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Who We Are

Who We Are. Set-up in 1982. Now the largest co-operative development agency in UK. Support and train co-operatives and social enterprises throughout Wales. Funded by: Welsh Government, European Union, Local Authorities & Consultancy fees. Business Succession & Consortia Service.

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Who We Are

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  1. Who We Are Set-up in 1982. Now the largest co-operative development agency in UK. Support and train co-operatives and social enterprises throughout Wales. Funded by: Welsh Government, European Union, Local Authorities & Consultancy fees.

  2. Business Succession & Consortia Service 3 year project Covering Convergence areas Funded by: - European Union (ERDF) Welsh Government

  3. Project Aims To maximise the potential for businesses to contribute to economic growth and sustainability through the establishment of co-operative consortia To support business succession to employee ownership thereby reducing the number of business closures due to a lack of succession

  4. The Challenges Ahead Loss of grants Shift from grants to contracts – are you prepared? Drive towards rationalisation in contracting frameworks and arrangements – move towards a single point of contracting Lack of capacity to meet public contracts Geographical market discontinuity (local supply versus regional demand) Isolation – the death of the entrepreneur

  5. Strategic Development Opportunities The shortcomings of conventional business models Local authority approach to community assets Plug gaps in current supply base – evolve and extend delivery portfolio Cross migrate services into other areas Develop collective supply chains and propose new interventions not previously commissioned – create new markets Need to safeguard the social enterprise infrastructure New trading opportunities as mainstream public sector retreats

  6. Case Study – North Wales Textile Recycling Consortium 6 social enterprises in North Wales looking recycling textiles collectively. Textile recycling has become a highly lucrative market. Better bargaining power with textile merchants if work together – can command a higher price fore textiles. Can also have more control of end use of clothing e.g. ethical markets. Aim to set up a textile recycling depot – creates jobs and training opportunities for people in N. Wales. Collectively bid for local authority recycling contracts.

  7. Sectors Where Consortia are Commonly Used

  8. Co-operative Consortia - The Opportunities Ability to tender for large contracts Shared costs / pooling funding to buy services Shared resources – staff / premises Bulk purchasing Continuity and volume of supply Shared skills and knowledge Opportunities to share good practice and ideas Greater presence in the market place & access to new markets Shared responsibilities and risks Inter-trading

  9. The Consortia Spectrum

  10. Case Study – Regional CVC Consortium Regional CVC Consortium is a consortium which brings together all the CVCs in South East Wales. The Consortium was formed to allow better coordination of services, allow work on joint procurement and act as a centre for policy and representation to Wales Government. It also allows the CVCs to demonstrate ‘joined up working’ to their funders. The Consortium is managed through a Memorandum of Understanding which sets out the grounds rules for working together – as agreed by their Boards.

  11. The Consortia Development Stages

  12. Strategic Planning New money/opportunities? Diversification? Sustain existing revenue streams? Reduce expenditure? Consolidation? Survive?

  13. Who Should You Work With? • No hard a fast rules • Links to your strategy – what do you want to achieve? • Geographic coverage v breadth of experience and service offering – or both? • Size – do you need to partner with larger organisations to give you access to new markets? • Just social enterprises??

  14. Secure Wales • Secure Wales is a consortium offering a range of security services direct to customers as packaged products or individual services. • The consortium consists of five SME’s and one social enterprise. • The consortium offers CCTV, IT protection, street furniture and security personnel. • The Consortium is staffed by a single member of staff who is tasked with assimilating enquiries and passing them on the relevant partners. • The consortiums main marketing tool is its website www.securewales.co.uk.

  15. Developing the Vision • Recognition of the need to collaborate • Clear understanding of everyone’s starting point • Clear understanding of each partner’s respective goals – what are the common areas on which to hook a collective vision • Be clear on people’s breaking points – no go areas • Recognition of the need to compromise • Terms of reference – set out the framework for engagement and objectives • Devise a work plan with timescales to meet expressed outcomes • Be clear on how to resource early stage development • Need to have the approval of the respective boards / trustees

  16. Sensitivities that Need to be Considered • Organisations simply don’t think about collaborating. • Limited evidence of successful consortia. • Perceived increased workload in creating a coherent and comprehensive consortia bid. • Concern about the resource implications for working in partnership. • Imbalanced collaborative partnerships – potential inequality in bid effort. • Difference in the interpretation of collaboration between members. • Loss of control – perception of giving part of the business to others. • Lose or dilute identity. • Lose client contact.

  17. Case Study – Three C’s Partners Services This is a consortium offering services such as cleaning services, catering services and local resources to the people in the Graig-Y-Rhacca and wider Caerphilly area. The consortium consists of one business – a cleaning business – and the resource centres of White Rose and Graig-Y-Rhacca. The members have come together to form a company which will employ a joint business development manager funded through the Social Enterprise Fund. The company is a company limited by Guarantee with the 3 members as legal Members.

  18. DirectClient Support Advice on suitable business models, organisational and legal structures Advice and support with governance issues Company registration service Business and financial planning advice and support Finding finance and helping to access grant/loan/equity finance Identifying suitable external specialist support for clients Training and mentoring Workshops, master classes and seminars Support with IT infrastructure WCC cross project support Support with developing equality strategies and environmental management plans

  19. Contact Details Rhian Edwards Project Manager, Business Succession and Consortia Tel No: 02920 556958 Email: rhian.edwards@walescooperative.org

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