The Long Tail of Social Entrepreneurship

Recently I’ve referred a couple of times to the ‘long tail of social entrepreneurship’, which has been an idea bubbling round SSE for a while. It essentially came out of a policy agenda we had been promoting (social entrepreneurship for the many not the few, democratising the opportunites for involvement, encouraging new entrants from all areas and backgrounds), combined with a reading and understanding of Chris Anderson’s now-very-famous Long Tail theory (see also the Wikipedia entry). Having discussed this with Rowena Young at Skoll, we agreed to do some investigation, start the debate, and work towards a joint paper.

Effectively, the Long Tail says that the internet has changed economics and culture by democratising the tools of production, decreasing the costs of distribution, and providing effective filtering via recommendation.

To use a practical example, an author with an expertise in Nepalese death metal might have wanted to publish a book on the subject. In the past, it is likely that a) this would have been expensive for him or her to produce, b) a publisher would turn him down because there’s a limited audience and because c) a bookshop would never stock it (limited shelf space and they want to stock books that sell) because, also, d) the limited audience might never find it (due to geography, limited channels to it etc.).

In the world today, he or her could start a blog on the subject for free very easily, get it published on demand by Lulu.com or something similar, get it stocked on Amazon, and reach his limited audience without incurring massive costs or several bottlenecks and barriers along the way. Why? Because the tools of production (writing/publishing), the costs of distribution/stock (Amazon effectively has unlimited shelf space) and the power of the internet to filter for an audience (Google/recommendations) allows it to happen.

And what does this mean for Amazon? Well, they can get as many sales from 6 sales of a million books as from (to take the Borders / Barnes & Noble / Waterstones bookshop model) a million sales of 6 books. The long tail, of niche products with niche audiences, can now provide aggregate sales on a par with the blockbusters and bestsellers.  And it also allows diversity to thrive, and  a greater variety of needs (eg. those of Nepalese death metal fans) to be met.

OK, so that’s my “long tail in a nutshell”, although the pages above explain it better…and the article and book better still. What has this to do with social entrepreneurship? Well, imagine that instead of products (like books or songs) we were talking about social entrepreneurs and their organisations. And imagine that instead of sales, we were talking about social impact. Because a lot of talk or focus on this sector (be it definitions, venture philanthropy, investment types, awards etc) is on scaling, and the need to scale the social impact that social entrepreneurs are having in order to address the large problems we face. No disagreement there.

What this long tail argument points out is that this scaling of social impact could be achieved not only through a scaling up of a few selected organisations (who get big investment, high-end consultancy, media promotion, awards etc), but also through a scaling out of opportunities to many individuals. Effectively, to return to maths equations for the first time in twenty years, this is pretty simple:

small number (of social entrepreneurs) x large size (of activity)  = large-scale impact
large number (of social entrepreneurs) x small size (of activity)  = large-scale impact

So, the argument goes on, we need to give as much attention to scaling up the number of opportunities (support/information to graduates, long-term unemployed, people living in ‘deprived’ areas, retirees etc.) for social entrepreneurship, as we do to scaling up a much smaller number of what have been identified as successful and replicable approaches.

But it’s not that simple, of course. There are pros and cons to both approaches:

– The short head (scaling up a few) should be more cost-efficient, avoid duplication and reinvention, and be quicker in achieving larger impact; it is also useful as a point of entry (stars promote the concept to the masses)
– Meanwhile, the long tail is potentially inefficient, slower, and more expensive (duplication of admin and back offices of lots of small organisations etc.)

BUT

– the long tail delivers solutions that are local, niche and fit-to-purpose, empowers many people (allowing us to find new stars and new innovations), and delivers benefits through and within organisations as well as by the direct impact they deliver (for example, confidence and skills, diversity in leadership, local wealth and job creation, community participation/involvement, wellbeing & health, active citizenship etc.)
– Meanwhile, the short head risks delivering top-down generic solutions, being elitist, fewer new leaders and innovations emerging, and pressuring organisations to scale before they are ready/proven

There are also limits to how far we can apply the theory or lens of the long tail, but it does raise some interesting questions:

– what are the “tools of production” for a social entrepreneur, and how can we “democratise” them? (appropriate support, networking, information, skills, investment?)

– if the architecture of the internet, and large-scale access to it, made the internet long tail wag, what architecture and access issues are there in this field?

– filters allow us to find quality in the long tail (and help them move up it): what are they in this field? (the support organisations? people like New Philanthropy Capital?)

– the long tail needs a head to thrive (and vice versa in this model), so how can they interact and co-operate?

That is the gist of the paper we presented at Skoll (I’ve only cut the introduction to SSE and some of the findings from our evaluation out: these were there purely to illustrate that we’ve supported people in the head and tail, and that the wider benefits of the long tail are clear from our decade of work) and we ended by saying:

– this is not an either-or debate (it’s an “and-and” one), but the emphasis may be too heavily on the head/stars at the moment

– we need to understand how to best maximise the benefits of the long tail but mitigate the risks (duplication etc.) [most succinctly put by Hugh Morrow at our seminar]

– we also need (and put out the question to this effect) to view this debate, and get viewpoints, from different countries where the field may not be as populated as the UK

Finally, just a big thanks to everyone who contributed to this work whether through unattributed comment or through deep debate. Particular thanks to all those who came to the seminar at Skoll and helped shape the next stage of the work (including Charles Handy, no less). For those who might find it of interest, here are the key slides from the powerpoint, starting with our vision of social entrepreneurship (please note that ‘community’ can be geographical or a community of practice), before plunging into the world of the long tail. Feel free to disseminate, with attribution, and also feel free to give us your thoughts on all of the the above on this blog.

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Social enterprise and entrepreneurship news round-up (April 07)

Lots to catch up on or bring to people’s attention, after time away:

– the Enterprising Solutions awards were launched….and it’s last call for the Edge awards as well

BIG Invest WLTM social enterprises seeking investment between £50,000 and £500,000

– the Office of the Third Sector are really kicking into gear on their various action plans: two more tenders announced recently; one for an innovation exchange and one to run the social enterprise ambassadors programme which was a feature of the Scaling New Heights action plan. SSE attended a seminar on the subject the other week…..

– Meanwhile, in Scotland, the executive published its equivalent to the action plan….called Better Business; the ever-reliable SENScot summarise it here

– Several SSE Fellows are running events or featuring in the media: see SoundDelivery, OnRoadMedia (workshops), Grandparents Plus (Radio 4 appeal), Faith Action (launch, featuring Campbell Robb, DG of the OTS) and Ann Cotton of CAMFED fame (Guardian); also, a mention for Ray Brown at Redesign Youth who has got a first big piece of work with a youth centre in Lewisham

– Having seen Muhammad Yunus (rightly) feted at Skoll, and much talk about the need to scale up, it was interesting to read an article about the problems it can bring, even for the best of us….see Bangladeshi phone row

– There’s an interesting article by Barbara Phillips in Social Enterprise Magazine this month (not online that I can see), using SSE Fellows as a means of demonstrating the diversity that naturally occurs through appropriate support and engagement

– Also, check out Third Sector’s new website which is a VAST improvement: wonderful. Already signed up to the relevant RSS feeds + watching the spangly new social enterprise section

– …which includes mention of the brand new Social Innovation Exchange website, with which SSE is proud to be involved from its inception; already, some of the international linkages and learning has been really valuable….

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The Social Apprentice has Bright Ideas…

Following hot on the heels of the Dragon’s Den not getting social enterprise comes some exciting and vaguely related news… Tim Campbell, first winner of the UK Apprentice, is leaving Amstrad behind to start on two projects of his own. One is about male grooming, but the other, entitled the Bright Ideas Trust, will be a "social enterprise initiative". No concrete details as yet, although it plans to " give away at least £1 million a year to budding entrepreneurs". Interesting stuff: Tim has clearly seen the light… 

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SSE Fellows: update on activity

As I flit between the Scylla and Charybdis of CapacityBuilders Destination 2014 and the new proposal for a Social Investment Bank (see also this Observer interview with Sir Ronald Cohen), news comes in from around our Fellowship network:

 

– first up, Charles Armstrong, founder and CEO of Trampoline Systems, which was developed with and at the SSE (it also powers our extranet), writes to tell us that they have received £3million funding from US investors; fabulous news, and also a boost for UK-based 2.0 tech companies more generally

 

Chris Dabbs, who is both a Fellow and helped establish and run the Salford SSE pilot programme, is now also the co-ordinator of the NHS Social Enterprise Network; Chris e-mails to point me to an article he wrote in Health Services Journal, entitled, Taking care of business (registration/login required; can e-mail a copy if wished) which focuses on the support that (social) entrepreneurs need for the NHS to really be transformed in the way we would all hope….well worth reading

 

– An SSEI (Ireland) Fellow, Anna Lo, has become the first ever ethnic minority candidate to be elected in Northern Ireland and, indeed, the first Chinese candidate ever to be elected to any UK assembly or parliament. An amazing achievement.

 

– Jude Habib, who graduated from the London programme in December 2006, points us to her spangly new website which is up and running: her organisation, SoundDelivery is taking "a fresh approach to communications for the third sector", so check our their recent work and activity….

 

– finally, our chief exec Alastair Wilson, himself a Fellow of the first SSE programme back in 1998, features in Regeneration and Renewal’s current edition (online here but subscription required) under the headline "Have-a-go helper". It’s a good introduction to SSE, covering the methodology (learning by doing, case study driven), the importance of legitimacy ("Nobody appoints a social entrepreneur….it’s very important that they see it is possible to create things from scratch"), its track record (85% projects still running), its history (Michael Young and the importance of personal motivation), and why (and how) the government should invest in supporting social entrepreneurs….

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Skoll Forum 2007: going international

Next week I have meetings here at SSE with organisations/individuals from China, Finland and Israel. Nothing revelatory in that, per se, but I think it’s symptomatic of a couple of things:

1) there is growing interest across the globe in social enterprise and entrepreneurship

2) the UK is at the forefront of this movement

OK, nothing revelatory in that either (!), but I think it’s worth dwelling on for a moment. Why? Well, the Skoll World Forum is coming up (see the Forum programme here), which provides a chance for international debate and discussion (and networking, of course) in the field, and to share knowledge and experiences with new people outside the UK scene.

The other point is that SSE will also be appearing on the fringe (the Orange programme) at Skoll, presenting on the long tail of social entrepreneurship. This basically discusses the need to scale up opportunities for social entrepreneurship involvement, as well as replicate ideas, scale individual organisations etc. I’ll post up a brief overview of where we’re coming from before we head to Oxford.

But what we’re hoping is that we can see how much of a UK-centric view this is, or how applicable it is to other countries. Is the support and finance available in the UK so far ahead of other countries that they would long (at this point) for star social entrepreneurs/enterprises like Muhammad Yunus or CafeDirect in order to promote the concept? Or does a grassroots, broad church approach appeal in terms of bringing wider benefits and tailored solutions? We’ll be looking for feedback to refine our thoughts and argument to have relevance beyond these shores…

The Forum this year focuses on social innovation, and features a whole range of speakers: from academics like Greg Dees to writers like Charles Handy, to practitioners like Yunus and Jim Fruchterman. Should be an event with a great buzz, and we’re already arranging meetings for when we’re there….If you’re coming along, then come and find SSE (and come along to our presentation on Wednesday morning); if you’re not, then we’ll endeavour to blog what we can from the event, as well as round-up afterwards….

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