Social value and the 7 super strengths of small businesses

In the UK, the creation of social value has become a significant marker of organisational success – influencing everything from how we procure, to customer perception and the talent an organisation can hope to attract. However, a common misconception looms large: that only big corporations with vast resources can make a real impact.

In our experience, though, smaller organisations are proving this notion wrong, demonstrating that when it comes to creating social value, size is not the only metric that matters. As a leader of a small organisation, you can draw upon the following strengths to ensure a highly impactful approach that carries weight with stakeholders.

The ability to be nimble

Small organisations, often more agile and adaptable than their larger counterparts, can respond quickly to social needs and changes in the community. This flexibility allows them to innovate and implement social value initiatives more rapidly, often with direct and tangible impacts. Their size enables them to foster closer connections within their communities, leading to more tailored and effective social value contributions.

Consider the region-specific efforts in recent years to mobilise responses to everything from flooding and the cost-of-living crisis, to isolation and homelessness during the pandemic. There is usually a local angle to national need, and some societal issues are felt more deeply within particular regions.

Strong community links

Smaller organisations typically have a richer understanding of local issues, given their proximity and often personal connections to the communities they serve. This intimate knowledge allows them to identify and address specific social needs effectively, fostering a sense of trust and loyalty that larger corporations often struggle to achieve.

The chances are that you already have localism within your DNA and are creating significant local economic value without realising - perhaps by employing, outsourcing or reinvesting within a close radius. Every ￡1 spent with a local supplier adds an extra 75p in social value.

Authenticity and credibility

In the realm of social value, authenticity counts. Smaller organisations often embark on social value projects out of genuine concern and commitment rather than in response to external pressure or for publicity purposes. This authenticity resonates with both the public and stakeholders, enhancing their credibility and the impact of their initiatives.

An authentic approach typically starts with listening and understanding – what do your clients, employees and other stakeholders most need and value? Once you have this knowledge, build shared commitments to positive change. For example, a housing developer might discover there’s a local concern about the levels of street crime, while a food producer might choose to tackle food poverty or healthy eating education.

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An intrinsically collaborative approach

While smaller organisations may lack the financial resources of large corporations, they often excel in forming partnerships and networks. By collaborating with other small entities, non-profits, and local authorities, they can pool resources and expertise, amplifying their impact. These collaborations can lead to innovative solutions that might be challenging for larger, more bureaucratic organisations to implement.

Why not start by identifying the community groups and charities operating in the same locale as your offices? Council websites are useful resources, often providing strategic plans and social themes for the area, alongside named points of contact. Go in with an open mind about the areas of greatest need. Take time to build your network and explore how you might tackle or complement the local effort through your core business operations.

Specialised knowledge and skills

Many small organisations operate in niche markets or specialise in certain areas, giving them unique insights and skills that can be leveraged to create social value. For instance, a small tech company may offer digital literacy programs in local schools, utilising its specialised knowledge for social good.

Consider your strengths, skills and specialisms as an organisation and as a group of individuals. It’s likely that there are local people who could benefit from these – either in the form of a targeted initiative, or through skilled employee volunteering. Lending your skills carries a high social return of around ￡101 for every hour donated.

Preferential government policies

The UK government plays a vital role in levelling the playing field. Policies that support and recognise the contributions of smaller organisations in creating social value are crucial. These include access to funding, tax incentives, and incorporating social value into public procurement policies.

Did you know that 30% of contract spend should go to SMEs, according to policy? However, you must be within a supply chain to take advantage, so make time for the right conversations with bigger businesses and explain how you can help them to demonstrate their social value targets.

Straightforward impact measurement

Measuring and communicating the impact of social value initiatives is vital for all organisations, regardless of size. The bigger the organisation, typically the more complex it becomes to calculate impact and truly understand all aspects of direct and indirect value. Supply chains and stakeholder networks are often convoluted and multi-regional or even global, while approaches are multi-layered, being potentially international, national and local.

Smaller organisations can focus on doing a handful of things very effectively.? Consider how you might best focus your time and resources to create maximum impact. Then use impact measurement to demonstrate the effectiveness of your efforts, attract support, and continuously improve your initiatives.

Conclusion: A diverse ecosystem of social value creators

In conclusion, the landscape of social value creation in the UK is not just a playing field for the big players. Smaller organisations have unique strengths and roles to play.

Your agility, community ties, authenticity, collaborative approach and specialised knowledge position your organisation to make meaningful contributions to society. In turn, you can also support larger businesses, public sector projects and main contractors to demonstrate their value.

As the UK continues to advance towards a more inclusive and sustainable future, the contributions of smaller entities like yours will be invaluable in shaping a diverse ecosystem of social value creators.

For advice on how to plan, measure develop and grow your social value, please drop us a line: [email protected]