Turning the tide: A social enterprise tackles long-term unemployment in Dublin

Michael, a resident of Dublin’s Northside, joined Speedpak Group four years ago through their work experience and training programme. Prior to this, he had been unable to work for three years due to a criminal conviction. Joining Speedpak social enterprise was his opportunity to re-enter the workforce.

Founded by a local company called the Northside Partnership in collaboration with local businesses, Speedpak was created in response to the high unemployment rates in this part of Dublin. The organisation operates two commercial enterprises, Speedpak Contract Services and Shamrock Rosettes, designed not only to provide practical work experience but also to offer accredited training and tailored support. This comprehensive approach aims to increase the employability of participants, equipping them with the skills necessary for reintegration into the job market.

“Our approach to improving the employability of long-term unemployed people is multifaceted,” explains John Murphy, the CEO of Speedpak.

“We provide a job from day one. We build skills’ acquisition because our trainees learn standard operating procedures and processes.

We layer industry-led skills’ training and qualifications to meet employer needs and available jobs. We provide on-the-job mentoring, the support of Training and Development personnel and on-site access to an Occupational Psychologist.”

Funding for the future

As a social enterprise, access to social finance is critical to Speedpak’s sustainability. Over the years, the organisation has obtained finance through social lending organisation Clann Credo, with the support of Social Finance Foundation and its partners. “In recent years we secured both bridging and term-loan finance facilities to help us initiate and then build an extension to service our growing commercial requirements,” says Murphy.

Speedpak benefits from funding provided by Social Finance Foundation, which was established in 2007 by the Irish Government and has a unique funding model to mobilise private resources for the benefit of the social good.

Since 2022, the Council of Europe Development Bank (CEB) has partnered with Social Finance Foundation to boost loan funding to community and social enterprise projects across Ireland. These groups often struggle to secure funding from traditional banking sources. The €20 million CEB loan, backed by an InvestEU guarantee, is crucial for financing community and voluntary organisations and social enterprises, mainly located in Ireland’s rural areas.

“At CEB, we are deeply committed to fostering sustainable social impact,” says Maria Sigüenza, Country Manager for Ireland for the CEB. “By lending to Social Finance Foundation, we have been able to channel much-needed financial resources to social enterprises and community organisations that are at the forefront of driving positive change.

By providing financial resources, we empower these entities to create lasting value for communities and foster a more inclusive future."

“Social Finance Foundation values the positive engagement and support from the CEB and views it as a lasting partnership complementing the support provided by the Irish Banks,” says Garrett O’Donohoe, CEO of the Foundation. “In 2023, Social Finance Foundation drew down the first tranche from a €20m loan facility from CEB which, through social lending organisations such as Clann Credo, has already benefitted nearly 100 social enterprises and communities all around Ireland.

We are very grateful to the CEB for the support provided and look forward to continue working with the CEB for the benefit of communities all around Ireland in the coming years.”

Breaking the cycle of joblessness through collaboration

The effectiveness of Speedpak lies in its dual focus on trading and training. Participants not only gain job-related skills but also develop greater financial independence and job resilience. The organisation has a proven track record, having trained and employed over 1,600 individuals to date, which has had a measurable impact on the local community.

Collaboration is central to Speedpak’s operational model. The organisation works closely with state agencies, businesses, and philanthropic entities to implement labour market and wage subsidy programs. This cooperative approach enables Speedpak to address long-term unemployment through innovative solutions funded by both public and private sources.

A model for change

Currently, Speedpak employs 55 individuals, including 14 core staff members. Each year, the organisation offers work experience and training to approximately 60 people who have been long-term unemployed. This cohort faces a particularly challenging job market; the longer individuals remain out of work, the more difficult it often becomes to secure employment, creating a self-reinforcing cycle of joblessness.

Michael would have found it very difficult to secure a job in the open labour market due to his age and recent employment history. However, Speedpak recognised his ability and potential. He quickly proved to be a reliable co-worker, demonstrating a great attitude and attention to detail.

When a senior operative position opened in the core team last year, Michael applied and was successful. He now oversees warehousing, order picking and dispatch for two of Speedpak Contract Services' B2B e-fulfilment customers, as well as managing collation jobs that require precision. Moreover, he now mentors and supports new trainees in the work experience and training programmes.

“The bigger and better our businesses, the more work experience and industry-led training opportunities we can provide to long-term unemployed people, to help them secure employment in the open labour market and their financial independence,” says Murphy.

While challenges remain, particularly in securing sustainable funding, the organisation’s model highlights the potential for social enterprises to play a crucial role in addressing unemployment and fostering economic inclusion in the community.

©CEB October 2024