Four Reasons we need Social Business
In this global pandemic, social businesses are uniquely-placed to respond and strengthen communities.
Mutual aid groups are springing up in their hundreds through necessity, political decision-makers face daily scrutiny, and we’re braced for the economy to enter another period of turmoil. Along with supporting communities to rally around their most vulnerable, we need smart, business solutions to complex problems. 2020 Fellow Kasia Cheng on why we need social business more than ever.
Rapid response in a crisis
When a crisis hits, speed is critical. The faster we respond, the fewer communities and loved ones become sick, financially vulnerable or tragically, in the case of 55,000 and counting, lose their lives.
Governments are many people’s first points of call for good reason. They are uniquely able to make decisions and respond at scale. But it’s no secret this scale can come at the cost of speed and agility. And, for our most vulnerable, that gulf between the real problems they experience and the solutions being rolled out is critical. For some people, waiting five weeks for Universal Credit means the difference between going hungry or not.
This gap is where social businesses come in. Their grassroots connections and nimble nature mean they can do something about problems quickly. Embedded in local communities, their ears are naturally closer to the ground than ministers’. They are better positioned to learn about how people’s day to day lives are being impacted. Without the red tape of big organisations, they can test and build solutions in a fraction of the time. Take for instance, Year Here alumna Josephine Liang’s Dare To Care Packages, which sent out £60,000 worth of PPE to NHS staff within a week of its inception.
Sustainable support for the most vulnerable
Policies made in crisis are lifelines made to tide us through the very worst storms. While necessary, they also aren’t created to be long-term fixes to deeply rooted problems.
During the pandemic, rough sleepers have been put up in hotels for the sake of social distancing. But when COVID blows over, these people may well be chucked back on city streets.
While these policies have large-scale impact in the here and now, it’s social enterprises like Pivot that will still be here after COVID. When Londoners experiencing homeless come to Pivot, they are given meaningful employment by handcrafting jewellery. Unlike the band-aid hotel solution, social businesses provide support for individuals that will stretch beyond the crisis.
Social hubs in an age of loneliness
From isolated older people to teenagers lost in anxiety, loneliness is one of the defining social issues of our generation. The mental health crisis has only gotten worse during lockdown. At the GP clinic where I am placed, we have called patients who speak at length about the loneliness and emotional turbulence that’s tied up with coronavirus. Most of us are realising how fundamental human interaction is to our own happiness.
We live in an age where community can be pretty difficult to find. Luckily, social enterprises tend to be natural social hubs.. At Year Here, for example, we make it a point to spend time with and build relationships with people on the fringes of society. We know problems can’t be fixed if you don’t actually understand them — and who better to understand than the person experiencing it?
In short, we’re throwing business as usual out the window. Instead, we fight for businesses where people come first. And this means meaningful relationships naturally sprout in an otherwise lonely world.
Keeping money in local economies
We need social businesses not only for their immediate response to COVID, but also as crucial tools in rebuilding local economies.
In the UK, the sector employs 1 in 20 people in the country and generates £60 billion per year. That’s 3% of our GDP, about three times the size of the agriculture sector and similar size to creative industries.
By nature of their work, this money is kept local. Since their businesses are designed for social impact, the wealth generated naturally feeds back into creating employment, training or useful services or products. Money isn’t ushered into the pockets of multinational corporations or billionaire investors. Instead, it is continually reinvested in local communities, giving back to those they work with.
