Enterprising Approaches to Rural Community Transport
Overview
Background & policy context:
The Community Transport Association (CTA) estimates that there are more than 800 community transport operators (CTOs) serving rural areas in the UK and, of these, many are enterprise based in the sense that over half of their total income is derived from charges for services or the delivery of contracts, as opposed to receipts of grants and donations
The Plunkett Foundation and the CTA believe that there is considerable potential for rural community transport operators to increase their financial sustainability, and thereby better achieve their social goals, by adopting a more enterprise-based focus. Plunkett have helped some operators to move in this direction through its Rural Revival campaign and its management of Defra’s Enterprise for Inclusion-1 programme, which provided grant and advisory support packages to voluntary organisations adopting social enterprise approaches.
The Department for Transport’s Strategy and Action Plan, 'Working in Partnership with the Voluntary and Community Sector' (VCS), identified the need for voluntary and community sector transport schemes to move away from 'short-term and precipice funding' arrangements. It also expressed the intention in its action plan to investigate ways of increasing the involvement of the VCS in delivering the Department’s commitments. The increasing use of enterprise-based approaches may be regarded as one important way of achieving these objectives. In response, therefore, the three bodies came together to undertake a systematic investigation to identify and promote enterprise-based models which work best for rural community transport.
Objectives:
The aim of the project was to identify the most effective enterprise-based models of rural community transport and to assess how best to promote these in a systematic manner to the sector. Specific objectives were to:
- assess the approximate number of rural community transport operators which currently use social enterprise approaches or could be described as social enterprises;
- categorise the social enterprise approaches used to define a number of identifiable models or approaches;
- consider the potential for community transport operators which do not use social enterprise approaches to do so, looking at the potential benefits of and barriers to this approach;
- develop a programme to increase the use of enterprise-based approaches in community transport to be implemented jointly by key sector stakeholders.
Methodology:
The project approach comprised the following elements:
- A survey of rural community transport operators to identify their key characteristics and funding models. This resulted in a sample from which an assessment of the characteristics of the sector as a whole could be made.
- Selection of a broadly representative sample of operators for closer examination, involving a researcher spending a day on location with each group. The examination supplemented quantitative data with the qualitative opinions of key participants of each operator.
- Analysis of the findings and preparation of a typology of operators, characteristics and models which enables the sector as a whole to be 'mapped' according to the extent to which they use social enterprise approaches.
- Using the typology to assess the potential benefits and barriers to the wider adoption of social enterprise approaches in the rural community transport sector.
Preparation of an outline development programme to stimulate the use of enterprise-based approaches within the rural community transport sector as a result of consultation with sector stakeholders.
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