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Housing Summary 10 - October 1995 A study of 20 community regeneration organisations in 10 UK cities concludes they can make a significant contribution to the physical, economic and social transformation of disadvantaged neighbourhoods. Their achievements suggest that there is sufficient practical experience to develop a community sector which complements the public and private sectors, according to researcher Stephen Thake of the University of North London.
Background A broad consensus on elements of urban regeneration is emerging, including the beliefs that:
This level of consensus is impressive but much more has to be done to put it into practice. This study looked in particular at the possible contribution of locally-based 'community regeneration organisations'. Community regeneration organisations The range of organisations that have taken on the mantle of community regeneration is wide. They include
Organisations have many different origins and perform many different roles. Many have their roots within the community. Some have been sponsored by external agencies. Some older organisations have adapted to meet the needs of a changed environment. Their work programmes can include: childcare and youth work; adult and out of school education; skills training and training for work; business development and support; wealth creation and recycling measures; provision and management of workspace; crime prevention and the provision of security services; housing development and management; health projects, community care; advice services and counselling; environmental improvement and open space management; carnivals; theatres; museums and tourism. Organisational structures Community regeneration organisations have two over-riding organisational objectives: to bring about significant community and economic regeneration within their neighbourhoods and to create a sustainable organisation capable of developing work programmes specifically tailored to the needs of their neighbourhood. It is unusual to achieve both objectives simultaneously. By and large, the Company Acts provide the legal framework within which these organisations operate. The principal vehicle has been a company limited by guarantee with any surpluses covenanted to a sister charitable trust. The sister trust is able to use these and other funds to develop community and economic development programmes. Community regeneration organisations frequently consist of a number of complementary projects, initiatives and organisations. Each is funded through different mechanisms and is accountable to different constituencies. The kaleidoscope of activities is held together either through a formal holding company structure or an alliance of individuals who, as committee members or staff, have overlapping interests. The geographical areas across which community regeneration organisations operate are to a large extent determined by their approach to economic development. Some remain closely related to their home neighbourhood. Others seek to operate on a wider stage, interacting with the wider economy. In partnership with local authorities, many are developing links within Europe in order to access European Social and Regional Development Funds. The Flax Trust in Belfast and the Inner City Trust in Derry have both established links with North America. A third geographical mode of operation is yet under-developed. In this approach an organisation which has a broad remit, covering a region, a city or part of a city, focuses its disposable resources on meeting the community and economic development needs of one or more neighbourhoods within its patch. Local economic strategies The development and implementation of local economic strategies are important distinguishing features of today's community regeneration organisations. These strategies are designed to:
There are two main approaches: Maximising local economic activity This approach focuses specifically on the neighbourhood. It promotes: the informal economy; projects which increase the level of disposable income within the community; local employment policies; 'micro-businesses' (typically employing fewer than 3 people) and grant-aided businesses. These initiatives can boost local economic activity, reduce family expenditure, create jobs and increase the local take-up of jobs available at the local level. But as a stand-alone approach, it has limitations. The local market is small. Goods and services exchanged are not of high value. Many employment initiatives are linked to time-limited grant regimes or programmes. They do not, even when taken together, make significant inroads into existing high levels of unemployment. Engaging with the wider economy Virtually all community regeneration organisations have developed strategies for interacting with the wider economy. These include: establishing links with external employers and developing customised training programmes; improving transport links and access to the wider employment market; promoting micro-businesses; establishing broader-based commercially viable companies; and attracting companies on the move. The ability to develop viable business and to attract businesses which are on the move makes an important contribution to developing the local economy. Such enterprises create sustainable employment and help to change the stigma associated with disadvantaged neighbourhoods. Defining characteristics Community regeneration organisations can provide employment, training and a focus of voluntary activity for hundreds of people. They can also control significant capital assets and revenue turnover. However, they do not come fully fledged. Those most solidly based have grown incrementally. There are, therefore, community regeneration organisations in different stages of development. Nevertheless, the study identified a number of defining characteristics: Permanence All the case study organisations recognise that it takes time to bring about substantial social, economic and physical improvements in their target neighbourhoods. All therefore have a long-term planning strategy allowing them to make long-term commitments. Financial independence In order to secure their long-term objectives all the organisations are engaged in establishing their financial independence. Sustainability primarily comes from trading activities and in the main through activity in the secondary non-housing property market. Their involvement centres on the provision of workspace, offices and shops which establish an asset base and a revenue income to cover the core costs of the organisation. They also provide accommodation for local, start-up and incoming companies, training and advice centres, incubation units, local service providers, city-wide and regional charities as well as local community groups and businesses. Once established they provide a permanent presence and a centre of economic activity with the collateral to permit further developments. The provision of workspace is not an end in itself. There has to be a symbiotic relationship between the providers of workspace and other stakeholders in the community. The concept of mutuality has to be built in from the outset. Entrepreneurial skills These organisations are eclectic, innovative and fast moving. At their centre is a new type of professional: what might be called the 'social entrepreneur'. Social entrepreneurs have the ability to assemble skills, form alliances and raise funding to deliver specific projects or initiatives. They have frequently developed their skills in other fields before becoming involved with community regeneration organisations. Their value comes from their ability to transform underused and neglected assets: land, buildings, money and people. Their pioneering presence enables others within the neighbourhood to develop their own particular skills and interests and attracts more cautious developers to invest. Forming partnerships Community regeneration organisations are not stand-alone organisations. They work in partnership with local community groups, the private and charitable sectors, the local authority and other public and quasi-public sector agencies. They can provide a permanent presence around which further coalitions and alliances can be built, irrespective of external grant regimes, priorities or political control. Enabling Community regeneration organisations represent a very distinctive type of not-for-profit organisation. They are not specifically geared to the provision of or management of services. By and large, they are enabling organisations, choosing to set up self-managing, free-standing or time-limited projects. Community regeneration organisations can be judged in the short term by their ability to generate new projects and to withdraw from existing ones by encouraging independence, and by the number of new people and volunteers involved. In the longer term, their contribution can be judged by the number of sustainable enterprises and jobs created and the extent to which other stakeholders have come forward with investment proposals for the neighbourhood. Control and accountability The control of the organisation and its accountability to the various stakeholders are issues of central importance. There have been examples of permissive management by the committee/directors allowing organisations to grow rapidly, diversify widely and enter into contracts which were insufficiently thought through. The results were highly unstable. Successful community regeneration organisations have developed responsive and robust structures to deal with these issues. The role and composition of the governing body is of critical importance. It sets the framework for the organisation and its members have to be able and committed to carrying out their responsibilities. The relationship between the governing body and the director is also of critical importance. Many community regeneration organisations have developed a consular approach, whereby the chair of the governing body has established a mentoring partnership with the director. Accountability is established through formal agreements, understandings and working relationships with the various stakeholders. Accountability to the community can come through a wide shareholding membership or formal dialogue with neighbourhood forums/assemblies. Both the control of the organisation and establishing the accountability of their work programmes are dynamic and evolving issues. The existence of a network of independent asset-based organisations, each with a significant revenue turnover, is beginning to establish a marketplace of organisations committed to the economic, social and physical transformation of disadvantaged neighbourhoods. It is possible for communities to advertise and select someone from outside the community to act as their own entrepreneur in the absence of someone emerging from within. Conclusion Problems that have taken a generation or more to evolve will take as long to resolve, but special programmes cannot be expected to maintain a permanent commitment to a particular area. For change to become permanent there has to be a continuous investment in improving the well-being, skills and quality of life of such neighbourhoods. A fundamental aspect of any intervention strategy must be to put in place a structure that has the capacity to continue social, economic and physical regeneration programmes. Locally based community regeneration organisations have a central role to play in this process. A local base is essential as it helps ensure that they can be accountable to the communities they seek to assist and that their work programmes continue to reflect changing local needs. But a commitment to implementing local regeneration strategies and support for community regeneration organisations is not a stand-alone strategy. It is one strand within an overall commitment to urban renewal. This involves a series of interdependent strategies that include neighbourhood, national and European perspectives. There is little benefit to be gained from trying to establish which might be the major vehicle for delivering locally based community regeneration. The priority should be to support and enhance existing capacity wherever possible. Without an infrastructure, the contribution that these organisations can make to regenerating disadvantaged neighbourhoods will remain limited. Key elements of this infrastructure are described in the Policy options which accompany these Findings. About the study This study was undertaken by Stephen Thake of the School of Policy Studies at the University of North London. He looked at the experience of 20 community regeneration organisations in 10 cities in Northern Ireland, Scotland and England. In total these community regeneration organisations have an annual revenue turnover of almost £70 million and employ over 1,500 people. Further information The full report, Staying the Course: The role and structures of community regeneration organisations, is published by York Publishing Services in association with the Joseph Rowntree Foundation (price £11.00). This title is now out of print. |
