Entrepreneurship
Theme: Social Enterprise
Cross-cutting themes covered:Business incubation facilities
Name of project: Bromley by Bow Centre
City: London
What is it? The Centre started in 1984, when a run-down church was converted into a community hub. The Centre now accommodates a ‘Social Enterprise Hub’, housing 14 social enterprises in a supportive environment, including childcare facilities, health advice, a day centre, learning activities and a community café.
Who is it? The Bromley by Bow Centre, a registered charity, is the delivering body.
Where is it? The Centre is in the London Borough of Tower Hamlets, the most deprived local authority in the UK with high levels of unemployment. The population of almost 200,000 is made up of people from a variety of ethnic backgrounds – over one third of the population is Bangladeshi and 6% of the population is from African/Caribbean backgrounds.
Who funds it? The turnover of the Centre in 2004 was £3.1 million (€4.6 million). Funding comes from delivering contracts that are mainly funded by the public sector, including:
The Centre is currently trying to reduce its dependency on grant funding.
How does it work? Accommodation for social enterprises: The Bromley by Bow Social Enterprise Hub accommodates 14 social enterprises in a supportive environment, including childcare facilities, health advice, a day centre, learning activities and a community café. The activities of the social enterprises are grouped into four broad areas: enterprise, education, environment, and art and health.
Co-location of social enterprises has led to the following benefits: higher quality office space below market rates; interaction and networking between businesses; and access to shared support services such as photocopying and meeting room space.
The Hub has also helped to channel the local potential for social entrepreneurship by providing a supportive and dynamic environment, bringing people with similar views on business together.
Reaching out to the local community: Importantly, the social enterprises located at the Hub provide work opportunities for local residents.
What are the results? Currently, the Centre employs 62 people, almost all of whom are from local estates. The employees of the Centre reflect the local community as over 80% live locally and 60% are from black, Asian and minority ethnic groups.
Is it successful? Local impact has been ensured through the geographical location of the Centre in the disadvantaged urban area.
The social enterprise approach…… In recent years, the centre has hosted a secondee from Barclays Bank, in the position of Business Manager. The Business Manager was given the task of turning some of the activities happening within the Centre into businesses, to create financial profit and thus reduce dependency on grant funding.
The centre creates ‘social profit’ through training and employing local people and giving opportunities to those who might not otherwise be able to access them.
Is the model transferable ? Activities designed to support cluster s are common in economic development practice, and are transferable. This case study suggests that social enterprises can also benefit from cluster ing approaches, for example through providing them with serviced office facilities and networking opportunities.
Building on local competitive advantages? The project started from an innovative use of a disused space, which was a clear advantage of the local area.
What are the barriers to transferability? Sustainability will only be possible where social enterprises are responding to specific market needs, developing solutions at a specific time within local constraints and capitalising on specific opportunities.
