by Annie Pinkham
I was fortunate enough to participate in the SEI Dialogue of Civilizations in Cape Town, South Africa this past summer. I am currently finishing up a really interesting semester in London as a Hansard Scholar, where I’ve been splitting my time between studying British politics at the London School of Economics and Political Science and interning with a Peer in British Parliament. As this whirlwind of a year comes to a close, I’m trying to take a step back and reflect on what I’ve learned.
In some ways, it is difficult to compare the two experiences. While my perspective from Cape Town is very much focused on social enterprise and business, my time in London has completely revolved around politics. In other ways, this weird and unplanned path totally makes sense; while social enterprise and grassroots community building are often more efficient and effective, government support and policy action are critical in order to institutionalize change and broaden impact. Essentially, each sector works fine on its own, but the full potential of both is unable to be realized until they work together.
One of the big differences I’ve found between Cape Town and London, unsurprisingly, is their perception of business. For the majority of the UK and its citizens, business is business and business means profits. Sure, job creation gets thrown around a bit as the country recovers from the global financial crisis, but the focus is on how many pounds Britain can pull in to boost its global economic standing. In South Africa, businesses are built on a foundation of community empowerment, and at their core, South African businesses are mostly mission-driven social enterprises.
This is an opportunity for the public sector in the UK to step in and grow awareness and support for the space, and the government is starting to do just that. In 2012, it launched Big Society Capital as an effort to increase access to social investment for small enterprises. It also passed the Social Value Act, forcing public bodies to consider social value when deciding what businesses they use to procure services (leading to an increase in the number of social enterprises receiving government contracts). Earlier this year, the government introduced a social investment tax credit, which gives tax relief to individuals who invest in social enterprise.
The majority of the work being done in the social enterprise space has, unsurprisingly, been outside the government. Groups like Social Enterprise UK have been working to create networks for social entrepreneurs and advocate for greater understanding and support for the space. The most successful campaign has been the project “Social Enterprise Places,” where areas in the UK that have thriving social enterprise activity can apply for recognition. This increases their chances for impact investment and fosters a sense of community commitment to social impact.
Despite this progress, the UK still has a lot to learn. Unlike in South Africa, inequality lurks under the surface, making it easier to ignore. The social enterprise space has not yet reached its full potential and there still isn’t a broad understanding of its value (especially amongst parliamentarians). Ultimately, I hope I have acted as an influential advocate during my time here and that the support for social enterprise will continue to grow.
