Would we have had social enterprise without Margaret Thatcher?

Thatcherism taught us that a mixed market in the public sector is the future, and that a 'state or market' debate is outdated

Margaret Thatcher – a key figure in the history of the social enterprise movement? Photograph: Sportsphoto Ltd./Graham Whitby-Boot/Allstar

There probably aren't many Margaret Thatcher fans among social entrepreneurs, with most attributing the growth of market economics in social arenas to the measures introduced by Tony Blair. But would we have had the Right to Request without de-nationalisation or the Right to Buy?

As Ed Miliband said during parliament's tribute sitting, Thatcher was right to recognise that our economy needed to change. In 1982, she said:"How absurd it will seem in a few years' time that the state ran Pickfords removals and the Gleneagles Hotel."

Thatcher introduced the idea that government should stop being the default employer and that the public sector needed mixed models of delivery – thinking that has been shared by successive governments ever since.

Looking at public sector reform through the point of view of theTransition Institute, set up to promote increased social value in public service created through non-public sector providers, we can see two major spikes in change; the first when Thatcher allowed the private sector to enter the domain of public services such as in municipal maintenance and waste collection; and the second when Blair introduced the concept of social enterprise into education, health and the then Department of Trade and Industry.

At my organisation, the Transition Institution, we know that the market economy drives down costs but can also fail if equal priority is not given to the needs of service users and the wider community, termed social value. Our work shows what can be achieved when the priority of cost effective services are shared with the needs of those that rely on services. We promote the work of co-operative schools, staff-led community interest youth services, and mutual delivery of community care.

The Transition Institution calls for plurality, a drive for an increase in social and economic value, demonstrating the coexistence of free market forces and social responsibility. The introduction of the Public Services (Social Value) Act 2012 and the support of the cabinet office, led by Francis Maude, for the promotion of mutuals within the public sector have encouraged those seeking change in this field, but progress is slow.

Thatcher was perhaps the great advocate of the free market, even though employment in the public sector was 3% higher when she left office than it is now. She undoubtedly questioned the monopoly of the state and did not limit her introduction of market forces to the nationalisation of British Airways, British Gas and British Telecom, but went on to assert that the state can not commission, deliver and appraise every service without the emergence of a conflict of interest that does not serve the wider public, an idea continued under Blair.

In 2011, David Cameron said: "The Blair government took some good steps, like foundation hospitals and academy schools, but they were too tentative … The public already benefits from services delivered by private and third sector providers, from running walk-in clinics to providing school caretakers, and the government is right to recognise that there is scope to do more."

Yet even with that commitment and other stated aims to grow mutualism, social value and community engagement, we have yet to see a third spike. Many prospective and new public sector spin-outs continue to be confronted by sceptical parent authorities and voracious private sector competitors with the advantage that they can get in quick. As in Thatcher's era, it is money that counts: then inflation hit 21% and drove the government to think the unthinkable. Today, it's the deficit and, with banks limiting borrowing, those with access to capital are moving faster. I do not have the results of the 2013 national Transition Institute surveyyet, but I am willing to guess that access to capital is a big issue for today's independent public service providers.

Margaret Thatcher introduced an idea that continues to grow, that of a mixed market in the public sector. Her scepticism about the public sector led to a deep-seated faith, shared by some in government today, that only unfettered competition can give us quality and affordability. In contrast, some on the left maintain that only the state can care for its citizens.

This is 2013 not 1983 and if the banking crisis and subsequent recession have taught us anything, it is that it may be hard to describe and tricky to measure but what the public sector needs is a mixed approach – only a combination of competition tempered by social value can create affordable and sustainable world-class public services.

Allison Ogden-Newton is chair of the Transition Institute.

October: Celebration merry berry or sad slip into winter?

Katie's birthday berry cake with fruit fresh from the allotment

October is one of those love-them-or-hate them months. I have a friend who enjoys this time of year above all others, which is unusual but autumn is traditionally a time of celebration when we welcome the harvest and celebrate the year's achievements.

And what a year it has been! We had months of warm rain and grey skies that wiped out our tomatoes and much besides, with everything else coming in late. But the upside of the early summer carnage was a late blooming as the sun finally came out and the sweet peas, runner beans and berries came into their own.

I should report that I came first in the blackberry category again this year, thanks to my allotment neighbour who went to the extraordinary kindness of entering them in my absence. I am afraid I can't tell you the variety as I grew them from a cutting from a now retired fellow allotment holder who didn't know their origin. But they are huge, prodigious and taste like a good claret, the only downside being their flesh tearing, surgically sharp thorns.

With berries a plenty and late squash, pumpkins, beetroot, brassicas and spinach, we have a great deal to help us move on from the worst summer in terms of productivity that I have ever known.

In contrast, I have been watching the party conferences and I am disappointed by the obvious fatigue of our political leaders. I know we remain in the teeth of economic hardship – oh don't I know it – but how are we to move on, out and up if there is nothing to show for the year's hard work? A sense of achievement feeds the human soul just as a well-kept larder feeds the stomach, but have we not got anything right? Have hard-pressed public sector workers sacrificed benefits and pay for a better-run service? Have the private sector employees experienced a year of job insecurity for the greater good and have our young people waited for their chance to make their mark with hope now, that a late sun will bring them opportunity? I jolly well hope so and I want to hear it, I want to hear congratulations and celebration of all that people have relinquished to a hard year with plans for the harvest to come, albeit it a late one.

Tonight I made my redcurrent jelly, enough for the winter as long as I can keep the children from spreading it on their roasts by the tablespoons. I write this listening to the satisfying pop as the lids of the jars, one by one, spring up to accomodate the temperature change and create a seal that will keep the jelly fresh all year. For those interested I use the master's formula – Christopher Lloyds – of 500g of sugar to each pint of boiled juice. Regardless of past disappointment, we will be hunkering down for log fires, blackberry jam on toasted teacakes and our family favourite, The Great British Bake Off'(what about last week's gingerbread sculptures!?) and that feeling that all in all, despite everything 2012 was a job well done. My hope is that others can feel that they too have something to celebrate, despite the long wait.

Wimbeldon, whittering and what next for us?

I am really enjoying the twitter feed on the piece I got into the Guardian Public yesterday on social impact assesment. It is gratifying when people describe your work as spot on especially if they are leading lights in the social enterprise world. I will continue to bang on about social impact assesment as I truly believe it is the only way to ensure the most vulnerable in our society are not left behind as everything changes. I believe we are in a transition phase and managing the risks and maximising the opportunities will all come down to measuring and valuing social impact.

Last night having popped home early to take my daughter and her rabbit to the vet, my husband suggested making the most of my rare early appearance at home to pop out to Wimbledon and see if we could get in. We took the boys who love their tennis, our Joe is the top seed in his year at school, and literally swaned in.  At 7pm there is still 2 and a half hours of play and for £14 cash you can literally just walk in.  We didn't even have to queue!  Its the gate near Car park 10 for those who want to give that a go. We saw Clement and the boys got to see Jovovich on Centre Court as some kind soul gave Sam two centre court tickets.  Sam does have a wonderfully smiley face and lovely things do seem to happen to him. Long may that last.

This morning we had our joint event with PWC and the LDA on Governance and Risk. We had a full room of leading social entrepreneurs and the discussion was fascinating.  I particularly enjoyed the horror shown by the PWC risk experts to the notion of starting to deliver contracts before they are signed.  Such a different culture to ours where such things are common place.  If social enterprise is to deliver more contracts not only will we have to behave differently but the public sector will need to treat us differently.  No more expecting us to start contracts at risk and no more protracted negotiations followed by unrealistic deadlines. Keep an eye out for the next event, there have been three so far in the series and they have gone down a storm. I was almost told off by one CEO as she left for not telling people how good the program is as having not attended the first 2, she felt she had missed out. So I am telling you, these sessions are top notch and you well worth your time. For more info contact the SEL offices (020 702201920).

During the event I had an interesting chat with Steve Wyler from the DTA about how we can get the most out of Big Society which we agreed has presented us with an unparalleled opportunity.  I will reflect some of that conversation tonight when I respond to Nick Hurd's speech at the Acevo reception for new MP's.

I will also need to comment on the budget, as indeed will we all. I do hope amidst the doom and gloom there remains enough investment for us to, in the immortal words of  the sports commentator David Coleman at the '76 Olympics, open (our) legs and show (our) class.