of UK third sector social enterprises. The chapter adopts a chronological framework in tracing the development of UK third sector social enterprises from the co-operative movement to the influence of the ‘Third Way' doctrine (Giddens, 1998). This expression of New Labour political values had a significant impact on shaping public policy and for third sector social enterprise development. This also included a policy solution to a range of identified social, health, environmental, community and economic problems particularly at the local and regional levels (National Audit Office, 2007), including Scotland, Wales and Northern Ireland. This was subsequently supported by European Commission's social enterprise development agenda.

Contextualising the Third Sector

This chapter defines the third sector, tracks the historical development and the contextual background of the sector and its governance arrangements. The history of the UK third sector dates back to the Act 1601, the Relief of the Poor, which offered relief to individuals who could not work, were cared for in alms houses or sent to work-houses (Murdock, 2006). Throughout the centuries, the sector continued to provide services for those that the state considered beyond its remit. With high unemployment and the reduction of welfare provision towards the end of the twentieth century the UK government developed polices to help third sector organisations to bid for contracts to deliver welfare, housing and community services. The chapter concludes with a discussion of academic perspectives on the existence of the sector and the distinctiveness between the third sector, private sector and public sector are explained.