CIC Association

Serving Community Enterprise

P-CED an antecedent of the CIC differs from it in several respects and is more closely aligned with what Muhammad Yunus describes as social business - a non dividend distribution business with a primary social objective.  

In the P-CED white paper, it was proposed that 'at least 50% of profit' be invested in a given community and by this means propagate further social investment. This concept re-appears in 2011 and is described  as 'revolving funding' by the law firm Bates, Wells and Brathwaite who conceived the CIC.

Perhaps the most significant difference between P-CED and other  forms it that is derives from activism rather than lawyers and began with a critique of laissez faire capitalism which warned of its insufficiency and unsustainabilty as an economic paradigm. The outline of the model was published on the web in 1997, free to use, in the spirit of open source philosophy. 

It was first deployed in Russia in 1999 to source the Tomsk Regional Initiative and leverage investment for a community bank which resulted in the creation of 10,000 micro enterprises.

P-CED was introduced to the UK in 2004 with a plan for deploying this "revolving funding" approach to UK communities by means of broadband business investing 50% profit in CDFIs and retaining the rest for continued growth, such that 100% was invested in social enterprise development. It was introduced to the chair of the SEC early in 2005

From 2004 P-CED was involved with a major initiative to leverage investment for social enterprise in Ukraine with the primary focus of children in state care. 

In August this year the founder who'd challenged capitalism and then mafia, died in his efforts to gain support of his own government.

 

 

 

 

 

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Replies to This Discussion

What do you think of the proposals for a SELLP ?  Do you think most of the 'utility' (excuse me for lack of a better word) of P-CED is already available via LLP ?

 

Im leaning toward it being a good idea, although im not so sure about the need for the the 'social finance regulation' discussed.

Do you feel that would increase regulation, beauracracy and cost? especially as Govt seem keen to remove red tape. I know they are looking at extending the exemption that IPS hold to other legal forms, maybe that would be better?

Also the option to allow exempt all investment into any type of small business under a certain amount is being discussed, keen to have your perspective on this.

 

 

 

John, If you recall this discussion it was I that suggested the SELLP as an alternate form.

In the outline for a community biomass project I saw the "vanilla" LLP being an investment vehicle for the "community interest" business which in this case is P-CED but could equally be a CIC or other form of social enterprise.     

I'm not up to date on what IPS exemptions are about but what we had in mind in 2004 was the vehicle of re-investment to CDFIs which would attract CITR benefits to seed social enterprise and micro enterprise alike.  

What we'd hoped for was seed funding from ICOF but they declined us, not because we were a guarantee company, but that they were limiting community broadband to bona fide coops only.   The work in Russia aimed to give people in desperate conditions a lifeline, via micro enterprise development.

In the intro to our major work for Ukraine, we first describe why social enterprise must be sustainable like any business then go into the forms that it might take, courtesy of Kim Alter's SE typology.

it is this BTW, that I'm currently challenging the EU about, since their Social Business Consultation appears to replicate what we described to them in 2008.   

 


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