The research goes on to suggest that the most successful businesses of this nature tend to be found in clusters, where a support infrastructure and actual and virtual networks exists. Success is often underpinned by being able to learn from each other and to access specialist expertise and support. Business networks and clusters are the focus of much economic development thinking. The success of mainstream clusters is explained by the informal forms of co-operation found at the heart of such networks. Due to their nature as social organisations, there is a natural fit between Social Enterprise and the approach to business clusters more generally ( www.sel.org.uk ) .

European research predicts that growth in the social economy will be faster than the rest of the economy with large numbers of jobs to be created. As local economies grapple with issues about social exclusion, structural unemployment, changing work patterns and regeneration, the social economy is seen as a sector that can make a significant contribution to social cohesion, urban renewal and job creation. It is estimated that the sector currently contributes over £5 billion to the UK’s GDP and has become a major employer. Additionally, a small but significant proportion of people (20%) changing jobs in the social sector move to the private sector (GLE/LVSC, 1999).
Overall, there are a mixture of difficulties contributing to barriers to growth faced by SME’s serving disadvantaged communities that mirror those experienced by small to medium voluntary and community organisations: The Policy Action Team (Enterprise and Social Exclusion, PAT3, Nov 1999) lists several additional factors contributing to these barriers.
The Policy Action Team (Enterprise and Social Exclusion, PAT3, Nov 1999) concludes that, on the basis of data on business survival rates from ONS, businesses in deprived areas find it more difficult to start up or expand and that, where there is no enterprise activity, there is (marginally) more chance that this will fail (Enterprise and Social Exclusion: Policy Action Team 3, 1999). There are a mixture of difficulties contributing to barriers to growth faced by SME’s serving disadvantaged communities that mirror those experienced by small to medium voluntary and community organisations

This company was designed using skills; experiences and networks previously acquired at both a regional and national level. This provides a powerful tool to identify the markets and opportunities and still conform to the social objectives, which underlie its existence.

Essentially, this included a working knowledge and understanding of:

The impact, nationally, of government policies on training and business development issues relating to the public, private and voluntary sectors.
The structure of each of the sectors and the imperatives of key stakeholders.
The potential impact of the housing sector on key regeneration issues
The positive impacts of community facilitation ( Ernesto Sirroli)
The importance of Social Enterprises thinking and acting as businesses
(Jerr Boschee)
A working knowledge of funding streams available to support Nationally accredited learning programmes.
A detailed working knowledge of Social Enterprise Development
How people learn in various contexts and how this learning can enhance their own performance and that of their organisation.
The relationship between and application of National Occupational Standards, quality control and accreditation for benchmarking performance.

Desk Research

Desk research was undertaken to ensure currency of information about our markets and their environments:

The Times Educational and Higher Education Supplements
Federation of Small Businesses reports
LSC prospectus and action plans
Social Enterprise report- Social Enterprise Unit
Social Enterprise in Anytown – John Pearce
Social Enterprise Magazine – New Start
Community Dreams. Neighbourhood Regeneration - Berkowitz
Guardian Newspaper (Education and Community Supplements)
Education, Training and Employment Government White Papers
Reports produced by Policy Action Teams
Past and present Single Programming Documents
Local and regional action plans
Reports and strategy documentation from the learning and skills Council
Reports on building the Social economy and asset mapping within communities

Action Research

The Company is committed to action and work-based learning. It will demonstrate this commitment not only through the work undertaken with clients, but also through the ways in which it manages its own research and operational activities to provide and develop market information:

We build up market information for our own company and its business. For example previously, we have conducted research on behalf of the Association of Colleges and the Learning and Skills Development Agency (formerly FEDA) this work focused on how the public sector currently work with SME business development has generated ideas for how to provide a quality, competitive yet more flexible and creative service.

Market information is generated informally through personal networking with other key players in order to ensure no duplication. We maintained complete transparency about the aims of the company and have had discussions and, or meetings with a number of organisations in order that we may build long lasting and constructive partnerships.