Helping social enterprises to scale up

Rushanara Ali, author of the NESTA-Young Foundation report In and Out of Sync, explains some 'golden rules' for social enterprises to bear in mind when scaling up their work.

The main challenges

Social innovation is about developing ideas that address challenges within our society. Setting up a social enterprise - a business with a social purpose - is one way in which these innovations can be put into practice.

Social entrepreneurs face various challenges when it comes to scaling up their idea, but being aware of these challenges can help get the enterprise on the right track.

From the outset, it's important to be clear about what the innovation is and how it can be applied. Only with this vision will it be possible to convince potential funders and backers to provide the support needed to take the enterprise to the next stage.

Timing can also be a testing factor. When an idea addresses a clear need, it may resonate within society straight away, attracting interest from businesses and other organisations. Other ideas may require more groundwork to build interest and enthusiasm.

Breaking down barriers

When it comes to finding ways of navigating these challenges, networks and personal support can play a key role. Networks such as the Social Innovation Exchange provide opportunities for developing knowledge and expertise about other successful enterprises, as well as building relationships between social enterprises, funders, government and service deliverers.

Starting and growing a social enterprise can sometimes be a lonely exercise, and if this is the case then strong networks that provide support and expertise will be of particular value.

Having the ability to communicate to a diverse range of audiences is another very useful skill when it comes to convincing others of the potential of an idea and building champions for the enterprise.

When it comes to funding, it's essential that there is flexibility, particularly during the experimental phase of the enterprise. Funders also need to give the enterprise sufficient time to demonstrate results and show significant, scalable impact.

The Tower Hamlets Summer School has reduced levels of youth crime in the area, and the model is now being replicated across London - but it's taken eight years to achieve this scale.

Tips for success

Some 'golden rules' for social enterprises to bear in mind when scaling up their work are:

• Be clear about your idea: To convince and inspire others, you'll need to be very clear about what challenge you're trying to address, what's innovative about your solution and why it will work.

• Research and evidence are important: Sound research will help you understand the context you're operating in and where the opportunities lie, and good evidence-gathering is essential if you're to demonstrate success to funders and other stakeholders.

• Don't lose perspective: Keep sight of your ultimate goal in scaling up, which is to achieve significant social impact. There will be many challenges along the way, but focusing on the end goal will inspire you and drive you on to success.

• Be self-critical: Understand your own limits and be aware of when you need to bring in help from outside your organisation. Remember that being too close to your idea can sometimes hold it back.

• Stay flexible: To scale up successfully, you need to be responsive to the external environment. Passion and conviction are important, but you also need to have the flexibility to change course when required.

Delivering support

Over the course of the last decade there has been a gradual shift in attitudes towards social enterprise - there's an increasing level of interest in how we can foster and promote social innovation, including from government. But support provision for social enterprise is still fragile compared to the support given to something like science and technology innovation.

If we are to see more social enterprises produce large-scale, high-impact solutions for challenges such as the ageing population, education and crime, then there needs to be much greater support on offer.

What's needed is a combination of institutional support and flexible funding regimes, plus enough time to grow and deliver results with high impact.