Campaign launched to combat public sector spending cuts

In a bid to combat the effects of significant public sector spending cuts and keep the third sector flourishing, iSE (Initiative for Social Entrepreneurs) with support from Be Birmingham has launched a campaign to increase the amount of inter-trading within the sector.

The ‘Shop for Change’ campaign aims to make it easier for social enterprises and trading voluntary and community organisations in Birmingham to buy business goods and services from each other.  It involves finding out about and raising awareness of what is already on offer as well as supporting start ups to fill any gaps.  Third sector organisations are also being called on to sign a pledge to put social enterprise at the top of their ‘shopping’ list.

Around 100 people attended the launch and their organisations signed the pledge.  “We were delighted by the energy and enthusiasm in the room,” says Sarah Crawley, Chief Executive of iSE. “People embraced the concept and immediately started making contacts and discussing opportunities to work together.”  

The initiative started with survey, carried out between January and April 2010, into the purchasing habits of social enterprises and other third sector trading organisations in Birmingham.  It revealed quite shocking statistics.   Almost half of those interviewed said they spent less than 10% of their supplier-spend in the sector and 35% said they didn’t buy any goods at all from the sector.

“Our survey also showed that 83% derived 20% - 100% of their income from the public sector,” says Sarah, “so, clearly they are going to need to find alternative customers if they are to survive.  The good news is that more enterprises than we anticipated are already doing business with the private sector – 50% said they derived between 5% and 20% of their income in this way.  However, it seemed to us to be a logical step for third sector organisations to look first ‘in their own backyard’ and increase the amount of business they are doing with each other.”                                                

Among the reasons given for the lack of inter-trading were lack of availability of appropriate goods and services, uncompetitive pricing and unacceptable quality.  Through the ‘Shop for campaign iSE is aiming not only to encourage new and existing third sector organisations to fill the gaps in the market, but also to work with organisations to improve processes and skills to make the sector more competitive. 

“I see this campaign as being about revolution,” says Sarah.  “It’s about working together to change the world.  I am hoping that other cities and regions will want to pick up on it and follow our lead.” 

iSE has been working to develop the third sector in Birmingham and the wider West Midlands region for over 10 years.  The Shop for Change Campaign is just one of a range of initiatives currently under way.  For further information see www.i-se/co/uk.  

To find out more about Shop for Change and to download a copy of the survey ‘Shop for Change: An Analysis of Trends in Social Enterprise Markets’ visit www.shopforchange.info.