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Japanese Academic Delegation Visit to Social Futures Institute
3rd – 7th September 2007
From left to right: Dr Tony Chapman (Director, Social Futures Institute, University of Teesside), Takahiro Aoki, Tomohito Nakajima, Professor Cliff Allan (Deputy Vice Chancellor, University of Teesside)), Professor Tomoaki Shibukawa, Professor Tokihiko Takatani and Judith Brown (Head, Third Sector Development Unit, University of Teesside).
Introduction
Academics from the Graduate School of Tohoku University of Community Service and Science, Yamagata, Japan, recently visited the Third Sector Development Unit (TSDU) at Social Futures Institute (SoFI) at the University of Teesside. The delegation was led by Professor Tomoaki Shibukawa who was accompanied by Tomohito Nakajima, Tokihiko Takatani and Takahiro Aoki. Dr Tony Chapman, Judith Brown, Robert Crow, Beth Baxter and Barbara Thomas from Social Futures Institute hosted the event. The aims of the visit were to explore how the Institute is working with the third sector in the North East and Cumbria, to understand more about the process of social enterprise development and to get a clearer picture of the social and economic profile of the North East and Cumbria, particularly in relation to Yamagata, where our delegation are from.
The visit included meetings with key University staff; a reception with Professor Cliff Allan, (Deputy Vice Chancellor) at the University; a civic reception with Marion Swift, Mayor of Darlington; study visits to some of the most successful social enterprises in Tees Valley; and discussions with local and regional government officers and project directors who are concerned to develop the third sector in the region.
Social and Economic Regeneration – the United Kingdom Compared to Japan
Our visitors’ purpose was to explore how Tees Valley had tackled the challenges of significant industrial restructuring over the last thirty years. A particular interest was the impact of social enterprise in social and economic regeneration. As social enterprise is less well developed in Japan, the delegation was keen to explore how critical success factors in Tees Valley might be translated in Yamagata. They were also interested in those political, cultural and economic factors which might enhance or limit the development of the sector in the UK more generally.
As Yamagata suffers significant social problems local authorities have identified the potential of Non Profit Organisations (NPOs) to build sustainable communities. But investment in, and engagement with, this sector is currently limited. However, public sector officers have yet fully to trust NPOs to achieve their objectives due to perceived limitations relating to their capability and capacity. In particular, the public sector is thought to have concerns about the sustainability and independence of the Japanese NPO sector.
Unlike the UK, Japan's NPO sector has remained relatively underdeveloped due to the lack of grant funding from government at national and local level. Consequently, NPOs tend to remain small as they depend upon membership fees and earned income to remain viable. In contrast to the UK, the Japanese third sector does not benefit from large independent charitable trusts which provide significant support to the sector. Instead, much of the investment derives from large companies such as Sony, Toyota and Mitsubishi which have their own foundations. Charitable giving, as is the case in the UK, tends to be skewed towards the larger, well-established NPOs.
From research carried out by Takahiro Aoki, the average income of NPOs in Yamagata is around £50,000. However, the sector is characterised by a concentration of very large or very small organisations (many of which have an income of less than £10,000). Members of the delegation felt that they needed a greater understanding of how to create and sustain more medium-sized organisations which were more prevalent in the UK. One of the main reasons why smaller organisations fail to grow in Japan, the delegation suspected, was the significant lack of infrastructure support for Japanese NPOs to build their capacity and capability. A further consequence of this is that the sector has not yet developed a strong collective voice. As a result, NPOs have limited impact on economic and social policy at local, regional or national level. While the intensity and credibility of local level representation of the third sector in the UK varies significantly from area to area, it is clear that at a national level, the third sector has a strong voice and does help to set social agendas. Organisations such as NCVO, ACEVO, NACVA, amongst others, play important roles in researching the sector and in engaging with, and responding to, government policy initiatives. It was recognised in the Tees Valley sub-region however, that representation and infrastructure support operates mainly at the borough level, and there remain weaknesses in the extent of sub-region wide representation. This is an issue that TSDU has been working with the third sector to develop over the last few months and will report upon in the near future.
Members of the delegation were particularly impressed by the value-orientation of social enterprise practitioners and the catalytic potential of social enterprise, particularly in deprived communities. They were keen to explore the potential for social enterprise to achieve similar success in Japan. It is envisaged that pilot social enterprises could be developed in Yamagata in partnership with other key public and private sector stakeholders - but that their success may be predicated upon the acquisition of practical knowledge on how UK social enterprises successfully operate. Particular emphasis was placed on the development of governance structures, legal forms, methods of income generation, types of infrastructure and business support. A further aim was to explore the degree of integration between organisations, and the tensions which collaboration and competition produce inter and intra-sectorally.
Whilst the UK is ahead of Japan in terms of social enterprise development, we were keen to emphasise to our visitors that such differences were at least in part, due to differences between policy environments in the two countries. Indeed, our work in the TSDU has over the last year been focused on how different policy environments can help or hinder the growth and development of a social enterprise sector. We continue to explore this phenomenon through continuing to establish research links in Germany, Italy, Austria, the United States, and, of course, Japan.
Case Studies
The principal focus of the week was to meet leaders of successful medium sized social enterprises in North East England. Four brief summaries of preliminary findings from the week's study visits are presented below.
Case Study 1: Five Lamps, Thornaby
Aims
Five Lamps was established in 1986 by Churches Together as a response to the growth of mass youth and adult unemployment in Tees Valley. It was originally named ‘Thornaby Impasse’ and became ‘The Five Lamps Organisation’ in 1998 (since 1992 there has been no financial funding or support from any religious body or organisation). The organisation aims to advance education and relieve need amongst the young, unemployed, unwaged and disadvantaged residents in Thornaby. This is achieved through the provision of gainful employment and training facilities to develop vocational skills; provide recreational facilities for these groups with the intention of improving their life conditions; and, to promote and publish useful research into the problems of unemployment.
What They Do
The activities of Five Lamps include the support of economic development and enterprise measures; setting up and carrying out training and educational programmes and community development projects in order to promote and provide initiatives which will increase local people’s employment opportunities, level of skills and community involvement. To achieve this, the organisation is engaged in a wide range of social regeneration activities which can be divided into the following areas:
· Five Lamps Youth Service: Projects in this area include ‘Connexions PAYP’ (Positive Activities for Young People) which provides activities for young people during their school holidays; outreach work, to engage with young people and steer them away from anti-social behaviour; and Entry to Employment (E2E) aimed at those not in employment, education or training (NEET) young people aged 16-19 years.
· Guidance and Support Service: This service draws together eight, previously separate individual service elements. This includes ‘Jobslink’, Next Step, ‘Inspire’, ‘Tees Valley Works and Works for Women’, ‘Breaking Barriers’, ‘Working Together’ and ‘Kickstart.’ In 2006 this was supplemented by Neighbourhood Renewal Fund Workless projects.
· Business Start-Up: This support is provided via the Phoenix funded Community Development Finance Initiative which, in the year 2005-2006, supported over 80 new and early stage businesses across Tees Valley and is the only loan fund of its kind in the sub-region.
Legal Structure
The organisation is a charity constituted as a company limited by guarantee and governed by a Memorandum and Articles of Association of the 5th May 1989. Incorporation under the terms of the Companies Act 1985 occurred on 9th November 1989. Five Lamps has a non-profit identity with profits being used to enhance service provision.
Staffing and Volunteers
Five Lamps employs 46 individuals and up to 25 volunteers.
Turnover
Turnover in the current financial year is expected to be approximately £1.4 million. Since 2002 there has been a strategic aim to reduce the amount of grant income and to increase earned income from contracts, widening the range of services and geographical coverage.
What We Found
The commitment, enthusiasm and drive to sustain and develop the vision of Five Lamps was apparent during our visit. There is a clear view of the need for entrepreneurial activities to develop and sustain the role and activities of the organisation in times of rapid economic change. It is apparent that there is an organisational-wide awareness and use of flexibility in all activities. A key learning point from this visit was the extent to which the local policy environment affected the potential for social enterprise growth. In particular, it was noted that differences in local authority strategy and practices had a potentially debilitating impact. This is partly related to procedural issues, where local authorities operate different methods of tendering for services, so producing significantly more work for organisations. But more importantly, local authority boundaries also presented significant cultural barriers to social enterprise activity - with some authorities being more or less trusting of the sector and enthusiastic to invest in capacity building. From a sectoral point of view, it was evident that there was significant knowledge sharing and elements of cooperation between organisations. That said, the practicalities of working in a polycentric urban region limited scope for fully integrated collaboration.
Case Study 2: Community Campus 87’, Stockton on Tees
Aims
Formed in 1987, Community Campus is now in its twentieth year. During its time, it has housed over 5,000 young people. It was established by a group of people who were ‘dismayed’ at the lack of understanding shown towards young homeless people, and, as a result, the lack of services available to support them. Core to the work of ‘Campus’ is its people-centred approach; as such, young people are involved at all levels of the organisation, including its Management Committee.
What they do
Community Campus works across the boroughs of Middlesbrough, Redcar and Cleveland, Stockton and Hartlepool. Its purpose is to provide housing accommodation, facilities and amenities for young homeless people in conditions of need, hardship or distress; and to provide advice to those in conditions of need in relation to homelessness, housing provision and related issues. This is achieved through a number of projects, including:
· Key Skills Project – This project began as a self-rehabilitation scheme linking the need for housing with formal and informal training and empty properties within Middlesbrough and Stockton. The project now renovates three properties a year, trains more than forty young people, carries out building maintenance work to a growing number of clients across Tees Valley and currently offers employment to thirteen people.
· Heaven Project – Heaven was formerly a nightclub in Stockton-upon-Tees and was bought in a state of dilapidation. Community Campus was able to secure funding to renovate the building, and subsequently purchased it. This means they have a capital base that provides some independent income, physical space to organise their own administration, but more crucially, it means that a range of support services can be offered to young people under one roof.
Legal Structure
Community Campus registered in 1988 as an Industrial and Provident Society with tax-exempt charitable status.
Staffing and Volunteers
Community Campus employs thirty-six people and has approximately 30 volunteers; this includes their Management Committee. The number of volunteers can vary, however, depending on the projects Campus are working on.
Turnover
Last financial year, Community Campus generated £1.2 million income through the delivery of small-scale construction contracts and letting space in its Heaven building. Each year, Campus has been able to increase its capacity towards self-sustainability and as such, is less dependent on external grant support.
What We Found
On meeting staff and representatives of Community Campus, it was recognised that their enthusiasm, commitment and passion for what they do has a very significant impact on the lives of the young people with whom they work.
Carl Ditchburn and Lawrence McAnelly demonstrated, however, that social entrepreneurial activity required a strong business strategy so as to ensure that organisational sustainability could be maintained. The establishment of a secure property portfolio and steady income stream allowed the organisation to grow. In addition to this, the solid business foundation of the organisation allowed its leaders to engage in the kinds of innovative social and business practice which could not easily be achieved by smaller organisations or, more importantly, those which depended primarily on grant funding.
The business model established at Community Campus was influential in other organisations in the area. Our forth case study, Greenhouse, was largely inspired by the Community Campus model of using commercial renting as a basis for business security and growth.
Case Study 3 – Community Ventures Ltd, Middlesbrough
Aims
Community Ventures Limited (CVL) aims ‘to relieve poverty and advance education amongst persons in the UK, with particular regard to such persons who are unemployed or are suffering the consequences of unemployment’. A further aim is the promotion of urban and rural regeneration in areas of social and economic deprivation, with a particular focus upon East Middlesbrough.