CIC Is the New Nylon: Versatile, Tough and Ready for Hard Times

Interesting times. For me, December is normally a time for hard reflection on progress made through the year and finalising targets for the next. Not so this year. Whilst the report on the year’s achievements and the plan for next year’s assault on the social economy is safely tucked away, the eggnog just hasn’t been able to counter the chill blowing in from the wider economic crisis.

But I don’t have to look very far for hope and inspiration. In addition to the substantial work of charities, co-operatives and other social economy organisations that are the bedrock of civil society, the emerging picture of CIC legislation is offering some cause for optimism.

From the Shetland Isles to the Scilly Isles, with activity spanning art to zoology, there are nearly 6,000 CICs employing tens of thousands with a collective turnover in excess of £500 million annually. Whilst big numbers get headlines, there’s a hell of a lot more going on. I personally think CIC is the new nylon for the social economy. It’s versatile and tough. With the country on a war footing financially, it will need to be.

Nylon was one of the great synthetic materials of the twentieth century. It replaced silk in stockings, cotton in tents, wool in carpets. It was stronger, cheaper, and more adaptable than anything that came before it. And it achieved something remarkable: within seven years of its introduction, it had captured 25% of the market it entered.

CICs can do the same for the social economy. The structure itself is remarkably adaptable — not-for-profit, for-profit, co-operative, mutual, employee-led, limited by guarantee, limited by shares, even a PLC. It can issue golden and preference shares, be volunteer-led, and pay market salaries. Uniquely, it allows individuals and communities to frame their efforts for community change, irrespective of whether that community is local, regional, national or international.

Many CICs are far from the finished article. But every one of them is a change-maker that UK PLC needs more than ever. CICs are being used by people from all spheres of society — from professionals looking to maintain a social provision, to community groups taking over local assets. The diversity of size, type and activity is a fundamental positive that brings with it huge promise.

And the policy environment is finally catching up. The Social Value Bill is making its way through Parliament. The Finance Bill 2012 looks set to be a genuine game-changer, with seed enterprise investment relief and potential extensions to the Financial Promotions Order exemption. Our partnership with Allia is developing well, and we hope to have the first CIC approved to use their innovative Charitable Bond in January.

I don’t think we’ve even got started. But with 1,600 members and growing, we’ve got a platform to make 2012 a breakthrough year for CICs.

In seven years, nylon had a 25% market share.

Let’s get to it.