Spin-out enterprises

Spin-out opportunities for UK social enterprises

The recent wave of public sector reform has ushered in a new model of service delivery in the UK. Across the country, many public sector teams and departments are being ‘spun out’ into mutuals, social enterprises or private companies to help increase the social value of service provision.

In 2009, Essex Cares was set up by Essex County Council as a trading company to take over the authority’s provision of adult social services. More recently, the Ministry of Justice announced plans to reshape the UK probation service, opening it up to providers from the private, voluntary, community and social enterprise sectors on a payment-by-results (PbR) basis.

Spin-outs of these kinds present huge opportunities for social enterprises to get involved and access government contracts.

Spin-out support

Inspire2Enterprise provides a full range of services for social enterprises looking to engage in the spin-out process. We help organisations understand the ‘spin out and deliver’ agenda, and offer strategic, research and investment support in preparation for contract tender.

We start with an in-depth consultation to ascertain an organisation’s readiness for spin-out and, often, PbR. We also explore a range of measures intended to simplify the spin-out process, minimise the risks, and help negotiate contractual terms.

Such measures include:

  • Sourcing extra funding or investment  (because all funding remains with the spun-out organisation)
  • Supporting public sector employees to form social enterprises and apply for spin-out service provision
  • Fitting an organisation into a larger supply chain
  • Reassessing an organisation’s business model to help improve cash flow – for example, through operational efficiencies
  • Using research to help measure and show social impact and value

If you’re thinking about apply for a spin-out contract, get in touch to see how we could help.