CO-CREATING COMMUNITY FACILITIES — Joost Beunderman
The big shift Self-organisation as wider trend: co-production Different roles of public, private and third sector Localism & Big Society offer some useful tools Creates a different economy, community resilience, and experience of place Searching for new value & business models Does not replace (all) social infrastructure!
eg. Incredible Edible Todmorden vision driven + practical beginnings + generates new economy
eg. Fintry Development Trust resilience asset + collaboration with developer + funds further collective ambitions
eg. Bromley by Bow Centre co-locating health, housing & jobs + enterprise centre + public space
southwark circle t a neighbourhood social support network
eg. Southwark Circle links low-level social / care needs with ‘helpers’ + independence & income + social contact
An informal gathering of Southwark Circle members
eg. The People’s Supermarket member owned + member operated + 60% of members from local area
eg. The George & Dragon cooperatively owned + enables economies of scope = pub + shop + library + B&B...
the hub islington t a home for change-makers
eg. Hub Islington co-working for SME + community of colleagues + peer-to-peer support for startups + other facilitues
Scenes from The Hub Islington and (Bottom right) from The Hub King's Cross, the second Hub to open in London
eg. FabLab DIY invention, testing & production + businesses, hobbyists, young people + start of a network
What they have in common
Started by people, not policy Start now & build step-by-step Value & opportunities emerge New business models & forms of governance Need for start-up finance
New behaviours
Co-Investment Co-Production Experience of Place Use local capabilities Open Ended Frameworks
Financial Co-Investment
Built using an increasing diversity of sources and recognising multiple forms of investment - people’s time, trust and social networks. Moving from traditional banking finance and government funding models
Co-Production participation beyond consultation
Typically participation at a local level extends to making a “consumer� choice presented by a designer.
From consultation to participation through ownership and governance.
Experience of Place
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Design as a holistic experience. Design as the curating of experience and social organisation of process to allow physical hardware to emerge. Move from place as an asset to civic value generation.
Capabilities leveraging latent capacity in people
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Typical approach would be procurement from consultant practitioner from outside the community parachuted into a project, lacking trust or social capital.
Open Ended Frameworks self regulation
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Built not through strategic planning but through open ended, agile, incremental and iterative practices - based on starting small and growing in response to evolving needs and opportunities From Regulation to Deregulation to Self Regulation.
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From 5 year economic plans & masterplans to open ended frameworks
...but how? Community asset ownership is a way of investing Community Asset Transfer / Right to Bid Community Right to Challenge Development Trusts, Community Interest Companies, Industrial & Provident Societies Match funds
Match funds
What do you need capital for? Pre-start - Feasibility studies, development plans, planning permissions - Promotional costs, communications, community engagement Start-up - Physical assets, equipment, machinery, premises etc - Registration costs, professional fees, financing fees etc - Advance payments, cashflow etc - Other one-off initial costs (marketing ,R &D, trading losses etc) Early-stage growth - Physical assets, equipment, machinery, premises etc - Cashflow , working capital etc Later-stage growth and consolidation - Buying assets - New product development, R&D, marketing - Acquisitions - Getting to the optimal size
Sources of capital finance Grants, gifts and donations including the sweat equity, gifts and donations of founders and key supporters Debt is readily available from institutions and (to a lesser extent individuals), but commit the venture to generating a fixed amount of profit to pay interest and refund capital, and can be short-term, and subject to security or guarantees Equity investment is more flexible, longer term, and connects the investor to the enterprise, sharing in the risks and rewards Reserves or reinvested profits is the principal source of investment in many businesses NB Gearing: ratio of long-term liabilities to reserves + equity + (gifts?)
Growth in community shares registrations
Industrial & Provident Societies Companies typically issue transferable shares to handful of shareholders, who plan to sell the company for capital gain Large companies (capitalisation £50m+) with many shareholders are listed on stock markets where shares can be traded via a “market maker” Smaller companies cannot generate sufficient supply and demand for shares to make a stock market listing work Industrial & Provident Societies aka ‘Coops’ - can be for-profit or not (Community Benefit Society) typically issue withdrawable shares, which means investors can withdraw their investment, subject to conditions
A unique form of capital Shareholder democracy: One-member-one-vote not one-share-one-vote No speculative gain: Withdrawable shares cannot increase in value (but they can decrease in value) £20,000 maximum holding of withdrawable shares: prevents wealthier members having financial influence Flexible cap on share interest rates: No more than is “sufficient to attract and retain” the investment Community benefit societies can have a statutory asset lock, and obtain exempt charity status if they have charitable objects, but still pay interest to shareholders.
Community Shares 2009 - 2011 176 new societies registered, of which 107 community benefit societies 69 co-operative societies 71 community share offers 59 share offers completed £9.5m raised from 10,506 members Average raised £161,000 (median £58,000) Average membership 178 (median 150) Average investment per member £883
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Final thoughts... Of course the possibilities are endless... But let’s talk about your priorities - what really has value for you, now and in the future? What business models can be appropriate? What unexpected combinations could be made? Where would you start? What do you need? Sources of support: Asset Transfer Unit, Community Shares Unit, Locality...
thank you joost@research00.net