An often-repeated statistic is that for every one child receiving adequate childcare provision in the UK, there are six who are not. Another figure is that the average cost of childcare in this country is 6,000 per head (Daycare Trust 2003). Neither are the sort of thing you want to be hearing over the patter of tiny feet. But there is an alternative that combines business acumen with a strong desire to serve the community.
Social enterprise is a 'not-just-for-profit' model that allows nurseries, daycare and after-school groups to use profits to subsidise places. They compete in the private sector but are not limited by the need to maximise shareholder value. Their motivation for making money is to use it to have a positive social impact. As such, they are well placed to deliver on service level agreements because they can provide the 'added value' sought by local authority contracts.
Large private organisations are moving in on the opportunities open to traditional community enterprise because they can provide the service at lower unit costs. However, this does not necessarily mean a better service.
Social enterprises look at what resources are available in the locality that allow them to meet demand while still acting like a business.
Key to this is shared ownership, or open governance, that sees representatives of the parents, schools, businesses and even the local authority sitting on the board and ensuring that the various interests of each stakeholder group are considered.
Social enterprise is by no means the answer to all the UK's childcare needs, but it is a viable alternative that values local workforce development, partnership and affordability above profit maximisation.
* To find out more about what social enterprise can offer the wider childcare industry contact Social Enterprise London on 020 7704 7490 or www.sel.org.uk.
