By Shah Begum, Head of Social Value
Last month, the West Midlands celebrated the Social Economy Sector with a packed week of events. These aimed to promote and connect organisations working to tackle poverty, reduce inequality, and champion overlooked communities. Running from November 18th to 22nd, the week began with a Social Economy Breakfast hosted by Atkins Realis. Highlights included keynote speeches from the new Mayor, Richard Parker, and Laura Shoaf, Chief Executive of the West Midlands Combined Authority. The week concluded with the inaugural Social Economy Awards, celebrating those people and organisations that are setting the pace when it comes to inclusive growth in the region.
Here are three things I learned that week:
- The Centre for Local Economic Studies (CLES) recently did some research on the size and scale of the Social Economy here in the West Midlands. It found:
- 9,314 social economy organisations are based in the West Midlands, 56% of whom are based in my home city of Birmingham – putting it on a par with the financial services industry in the region
- These fabulous organisations turn over an estimated £14.2bn a year – outpacing the food and hospitality sector in the region (which is worth £10bn)
- The social economy employs an estimated 102,000 people – leaving the 81,500 employed by the construction sector for dust
- With numbers like this, it is clear that the social economy is a major driver of growth in the region, and there is a strong case for investment in the sector
- Whilst the UK has seen some amazing growth in the last quarter of a decade, in 2000 there were 12 billionaires in the UK, and only 1 food bank (according to numbers supplied by the Trussell Trust). Fast forward to 2024 and there are 173 billionaires, and a staggering 2856 foodbanks supporting some of the most vulnerable people in our communities. It is clear that whilst there has been growth, it has not positively impacted everyone, and it has not been equitable or inclusive.
- Every social enterprise I spoke to during the week wanted the same thing when it came to support from the public and private sector: access to supply chains. Social enterprises are confident in their ability to take on commercial contracts and deliver against the three measures of time, price and quality – but with the added benefits of keeping the benefits within local communities. There are a whole host of steps that those with procurement responsibility can take to support this, from ring fencing some opportunities for social enterprises, to carrying out genuine market engagement before tenders are released.
The Social Economy is not just a nice-to-have; it’s a powerhouse of innovation, inclusion, and economic impact. With a £14.2bn turnover and the ability to deliver social value alongside commercial excellence, this sector is redefining what sustainable growth looks like. It’s time for corporations and public bodies to recognise the transformative potential of working with social enterprises. The Social Economy is a force to be reckoned with. The question is: are you ready to be part of this movement?
Image courtesy of Edwin Ladd from Mr Ladd Media
