As CEIS celebrates its 40th anniversary, we reflect on the rich history of social enterprise in Scotland and our role in shaping this vibrant sector. To gain insights into this journey, we spoke with Professor Michael Roy from the University of Stirling, a leading expert in social innovation and sustainable organisations.
The Roots of Social Enterprise in Scotland
Whilst the term “social enterprise” may be relatively new, the concept has deep roots in Scottish history. Professor Roy points out that the first documented co-op in the world was founded in Scotland, and dates back to 1776 with the Fenwick Weavers in Ayrshire – predating even the famous Rochdale Pioneers by 70 years!
“We’ve always had social enterprise in one form or another,” says Roy. “They tend to emerge when we have economic and social upheaval and transformation.”
This pioneering spirit has been a hallmark of Scottish social enterprise from the very beginning. The Fenwick Weavers Co-op was established about 25 years before Robert Owen began his work at New Lanark, demonstrating Scotland’s early leadership in cooperative and socially-minded business models.
The Birth of CEIS and the Changing Landscape
CEIS was established in 1984 as Strathclyde Community Business (SCB) during a period of significant economic challenges. As Roy describes, “We were in the grip of Thatcherism, so there was a lot of industrial decline, particularly in Strathclyde…”
It was in this context that SCB, later re-named to CEIS in 1993, emerged to support community businesses in Strathclyde, recognising the need for innovative, local solutions to address pressing social and economic issues.
During a recent visit to the Glasgow Caledonian University’s social enterprise archives, we saw first-hand the kind of challenges that Scotland was facing in 1984 – de-industrialisation, deprivation, mass unemployment and a huge increase in poverty as the result of the policies pursued by the Thatcher government.
SCB was formed to help offer business support and training to existing and start-up community businesses whose missions were to help address some of the issues created by Thatcher-era policies.
The Evolution of the Sector
40 years on, it’s safe to say that the social enterprise sector has undergone significant changes. Roy notes that the sector has become “slicker” and more professional, partly due to increased government involvement and the emergence of intermediary organisations.
“The involvement of government has kind of forced us to become slicker in many ways,” Roy explains. “Organisations often can’t receive grants or support unless they exhibit some sort of professionalism.” Whilst this professionalisation has brought benefits, Roy cautions that it’s not always for the better, as it can sometimes lead organisations away from their core mission.
The language used to describe the sector has also evolved, from “community business” to “community enterprise” to “social enterprise”. This evolution reflects the broadening scope and increasing complexity of the sector. Roy points out that the term “social entrepreneurship” has also been introduced, often bringing an Anglo-American conceptualisation that focuses on charismatic, heroic individuals.
This broadening of the sector has led to a diverse range of perspectives under the social enterprise umbrella. As Roy explains, “We’ve had the emergence of a kind of libertarian, free market form of social enterprise that might be seen as being politically on the right, as well as traditional community based left wing movements that define themselves or see themselves as part of a local social enterprise movement.”
This diversity, whilst enriching the sector, has also led to some tensions. Roy notes that there have been “movements to capture the hearts and minds of people in the social enterprise movement,” and that recent attempts by government to “tidy up” the sector often misunderstand its inherently broad and diverse nature.
Despite these challenges, the evolution of the sector has also brought significant strengths. The emergence of intermediary organisations such as Social Enterprise Scotland has helped to better organise and support social enterprises. The sector has become more visible and influential, playing an increasingly important role in addressing social and economic challenges across Scotland.
CEIS’s Role in Shaping the Sector
Professor Roy highlights CEIS’s unique position as both an intermediary body and a delivery organisation. “CEIS plays and has always played an important role in the sector,” he says. “You often set the conversation, and you try to shift the conversation focus on what the sector needs here and now, often by delivering work or ideas that perhaps we don’t even know that we need.”
This ability to anticipate and meet the sector’s evolving needs has been crucial to CEIS’s enduring impact. By combining thought leadership with practical support, CEIS has consistently stayed ahead of the curve, introducing innovative solutions and driving the sector forward.
Our international impact is also significant, with Roy mentioning CEIS’s role in founding the Social Enterprise World Forum and our efforts to represent the sector on a global stage. This international perspective has been vital in maintaining Scotland’s reputation as a leader in social enterprise, although admittedly this has become more challenging post-Brexit.
Examples of how CEIS has been at the forefront of the sector extend to programmes such as Just Enterprise and the International Social Enterprise Observatory.
Future Challenges and Opportunities
As the social enterprise sector in Scotland continues to evolve, it faces both challenges and opportunities. Professor Roy highlights the recent move of third sector support into the Scottish Government’s economy portfolio as a significant development. This shift presents opportunities to ensure that alternative economic forms are on the government’s radar and to remind policymakers that models other than profit-maximising capitalist forms are viable and valuable.
However, this change also brings potential threats. There’s a risk that social enterprise could be minimised or sidelined within broader economic discussions. Roy emphasises the importance of “constantly reminding government that we exist and that we have something to offer.”
The impact of Brexit has also affected the sector’s international connections. Roy notes that Scotland and the UK have withdrawn from some international networks due to Brexit, potentially damaging the sector’s international reputation. However, he sees CEIS as playing a crucial role in repairing this reputation and ensuring a bright future for Scottish social enterprise on the global stage.
Looking to the Future
Professor Roy envisions a bright future for CEIS and the sector: “Over the next 40 years, there’s no doubt there’s plenty more to come… It’s about keeping one eye on the future whilst continuing to deliver excellence in the present.”
We’re proud of our history and the role we’ve played in nurturing Scotland’s social enterprise sector. As we celebrate our 40th anniversary year, we remain dedicated to supporting social enterprises, driving innovation, and contributing to a more inclusive and sustainable economy for all. Through initiatives like Just Enterprise and ISEO, we continue to shape the future of social enterprise both in Scotland and on the global stage.
It’s our mission to help ensure that social enterprise remains a vital part of Scotland’s economic and social fabric. Here’s to the next 40 years of social enterprise in Scotland!