As the dust settles around Budget 2011, and the reality of our country’s economic predicament sets in, it is easy to feel despondent. Economists are warning that economic recovery will be gradual, and whether the government’s four-year budget plan is implemented or not, we can expect a period of sustained fiscal austerity.
Community voluntary organisations, social enterprises and community businesses are at the sharp end of this economic crisis. Deep cuts in statutory funding, a fall in public donations, coupled with a sharp rise in demand for social services, has placed many under financial strain.
It is against this backdrop that social finance and social enterprise are becoming increasingly pertinent.
As the dust settles around Budget 2011, and the reality of our country’s economic predicament sets in, it is easy to feel despondent. Economists are warning that economic recovery will be gradual, and whether the government’s four-year budget plan is implemented or not, we can expect a period of sustained fiscal austerity.
Community voluntary organisations, social enterprises and community businesses are at the sharp end of this economic crisis. Deep cuts in statutory funding, a fall in public donations, coupled with a sharp rise in demand for social services, has placed many under financial strain.
It is against this backdrop that social finance and social enterprise are becoming increasingly pertinent.
In 2010, Clann Credo approved over €10 million in loans to community voluntary organisations, social enterprises and community businesses, and we continue to be very busy dealing with applications from across Ireland and beyond.
This is made possible by the ongoing support of religious congregations and the Social Finance Foundation who are funded by the banking sector. They play a pivotal role in the development of Social Finance as a force for positive social and economic change.
The year began with United Nations recognition for our founder, Sister Magdalen Fogarty. She received recognition for her social inclusion efforts in founding Clann Credo fifteen years ago, 1996.
I had the great honour of accompanying Sr Magdalen to the 48th Session of the UN Commission for Social Development in February, where we along with our board member Grace Redmond we made a presentation on Clann Credo’s work to the global body’s Civil Society Forum.
The economic crisis is also prompting a renewed interest in social enterprise as a means of creating jobs and promoting social justice and social inclusion.
Clann Credo has played a key role in the Social Enterprise Task Force, which presented its report to Minister for Enterprise, Trade and Innovation, Batt O'Keeffe TD in June. The report concluded that 5,000 new jobs could be created in each of the next five years, 25,000 in total, if government implemented a few key recommendations. Under the leadership of Maurice Healy, the Task Force is continuing its work. It has already met with the Minister for Social Protection, Éamon Ó Cuív TD, Minister for Community, Equality & Gaeltacht Affairs, Pat Carey TD and the Labour Party spokespersons on Enterprise, Willie Penrose TD and Senator Brendan Ryan to place the promotion of Social Enterprise on the national agenda.
In April, Clann Credo and Philanthropy Ireland established the Ray Murphy Memorial Bursary with initial support from The Atlantic Philanthropies. The bursary supports postgraduate research in philanthropy, social finance, social entrepreneurship and related topics. Two bursaries were awarded in 2010 and applications for the 2011 round have recently opened (see next article).
Our annual conference in March also focused on the role of Social Enterprise in job creation, and rebuilding communities.
Clann Credo recently co-hosted an event on social enterprise during Dublin Innovation Week.
Social Enterprise supported by Social Finance is not a panacea for our country’s economic malaise, but it does provide a sustainable and proven alternative to the neo-liberal economic policies that have failed our country.
Clann Credo will be celebrating its 15h Anniversary next year, and you can rest assured that we will be there to support you in 2011 and beyond.
Kind Regards,
Paul O’ Sullivan, Chief Executive Officer