Developing a
Successful Social
Economy

NI Government’s Three-Year Strategic Plan 2004-07
Including Action Plan for 2004-05

Stimulating
innovation
enterprise and
competitiveness

Consultation

Strategy

Progress

Department of Enterprise,
Trade and Investment

Developing a
Successful Social
Economy

NI Government’s Three-Year Strategic Plan 2004-07
Including Action Plan for 2004-05

September 2004

ISBN 1-902885-03-1

Crown Copyright

ISBN 1-902885-03-1

Crown Copyright

Our aim is to support the development of a strong and sustainable social economy through an
integrated partnership approach

Conte

Foreword by Barry

Gardiner MP

1

Introduction

Page 11

2

Development of this

Document

Page 13

3

Social Economy in

Northern Ireland

Page 15

4

Background

Information on Social

Economy Activity in

NI, GB and Republic

of Ireland

Page 19

5

Achievements to Date

Page 23

6

Action Plan for

2004-05

Page 27

7

Monitoring and

Reporting on Progress

and Evaluation

Page 37

8

Review of the

Consultation Process

Page 39

Annex A

Summary of

Consultation

Responses

Page 43

Annex B

List of Respondees

Page 50

Annex C

Social Economy

Agency (SEA) -

Network Co-ordinator

Page 51

Annex D

Social Economy

Network (SEN)

Page 52

Annex E

Inter-Departmental

Steering Group (IDSG)

Page 54

Annex F

Social Economy

Forum

Page 55

Annex G

Equality Aspects

Page 56

Annex H

Bibliography

Page 59

nts

As the Minister responsible for the Department of

Enterprise, Trade and Investment, and chair of the

Social Economy Forum in Northern Ireland, I am

delighted to present this cross-departmental

Strategic Plan and Action Plan for the development

of a successful social economy in Northern Ireland.

I would like to thank everyone who responded to

the public consultation on the draft Plan published

in January of this year. We received feedback from

all of the key stakeholders with an interest in

developing the sector. For ease of reference, full

copies of all of the responses are available on the

DETI website - www.socialeconomy.detini.gov.uk

The Government’s commitment to a more strategic

and integrated approach to the development of the

sector received strong support as did the three

strategic objectives on which we propose to

proceed. We also received many useful ideas on

the detail of the priority areas for action included in

the Action Plan for 2004-05 and these will be

reflected in the work of the lead Department

and/or the Joint Working Groups.

There are many differing ideas and views on the

concept and definition of the social economy and

its activities. The debate will and should continue

in Northern Ireland and elsewhere. In the interim,

the definition of social economy enterprises that

we proposed in the draft Plan has been retained.

Our focus is to facilitate and support individual

entrepreneurs and/or entrepreneurial groups that

want to consider establishing a social economy

enterprise and/or expand and develop an existing

enterprise. Some organisations may not wish to

follow this route. For those that do, the nature and

scale of commercial activity undertaken will be a

matter for the management of the enterprise as

will the legal form they choose to adopt. Finding

the right balance between social and economic

objectives will also be a matter to be determined

by the enterprise.

Barry Gardiner MP

Minister with responsibility for

Enterprise, Trade and

Investment

Page 06

I am pleased that the Government’s strategic

objectives have been supported by the sector.

Engagement with key stakeholders is central to our

plans for a joined up strategic approach. DETI will

continue to lead on this approach working with the

Inter-Departmental Steering Group and the Social

Economy Network. As chair of the Social Economy

Forum, I look forward to ensuring that the social

economy makes a significant contribution to social

and economic development in Northern Ireland.

BARRY GARDINER MP

Minister with responsibility for

Enterprise, Trade and Investment

September 2004

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 07

BACKGROUND

The social economy is a wide and diverse sector

which has been operating and developing over a

number of years and in some cases decades in

Northern Ireland with a strong tradition of

supporting local communities.

Social economy enterprises are distinct and unique

with three key characteristics; they have a social,

community or ethical purpose; they operate using

a commercial business model; and have a legal

form appropriate to a not-for-personal-profit status.

The sector in Northern Ireland includes a range of

organisations such as credit unions, housing

associations, local enterprise agencies, community

businesses, co-operatives, employee-owned

businesses, community development finance

initiatives, social firms and also social

entrepreneurs. It makes a unique contribution to

the social and economic framework of Northern

Ireland in delivering services and creating

employment and income, often but not exclusively

for disadvantaged people and disadvantaged

communities.

AN INTEGRATED APPROACH

The sector is an integral part of the NI economy

and a number of Government

Departments/Agencies already work with social

economy enterprises. However, it is widely

recognised both within and outside central

Government, that a more integrated approach to

the sector’s development is needed to promote

increased awareness of its value and particular

significance to the Northern Ireland economy and

its potential for development and further growth.

This has been identified as a priority area within

the 2002-05 DETI Corporate Plan and this Three -

Year Strategic Plan represents Government’s

approach to fulfil its commitment to increased

integration across Government Departments and

greater partnership with the sector.

DETI has already put in place a number of key

structures to develop this process of integration

and partnership with the sector, for example:

• the funding of the Social Economy Agency (jointly

with the Department for Social Development and

the EU Programme for Building Sustainable

Prosperity) to facilitate the establishment of an

inclusive Social Economy Network to represent

the sector;

• the formation of an Inter-Departmental Steering

Group (IDSG) to represent the 11 NI

Departments and develop greater cross-

Departmental co-operation, including preparation

of this Three - Year Strategic Plan and first year

Action Plan; and

• the creation of the Social Economy Forum where

representatives from the Network and officials

from IDSG and Government can work together in

constructive partnership.

THE STRATEGIC PLAN

Three key strategic objectives will facilitate

Government’s action to develop the social

economy. They are to:

Executive Summary

Page 08

• increase awareness of the sector and establish

its value to the local economy;

• develop the sector and increase its business

strength; and

• create a supportive and enabling environment.

For each objective, specific actions to be

implemented by Departments/Agencies have been

set out for 2004-05. It is expected that in light of

experience, research and interaction with the

Social Economy Forum, additional initiatives will be

undertaken in each of the successive years of the

Strategic Plan with targets for delivery. Work is

well advanced by four Joint Sectoral/Departmental

Working Groups considering key areas such as

mapping the size and scale of the sector, business

support and finance for the sector, and

opportunities for the sector through competitive

tendering for the delivery of public service

contracts.

This Strategic Plan should, of course, be read

alongside the initiatives emerging from the work of

the Social Economy Forum.

MONITORING AND EVALUATION

Successful implementation of this Strategic Plan

should result in a more sustainable and diverse

social economy, the establishment of more social

economy enterprises in some social economy sub-

sectors and the development and growth of

established social economy enterprises that are

already trading and making a distinct and valued

contribution to social and economic development

in Northern Ireland. DETI will take forward this

work and is developing a Monitoring and Evaluation

Plan and will report progress on the

implementation of this Strategic Plan through

meetings of the Social Economy Network Steering

Group, which meets quarterly and at the Social

Economy Forum, which meets twice yearly. An

annual progress report will also be published.

Towards the end of the three-year period, overall

progress will be reviewed in an external evaluation

process, in consultation with the sector, to

determine the way forward.

EQUALITY ASPECTS

Equality aspects have been considered and it is

concluded that, while detailed data on this diverse

sector and its make up is not currently available,

the social economy and the implementation of this

Plan have a positive impact on Section 75 groups

and will have a key role in contributing to

Government’s objectives in tackling poverty and

disadvantage.

CONCLUSION

This Strategic Plan has been widely circulated

within the social economy sector including

members of the Social Economy Network, social

economy enterprises, associations, federations,

those delivering and providing services to the

sector and others that have expressed an interest

in helping the sector to develop and grow.

It is available on the DETI website -

www.socialeconomy.detini.gov.uk. Copies can also

be obtained from:

Social Economy Unit

Department of Enterprise, Trade and Investment

Netherleigh

Massey Avenue

Belfast BT4 2JP

Email: [e-mail]

Tel no: 028 90 529369

Textphone: 028 90 529304

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 09

The social economy is an integral
and vital element of the NI
economy

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 11

POLICY CONTEXT

The social economy is a wide and diverse sector

which has been operating and developing over a

number of years in Northern Ireland and has a

strong tradition of supporting local communities. In

recent years, its contribution to the social and

economic life of Northern Ireland has been

receiving greater recognition. Recognition is

important and particularly so if we are to attract

new people, new thinking and new ideas to help

build on the experience, expertise and support

mechanisms that already exist within the sector.

The first Programme for Government (PfG),

prepared by the Executive of the NI Assembly,

published in April 2001, outlined the need to

sustain and enhance local communities and

contained a commitment to partnership working.

The PfG recognised the ability of the social

economy to make a significant contribution to both

social and economic regeneration.

In order to develop this opportunity, DETI

commissioned Colin Stutt Consulting to undertake

a major review of the sector in 2001 including an

initial examination of its size and scale and

identification of its strengths and weaknesses. It

reviewed the roles of social economy organisations

and assessed Government’s support for the sector

at that date. A number of recommendations

resulted, which identified actions required by the

sector and Government, and the two working

together to develop the sector.

The social economy is an integral and vital element

of the NI economy. The 2002-05 DETI Corporate

Plan identifies the Department’s lead role in

developing a more fully integrated approach to

promote increased awareness of its value and

particular significance to the Northern Ireland

economy and its potential for development and

growth. DETI and all of the other Government

Departments have a key role in supporting and

developing the capacity of organisations to develop

social economy enterprises.

Introduction

1

Page 12

DEPARTMENTAL POLICIES AND PROGRAMMES

The establishment of an Inter-Departmental

Steering Group (IDSG), led by DETI with

representation from all NI Departments, has been

welcomed as a key element in the development of

a more integrated approach to the social economy

within Government. Further details on the role of

the IDSG are given in Chapter 5 and it is important

to highlight that members participate to ensure

that all policies and programmes within their

Department are examined and their impact on the

sector appropriately assessed for example, in the

implementation of DSD’s People & Place - a

Strategy for Neighbourhood Renewal, the anti-

Poverty Strategy being developed by OFMDFM and

DARD’s review of rural policy.

CLOSE PARTNERSHIP WITH DEPARTMENT FOR

SOCIAL DEVELOPMENT

As many social economy enterprises have

developed from or have close relationships with the

voluntary and community sector, DETI is working in

close co-operation with the Department for Social

Development (DSD) in taking this strategy forward.

We recognise that often people within voluntary

and community organisations have the ideas and

motivation to develop social economy enterprises.

DETI will be working with DSD and its partners to

ensure that there is appropriate outreach,

information and support to those in the voluntary

and community sector who see realistic advantage

in applying a business-like social economy

approach to their activities. However the social

economy is distinct from the voluntary and

community sector and for many voluntary and

community organisations it will be appropriate that

they continue to use existing funding mechanisms

rather than seeking to develop their organisations

into social economy enterprises.It is also important

to ensure that, at all stages, relevant issues and

actions arising from Partners for Change,

Government’s Strategy for Support of the Voluntary

& Community Sector, and this strategic approach

for the social economy complement each other.

Much emphasis has also been placed on the need

for complementarity on policy development in

relation to any actions arising from the

recommendations of the soon to be published final

report by the Taskforce on Resourcing the

Voluntary and Community Sector.

JUDGING SUCCESS

Successful implementation of this Strategic Plan

should result in a more sustainable and diverse

social economy, the establishment of more social

economy enterprises in some social economy sub

sectors and the development and growth of the

social economy enterprises that are already trading

and making a distinct and valued contribution to

social and economic development in Northern

Ireland. The outcomes of the Joint Working Groups

will result in greater knowledge of the size, scale

and value of the sector; appropriate and accessible

financial and business support frameworks and

increased access and capability to tender for

public procurement opportunities. In addition,

social economy enterprises, through increased

awareness, will be recognised by policy makers,

providers and users of services, and society as a

whole, for their contribution to social and

economic development of Northern Ireland.

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 13

WHAT IS THIS DOCUMENT?

This document sets out Government’s Three-Year

Strategic Plan to implement a more integrated

approach to the social economy to maximise its

contribution to the NI economy. The Plan includes

three strategic objectives; provides a framework for

action for 2004-05 by individual

Departments/Agencies; and details how

Departments will work together in partnership with

the sector in pursuit of the strategic objectives.

The three strategic objectives are:

• to increase awareness of the sector and

establish its value to the local economy;

• to develop the sector and increase its business

strength; and

• to create a supportive, enabling environment.

Work has already started to achieve these strategic

objectives. Departments, individually and working

in partnership with each other and the sector, are

already involved in a wide variety of initiatives that

will contribute to the long-term sustainable growth

of the social economy in Northern Ireland, for

example, a number of Joint Sectoral/Departmental

Working Groups have been established to research

the size, scale and value of the sector; access to

business support and finance for the sector and

procurement opportunities. Further details are

given in Chapter 6.

HOW WAS IT PREPARED?

The Strategic Plan incorporating an Action Plan for

2004-2005 Plan has been prepared by an Inter-

Departmental Steering Group (IDSG), chaired by

DETI. The group includes representatives from all

NI Government Departments and the Special EU

Programmes Body (SEUPB). A draft Strategic Plan

was published in January 2004, and feedback was

received from all of the key stakeholders with an

interest in the development of the sector. The

IDSG welcomed the feedback, which was very

supportive of the lead role for DETI and of the

three strategic objectives proposed by Government

as the basis on which to proceed.

Development of this Document

2

Page 14

The feedback focussed mainly on the three

strategic objectives and the proposed priority areas

for action contained in the draft Action Plan for

2004-05. All of this feedback has been used to

inform the development of this document. Some

of the responses included specific comments and

ideas on how some of the areas for action might

be implemented. This has been disseminated to

the Department in the lead on that action and they

will consider the material as part of their

implementation plan. For example, DETI will pick

up on the range of ideas suggested on what needs

to be done to raise awareness within Government -

Action 1.3 of the Action Plan. DETI will also

ensure that any feedback that is more relevant to

other partners is passed on to them; for example,

ideas on how the Social Economy Network might

raise awareness within the sector and within the

wider public as part of its Marketing Plan.

In preparing the Plan, the IDSG has continued to

maintain contact with a number of other relevant

Departmental and Cross-Departmental working

groups to avoid duplication and ensure

complementarity in our approach. As noted in

Chapter 1, it is recognised that DETI and DSD

need to continue to work together on this and

other policy development areas that impact on

both the social economy sector and the voluntary

and community sectors.

WHAT IS IN THIS DOCUMENT?

Chapter 3 describes the social economy sector in

Northern Ireland including the definition

Government is using for social economy

enterprises.

Chapter 4 presents background information on

relevant activity in NI, GB and Republic of Ireland

in relation to the social economy.

Chapter 5 identifies the structures Government

has created to assist in the development and

growth of the social economy.

Chapter 6 sets out how Government intends to

implement the Action Plan for 2004/05. Priority

areas for action are listed alongside lead

Department/Agency, the partners and the

implementation targets for the first year of the

Strategic Plan.

Chapter 7 describes how the Strategic Plan will be

monitored and evaluated.

Annexes include a summary of the consultation

responses, list of respondees to the consultation

document, the terms of reference of the key

groups/structures established to facilitate a more

strategic approach to the development of the

sector, equality aspects and a bibliography.

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 15

WHAT AND WHO ARE SOCIAL ECONOMY

ENTERPRISES?

The definition adopted across NI Departments of

social economy enterprises is that they must:

• have a social, community or ethical purpose; and

• operate using a commercial business model; and

• have a legal form appropriate to a not-for-

personal-profit status.

The IDSG understands, that for a variety of very

valid reasons, the adoption of a business model,

now or in the future, may not suit some of the

organisations currently involved in the social

economy sector. Many may wish to continue to

obtain some of their income from trading activity

but not wish to operate as a social economy

enterprise. Others may believe that the business

model is not right for them as it might distract

them from their social objectives. The IDSG also

appreciates that the decisions to be made about

finding the right balance between social and

economic activity are most properly determined by

those directly engaged in the activity.

The focus of this Strategic Plan is to ensure that

entrepreneurial individuals or groups wishing to

establish a social economy enterprise and those

currently managing an existing social economy

enterprise are given every opportunity to develop

and grow, and, as a result, increase their

contribution to social and economic activity in

Northern Ireland.

Social economy enterprises can be constituted in

different ways, for example, companies limited by

guarantee, or Industrial and Provident Societies.

The decision on the most appropriate legal entity

for the social economy enterprise will be a decision

for the management of the enterprise. They

operate across a wide range of activities such as

the provision of finance, social housing, community

regeneration, training and employment

opportunities, and support for business growth and

workspace.

Social Economy in Northern Ireland

3

Page 16

The following are types of social economy

enterprises:

• Community Businesses: enterprises that have

strong geographical ties and focus on local

markets and services, retaining profits within the

community.

• Credit Unions and Industrial & Provident

Societies: the provision of access to community

finance as savings organisations and sources of

affordable credit and financial advice for the

benefit of members.

• Housing Associations: the provision of affordable

housing for rent or low-cost home ownership and

also supportive housing for the elderly or people

with disabilities.

• Local Enterprise Agencies: stimulating enterprise

and business growth through provision of advice,

support and workspace across Northern Ireland.

• Co-operatives: associations of persons united to

meet common economic and social needs

through jointly owned and democratically

controlled enterprises.

• Employee owned businesses: creating and

maintaining jobs as part of local economic

development activity.

• Social Firms: the provision of employment and

training for disadvantaged groups, for example,

people with disabilities.

• Community Development Finance Institutions:

organisations that use investment funding to

achieve social economy aims.

SOCIAL ENTREPRENEURS

Like the definition of social economy enterprises,

the definition and role of social entrepreneurs

within the social economy has generated some

debate. The IDSG welcomed all the views put

forward on this topic and will continue to

participate in and encourage ongoing debate and

dialogue on this and other key issues of

importance to the sector. The IDSG and others

operating in the sector continue to support the

inclusion of social entrepreneurs as vital

contributors to the development of the social

economy and recognise their role in both “kick

starting” and driving many social economy

enterprises. Rather than seek to exclude social

entrepreneurs, the IDSG would wish to encourage

social entrepreneurialism as a key engine for

positive change in the social economy sector and,

particularly, if new exemplars are to be developed

in the future.

WHAT IS THE SIZE OF THE SOCIAL ECONOMY

IN NORTHERN IRELAND?

Given its relatively low visibility to date and its

diversity, no firm figures are available to quantify

the overall size and scale of the sector. A rough

estimate of employment was carried out in June

2000 which indicated a range between 30,000

jobs and 48,000 jobs (5-8% of total employment).

However, this was based on different definitions. It

is now recognised that this is a relatively limited

way of measuring the sector and it highlights the

need for a robust set of baseline figures for the

size and scale of the sector as a way of preparing

a benchmark against the social economy in the UK

and in other regions to measure growth.

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 17

More detail on what Government is doing and

plans to do to build on the very limited data that

exists on the sector is contained under Objective

One of the Action Plan in Chapter 6.

It is recognised that systematic information exists

on some parts of the social economy such as

registered housing associations. DETI will be

working with the Social Economy Agency and the

Social Economy Network to ensure that new and

existing information is publicised and made

accessible to all parts of the sector.

WHAT IS THE DISTINCTIVENESS OF THE SOCIAL

ECONOMY SECTOR?

The examples we have used in this chapter

demonstrate the diverse range of organisations

and structures operating within the sector. These

organisations choose to operate as businesses

within the NI economy and they are unique and

distinctive in their commitment to addressing the

double financial and social bottom line - i.e.

generating profits to ensure sustainability of the

business and the ability to achieve their social or

ethical mission - and in some cases the triple

bottom line through their focus on environmental

impact.

In addition to the provision of goods and/or delivery

of services, social economy enterprises are

distinctive, arising from their social and economic

objectives, their impact on local communities, and

the way in which they operate, with an emphasis

on participative management and consultative

processes. They are unique in terms of their

contribution to the NI economy in that they can:

• create income, employment and services for the

population at large and particularly for

disadvantaged people, groups and for

disadvantaged areas;

• provide routes to mainstream employment;

• define and promote the needs of local

communities;

• operate with innovation and creativity to meet

local needs and take advantage of opportunities;

• draw on volunteers, thereby increasing active

citizenship and voluntary donations;

• contribute to social capital;

• enable a high proportion of income to circulate

within the local community facilitating the

accumulation of wealth in the area; and

• provide channels for public funds for

disadvantaged areas and communities.

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 19

The establishment of a dedicated Social Economy

Unit within DETI in mid 2002 marked the start of

an important, long-term partnership process to

work with the sector, to promote it and strengthen

its contribution to the NI economy

ACTIVITY WITHIN NI DEPARTMENTS

A number of Departments/Agencies already know

and work closely with organisations in, or

associated with, the social economy. For some,

this relates to regulatory activities, for others, it is

the provision of business support services and/or

financial assistance. In addition, some

Departments work closely with the sector on the

delivery of public services.

A key element of the rationale for Government’s

desire to have a more integrated approach to the

social economy is to enable Departments/Agencies

to share information about how they are currently

helping social economy enterprises and the impact

they are making. This will enable them to learn

more about the sector and, as a result, increase

awareness and uptake of the advice, finance and

business support services available from

Departments/Agencies for the sector. Increasing

knowledge and transfer of knowledge about the

sector will be an ongoing element of this Strategic

Plan and it will be central to Government’s

awareness raising campaign within Departments/

Agencies and their statutory bodies.

EU ACTIVITY

The social economy is a priority area for Northern

Ireland’s EU Programmes.

The PEACE II Programme currently covers the

period 2000-04 and is managed by the Special EU

Programmes Body (SEUPB) and delivered through

a network of 56 Implementing Bodies including the

26 Local Strategy Partnerships.

The Peace II Programme has offered significant

opportunities for the social economy sector to

access development support. For example,

Measure 2.3 of the Programme - ‘Skilling and

Building the Social Economy’ - is implemented by

the Community Foundation for Northern Ireland

(CFNI) and the Social Economy Agency on behalf

of DSD. Similarly, Measure 1.4 ‘Promoting

Background Information on Social Economy
Activity in NI, GB and Republic of Ireland

4

Page 20

Entrepreneurship’, administered by Invest NI aims

to develop social entrepreneurial capacity and

assist community businesses in areas

disadvantaged by the conflict.

However, it is the PEACE II Priority “Locally Based

Regeneration and Development Strategies” which

has the greatest relevance to the social economy

and which is delivered through 26 LSPs. Around

£60 million has been available to LSPs under

PEACE II up to the end of 2004 and is intended

primarily to enable the LSPs to support the

development of social economy activity in their

areas. LSPs have therefore been active throughout

NI in raising the profile of the sector and

supporting its development.

The LSP Working Group, representing all 26 LSPs,

has commissioned an independent evaluation of

LSP performance. This will examine their

achievements under PEACE II Programme, the

value of their Integrated Local Strategies and the

extent to which they are achieving sustainability.

The findings of this evaluation will be available late

2004/early 2005 and will contribute to the

developing knowledge of the social economy in

Northern Ireland.

It is now hoped that the PEACE II Programme will

be extended for a further 2 years, albeit with less

resources than in previous years of the

Programme. The SEUPB has been consulting

widely over the summer months as to how best to

allocate the available resources in the extended

period. This will form the basis for preparing a

detailed extension proposal to the European

Commission for negotiation and agreement. It is

hoped that all the necessary EU approvals can be

in place before the end of December 2004.

ACTIVITY ACROSS THE UK AND REPUBLIC OF

IRELAND

In July 2002, the Department of Trade and

Industry’s (DTI) Social Enterprise Unit published

“Social Enterprise: a strategy for success”. The

strategy identifies issues which contribute to the

success of the social enterprise sector and, where

necessary, it seeks to remove the barriers that are

preventing its growth and development. DTI has

established an Inter-Departmental Official Group to

monitor the implementation of the strategy, report

on progress and alert members to new issues and

initiatives arising. DETI is a member of this Group.

DTI published its first annual progress report on the

Strategy in October 2003, including an update on

activity in Northern Ireland. DETI continues to work

closely with DTI to ensure that Northern Ireland

benefits from close involvement with this work and

also to ensure that NI receives appropriate

consideration within the broader UK picture. The

overall approach set out in this Strategic Plan

reflects the DTI framework and will allow NI to

contribute and participate in UK wide

activities/initiatives and to benchmark our progress.

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 21

The Scottish and Welsh devolved administrations

are also represented on this DTI Group and are

also preparing strategies to promote and develop

the social economy sector in their respective

areas.

In April 2004 the Welsh Assembly Government

published its report on the Consultation Document

“Social Enterprise Action Plan” issued in July

2003. A Joint Working Group will develop

proposals and ensure that the social economy

sector in Wales can actively participate in the

proposed “Social Enterprise Strategy for Wales”

which is intended to be published early 2005.

In January 2003, the Scottish Executive published

a “Review of the Scottish Executive’s Policies to

promote the Social Economy”, to assess the

sector’s potential to contribute to the achievement

of key Scottish Executive objectives and to identify

how the Executive and other public sector and

independent agencies might help the sector to

realise its potential. The Executive has been

working with key players in the sector to identify

opportunities for the sector and plans to publish its

social economy strategy shortly.

In the Republic of Ireland, the Department of

Enterprise, Trade & Employment’s Social Economy

Programme, operated by FAS (Foras Aiseanna

Saothair, the Training and Employment Authority in

the Republic of Ireland) supports the development

of social economy enterprises to benefit the

economic and social regeneration of local

communities and create sustainable employment.

While there are national and regional variations in

approach and priorities, the opportunity to share

ideas and learn from other experiences/successes

will be important as each administration

implements its strategies and action plans.

In addition to monitoring progress within Northern

Ireland, other parts of the UK and the Republic of

Ireland at various official levels and Fora,

Government will continue to work with the Social

Economy Network and other existing networks and

partnerships to promote opportunities. These

actions will enable the assessment of international

best practice which, where relevant and

appropriate, will be used in the development of

policies, programmes and initiatives for the sector

in Northern Ireland.

Key structures provide opportunity
for ongoing dialogue and
partnership between the social
economy and the public sector

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 23

KEY STRUCTURES

The main focus for DETI to date has been to put in

place the key structures required to take forward

the desired integration and complementarity of

objectives. This has resulted in the following:

• the funding of the Social Economy Agency to

facilitate the establishment of an inclusive Social

Economy Network to represent the sector;

• the formation of an Inter-Departmental Steering

Group to develop greater cross-departmental co-

operation including preparation of this Three Year

Strategic Plan and Action Plan for 2004/05; and

• the creation of the Social Economy Forum where

representatives from the Social Economy

Network and officials from IDSG and Government

can work in partnership.

THE SOCIAL ECONOMY AGENCY

The Social Economy Agency (SEA) has for many

years promoted the benefits that can be derived

from social economy enterprise activity. As part of

the Government’s drive to work in partnership with

the sector, the SEA was asked by Government to

facilitate the establishment of an inclusive Social

Economy Network to represent and act on behalf

of the sector right across Northern Ireland. The

funding from DETI, DSD and the EU Programme for

Building Sustainable Prosperity (£600,000 in total)

for the delivery of this project is based on a 4 year

(2002-2006) Business Plan and Annual Operating

Plans prepared by the SEA, agreed with the

Funders and endorsed by the Network.

The SEA, as the Network Co-ordinating Agent,

reports to DETI and DSD on progress against

delivery of the project. The SEA’s key areas for

action are also discussed and endorsed by the

Network Steering Group and associated Open

Committees. In addition, DETI and DSD will

undertake an annual independent evaluation of the

Network Co-ordinating Agent’s performance in

carrying out this role and associated work

programme. A first evaluation, which is due to be

Achievements to Date

5

Page 24

completed in September 2004, is designed to help

ensure that the Network is inclusive and that

individuals and/or organisations joining it continue

to benefit from their membership. A summary of

the key areas for action by the Network Co-

ordinating Agent is included at Annex C.

SOCIAL ECONOMY NETWORK

The creation of a fully inclusive Social Economy

Network will enable the sector to operate in a

more structured and coherent way, to share best

practice, and, while acknowledging the sector’s

diversity, consider collectively the range of key

issues that will affect its long-term growth and

sustainability. It can provide the impetus not just

to replicate existing successful social enterprise

activity but also to generate fresh ideas and

identify new opportunities for the sector. Through

its Marketing Plan, including a new website, the

Network will raise awareness of the social economy

and promote its benefits across the sector. The

Network is a membership-based organisation,

drawing its membership from social economy

enterprises and networks, supporting rural and

urban communities across Northern Ireland. It is

encouraging to note that, in August 2004, over

200 organisations have joined the Network. The

role and structure of the Network is set out at

Annex D.

INTER-DEPARTMENTAL STEERING GROUP

An Inter-Departmental Steering Group (IDSG),

chaired by DETI, has been established with

representation from all NI Departments as the

development of the social economy is an objective

to which all Departments can contribute. In

addition, the cross-border Special EU Programmes

Body, which has responsibility for significant

funding for the social economy sector, has

observer status on the IDSG. The main focus of

the Group has been to provide leadership across

Departments on how policies and programmes

support, or indeed, hinder the growth of the sector,

encourage greater cross-departmental co-operation

and identify key action points to increase the

sector’s potential to build social capital and create

wealth and jobs, particularly in disadvantaged

areas.

In addition to Group meetings, significant time has

been devoted to a series of bi-laterals with all

Departments to promote and increase awareness

of the sector and to ensure that Government’s

social economy objectives are integrated into

Departmental policies and programmes. The

current agreed Terms of Reference for the IDSG

are at Annex E and will be reviewed during 2004-

05 to reflect the implementation stage of the Plan.

While both the Network and the IDSG have their

own roles and responsibilities, the Network is

identified as a partner in a number of the activities

in the Action Plan and, outside the Forum

meetings, there will be regular exchanges of

information and bi-laterals, between the members

of the two groups, as appropriate.

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 25

SOCIAL ECONOMY FORUM

A Social Economy Forum has been established

where officials from the IDSG and members of the

Social Economy Network Steering Group work

together under the chairmanship of the DETI

Minister, acting in close co-operation with the DSD

Minister. This partnership has been formed to

enable the sector to raise and debate key issues in

a high-level policy forum, contribute to ongoing

policy change and development, and work in

partnership through shared learning and expertise

to champion the social economy.

The Forum has now held two successful meetings

in June 2003 and February 2004 and is

addressing a range of issues, identified by the

Social Economy Network, of strategic importance

to the sector. A key outcome of the first meeting

was a prioritised work programme, with many of

the issues to be taken forward by Joint Working

Groups comprising Network and IDSG members –

details are given in Chapter 6.

The SEA and the Social Economy Unit in DETI

provide a Joint Secretariat service to the Forum

which will meet every six months to review

progress on each aspect of the prioritised work

programme and consider any additional areas for

further action. The agreed Terms of Reference for

the Forum are at Annex F.

IMPACT OF THE STRUCTURES

The creation and operation of the key structures

noted above provide the opportunity for joint,

ongoing and structured dialogue between the

social economy and the public sector. Their

operation and activities will be included in the

overall Monitoring and Evaluation Plan (see

Chapter 7) to ensure optimum outcomes in terms

of their operation and effectiveness in meeting

their objectives.

Actions to raise the profile of the
sector, develop and increase its
business strength and create a
supportive and enabling
environment

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 27

Three key strategic objectives have been identified

to facilitate Government’s actions to develop the

social economy in a more co-ordinated and

integrated way. They are to:

• increase awareness of the sector and establish

its value to the local economy;

• develop the sector and increase its business

strength; and

• create a supportive and enabling environment.

For each objective, specific agreed actions to be

implemented during the first year of the Strategic

Plan by Departments/Agencies are identified. For

each action, the lead or co-ordinating

Department/Agency is identified along with partners

and implementation targets. Every action will

involve direct contact with the social economy

sector and effective delivery will be based on a

partnership that exchanges experience, information

and knowledge.

Responses to the draft consultation document

made a number of helpful suggestions on the

priority areas for action to the existing action

points, some of which have already been included

in this document. The responsible

Department/Agency will continue to consider how

best to take forward other proposals, as they

implement the Action Plan. It is therefore

expected that these initial actions will be refined

and, in light of experience and research,

particularly through the Joint Working Group

activities, additional initiatives will be undertaken

and included in annual Action Plans for each of the

remaining years of the Strategic Plan.

Action Plan for 2004/05

6

Page 28

OBJECTIVE 1

INCREASE AWARENESS OF THE SECTOR AND

ESTABLISH ITS VALUE TO THE LOCAL ECONOMY

The general level of awareness of the sector and

its potential across the public and private sectors

and the general public is not high. Within the

social economy sector itself and across the

broader voluntary and community sector, levels of

understanding could be improved and the benefits

and opportunities it can offer, need to be more

proactively communicated. To increase this

knowledge and raise awareness, DETI supported,

in January 2003, a major conference organised by

Northern Ireland Council for Voluntary Action

(NICVA) on the social economy. DETI and DFP

support was also given to the Community

Development Finance Association (CDFA) to hold

an event in June 2003 to highlight investment

opportunities through the Community Investment

Tax Relief and DETI also sponsored the CDFA

Annual Conference in Belfast in June 2004.

Some awareness raising work has been underway

within Government through the IDSG, the Forum

and bi-laterals on inputs to this Strategic Plan.

More work in this area is required, hence the

development of a comprehensive Communications

Strategy and Programme to raise the profile of and

knowledge about the sector across Government

Departments/Agencies and the wider public sector.

The strategy will consider a range of targeted

approaches to policy makers and staff involved in

business support and procurement opportunities.

As part of its work as Network Co-ordinating Agent,

the SEA has developed a Marketing Plan to

increase awareness within the sector and of the

opportunities and support available for the sector

to promote it more widely. Both the IDSG and the

Network will use case studies to illustrate the

diversity and potential of the sector and will work

together to ensure complementarity and to

maximise the impact and outcomes of this work.

Associated with increasing awareness of the sector,

we need to establish robust baseline information

on the size, scale and value of the sector, from

which to measure growth and to build into the

overall NI economic picture. While there have

been some studies into particular parts of the

sector, for example, on housing associations and

co-operatives, as well as local studies by some

LSPs, a consistent and more comprehensive

analysis of the sector is required. A Joint Working

Group is addressing these issues and contributing

to the DTI-led first UK-wide baseline research.

This research will focus on capturing baseline

information on a core group of social economy

enterprises, ie employees, geographical location,

core trading activity and turnover. For practical

purposes, this initial baseline research cannot

include all social economy enterprises but its

limitations will not restrict Government support for

the sector. To gain more accurate baseline data

for the Northern Ireland social economy

enterprises, proposals will be developed by the

Joint Working Group on expanding this initial

research.

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 29

The outcome of the work on social capital

indicators commissioned by the Voluntary and

Community Unit in DSD and undertaken by

Community Evaluation Northern Ireland (CENI) will

be one of the initiatives used to help identify a

number of agreed measurements to capture the

“added value” of social impacts in addition to

economic and financial indicators. This will, in

addition to the mapping exercise, help contribute

to the measurement of the value of the social

economy sector to the Northern Ireland economy

and also to initiatives promoting social inclusion.

Actions

1.1 Participate in the DTI-led

first UK-wide Mapping Study
of the social economy to
establish baseline data on a
core group of social
economy enterprises.

1.2 Undertake further work to

extend the scope of the DTI
Mapping Study at NI level.

1.3 Facilitate the creation and

implementation of a
targeted Communications
Strategy and Programme to
increase awareness within
Government
Departments/Agencies and
their statutory bodies of the
current and potential future
value/contribution of the
social economy to the
Northern Ireland economy.

1.4 Ensure complementarity

between IDSG’s
Communications Strategy
and Programme and the
SEN’s Communications
Strategy and Marketing Plan
to promote the Network,
Forum and benefits of the
social economy throughout
Northern Ireland.

1.5 Review, in consultation with

the Social Economy Network
and others with expertise, if
and how DSD-led work on
the development of social
capital indicators primarily
for voluntary and community
sector activity might be
developed for use by the
social economy.

1.6 Work with the sector and

others to identify range of
social auditing tools and
disseminate this information
and advice.

Lead/Coordinating
Department/Agency

DETI

DETI

DETI

DETI

DETI

DETI

Partners

DTI,
Joint Working Group

Joint Working Group

IDSG,
SEN

IDSG,
SEN

DSD,
SEN

SEN,
DSD,
Invest NI,
DTI

Implementation Targets

Disseminate results of study in line with
DTI timetable by December 2004.

Submit recommendations for further work
to the Social Economy Forum by March
2005 and lead and manage
implementation as agreed.

Undertake initial programme during period
September 2004-March 2005.

Ongoing - at monthly progress meetings
with SEA as Network Co-ordinating Agent.

Initiate action in January 2005, following
publication of DSD Toolkit to measure
social capital outcomes of voluntary and
community based activity in December
2004, and complete initial analysis by 31
March 2005.

Ongoing discussions with partners.

Page 30

OBJECTIVE 1: INCREASE AWARENESS OF SECTOR AND ESTABLISH ITS VALUE TO THE LOCAL ECONOMY

Lead/Coordinating
Department/Agency

DETI

DE

DETI

DETI

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 31

Partners

All Departments,
IDSG

CCEA,
SEN

Invest NI,
DTI,
SEN

DTI,
Welsh Assembly
Government,
Scottish Executive,
Republic of Ireland
Government

Implementation Targets

Ongoing - DETI will continue to work with
IDSG colleagues to ensure appropriate
reflection of the social economy in
relevant policy initiatives within
Departments/Agencies and promote
usage of the NI Policy Making Guide for
Departments.

In the context of the revised curriculum
develop opportunities to include social
economy within the Learning for Life and
Work module by March 2005.

Identify opportunities for recognition for the
social economy by March 2005.

Ongoing - regular quarterly contact.

Actions

1.7 Input to Departmental

assessments of the impact
on the social economy of
any new
policies/programmes.

1.8 Increase awareness of social

economy enterprises within
the education/careers
system.

1.9 Introduce award(s)

categories to acknowledge
and promote excellence in
the social economy.

1.10Exchange knowledge and

identify opportunities for the
sector through North/South
and East/West co-operation
at Government level.

OBJECTIVE 1: INCREASE AWARENESS OF SECTOR AND ESTABLISH ITS VALUE TO THE LOCAL ECONOMY

Page 32

OBJECTIVE 2

DEVELOP THE SECTOR AND INCREASE ITS

BUSINESS STRENGTH

The overall aim is to facilitate and support

individual entrepreneurs and/or entrepreneurial

groups to establish social economy enterprises and

strengthen existing ones to enable them to be

more competitive and sustainable, and therefore

achieve their social and economic objectives.

Invest NI’s Corporate Plan notes the opportunity to

harness entrepreneurial spirit within the sector and

its Accelerating Entrepreneurship Strategy

highlights the need to generate more social

enterprises as a clear priority. To date this activity

has been channelled through the Community

Business Start Up Programme (CBSUP) delivered

by a consortium of the Local Enterprise Agencies,

which has been successful in encouraging the

development of 55 community businesses since

2002. A recent evaluation of the CBSUP has

recommended its expansion as a new Social

Entrepreneurship Programme, to support new and

existing social economy enterprises.

The availability of an integrated, appropriate and

accessible financial framework for the full range of

social economy enterprises at all stages of their

development is critical. A Joint Working Group on

Finance developed Terms of Reference for a study,

being funded by DETI, to examine all principal

sources of finance and associated financial

products available to the social economy in

Northern Ireland. Based on international best

practice, the study will recommend an integrated

and accessible framework for financial support,

including the potential for new or innovative

financial products.

Access to a wide range of business advice,

guidance and training is as essential for a social

economy enterprise as for any enterprise.

To achieve their objectives, social economy

enterprises need to know, for example, how to

increase capacity and win new business, handle

legal and financial issues, recruit and manage

staff, including volunteers. As a business moves

from start-up stage to a growth phase, its needs

will change and different advice is required.

There are many sources of business advice and

support both within the sector itself and from

Departments/Agencies and the private sector and it

will be necessary to ensure that these services are

available across Northern Ireland, complimentary

and that social economy enterprises realise the

value of and can access this advice. Funders and

business advisors, in turn, need to understand the

sector in order to work with social economy

enterprises and provide best advice for their

individual circumstances.

In addition and in view of the distinctiveness of the

sector in addressing the double bottom line, and,

in some cases, the triple bottom line,

consideration needs to be given to additional

specific interventions to address identified needs

within the sector. The social economy sector itself

has been active and provides a range of tailored,

sectoral training and we will work together to

identify additional needs and consider how these

needs should best be met and by whom.

A Joint Working Group on Business Support will

report shortly on work to assess the needs of the

sector through the business life cycle and make

recommendations to address gaps leading to a

clearly signposted business support framework for

the sector. The Group’s work has been supported

by the Research Co-ordinator funded through the

DETI/DSD/BSP support to the Network

Co-ordinating Agent.

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 33

Partners

Joint Working Group

Invest NI,
DFP,
SEN

Joint Working Group

DEL,
DETI,
SEN

DETI,
SEN

DETI,
SEN

DETI,
SEN

SEN

SEN

SEN

Implementation Targets

Submit recommendations for action to
the Forum in October 2004 and lead and
manage implementation as agreed.

Ongoing - identify opportunities to
contribute to increased awareness of
sources of finance.

Submit recommendations for action to
the Social Economy Forum in October
2004 and lead and manage
implementation as agreed.

Assess business training needs for
development of social entrepreneurs for
social economy enterprises by March
2005.

By December 2004, pilot three new
support service initiatives for the sector.

Launch new Social Entrepreneurship
Programme by December 2004.

Review all Invest NI business
development products by March 2005.

Ongoing - individual Departments to
ensure Employer Supported Volunteering
initiatives include options to engage with
the social economy sector.

Review the NICS Interchange Scheme by
December 2004 in conjunction with NI
Interchange Partners Group (which
includes representatives from 11 NI
Departments and NIO), to include
representation and participation by the
social economy sector.

Contribute to the review of the IFI
Community Leadership Programme by
December 2004.

Lead/Coordinating
Department/Agency

DETI

DETI

DETI

Invest NI

Invest NI

Invest NI

Invest NI

All Departments

DFP

DSD

Actions

2.1 Commission external study

into sources of finance and
financial products for the
social economy sector.

2.2 Participate in activities to

promote existing and new
sources of finance for the
sector.

2.3 Assess the business support

needs of the sector, identify
gaps and recommend
priority areas for action
within the public, private and
social economy sectors.

2.4 Research opportunities to

adapt/extend existing
schemes and initiatives to
meet the needs of social
economy enterprises.

OBJECTIVE 2: DEVELOP THE SECTOR AND INCREASE ITS BUSINESS STRENGTH

Actions

2.5 Promote access to and

benefits of broadband for
the social economy.

2.6 Review Local Delivery

Network to develop more
effective co-ordinating
structure for the delivery of
tourism in NI.

2.7 Introduce a series of

Intermediate Labour Market
initiatives including
transitional employment
opportunities for long term
unemployed adults in 4
targeted geographical areas,
linked where possible to the
development of social
economy.

2.8 Promote Corporate Social

Responsibility and
disseminate examples of
good practice and resultant
benefits to business.

2.9 Undertake a review of rural

development policy,
including the identification of
opportunities to develop the
social economy within the
rural context.

2.10Develop and promote new

Unlocking Creativity Action
Plan and ensure that social
economy enterprises in the
creative industries sector are
made aware of and can
access relevant sources of
support.

Page 34

Partners

Invest NI,
DSD,
OFMDFM,
SEN

District Councils,
Regional Tourism
Partnerships,
SEN

Key local
stakeholders (Public,
private, statutory and
voluntary); District
Councils via Local
Strategy
Partnerships;
Community/Voluntary
sectors and SEN

Home Office,
Business in the
Community,
SEN

IDSG,
SEN

Invest NI,
SEN

Implementation Targets

By November 2004, develop a more co-
ordinated approach to the development
of broadband within the sector.

Ongoing - ensure needs of social
economy sector are identified and
addressed within any future regional
structure.

To be tested by means of a series of pilot
programmes up to 31 March 2006.
Interim evaluation of component parts by
March 2005.

Represent NI on UK Corporate Social
Responsibility Inter Departmental Working
Group - ongoing.

Review to be completed by October 2004
with outcomes considered and taken
forward.

Publish the new medium-term Action Plan
by 30 September 2004.

Lead/Coordinating
Department/Agency

DETI

NITB

DEL

DETI

DARD

DCAL

OBJECTIVE 2: DEVELOP THE SECTOR AND INCREASE ITS BUSINESS STRENGTH

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 35

OBJECTIVE 3

CREATE A SUPPORTIVE, ENABLING

ENVIRONMENT

The social economy sector will not reach its

potential if there are legal, regulatory, or policy

barriers that act as obstacles to growth.

Government’s aim is to create a supportive and

enabling framework within which social economy

enterprises have the opportunity to grow and

develop.

DETI recently consulted widely on plans to create

more flexibility in the legal forms available for

social economy enterprises through proposals to

introduce the Community Interest Company (CIC)

to Northern Ireland. A CIC is a new type of

company designed for social economy enterprises

that want to use their profits and assets for the

public good. In addition, following public

consultation, work is underway to modernise and

reform key policy areas for the legal framework for

Credit Unions and Industrial and Provident

Societies. A review of charities legislation by DSD

in 2005 will include consideration of opportunities

to support and strengthen the social economy.

Parts of the social economy sector already deliver

services through public procurement activity.

However, the potential for the sector to tender for

and achieve higher levels of income through

procurement – whether from public sector, the

private sector or within the social economy sector

itself – is currently limited. This is due, in part, to a

lack of knowledge and capability within social

economy enterprises and by low levels of

awareness of those procuring goods and services

of the sector and its potential to compete.

A Joint Working Group on Procurement including

DETI, Central Procurement Directorate and the

sector, is developing plans that will ensure

increased access for the sector to information and

advice, thereby creating the opportunity for social

economy enterprises, whether individually or in

collaboration, to develop their capability to tender

for relevant public procurement contracts or

undertake work as subcontractors. A Procurement

Guide for Social Economy Enterprises is being

developed and will be used as an information and

training tool. The Group is also considering how to

increase awareness of the potential capacity of the

social economy among those in both the private

and public sector with responsibility for procuring

goods and/or services. In particular, the public

sector including Departments, District Councils,

Boards and Trusts will be challenged to consider

how it can work with the sector to identify products

and services for which social economy enterprises

could tender and demonstrate their ability to

address best value in social and economic terms.

Page 36

Partners

DTI,
Home Office,
SEN

Credit Unions,
Industrial and
Provident Societies,
SEN

SEN

Joint Working Group,

IDSG

DEL,
DE
SEN

SEN

Implementation Targets

Draft legislation proposals to be circulated
for consultation by March 2005.

Legislation to be in place by April 2006.

Consultation document on
policy/legislative proposals to issue by
March 2005.

Publish Procurement Guide for Social
Economy Enterprises by September 2004
with recommendations on associated
training and awareness events to the
Forum in October 2004.

Publication of new NI Regulatory Impact
Guide for Departments by 30 December
2004 to include social economy
enterprises in relation to Small Firms
Impact Test.

By March 2005 liaise with Social
Economy Network to establish role in
relation to contribution to review process.

By December 2004, prepare and
disseminate case study to the sector on
models of good practice.

Lead/Coordinating
Department/Agency

DETI

DETI

DSD

DFP/Central
Procurement
Directorate

DETI

DHSSPS

DHSSPS

OBJECTIVE 3: DEVELOP A SUPPORTIVE AND ENABLING ENVIRONMENT

Actions

3.1 Introduce legislation to

enable establishment of
Community Interest
Companies in NI.

3.2 Review and update Policy

and regulatory framework in
Northern Ireland for Credit
Unions and Industrial and
Provident Societies.

3.3 Review the administration

and legislative arrangements
for NI Charities.

3.4 Identify and maximise the

opportunities for the social
economy to compete for the
delivery of public services.

3.5 Ensure through the Better

Regulation Strategy, that all
Regulations affecting the
business community
consider the impact on the
social economy.

3.6 Review of Childcare Policy to

be taken forward as part of
the review of Children First.

3.7 Identify opportunities for a

Social Economy Model in
the Care in the Community
Strategy.

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 37

It will be important to be able to identify to what

extent the Strategic Plan’s objectives and actions

have been achieved; how effectively the various

structures to support the sector are operating and

what impact this first Strategy for the sector, as a

whole, has had to inform decisions about future

policy. To achieve this, an external evaluation,

using qualitative and quantitative methods as

appropriate and involving the social economy

sector as stakeholders, will be carried out in

2006-07. The outcomes of the evaluation will

be published.

In the interim and in order to feed into and

enhance the overall evaluation, a Monitoring and

Evaluation Plan is being prepared which will

address the following areas:

(a)

Annual Action Plans – each Department and

Agency with direct responsibility for specific

actions in the Action Plan will identify, where

appropriate, baseline positions; ensure the

collection and compilation of relevant

monitoring data; identify gaps in their

monitoring information and proposals to

address them to enable them to report

progress and assist in the development of the

following year’s Action Plan. Individual

Departments and Agencies will be responsible

for undertaking the various impact

assessment processes – eg equality impacts

and rural proofing as appropriate.

(b)

Structures – the operation and effectiveness

of the Social Economy Network (and the SEA

as the Network Co-Ordinating Agent), the

IDSG and the Social Economy Forum, in

terms of meeting their objectives, will be

monitored and reviewed.

DETI will report progress at Social Economy

Network meetings and also at the twice-yearly

Social Economy Forum meetings. In addition, DETI

will lead on the preparation of a composite annual

progress report on the 2004-05 and each

subsequent annual Action Plan.

Monitoring and Reporting on Progress and
Evaluation

7

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 39

The consultation document was issued on 26

January 2004 to a wide range of organisations

identified within DETI’s Equality Scheme, to

members of the Social Economy Network, the

social economy sector, including social economy

enterprises, associations, federations those

providing services to the sector and others that

have expressed an interest in helping the sector to

develop and grow. The initial distribution

amounted to 650 copies. A further 300 copies

were distributed during the consultation process

which finished on 30 April 2004.

Advertisements were placed in the Belfast

Telegraph (and the Londonderry edition), the Irish

News and the Irish Times to highlight the

availability of the document. The document was

also placed on the DETI website. Ministerial press

releases were issued at the start of the process

and also in mid-April to alert potential consultees

of the imminent end of the consultation period.

A pro-active consultation process was pursued

through face to face meetings and events to

ensure full participation. The Social Economy Unit,

in conjunction with the Social Economy Network

and individual members of the Network Steering

Group arranged a number of regional and local

events with rural and urban social economy

enterprises to discuss the consultation document.

In total 15 events were held.

DETI received 40 written responses on the

Consultation Document. A summary of

consultation responses is provided at Annex A and

highlights the key issues raised. An

acknowledgement of the names of all the

organisations that provided a written response is

included at Annex B. For those who might wish to

study the responses in more detail, access to a full

copy of each of the 40 written responses is

available through the DETI website -

www.socialeconomy.detini.gov.uk or by hard copy

on request to the Social Economy Unit in DETI.

Review of the Consultation Process

8

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 41

Annex A
Summary of Consultation
Responses
Annex B
Responses received to
“Developing a Successful Social
Economy” (Jan-May 2004)
Annex C
Social Economy Agency’s Priority
Areas for Action as Network
Co-ordinating Agent
Annex D
Summary of Objective, Role and
Structure of the Social Economy
Network

Annex

Page 42

Annex E
Terms of Reference for Social
Economy Inter-Departmental
Steering Group (IDSG)
Annex F
Terms of Reference for the Social
Economy Forum
Annex G
Equality Aspects
Annex H
Bibliography

Annex

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 43

INTRODUCTION

In total, DETI received 40 written responses on the

Consultation Document. An acknowledgement of

the names of all of the organisations that provided

a written response is included at Annex B. In most

cases, respondents addressed the consultation

questions included in the document. Some

respondents also provided additional comments on

other sections of the document and some made

more general observations about the sector and its

role. The summary of responses below highlights

the key points made on the consultation

document, however for those that might wish to

study the responses in more detail, access to a full

copy of each of the 40 written responses is

available through the DETI website –

www.socialeconomy.detini.gov.uk.

Or by hard copy on request to the Social Economy

Unit in DETI.

Email: [e-mail]

Tel. No: 028 90 529369

Textphone: 028 90 529304

SUMMARY OF CONSULTATION
RESPONSES

CHAPTER 1 - INTRODUCTION

• Recognition of the diversity of the sector

welcomed and departmental approach to this

diversity must be real, imaginative and flexible.

•The fact that the “Task Force on Resourcing the

Voluntary and Community Sector”, has been

undertaking a parallel consultation document

(“Pathways for Change”) gives cause for

concern.

• There is still not a clear integrated strategy on

how Government is going to address the needs

of the third sector.

• Unclear how ‘Developing a Successful Social

Economy’ dovetails with “Pathways for Change”.

• The strategy for the social economy must be

firmly linked with “Pathways for Change”

document and the emerging strategy that

results from that particular consultation.

• The social economy is a sub-sector of wider

economic activity in NI – pleased that DETI, the

Department with primary responsibility for

economic development, is recognising and

taking lead role in developing the social

economy.

CHAPTER 2 - DEVELOPMENT OF THIS

CONSULTATION DOCUMENT

• The “joined-up” approach that is indicated in

the strategy is a positive way forward and this

should be reflected in other programmes and

initiatives promoted by Government

Departments.

• Imperative to link with other Departments, which

is the role of the Inter-Departmental Steering

Group (IDSG).

Annex A
Summary of Consultation Responses

Page 44

• There is an existing impression, rightly or

wrongly, that there has been very little

community input into the preparation of this

document.

• Consultation with SE enterprises in rural areas

to date has not been widespread and the

strategy has been developed, rightly or wrongly,

from a strong top-down perspective.

• Concern that each action (in the Action Plan)

gives control and status to Government and the

sector is seen as a contributor and consultee

rather than a partner.

CHAPTER 3 - SOCIAL ECONOMY IN NORTHERN

IRELAND

• Interspersing of terminology such as “Social

Economy”, “Social Enterprises” and “Social

Economy Enterprises” without clear distinction

has the potential to further muddy what are

already cloudy waters.

• Although DETI’s draft paper aims at “developing

a successful social economy”, it fails to provide

a definition of the Social Economy.

• If Government does not establish at the outset

the precise scale, composition and areas of

activities of all the organisations comprising this

sector, then no factual and rational basis exists

to develop and strengthen the social economy in

the ways outlined in the consultation paper.

• Welcome the attempt to define social economy

enterprises contained in this document. Any

definition of the social economy model must be

inclusive. The final agreed definition should be

better promoted throughout the voluntary and

community sector.

• Concern that the commercial business model

implies that SEEs must be wholly reliant

on/supported by trading income. Many SEEs

generate income through a number of sources

and would not meet the commercial business

model.

• Different organisations operating in the social

economy have different needs which must be

understood and addressed.

• This strategy should firmly nail its colours to the

social enterprise mast.

• Important to get the partnership and balance

between social and economy right.

• In favour of an inclusive approach that allows

groupings to include themselves if they seek to

become sustainable through any form of trading

which decreases their dependence on grants

and subsidies.

• The inclusion of “social entrepreneurs” being

classified as a social economy enterprise is

adverse to the values and principles that drive

social economy activity.

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 45

• How can an individual be a social economy

enterprise?

• Concern that the definition of social

entrepreneur could include private sector

businesses.

• Finding ways to encourage social

entrepreneurship is as important as developing

entrepreneurship in NI in general.

• Social entrepreneurs are vital in both “kick

starting” and driving social enterprises.

• Social entrepreneurs need timely access to a

range of resources to enable them to put their

ideas into practice.

CHAPTER 4 - BACKGROUND ON SOCIAL

ECONOMY ACTIVITY IN NORTHERN IRELAND,

GREAT BRITAIN AND THE REPUBLIC OF

IRELAND

• An exit strategy needs to be in place when EU

funding declines and alternative sources of

funding considered.

• Proposal that the social economy be regularly

addressed at the British-Irish Council and the

North-South Ministerial Council.

• Use existing networks/partnerships established

by the sector throughout the UK, Republic of

Ireland and the EU, to promote opportunities for

the sector and best practice.

CHAPTER 5 - ACHIEVEMENTS TO DATE

• Social Economy Agency headquarters in Derry

and a bit inaccessible to other parts of NI.

• Social Economy Agency should be encouraged

to regularly update the case studies on their

website and to include wider information and

contact details of successful SE enterprises from

other locations in the UK and Ireland.

• The strategy should also include supporting the

Social Economy Agency in facilitating the Social

Economy Network.

• Hope that the Social Economy Network will

share ideas and experience and, therefore,

encourage its members to think about those

areas of the economy which are performing

poorly or where there are gaps in economic

development which might be identified and filled

by non-profit distributing organisations.

• Concerns over effectiveness of the Network –

there is such diversity within the sector that it is

difficult to create an effective mechanism as it is

currently operating.

• A network can spark new ideas, which are

tangential or different from those successful

ideas which have been developed before.

• An opportunity was missed to develop a real

partnership by including the sector directly on

the IDSG.

Page 46

• Recommend that there should be regular

exchanges of information/updates from the IDSG

to the Social Economy Network.

• Creation of Inter-Departmental Steering Group

applauded as the economy is not the sole

responsibility of DETI but something which all

Departments make a contribution to.

• IDSG has much potential in providing leadership

and progress on this cross-departmental policy.

• Important that the Social Economy Forum is the

place of key debate on the social economy and

a focus for breaking down barriers to

development, cutting bureaucracy and acting as

an enabler and champion of social enterprise.

CHAPTER 6: OBJECTIVE 1 – TO INCREASE

AWARENESS OF THE SECTOR AND ESTABLISH

ITS VALUE TO THE ECONOMY

• NI participation in UK-wide mapping and scoping

study welcomed.

• Deliver a structured programme of visits to

social economy enterprises for senior managers

in all Departments.

• Define outcomes and measure impact of

awareness raising campaign.

• Promote awareness of joint working between the

sector and Government Departments.

• Increased linkages to LSPs will assist in

developing awareness of the potential of the

sector.

• Benefits of Social Economy need to be

marketed.

• Awareness raising to include active engagement

with District Councils.

• Social Auditing very important.

• A framework within which social enterprises can

be benchmarked would be useful.

• Need to focus on the education of young people

and their future role in the social economy.

CHAPTER 6: OBJECTIVE 2 – DEVELOP THE

SECTOR AND DEVELOP ITS BUSINESS

STRENGTH

• Address needs of co-operatives in Finance

Study.

• Need exit strategy in place for when EU funding

declines.

• Need to address funding of core activities of the

sector to support sustainability.

• Need for guidance to be given by Government to

funders, particularly LSPs, on how to support the

sector.

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 47

• Need central directory/guidance for information

on financial products.

• Consider the development of Community

Investment Funds.

• Need for knowledge and expertise in delivering

social enterprise funds.

• Consider use of existing business support

ideas/sources eg Open College, Small Business

Programme.

• Provide opportunities to enable SEEs to appoint

business advisors/mentors.

• Need for dedicated management development

programmes for the sector to be addressed by

DEL.

• In light of the large number of co-operatives,

collaboratives, organisations and networks,

better definition required on aims of Objective 2

in order to avoid duplication.

• Government to support and endorse sources of

business advice in the sector.

• Training support required, with particular

emphasis on ICT and broadband services.

• Identify countrywide social enterprise champions

with business experience and local credibility.

• Need to recognise existing sectoral business

support and training work done to date.

• Proposed NI Social Enterprise Development

Programme should not focus only on existing

social enterprises.

• Social enterprise advisors and managers should

meet standards of Small Firms Enterprise

Development Initiative for social enterprise

support and development.

• Train key workers in Government Departments

and NDPBs on unique contribution of social

economy and its different work practices.

• Government funding needed to enable Credit

Unions to provide assistance to community

groups and businesses in the form of capacity

building, assessment of business plans, loan

guarantee/underwriting and developing

infrastructure.

• Examine concept of “spin-out companies”.

• Establish Futurebuilders Fund to pilot/test new

and innovative models of social enterprise

development.

• Action Points could be better achieved through

creating a network of support services for the

sector.

Page 48

• Consider the expansion of e-development, e-

business and the roll out of broadband

specifically to the voluntary and community and

social economy sectors.

• Consider how to target/work with private sector

to create social enterprises within their own

business.

• Establish an online register of SEEs to help

public/private sector organisations identify

support through Community Involvement

Programmes/Corporate Social Responsibility.

CHAPTER 6: OBJECTIVE 3 – CREATE A

SUPPORTIVE, ENABLING ENVIRONMENT

• Any legislative proposals on CIC and Credit

Unions should be coupled with an education

programme to demystify the legal process.

• Actions relating to charity legislation and

community companies need to be expanded to

include discrimination policies.

• As part of the proposed review of charities

legislation there is a need for a registration

system and a Charities Commission in NI.

• A joint Government/Voluntary sector forum

should be involved in the charities review.

• The terms of reference for Government

Procurement Tenders need to include social

outputs in order to ensure that best value is

determined on more than purely economic

grounds.

• Social economy enterprises should be provided

with opportunities to compete for public sector

contracts.

• Consideration should be given to the

development of a “Social Economy Fund”,

additional to mainstream Departmental funding,

to allow Government to proactively identify and

include appropriate social economy initiatives in

the delivery of public services.

• Set targets for lifting social enterprises into the

public procurement arena.

• An online procurement portal should be

developed, where all procurement possibilities

are advertised and tenders invited.

• Need for central Government to provide an

incentive to social economy enterprises to

rationalise services and reduce duplication in

order to fully exploit procurement opportunities.

• Encourage direct Departmental engagement

with Local Government on procurement as it

represents a significant opportunity for the

sector.

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 49

• Need to explore innovative methods of involving

the social economy in childcare, perhaps with

financial support from the private sector.

• Need for close co-operation between the Social

Economy Network and Government on the

Review of Childcare Policy and Care in the

Community Strategy.

CHAPTER 7 - MONITORING PROGRESS AND

EVALUATION

• Social Audit should be included as part of any

impact assessment and consider use of social

auditing framework to measure Strategy by way

of example to Departments/Social Economy

Enterprises.

• Need to improve robustness of evaluation of the

Strategy’s aims and objectives and include the

other structures (Social Economy Agency, Social

Economy Network, Inter Departmental Steering

Group and Social Economy Forum).

• Essential to communicate outcomes of

monitoring and evaluation to those involved in

social economy activity.

• End users should be more involved in the

monitoring and evaluation process.

ANNEX E – EQUALITY ASPECTS

• Important that as sector develops the promotion

of equality of opportunity is a central

consideration. Positive action measures may be

necessary to ensure barriers are overcome and

if necessary funding should be available to

reduce identified barriers.

• Public Procurement should be used for equality

objectives and must be compliant with Section

75 of the Northern Ireland Act 1998.

• Need to ensure that the development of the

sector can be linked to other government

initiatives in relation to inclusion, Section 75,

Equality, New TSN, Human Rights etc.

• Alternative formats of the complete document

should be made available on request.

• Communication Plan to include reference to the

development of the social economy among

communities of interest, particularly people with

disabilities.

Page 50

Fosec

Braniff Associates

Antrim Borough Strategy Partnership

Business in the Community

University of Ulster

BMG Associates

Institute of Directors

South Belfast Partnership

NI Co-operative Forum

Consultancy Mentoring Works

Northern Ireland Federation of Housing

Associations

Northern Ireland Pre School Playgroup Association

(NIPPA)

Northern Ireland Council for Voluntary Action

(NICVA)

Ulster Provident Housing Association

Ards Borough Council

West Belfast Economic Forum

Coleraine Borough Council

General Consumer Council for NI

Creggan Enterprises Ltd

ROMAL

Ulster Agricultural Organisation Society Ltd

Antrim Borough Council

Fermanagh Trust

The Equality Commission for NI

Social Economy Network

Social Economy Agency

Disability Action

North Down LSP

Londonderry Chamber of Commerce

Rural Community Network

Economic Research Institute of NI

Irish League of Credit Unions

Community Foundation for NI

Heritage Lottery Fund

Alliance Party of NI

DCAL

LEDCOM

Craigavon Borough Council

Enterprise NI

Belfast LSP

Annex B
Responses Received to “Developing a
Successful Social Economy (Jan-May 2004)

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 51

Facilitate the establishment of an inclusive Social

Economy Network and, in particular, to:

• agree with funding bodies a draft constitution

and appropriate operational/organisational

procedures to be subsequently endorsed by the

Network;

• establish and develop the Network through pro-

active recruitment of members;

• service the Network’s organisational/business

requirements (preparation of papers/reports etc,

for discussion; establishment of output targets;

convening of meetings, agendas etc);

• service steering group/sub-regional

networks/working groups as required; and

• disseminate relevant information to members of

the Network.

Promote the work of the Network, the Social

Economy Forum (“the Forum”) and the benefits of

social enterprise throughout Northern Ireland,

particularly in areas of under investment and

economic deprivation, and through awareness

programmes targeted at, and in conjunction with,

in particular, Invest NI’s Community Business Start-

Up Programme delivery consortium, Local Strategy

Partnerships and Enterprise NI;

Contribute to the identification and better

understanding of social enterprise policy issues

and promote the development of new appropriate

policy responses by the sector and/or Government

Departments and their Agencies etc;

Establish a research capability to assess and

identify new opportunities for increased social

enterprise activity in both private and public

services;

Promote beneficial partnership arrangements

between the Network and similar organisations in

Great Britain, Republic of Ireland and mainland

Europe; and

Establish and maintain a dedicated social

enterprise resource centre/website for the sector,

including a database of best practice social

enterprise initiatives, and details of sources of

information on training, educational, technical,

management and financial support.

Annex C
Social Economy Agency’s Priority Areas for
Action as Network Co-ordinating Agent

Page 52

OBJECTIVE

The main purpose of the Social Economy Network

will be to:

• develop and articulate the views of its members

on social enterprise issues;

• identify social enterprise sector and/or

Government action which will stimulate or which

may have the potential to stimulate the local

social economy and maximise its potential;

• provide a channel for social enterprise sector

input into policy development and any

consequential agreed programmes of action

arising; and

• through a Steering Committee, drawn from and

fully representative of the membership, act on

behalf of the Network, represent the Network on

the Social Economy Forum. The Forum will

consist of the Network Steering Group and the

Inter-Departmental Steering Group on the Social

Economy and will be chaired by the DETI Minister

(and DSD Minister); the Forum is expected to

meet not more than twice a year.

ROLE

The role of the Social Economy Network, facilitated

by Network Co-ordinating Agent staff, will include

the following:

• contributing to the analysis of social/enterprise

policy issues and the development of appropriate

policy responses;

• fostering, supporting and encouraging exchange

of experience, information and knowledge

between organisations to achieve new synergies

and, where required, clarify roles and

responsibilities;

• encouraging and supporting co-operation and

collaboration between organisations in Northern

Ireland promoting social enterprise initiatives;

• strengthening the sector by collaborating with

other stakeholders in devising local strategies

which will complement existing strategies (for

example, LSP, LEADER +, Network Resource

Rural Tourism and the Rural Development

Programme) and which will strengthen the sector

at a sub-regional level within Northern Ireland;

• organising seminars, conferences and functions

as appropriate; and

• working closely with the Network Co-ordinating

Agent by contributing to and assisting with the

development of appropriate work programmes to

promote social enterprise.

Annex D
Summary of Objective, Role and Structure of
the Social Economy Network

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 53

Social Economy Network Structure

Network Members

NETWORK STEERING GROUP

OPEN COMMITTEES

JOINT WORKING GROUPS

SOCIAL ECONOMY FORUM

INTERDEPARTMENTAL

STEERING GROUP

NETWORK REPRESENTATIVE

GROUP

EDUCATION AND

ENTERPRISE

STRATEGY AND

STRUCTURE

LEGAL AND

FINANCIAL

RESEARCH

FINANCE

BUSINESS

SUPPORTS

PROCUREMENT

MAPPNG

•

Mapping Study

• Assets of Sector

• Social Auditing

• Models of Best

Practice

• Industrial Clusters

•

Review Current
Legislation

• Review Fiscal

Initiatives

• Review Charity Law

• Examine

Community
Interest Groups

• Examine Credit

Union and IPS

•

Structure of
Network

• Strategy of

Network

• Marketing and

Awareness Raising
of the Sector

• Network

Representation

• Representation to

other Networks

•

Social Economy
Business Supports

• Public

Procurement

• Professional

Standards

• Training Needs

• Training Support

Available

• Links with

Education Sector

Page 54

BACKGROUND

In November 2001, the Executive agreed to the

recommendation that an Inter-Departmental

Steering Group (IDSG), to be led by DETI, should

be formed to develop a more integrated approach

to the social economy.

TERMS OF REFERENCE

All Departments (and associated Agencies/Non-

Departmental Public Bodies (NDPBs)) to review

their programmes and policies to:

• Identify their impact (positive and negative) on

the social economy;

• Bring forward proposals to develop their support

structures and remove any obstacles;

• Exchange ideas and information;

• Avoid duplication and maximise resources; and

• Contribute to the development and

implementation of a more integrated, strategic

approach to the social economy.

Members will represent their Department and will

ensure that input to IDSG activity covers all

appropriate Departmental/NDPB areas.

Meetings, chaired by a member of DETI Senior Civil

Service with responsibility for Social Economy Unit,

will take place on a quarterly basis, with SEU

providing the secretariat.

IDSG members to attend and contribute to the

Social Economy Forum, which will agree a work

programme to be carried forward by the IDSG, the

Social Economy Network and the two working

together.

The Special EU Programmes Body will have

observer status on the IDSG.

Annex E
Terms of Reference for Social Economy Inter-
Departmental Steering Group (IDSG)

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 55

The following terms of reference have been

endorsed by the first meeting of the Social

Economy Forum in June 2003.

SOCIAL ECONOMY FORUM

The Social Economy Forum will be a joint meeting

of representatives from the Social Economy

Network and the Inter-Departmental Steering

Group, chaired by the DETI Minister, in close co-

operation with the DSD Minister.

It will:

• Provide a policy platform in which to exchange

information and views between the Social

Economy sector and the Public sector;

• Seek to achieve a shared approach in the

implementation of policies by establishing and

encouraging stronger social economy/public

sector working relationships at all levels;

• Agree an annual work programme to be carried

forward by the IDSG, the Social Economy

Network and the two working together; and

receive and review progress reports on these

issues at subsequent meetings; and

• Consider, approve and publish an annual report

(to be prepared by the Secretariat) on key

developments on the Social Economy in

Northern Ireland. This will facilitate monitoring

and evaluation of social economy policy in NI

and help improve public understanding of the

social economy. Such reports will also feed into

broader social and policy economic development

activity, for example the work of the Economic

Development Forum.

Representation – The Social Economy Forum will

comprise equal representation from the social

economy sector, through the Social Economy

Network, and Government, through the Inter

Departmental Steering Group. Total membership

should not normally exceed 26 (including Social

Economy Unit and Social Economy Agency

representation but excluding Minister/s).

The Forum will normally meet twice a year although

further meetings can be called as and when

necessary.

Social Economy Unit and the Social Economy

Agency will jointly provide Executive/Secretariat

support for the Forum.

These Terms of Reference will be reviewed after 12

months at the third meeting of the Social Economy

Forum.

Annex F
Terms of Reference for the Social Economy
Forum

Page 56

BACKGROUND

Section 75 of the Northern Ireland Act 1998,

which came into force on 1 January 2000, states:

A public authority shall in carrying out its functions

relating to Northern Ireland, have due regard to the

need to promote equality of opportunity;

(a)

between persons of different religious belief,

political opinion, racial group, age, marital

status or sexual orientation;

(b)

between men and women generally;

(c)

between persons with a disability and persons

without; and

(d)

between persons with dependants and

persons without.

Without prejudice to its obligations above, a public

authority shall, in carrying out its functions relating

to Northern Ireland, have regard to the desirability

of promoting good relations between persons of

different religious belief, political opinion or racial

group.

The DETI revised Equality Scheme published in

June 2003 sets out the Department’s commitment

to the fulfilment of its obligations on the promotion

of equality amongst Section 75 groups and good

relations between persons of different religious

belief, political opinion or racial group. It states

that the overall social economy policy will be

subject to an EQIA during the period 2005-2009.

This is therefore not an EQIA but an initial equality

statement, pending further work and research as

this Strategic Plan is implemented.

CONSIDERATION OF AVAILABLE DATA AND

RESEARCH

Accurate and current statistics on the size and

scale etc of the social economy are not currently

available. While some individual LSPs have

initiated mapping studies for their areas, definitions

and terms of reference have varied from one LSP

to another and have confirmed the need for a

consistent approach. As noted in the Action Plan,

it will be important to have robust baseline

statistics and action to address this is outlined in

Objective 1.

This UK wide detailed analysis of the sector will

focus on capturing key economic data on a core

group of SEE’s, for example, number of social

economy enterprises; number of employees (full

time/part time); geographical location of enterprise

by postcode (thereby allowing the Government’s

objectives to tackle Poverty and Disadvantage to

be identified); core trading activity and turnover.

The Joint Working Group on Mapping and Scoping

the sector will also consider the feasibility of

adding further data fields to address Section 75

groups. It will, however, be important to consider

the potential benefits of this additional data

against the possible burden on social economy

enterprises themselves, many of them small in

size, and their ability and willingness to provide this

Annex G
Equality Aspects

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 57

information. Further guidance is awaited from the

Equality Commission on the issue of gathering

information on certain Section 75 groups ie

political opinion and sexual orientation and this will

be taken into account when available.

As regards this first NI wide analysis of the sector,

it may therefore be appropriate to focus initially on

the key data and build on this baseline in

subsequent exercises, supplemented by local data.

The Action Plan for 2004/05 of this Strategic Plan

includes specific actions and programmes focused

on the social economy by Departments/Agencies,

for example, Invest NI’s Community Business Start

Up Programme. These are monitored across

Section 75 groups as far as possible. Likewise,

the activities of the LSPs under Measures 3.1 and

3.2 of Peace II for social economy activity are

subject to Section 75 monitoring requirements.

Results of these monitoring activities will be

considered as part of the overall data collection

process.

ASSESSMENT OF IMPACTS

As noted above there is no current statistical

information on which to base assessment of

impact of the overall approach across the Section

75 Groups. It is, however, possible to make

general assessments, at this stage, about the

impact of the social economy and therefore a

more integrated approach to its development, as

regards equality and New TSN considerations. As

noted in Chapter 3 “Social Economy in Northern

Ireland” – the sector can:

• Create income, employment and services for the

population at large and particularly for

disadvantaged people, groups and for

disadvantaged areas;

• provide routes to mainstream employment;

• define and promote the needs of local

communities;

• operate with innovation and creativity to meet

local needs and take advantage of opportunities;

• draw on volunteers, thereby increasing active

citizenship and voluntary donations;

• contribute to social capital;

• enable a high proportion of income to circulate

within the local community, facilitating the

accumulation of wealth in the area; and

• provide channel for public funds for

disadvantaged areas and communities.

The social economy, by its very characteristics will

impact positively on disadvantaged individuals who

would, in some cases, be considered or consider

themselves to be removed from the mainstream

labour market and who may find it more difficult to

obtain employment or face social or financial

exclusion. For example, Intermediate Labour

Markets and their equivalents can provide training

and work experience for the long-term unemployed

thereby enhancing their employability; people with

disabilities can find employment in social firms;

Credit Unions and Industrial and Provident

Societies including Housing Associations can help

those who are socially or financially excluded;

community businesses, Local Enterprise Agencies

and Co-operatives can create and maintain jobs

and services within local economies.

Page 58

CONCLUSION

It is considered that the social economy and the

implementation of this Strategic Plan will have a

positive impact on Section 75 Groups and on

disadvantaged individuals and areas. Further data

and research on its impact will be undertaken

during the next three years in conjunction with the

sector and as part of the Monitoring and

Evaluation Plan to support the scheduled Equality

Impact Assessment, and also Government’s Anti-

Poverty strategy.

Depar tment of Enterprise, Trade and Investment

Developing a Successful Social Economy - NI Government’s Strategic Plan 2004-07

Page 59

Department of Enterprise, Trade & Investment:

Corporate Plan 2002-05 – www.detini.gov.uk

Northern Ireland Executive: Programme for

Government -

www.ofmdfmni.gov.uk/publications/pfga/contents

htm

The Northern Ireland Social Economy Review

(Colin Stutt Consulting) -

www.colinstutt.com/social_economy.htm

Department for Social Development: Partners For

Change: Government’s Strategy for Support of the

Voluntary and Community Sector 2001-04 -

www.dsdni.gov.uk/publications/documents/Partners

_for_Change.pdf

Department for Social Development: Consultation

Document on Funding for the Voluntary and

Community Sector –

www.dsdni.gov.uk/publications/documents/Harbison

%20Report.pdf

Department for Social Development: People and

Place: A Strategy for Neighbourhood Renewal –

www.dsdni.gov.uk/publications

EU Programme for Peace and Reconciliation in

Northern Ireland and the Border Region of Ireland:

– www.europa.eu.int

Department of Trade & Industry: Social Enterprise:

A Strategy for Success -

www.dti.gov.uk/socialenterprise/documenta.pdf

Department of Trade & Industry: A Progress report

on Social Enterprise: A Strategy for Success –

www.dti.gov.uk/socialenterprise/pdfs/strat_success.

pdf

Northern Ireland Programme for Building

Sustainable Prosperity: - www.europe-

dfpni.gov.uk/Upload/BSP_docs/bsp_op.pdf

Invest Northern Ireland: Corporate Plan 2002-05 -

www.investni.com

Northern Ireland Federation of Housing

Associations: New Housing Association Tenants in

Northern Ireland 2000-01 -

www.nifha.org/nicore.pdf

Annex H
Bibliography

Notes

September 2004

Alternative formats including
braille, large print, disc,
audio cassette or in minority
ethnic languages are
available on request.

Social Economy Unit

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