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5. What this plan will achieve
5.1 What do we mean by 'enterprising third sector'?
The third sector is long established in Scotland and is an established part of Scottish civil society. Organisations such as Barnardo's, Kibble and Children First have been providing services for over 100 years. The last few years has seen the rise of social enterprises - businesses that trade for social purpose, which invest their surpluses to pursue this purpose. Kibble - which provides educational facilities for troubled and at-risk young people - is an example of an organisation that has developed into a highly successful social enterprise.
However, an enterprising third sector embraces many more organisations than those that can be defined as social enterprises, and many activities beyond trading. It includes established voluntary organisations and new non-profit distributing businesses started by social entrepreneurs. It includes community interest companies as well as many co-operatives and registered social landlords.
What these organisations have in common is the fact that they are developing products that meet a social or environmental need. Frequently, they are trading in a market and pursuing their social purpose directly through this trading activity. They are non-profit distributing, constituted for social purpose and independent of government. They measure their effectiveness through the triple bottom line of economic, social and environmental impact. These organisations make up the social economy.
An enterprising third sector is not just about trading, but about using knowledge to look for and implement innovative solutions to social and environmental problems, either through delivering services directly, or in partnership with other organisations. Services which produce social benefits - such as improved health, opportunities for young people which develop their confidence and skills, rehabilitation of offenders or training for employment - make a contribution to the overall economy.
This action plan is targeted at all third sector organisations that demonstrate an ability to be enterprising. They might consider themselves charities, voluntary organisations or social enterprises. Most will trade to some extent, all will make a contribution to Scotland's economy through the services they offer. Where that organisation shows potential to develop its services either through improvement in quality or expansion - contributing to our purpose of a more successful Scotland - we will want to provide support.
5.2 What are the aims of this action plan?
As stated above, the key aim is to create the right environment in which an enterprising third sector can thrive. This can be measured in a number of ways through the National Performance Framework. The key indicator for this action plan is to increase the turnover of the social economy.
A more enterprising third sector will also have a major influence on some of our high level targets, principally those that relate to our three golden rules of shared and sustainable growth, solidarity, cohesion and sustainability.
An enterprising third sector will also have a significant impact on many of the national outcomes. These are outlined in section 5.3 below.
As a result of this work, and of our direct investment into organisations, we will expect to see a wide variety of social, economic and environmental outcomes reflecting the whole spectrum of operation - including social care, recycling, services for young people, employability and a wide range of other activities - undertaken by the sector. These outcomes will reflect the five strategic objectives of the Scottish Government.
5.3 Outcomes
The third sector has a key role to play in meeting the Scottish Government's strategic objectives. Through the actions outlined in this plan, we also expect to make contributions to meeting many of the national outcomes identified in the National Performance Framework. Most notably these are:
- we realise our full economic potential with more and better employment opportunities for our people
- we are better educated, more skilled and more successful, renowned for our research and innovation
- our young people are successful learners, confident individuals, effective contributors and responsible citizens
- we have tackled the significant inequalities in Scottish society
- we have improved the life chances for children, young people and families at risk
- we live our lives safe from crime, disorder and danger
- we have strong resilient and supportive communities where people take responsibility for their own actions and how they affect others
- our public services are high quality, continually improving, efficient and responsive to local people's needs
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