ORC-2019-10-Building an inclusive economy through community business.pdf

ORC-2019-10-Building an inclusive economy through community business.pdf - page 1/80 - Building an inclusive economy through co…

ORC-2019-10-Building an inclusive economy through community business.pdf - page 2/80 - This research was funded through the Pow…

This research was funded through the Power to Change Research Institutes open research grants programme. This programme aims to support the community business sector and its partners in delivering the evidence the sector needs for its own development, and to make the case for the value of community business. The research is conducted independently of Power to Change. The work and any views presented are the authors own.

ORC-2019-10-Building an inclusive economy through community business.pdf - page 3/80 - Contents

ORC-2019-10-Building an inclusive economy through community business.pdf - page 4/80 - 1. Introduction

ORC-2019-10-Building an inclusive economy through community business.pdf - page 5/80 - Executive summary

ORC-2019-10-Building an inclusive economy through community business.pdf - page 6/80 - Our theory is that community business, a…

Our theory is that community business, as a form of social action, is a function of social capital plus agency, and all forms of social capital (bonding, bridging and linking) need to be present and strong for community businesses to flourish. Where the social capital and agency conditions empower a community to build local responses to social challenges, community business models are more likely to thrive and contribute to a more inclusive economy.

ORC-2019-10-Building an inclusive economy through community business.pdf - page 7/80 - To support deprived places to build comm…

To support deprived places to build community business responses that empower local people and build more inclusive economies, existing nodes of activity (community businesses or community anchor organisations) can be encouraged and supported to play a catalyst role by bridging connections locally and linking to opportunity outwardly.

ORC-2019-10-Building an inclusive economy through community business.pdf - page 8/80 - 1. Introduction

ORC-2019-10-Building an inclusive economy through community business.pdf - page 9/80 - investment, have played in improving the…

investment, have played in improving the economic performance of places that are lagging behind. The result has been a lack of emphasis on the role of community wealth building strategies and the role community business models can play to support and develop inclusive economies from within.

ORC-2019-10-Building an inclusive economy through community business.pdf - page 10/80 - that major investment projects, even whe…

that major investment projects, even when they take place in disadvantaged areas, do not sustainably benefit those who experience disadvantage.

ORC-2019-10-Building an inclusive economy through community business.pdf - page 11/80 - 2. Research questions and methodology

ORC-2019-10-Building an inclusive economy through community business.pdf - page 12/80 - Literature review

ORC-2019-10-Building an inclusive economy through community business.pdf - page 13/80 - Developing a benchmark

ORC-2019-10-Building an inclusive economy through community business.pdf - page 14/80 - 3. Literature review

ORC-2019-10-Building an inclusive economy through community business.pdf - page 15/80 - Why are community businesses important f…

Why are community businesses important for deprived local economies?

ORC-2019-10-Building an inclusive economy through community business.pdf - page 16/80 - mutual understanding and reciprocal acti…

mutual understanding and reciprocal actions, based on shared values. In other words, the norms and networks that facilitate collective action.22 The more social capital is used, the more it grows. That is to say, the more individuals and organisations develop relationships between themselves and others, the more those relationships, and therefore social capital, is developed. Conversely, where there are few social networks, a lack of trust, no shared norms and no commitment to an area, community cohesiveness declines and social and economic underdevelopment is likely. In our deprived communities, if social capital is lacking, opportunities for collective action are reduced and social action is less able to contribute to a more inclusive economy.23

ORC-2019-10-Building an inclusive economy through community business.pdf - page 17/80 - Table 1: Types of social capital

ORC-2019-10-Building an inclusive economy through community business.pdf - page 18/80 - to leverage the resources on offer in te…

to leverage the resources on offer in terms of access to qualifications and wages. This could have been because of a lack of shared values in terms of what was perceived to be important to the economic development officer not being shared by the individuals for whom the training was intended, or a case of lack of social capital meaning that the individuals did not believe they had the ability to succeed at the training. Consequently, the activity required to get this business off the ground was focused around trying to build sufficient levels of social capital to enable the necessary social action to occur. In short, working with the community to break down barriers. However, this was not a quick fix, and took the local economic development team two years to build the necessary bridges to encourage local residents to participate.

ORC-2019-10-Building an inclusive economy through community business.pdf - page 19/80 - Building an inclusive economy through co…

ORC-2019-10-Building an inclusive economy through community business.pdf - page 20/80 - 4. Case study areas

ORC-2019-10-Building an inclusive economy through community business.pdf - page 21/80 - South Liverpool community businesses

ORC-2019-10-Building an inclusive economy through community business.pdf - page 22/80 - Squash

ORC-2019-10-Building an inclusive economy through community business.pdf - page 23/80 - Building an inclusive economy through co…

ORC-2019-10-Building an inclusive economy through community business.pdf - page 24/80 - West Hull (warming up)

ORC-2019-10-Building an inclusive economy through community business.pdf - page 25/80 - West Hull community businesses

ORC-2019-10-Building an inclusive economy through community business.pdf - page 26/80 - Giroscope

ORC-2019-10-Building an inclusive economy through community business.pdf - page 27/80 - Building an inclusive economy through co…

ORC-2019-10-Building an inclusive economy through community business.pdf - page 28/80 - North Smethwick (starting out)

ORC-2019-10-Building an inclusive economy through community business.pdf - page 29/80 - North Smethwick community businesses

ORC-2019-10-Building an inclusive economy through community business.pdf - page 30/80 - The Real Junk Food Project

ORC-2019-10-Building an inclusive economy through community business.pdf - page 31/80 - Building an inclusive economy through co…

ORC-2019-10-Building an inclusive economy through community business.pdf - page 32/80 - Area profile

ORC-2019-10-Building an inclusive economy through community business.pdf - page 33/80 - Figure 6: Ethnicity 100%

ORC-2019-10-Building an inclusive economy through community business.pdf - page 34/80 - Qualifications

ORC-2019-10-Building an inclusive economy through community business.pdf - page 35/80 - Occupation

ORC-2019-10-Building an inclusive economy through community business.pdf - page 36/80 - Employment status

ORC-2019-10-Building an inclusive economy through community business.pdf - page 37/80 - Deprivation

ORC-2019-10-Building an inclusive economy through community business.pdf - page 38/80 - Figure 11: IMD by domain � share of LSOA…

Figure 11: IMD by domain � share of LSOAs within the top 20% most deprived - 2015

ORC-2019-10-Building an inclusive economy through community business.pdf - page 39/80 - In summary

ORC-2019-10-Building an inclusive economy through community business.pdf - page 40/80 - 5. Measuring social capital

ORC-2019-10-Building an inclusive economy through community business.pdf - page 41/80 - West Hull

ORC-2019-10-Building an inclusive economy through community business.pdf - page 42/80 - South Liverpool

ORC-2019-10-Building an inclusive economy through community business.pdf - page 43/80 - the local resident community, vital for …

the local resident community, vital for collective social action and the growth of community business responses. This was the highest response of any group � staff or user, across the three case study areas and significantly higher than the benchmark.

ORC-2019-10-Building an inclusive economy through community business.pdf - page 44/80 - community business staff were found in t…

community business staff were found in the L17 postcode which covers the area to the south of the case study area and includes Grassendale and Cressington, the 19th century gated private estates which were built for wealthy Liverpool merchants. This suggests that the community business hotspot in south Liverpool has been in some way reliant on the social capital of people from outside of the community. Our theory would have suggested a larger differential in linking capital between staff and users, however, as discussed above, our proxy measures of trust in formal institutions may not have captured this due to the experience of this community in recent history. Figure 15: South Liverpool community business staff and users/volunteers Staff

ORC-2019-10-Building an inclusive economy through community business.pdf - page 45/80 - West Hull

ORC-2019-10-Building an inclusive economy through community business.pdf - page 46/80 - authority standing at 35%. Just 32% of w…

authority standing at 35%. Just 32% of west Hull community business users indicated they trusted the local authority `a lot or `a fair amount, while 67% of west Hull community business staff stated the same. This lack of trust in formal institutions is supported by a similar differential between staff and users in the ability to influence decisions which affect the area. Only 29% of community business users agree that they can influence decisions which affect their area, while 52% of community business staff agree the same. This lack of linking capital may reflect the results of the recent neighbourhood planning process. Residents of the Thornton Estate rejected the proposed neighbourhood plan with 58% voting against, blaming ineffective community engagement by plan-makers. Figure 17: Social capital measures in west Hull � community business staff and users39

ORC-2019-10-Building an inclusive economy through community business.pdf - page 47/80 - Figure 18: West Hull community business …

Figure 18: West Hull community business staff and users/volunteers Staff

ORC-2019-10-Building an inclusive economy through community business.pdf - page 48/80 - North Smethwick

ORC-2019-10-Building an inclusive economy through community business.pdf - page 49/80 - significantly lower than the benchmark (…

significantly lower than the benchmark (41%). One reason for this could be because north Smethwick has a somewhat transient population, with a high proportion of refugees and asylum seekers in the area who do not settle there, making wider trust and community links harder to create as there is not a steady, stable population.The responses to linking capital measures are broadly similar between community business staff and users and average out around the benchmark within 1-2%. The measure that stands out, however, is the extremely low level of agreement that people (staff and users) can influence decisions which affect the area. Only 9% of staff and 8% of users feel that they can influence decisions locally which suggests a disconnect with the wider institutions that have power over their lives. This is also far lower than in any other of the case study areas and significantly below the benchmark of 26%. This highlights a lack of deep-rooted organisations at the institutional level. Consultation suggested that regeneration interventions had exacerbated mistrust, as attempts had failed to engage communities and had stimulated little economic change in the area.

ORC-2019-10-Building an inclusive economy through community business.pdf - page 50/80 - Birmingham. This could be because The Re…

Birmingham. This could be because The Real Junk Food Project has numerous locations for their pay as you feel cafes located across the wider Birmingham area. Staff come from a less concentrated area of Smethwick and Sandwell than users, coming from West Bromwich and Birmingham. Figure 21: North Smethwick community business staff and users/volunteers Staff

ORC-2019-10-Building an inclusive economy through community business.pdf - page 51/80 - Comparison

ORC-2019-10-Building an inclusive economy through community business.pdf - page 52/80 - 6. Understanding agency

ORC-2019-10-Building an inclusive economy through community business.pdf - page 53/80 - The interrelation between support organi…

The interrelation between support organisations and connections to the political and institutional level stands out. More `rooted organisations such as LCVS and the Diocese of Liverpool are deeply embedded in their local communities, especially when "compared to `comet in the sky organisations which have come and gone, such as Social Enterprise North West".43

ORC-2019-10-Building an inclusive economy through community business.pdf - page 54/80 - The Furniture Resource Centre (FRC) was …

The Furniture Resource Centre (FRC) was established first as a charity in the 1980s to solve local furniture poverty and developed a trading practice that made it "a social enterprise long before the term was used". FRC is one of many community businesses now deeply embedded in the local community, both in providing its core services, and employing over eighty workers, many of whom live in south Liverpool.

ORC-2019-10-Building an inclusive economy through community business.pdf - page 55/80 - Building an inclusive economy through co…

ORC-2019-10-Building an inclusive economy through community business.pdf - page 56/80 - West Hull

ORC-2019-10-Building an inclusive economy through community business.pdf - page 57/80 - Hull45). These organisations are jointly…

Hull45). These organisations are jointly funding the Hull Community Development Project, consisting of 21 programmes and an initial �1.5m investment. The HEY 100 Clore Social Leadership programme46 is seeking to develop leaders with a social purpose so that they can transform their communities, organisations and the world around them.

ORC-2019-10-Building an inclusive economy through community business.pdf - page 58/80 - The Goodwin Development Trust has been a…

The Goodwin Development Trust has been able to grow through its approach to asset development. The Trust has been successful in accessing formal funding and bidding in partnership with stakeholders across the city. In building a portfolio of property, the Trust has become a facilitator of social action, with a range of community groups and community businesses operating from Goodwin Development Trust properties. Middle Child, Dannys Dream and West Hull Community Radio have all had their growth facilitated by the asset support of the Trust. Its main operational property, the Octogen Centre, hosts the HLC, and a newly acquired church has been transformed into a multi-purpose venue (Village Hall) acting as a civic heart for the local community and beyond.

ORC-2019-10-Building an inclusive economy through community business.pdf - page 59/80 - Building an inclusive economy through co…

ORC-2019-10-Building an inclusive economy through community business.pdf - page 60/80 - North Smethwick

ORC-2019-10-Building an inclusive economy through community business.pdf - page 61/80 - these organisations all have quite speci…

these organisations all have quite specific remits and thus may work with a smaller pool of people. For example, SWEDA was set up by a network of women to support other women to become entrepreneurs, working to deliver assertiveness training and childcare alongside more formal business training.

ORC-2019-10-Building an inclusive economy through community business.pdf - page 62/80 - For other community businesses, includin…

For other community businesses, including the Sikh Community and Youth Service and the Real Junk Food Project, it was the experience and knowledge of committee members, volunteers, board members and trustees that had enabled them to grow as businesses.

ORC-2019-10-Building an inclusive economy through community business.pdf - page 63/80 - Building an inclusive economy through co…

ORC-2019-10-Building an inclusive economy through community business.pdf - page 64/80 - Comparison

ORC-2019-10-Building an inclusive economy through community business.pdf - page 65/80 - 7. Summary of findings

ORC-2019-10-Building an inclusive economy through community business.pdf - page 66/80 - residing within the case study area, sug…

residing within the case study area, suggesting those with the linking capital that enables these businesses to thrive have been imported to the area.

ORC-2019-10-Building an inclusive economy through community business.pdf - page 67/80 - abundance but community access to these …

abundance but community access to these can be restricted by private and institutionalised ownership.

ORC-2019-10-Building an inclusive economy through community business.pdf - page 68/80 - 8. Recommendations

ORC-2019-10-Building an inclusive economy through community business.pdf - page 69/80 - community business, but critically can c…

community business, but critically can connect people within the community who may have an interest in working together to build a business response to an issue in the local area. Bridging ties between individuals or between social groups begins to connect resources (passion, knowledge, skills) which can enable community business formation.

ORC-2019-10-Building an inclusive economy through community business.pdf - page 70/80 - economy with the growth of social busine…

economy with the growth of social business models, including community businesses, co-operatives and social enterprises.53 Preston came top of the Demos-PwC Good Growth Index 201854, driven by a combination of action at the local level alongside national improvements in the economy (and particularly the labour market) in recent years. Power to Change has invested significantly in developing a body of research and testing approaches to building community businesses in deprived communities. This body of work needs to be interwoven with the community wealth building agenda so that government and anchor institutions at all levels recognise how community business models contribute to the principles of community wealth building through:

ORC-2019-10-Building an inclusive economy through community business.pdf - page 71/80 - Appendix 1: Case study LSOAs/MSOAs

ORC-2019-10-Building an inclusive economy through community business.pdf - page 72/80 - Appendix 2: Stakeholder consultees

ORC-2019-10-Building an inclusive economy through community business.pdf - page 73/80 - North Smethwick

ORC-2019-10-Building an inclusive economy through community business.pdf - page 74/80 - Appendix 3: Benchmark indicators

ORC-2019-10-Building an inclusive economy through community business.pdf - page 75/80 - Appendix 4: Social capital survey

ORC-2019-10-Building an inclusive economy through community business.pdf - page 76/80 - 6. Suppose you lost your (purse/wallet) …

6. Suppose you lost your (purse/wallet) containing your address details, and it was found in the street by someone living in this neighbourhood. How likely is it that it would be returned to you with nothing missing? (Please circle)

ORC-2019-10-Building an inclusive economy through community business.pdf - page 77/80 - Social networks 12. Not counting the peo…

Social networks 12. Not counting the people you live with, how often do you do any of the

ORC-2019-10-Building an inclusive economy through community business.pdf - page 78/80 - 18. During the last 12 months have you g…

18. During the last 12 months have you given any unpaid help to any groups,

ORC-2019-10-Building an inclusive economy through community business.pdf - page 79/80 - Centre for Local Economic Strategies

ORC-2019-10-Building an inclusive economy through community business.pdf - page 80/80