Scottish government backs social enterprise to ‘influence and inspire’ new community wealth building push
The Scottish government is aiming for full-scale economic systems change and expects social enterprise to be at the forefront of its new economic model, according to discussions at the Social Enterprise Scotland Summit 2024.
The Scottish government has highlighted the key role it hopes social enterprises will play in its push to roll out a model of economic development called community wealth building.
Scotland’s minister for employment and investment, Tom Arthur, spoke at the Social Enterprise Summit Scotland, hosted by Social Enterprise Scotland, last week. He explained that he saw social enterprises as imperative both in terms of delivering community wealth building, but also as a source of “inspiration and influence” for how mainstream businesses could embrace the concept.
Community wealth building is an economic model which seeks to redirect wealth back into local economies where it is generated, and places the control and benefits of that wealth into the hands of local people.
The model seeks to harness the economic leverage of large ‘anchor’ organisations (for example local councils, health boards and colleges) to build momentum behind a virtuous cycle of local spending and wealth retention. But Arthur (pictured) acknowledged that Scotland’s social enterprise sector had been practising community wealth building for some time and that he expected the sector to also be at the forefront of the model’s development across Scotland.
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The five key principles of community wealth building 1- Spending 2 - Workforce 3 - Land and property 4 - Inclusive ownership 5 - Finance Source: Scottish Government
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Arthur said: “We need to build a vibrant, healthy and resilient economy, an economy that supports our people, enterprises and communities to thrive, grow and sustain. Achieving this is a huge challenge for any country. I believe community wealth building can help us achieve this bold ambition, and social enterprises and other inclusive and democratic business models are key to enabling this.”
The minister reiterated that the Scottish government’s 2024/25 programme for government confirmed it would introduce a community wealth building bill within this parliament. He said the bill would seek to secure the gains already being seen in local communities thanks to ‘inclusive and democratic business models’ (including social enterprise) and ensure the consistent implementation of community wealth building across the country.
The first minister shows his support for social enterprise
When the government’s 2024/25 programme for government was published in September, it was met with some concern by the sector. Chris Martin, chief executive of Social Enterprise Scotland, wrote an open letter to the government expressing disappointment that the programme for government didn’t include any mention of social enterprise.
The letter said: “This omission is especially disheartening given the vital role our sector plays in delivering the ambitions of community wealth building and contributing to Scotland’s sustainable economic recovery rooted in wellbeing which is at the heart of the government’s ambitions, articulated in that document.”
It seemed notable, given that letter, that not only Tom Arthur but also first minister John Swinney spoke at the Social Enterprise Summit Scotland.
The social enterprise enthusiast that you knew before I became first minister remains the social enterprise enthusiast now that I am first minister
Swinney (pictured) emphasised his long-standing support for the sector, which includes playing a crucial role in the development of the Scottish social enterprise support system.
He said: “The social enterprise enthusiast that you knew before I became first minister remains the social enterprise enthusiast now that I am first minister and I want to do all that I can to nurture the development of the sector.”
Following Arthur’s speech on community wealth building, Swinney said he was “constantly struck” by the contribution social enterprise could make to delivering his plans to “transform society”.
He said: “I want to express my thanks to all of you for the contribution that you make to Scottish society and the Scottish economy and for the vision that you represent which very closely aligns with the vision I have.”
Full-scale economic systems change
Neil McInroy is global lead for community wealth building at the Democracy Collaborative think tank and former community wealth building advisor to the Scottish government. McInroy moderated a panel at the Social Enterprise Summit Scotland on community wealth building.
Speaking to Pioneers Post, he said although elements of community wealth building were already carried out across Scotland, the government’s legislation would amplify the model with a specific intention of full-scale economic systems change.
We’re not just talking about a little bit of social procurement here, or a little bit of living wage. It’'s got grunt, it’'s got bite…
McInroy said community wealth building offered both a broad vision of an economic system that benefited people and the environment, but also a practical strategy for how it could be delivered. He said: “We’re not just talking about a little bit of social procurement here, or a little bit of living wage. It’s got grunt, it’s got bite, it’s got cogs, it’s got wheels, it’s got machines. It’s intentional and it’s strategic in terms of how we actually change the local and then national economic system.”
Speakers during the community wealth building panel discussion (left to right): Brian Robertson-Fern (BRAG Enterprises), Barbara Elborn (Newcastleton & District Community Trust), Calum MacPherson (Inverness & Cromarty Firth Green Freeport), Miriam Brett (Future Economy Scotland) and Tom Arthur (minister for employment and investment).
In September the government published a report titled Developing Scotland’s Economy: Increasing The Role Of Inclusive And Democratic Business Models. McInroy led the independent steering group which wrote the report, which included the recommendation to triple the number of social enterprises, cooperatives, employee-owned businesses and similar models in the Scottish economy by 2034. At the Social Enterprise Summit Scotland Arthur thanked McInroy for his work on the report and repeated the government’s commitment to respond to the recommendations “in due course”.
Speaking on the community wealth building panel, Miriam Brett, co-director of the Future Economy Scotland think tank, called for community wealth building to be integrated into all future government legislation, with an emphasis on land reform, procurement and fiscal decision making.
Brian Robertson-Fern, managing director of sustainable employment social enterprise BRAG Enterprises, told the panel community wealth building was increasingly a top priority in meetings with local authorities.
He said: “It’s the first thing that you talk about. Everything that we’re doing now in relation to commissioning is under the umbrella of community wealth building. That was never the situation before.”
All photos by Becky Duncan, Open Aye CIC
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