An independent report commissioned by the Scottish government has outlined a series of recommendations to grow the number of social enterprises, employee-owned businesses and co-operatives.
It follows a commitment by the devolved government in its National Strategy for Economic Transformation to “undertake and publish a review“ of ways to grow the democratic economy.
Chaired by Neil McInroy – global lead for community wealth building at the Democracy Collaborative and chair of Economic Development Association of Scotland – the group behind the report includes representatives of Social Enterprise Scotland, the Employee Ownership Association, Co-operative Development Scotland, Co-operatives UK, Scotland for Employee Ownership, Social Investment Scotland, South of Scotland Enterprise, Highlands and Islands Enterprise, Community Enterprise in Scotland and the Centre for Local Economic Strategies.
In his foreword, McInroy says the review “comes at an opportune and important moment”, adding: “Scotland and the world stand at a crossroads, an inflexion point, moving from an old fossil-fueled economy with unsustainable resource use and unacceptable levels of poverty, towards a new economy that aims to be prosperous, fairer and greener.”
The answer, he says, is to increase the proportion of inclusive and democratic business models (IDBMs) in Scotland, to “build a genuinely new economy“ by boldly advancing community wealth through increasing the number and proportion of IDBMs within Scotland”.
The 17 recommendations in the report for growing the sector are:
- IDBMs should run through Scottish economic thinking and strategy as a “central golden thread”.
- Establish an economic democracy group
- Investment in data and evidence on IDBMs is required to support policy and service design
- National awareness raising and training programme
- Widen scope of existing Social Enterprise awards
- Ensure that outreach, awareness raising and pre-technical IDBM development is available
- Further and higher education anchor organisations take a key role in promoting IDBMs
- The economic democracy group should develop a clear action plan to create an effective and extensive ecosystem, possibly in the form of a centre for excellence, providing support for IDBMs.
- Streamline existing public resources.
- Map the current provision of support, identifying and assessing gaps in support.
- Grow the role of the Scottish National Investment Bank (SNIB) to intentionally and specifically support IDBMs.
- Consider extending the role of social investment and democratic finance providers (for example Social Investment Scotland, Scottish Communities Finance) to cover all enterprises operating with an IDBM.
- Promote IDBMs and economic democracy within economic development and with grant givers, procurement and commissioning professionals within the public, private, third and community sector.
- Amend the existing sustainable procurement duty, to facilitate the participation of IDBMs.
- Consider extending Scottish right to buy legislation to IDBMs.
- Explicitly weave contribution and value of IDBMs into relevant economic indicators.
- UK and Scottish government to explore potential tax relief, work with the financial sector and instigate other legislation to support the creation and sustainability of enterprises operating an IDBM
Related: Plan for Scottish co-op centre gets £1.9m boost from Lottery Heritage Fund
To mark the launch off the report, a new category has been added to the Social Enterprise Awards Scotland,
While most categories are now closed for entries, the new IDBM Impact Award is open for nominations until 10am on Monday 7 October.
The award recognises and celebrates the achievements of inclusive and democratic business models (IDBMs) in Scotland, with a particular focus on co-operatives and employee-owned businesses. Applications can be made here.
