NCVO: Social enterprise governance needs highlighted in new report

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Wednesday, 12, Dec 2007 12:00

Good governance is essential for social enterprises to thrive and be sustainable, according to new research from the Governance Hub and the Social Enterprise Coalition. The research, undertaken by the Open University into the governance needs of social enterprises, shows that a priority for the social enterprise sector is to strengthen links with governance advisers and consultants working at local and regional levels and provide them with appropriate training and support.

The research report, ‘For Love and Money: governance and social enterprise’ outlines that social enterprises need specific support and information on areas such as overseeing commercial activity and managing business risks, legal and governance structures for trading subsidiaries and small organisations and the governance of multi-organisation partnerships. However, the research also reveals that the governance advice sought by social enterprises share similarities with other community based organisations. This includes problems maintaining the balance between social and business goals, getting people with the right skills for boards, involving users in governance issues, accountability to users, ‘founder syndrome’, and access to information on governance, especially for smaller organisations.

Anne Moynihan, Head of Governance Hub, said:

“The Hub and the Social Enterprise Coalition commissioned this research to identify gaps in the governance needs of social enterprises and make recommendations for future action. This research demonstrates the range of different types of social enterprises, and that the boundaries between the social enterprise sector and other sectors are very blurred. Nevertheless, the particular needs that have been identified should now be addressed by policy makers and people working in our sector.”

Jonathan Bland, Chief Executive of the Social Enterprise Coalition said:

“The report has come at a very important time when social enterprises are growing and becoming increasingly important in many areas – public service delivery, welfare to work initiatives, emergence of ethical markets to name a few. The report needs to be taken up by Capacitybuilders, government and policy makers to create tailored pathways for business support and advice for social enterprise.”

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For media enquiries and case study examples, please contact Joy Coker, Media Officer, on 020 7520 2469, e-mail: press.temp@ncvo.org.uk.

Notes to editors

1. Both the executive summary and the full report are available to download from the Governance Hub’s website www.governancehub.org.uk from 12 December.

2. The Governance Hub aims to improve the quality of governance within the voluntary and community sector across England by:

§ Increasing the supply of trustees and board members, with the range of profiles, skills and experience needed by VCOs.

§ Enhancing knowledge and skills of trustees, board members, senior managers and others involved in governance.

§ Enhancing the governance capacity of organisations to deliver their mission, engaging and involving their key stakeholders.

§ Promoting good governance in the voluntary and community sector

§ Website: www.governancehub.org.uk. Helpdesk: 0800 652 4886 (Monday – Friday 9am-6pm).

3. The Governance Hub is a partnership of nine organisations that provide support to the voluntary and community sector: Association of Chief Executives of Voluntary Organisations (acevo), Black Training and Enterprise Group (BTEG), British Association of Settlements and Social Action Centres (bassac), Charity Trustee Networks (CTN), East Cornwall Council for Voluntary Services (ECCVS), National Association for Voluntary and Community Action (NACVA), National Council for Voluntary Organisations (NCVO), Social Enterprise Coalition (SEC) and Volunteering England. The accountable body for the Governance Hub is NCVO (charity number 225922).

4. There are six national hubs of expertise: Finance, Governance, ICT, Performance, Workforce and Volunteering. The hubs are part of ChangeUp, the Capacity Building* and Infrastructure Framework for the Voluntary and Community sector, published by the Active Community Unit in June 2004. ChangeUp's aim is that by 2014 the needs of frontline voluntary and community organisations will be met by support which is available nationwide, structured for maximum efficiency, offering excellent provision, accessible to all, truly reflecting and promoting diversity, and sustainably funded. ChangeUp describes the basic architecture of support which frontline organisations need. For more information please go to www.capacitybuilders.org.uk or call 0121 237 5100

4. The Social Enterprise Coalition is the UK’s national body for social enterprise. The voice for the sector, it supports and represents the work of its members, influences national policy and promotes best practice. www.socialenterprise.org.uk. For press enquiries contact Katy Duke 0207 793 2318 pressoffice@socialenterprise.org.uk.