The West Midlands Combined Authority (WMCA) has set an ambitious goal to double the size of the social economy in the region over the next decade. This initiative is vital for driving inclusive growth and regional development. To support this goal, YTKO, in a collaboration led by the School of Social Entrepreneurs (SSE), has secured a key contract to strengthen the sustainability and impact of Voluntary, Community, and Social Enterprise (VCSE) organisations across the West Midlands.
The Importance of the Social Economy
The social economy in the West Midlands is a crucial contributor to the region’s economic health and community well-being. With around 8,000 organisations, the sector employs approximately 100,000 people and contributes an estimated £3.5 billion to the regional economy. These organisations, including social enterprises, cooperatives, and charities, reinvest profits into social, environmental, or community causes.
Despite its significance, the social economy faces considerable challenges, particularly in achieving long-term sustainability. Nationally, the survival rate of VCSE organisations beyond five years is 67%, but in the West Midlands, this figure drops to 60%. This disparity highlights the need for targeted support to help these organisations thrive and continue delivering essential services.
YTKO’s Role in Strengthening the Sector
YTKO’s involvement in this initiative reflects its commitment to sustainable economic growth through tailored business support. Since establishing its presence in the West Midlands in 2015, YTKO has supported over 3,850 businesses, created 1,043 jobs, and unlocked nearly £20 million in private investment. Notably, 16% of these businesses were from the VCSE sector, underscoring YTKO’s expertise in supporting mission-driven organisations.
Lee Hughes, Deputy CEO of YTKO, expressed his enthusiasm: “We are delighted to provide this new business support service in the West Midlands, helping address the specific challenges these organisations face.”
A Comprehensive Approach to Business Support
The programme offers tailored support to social economy organisations, focusing on sustainability and growth. YTKO is supporting our delivery using the Growth Maturity Index diagnostic tool, which assesses each organisation’s performance across key indicators, enabling YTKO’s business coaches to develop customised action plans.
The diagnostic process covers critical areas such as turnover, income diversification, cash flow, leadership, and governance. Through regular sessions, YTKO’s experts work closely with clients to refine business strategies, enhance marketing efforts, and improve financial management, equipping these organisations for long-term success.
Building a Stronger Social Economy
Recruitment for participants began in earlier this year, with YTKO set to significantly impact the sustainability and growth of the social economy in the West Midlands. By providing tailored support and leveraging its expertise, YTKO aims to build a stronger, more resilient social economy that drives positive change across the region.
This collaboration between YTKO, Resonance, the School of Social Entrepreneurs, and the WMCA represents a powerful alliance committed to fostering a thriving social economy in the West Midlands. This initiative will ensure that the region’s social enterprises and VCSE organisations are equipped to meet future challenges and continue making a meaningful impact