New industrial strategy must drive a shift to a more entrepreneurial, productive and socially just society
Written by
UnLtd employee
UnLtd position
“There is much to like about the draft Industrial Strategy, released today… Supporting businesses and entrepreneurs across the UK to start and grow. Creating strong local institutions to maximise local strengths. Making better use of public procurement. Investing in innovation and skills. Cultivating world-leading sectors.
So far, so good. But for the Government’s stated aim of inclusive growth to come good, the strategy should explicitly support and promote social entrepreneurship, a driving force that can fundamentally reshape our economy and our society.
Over the last 15 years, we have seen how social entrepreneurs successfully address market failures and deliver dynamic and inclusive growth. Social enterprises are disproportionately active in the most deprived communities; they have a more inclusive and diverse leadership than business as a whole; they employ nearly a million people, with a particular focus on people distant from the labour market; and they contribute £24bn to the economy.
There’s an ever-growing appetite for ideas and entrepreneurship in the UK. In fact, 2016 was yet another record year for company formation, with over 650,000 new businesses established. Increasingly, people want to start up or work for businesses with a clear purpose that contribute actively to society. Businesses of the future will be as much about ‘why’ as ‘how’, with success defined by impact as much as profitability.
We have been encouraged by warm words from the Ministerial team at BEIS about the strategic importance of building social entrepreneurship into the heart of the industrial strategy, at local and national levels. It is therefore a real shame that the Green Paper makes only a passing reference to social entrepreneurship.
And while we welcome the emphasis on support for start-up and growth, it’s important that the entrepreneurship review covers the experience and needs of social entrepreneurs.
It is critical that the institutions and arrangements that will bring the Industrial Strategy to life – including Local Enterprise Partnerships, Growth Hubs and devolution deals – take full account of the benefits social entrepreneurship brings from the point of view of employment, skills, innovation and inclusive growth.
The industrial strategy must drive a shift to a more entrepreneurial, productive and socially just society. It is vital that the industrial strategy now fully recognises and embraces the contribution of social entrepreneurs in delivering economic success, vibrant places and inclusive growth.