TPR-2015-01-What if we ran it ourselves.pdf

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"What if we ran it ourselves?"

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What If We Ran It Ourselves

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What If We Ran It Ourselves Figure 2. Five types of community business

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What If We Ran It Ourselves and are now focused on growth and replication. They may still use grant funding for specific projects, but the bulk of their income is generated by selling goods and services or via commercial contracts. Sitting behind these leaders are a larger group of enterprises with over �100,000 of income or assets, which are aiming to become � but may not yet be � sustainable. They have established multiple revenue streams, and have started to employ a number of paid staff. Bringing up the rear is the long tail of smaller businesses, earning less than �100,000 in earned income and typically reliant on grants to fund the balance of their running costs. Geographical spread Why community businesses form in one place and not another is, of course, as much a result of luck, timing, individuals, and circumstance. A library closure is announced. A group of friends get angry. Someone reads about community rights in a government leaflet. A community business is formed. This feature of community business formation has led to a relatively even distribution of community businesses around the country. Our analysis, based on our proprietary survey, interview responses, and public reports, shows substantial community business presence in every region. Although it must be emphasised that these figures are approximations based on the best available data, we found that only Yorkshire and the North East had a substantially smaller share of community businesses than their population would suggest. By contrast, the South West stands out with over one quarter of all English community businesses, but only 11% of the population (see figure 6). Figure 6. Geographic distribution of community businesses

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What If We Ran It Ourselves Nonetheless, most community businesses attempt some kind of impact measurement. This can take a number of forms. Some of these are relatively light touch whereas others require dedicated staff members, trained and skilled in data collection and analysis. For example, the "LM3" tool can be purchased for 30 by a small charity to highlight its local economic impact, including the local multiplier effect of, for example, employing people who go on to spend money elsewhere in the local economy. By contrast, Social Return on Investment (SROI) analysis, which attempts to measure the net social value creation of the venture, requires trained staff and potentially external support to complete.4 60% of community businesses responding to our survey had some form of impact measurement. 5 The most common approach was a mixture of surveys and user satisfaction questionnaires, focusing primarily on social indicators. However, four organisations, all with incomes exceeding �150,000, used a much more comprehensive SROI approach. Some respondents indicated that they track sector-specific metrics, such as tonnes of waste diverted from landfill sites or quantity of electricity generated from local, renewable sources. Figure 8. Primary source of impact

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What If We Ran It Ourselves For Business Savers there is the different challenge of negotiating the transfer of an asset from private ownership. There is also the challenge of stepping in to run and rejuvenate a functioning business: dealing with live supplier relationships; meeting demands for business rates and utility bills; fulfilling legal obligations under licensing, environmental, safety and employment laws. For Community Start-ups: this is a planning phase, scoping viable business propositions and potential financing arrangements.

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What If We Ran It Ourselves Figure 13. The community business life cycle--how challenges change over time

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What If We Ran It Ourselves Figure14. Support gaps across the life cycle

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What If We Ran It Ourselves Figure A2. Aggregated view of 13 community business sub-sectors

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