Exit and enterprise:
the role of enterprise in supporting
young people’s gang exit
Exit and enterprise: the role of enterprise
in supporting young people’s gang exit
The Catch22 Dawes Unit is committed to bringing together
cutting edge research, policy and practice to support young
people to get out, and stay out, of gangs. This paper explores the
role that enterprise can play in providing exit routes for young
people involved with gangs.
Introduction
Research over the last two decades highlights the strong links that exist between employment and
‘desistance’ from offending. The relationship is complex: the individual needs to want to make a change,
while the job opportunity works best if it is secure, stable and long-term. However, where these
conditions are in place, employment is widely recognised as the ‘single most effective factor’ in reducing
rates of reoffending1.
This paper draws on recent research, and on emerging practice, to consider whether work plays a similar
role in gang exit. If so - and recognising the current highly challenging labour market - what contribution
can enterprise make to helping young people leave gangs?
The findings suggest that enterprise can make a difference, if opportunities are created at the right time
and are coupled with effective wrap-around support. While the extra elements required reduce their
chances of full commercial viability, potential savings to the public purse suggest that enterprises
contributing to gang exit could be strong candidates for social investment.
The role of employment in supporting gang exit
Gang exit is an underdeveloped area of research, with most findings to date coming from the United
States. Such studies as have been undertaken highlight the extent to which desistance from crime and
leaving a gang are separate processes. Gangs are generally accepted as intensifying the crime and
anti-social behaviour of gang members: when someone leaves a gang their offending is likely to reduce,
but will not necessarily stop2. This means we cannot simply assume that employment plays the same role
in gang exit as it does in desistance from offending. Among other key findings:
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the opportunity to make money and achieve financial independence more swiftly and easily than by legitimate routes is identified as one of the key motivating factors for gang membership3
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finding work is one, but not the only, important factor in leaving a gang; other key factors include ‘maturing out’ of membership, going to prison and leaving as the gang subdivides4
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experiencing violence or witnessing a close friend’s victimisation can also trigger gang exit5.
However, exit may be gradual and faltering, with desistance from offending taking longer.
In summary, employment can contribute to gang exit, but will be most effective if the work opportunity
coincides with a turning point in the young person’s life. Nor is it a simple process of providing an
opportunity. Gang exit and desistance are both gradual processes. Employment opportunities are
therefore most likely to be sustainable if they are coupled with support.
1
Barriers to employment for young people leaving gangs
In the past 25 years the economy has undergone a structural transformation, with fewer stable
employment opportunities now available in construction, agriculture or manufacturing and a growth in
the knowledge economy, raising the level of required qualifications for the labour market6. At the same
time, the youth labour market has shrunk dramatically, with the youth unemployment rate increasing well
before the recession and then rising from 14.7 per cent in the first quarter of 2007 to 21.9 per cent in the
first quarter of 20127.
Researchers also argue that we now live in a ‘post full employment’ society, where high levels of
unemployment are a fact of life. The shift to a flexible labour market means jobs available to marginalised
groups are increasingly insecure and short-term. Areas where gang activity is greatest tend to be
particularly affected by these economic shifts8.
These economic transformations have dramatically restructured routes out of crime9. Current economic
realities underline the need to think creatively about alternative pathways for gang-involved young
people.
The appeal and potential of enterprise
Research highlights that for many young people, the experience of self-employment does not match up
to their expectations of greater rewards and freedom. In particular in areas where the local economy is
poor, young people may find that rather than being a jumping off point to greater things, self-employment
brings risks of self-exploitation, with frequent moves between self-employment, unemployment and
part-time, low paid employment.
Given the right conditions, enterprises, whether social enterprises creating jobs and training
opportunities for young people or youth enterprises empowering young people to make the most of their
entrepreneurial talents, may potentially provide an alternative pathway for gang-involved young people.
Amongst the potential benefits:
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enterprise can act as a driver for economic growth, supporting job creation where the need is greatest. Lord Young’s recent report ‘Make Business your Business’ puts enterprise at the heart of the Government’s strategy for economic growth, highlighting the importance of ‘enterprise at all ages and all stages’10
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social enterprise can be a cost effective and sustainable way of achieving social change. For
example, the Social Firms UK mapping report for 2010 found that 74 per cent of such firms earn 75 per cent or more of their income from trade, indicating a high level of sustainability11
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barriers to work can be more easily overcome: social or youth-led enterprises are likely to present fewer barriers to getting on to the first rung of the ladder for young people who may have criminal records and lack formal qualifications
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timing can be more easily managed, with greater flexibility to create opportunities for young
people at ‘triggering moments’ when the opportunities for gang exit are greatest
2
Exit and enterprise: the role of enterprise
in supporting young people’s gang exit
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youth enterprise has intrinsic appeal for many young people: in a survey of 3,000 young people, City and Guilds found that 42 per cent of 14 to16-year-olds and 49 per cent of 16 to 18-year-olds agreed they would ‘one day like to run their own businesses’12. While further research is needed on the specific demand from gang-involved young people, there is no reason to believe that interest in this quarter is any different
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the approach builds on existing skill sets: a potential benefit of youth enterprise is that young people working in the illegal economy are likely already to be using business skills that could be channelled in legitimate ways with the right training and resources.
The examples given below of organisations using enterprise to support young people - some with a
specific focus on supporting gang exit – further point to the potential whilst also suggesting ‘critical
success factors’ that need to be part and parcel of any approach.
Homeboy Industries
The largest gang intervention and re-entry programme in Los Angeles county, Homeboy Industries
provides jobs for 240-280 people a year through businesses including its bakery and cafe, food
production, merchandise and silkscreen and embroidery, coupled with work placements and a range of
support services, most of which are located in the same property.
Made By Young People
Established by entrepreneur and qualified social worker Lee Blake, Made By Young People uses its
t-shirt printing business to provide jobs and flexible freelance opportunities for young people who may
have struggled at school. MBYP also supports young people into mainstream employment with large
t-shirt printing companies, helps young people start their own labels and offers practical training,
advice and information for young people looking to start up their own enterprise.
Catch22’s Community Space Challenge micro-enterprises
Based in existing youth projects and developed with support from the Aldridge Foundation, these four
micro-enterprises are focused on supporting young people to develop viable environmental businesses
in areas including food growing, grounds maintenance, graffiti removal, maintenance and repairs.
Critical success factors
Among ‘critical success factors’ emerging from the research and case studies:
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enterprise needs to be backed by wider support: initiatives are most likely to be successful if support is also in place to help young people take full advantage of the opportunities provided. For example, Homeboy Industries provides one-to-one case management with links to a wide range of services including education and training, legal services, mental health and substance abuse services and tattoo removal
■sustainability: while the wrap-around support elements may not be sustainable by profits, the business elements of a social enterprise need to be working towards sustainability and aim to be competitive in the marketplace
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a mix of provision: there are different ways of incorporating enterprise, from social enterprise that can provide employment opportunities, to support for young entrepreneurs. Young people will have very different preferences based on their needs, levels of capability and state of readiness,
therefore it is crucial to have a mix of opportunities available
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opportunities to take on more responsibility: provision works best where there are built-in
progression routes for young people (for example into supervisory roles), offering increased
responsibility as they develop their skills
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offering a credible alternative: projects have to appeal to young people to be seen as a credible
alternative, and will be most effective if they can foster a sense of belonging rivalling the gang. Projects like Homeboy Industries, which are a recognised part of their community, have added legitimacy, helping give young people a sense of being part of something
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recognising the limits to who will be engaged: enterprise may have more appeal for those in the lower ranks of a gang, and those at risk of gang involvement, than for those in the higher echelons of a gang who may currently be making large amounts of money in the illegal economy.
Raise the Youth Foundation
A ysocial enterprise based in Bolton, Raise the Youth Foundation works with 13 to 24-year-olds,
providing education, training, work experience, apprenticeships and job placement through ventures
including gardening and tree surgery, painting and decorating and web/graphic design. The Foundation
couples this with support for young entrepreneurs and one-to-one mentoring for gang-involved young
people linked to employment opportunities within the social enterprises.
Livity
A socially responsible youth communications agency, Livity invites 12 to 21-year-olds from all
backgrounds to work alongside full-time staff doing branding consultancy and market research for
brands, broadcasters, charities, local and central government.
3
4
Exit and enterprise: the role of enterprise
in supporting young people’s gang exit
Government policy
Ways forward
The Ending Gang and Youth Violence report set out the Government strategy for tackling gang violence
after the riots in 2011, including proposals for those exiting gangs13. The report specifically mentions
‘support for young people wanting to set up their own enterprises’ as an intervention to enable young
people to exit gangs.
Building on these findings, Catch22 will work closely with others to:
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further develop the business case for social investment in enterprises coupled with wrap-around support to facilitate gang exit
There is an increasing Government focus on encouraging youth enterprise, with an £82 million youth
enterprise loans scheme launched in May 2012. The new programme is universal, and schools, colleges
and universities are being particularly targeted in an effort to encourage youth enterprise. Whilst it does
have a mentoring element, the scheme’s universal nature suggests it may not be readily accessed by ganginvolved young people requiring higher levels of support.
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develop models that incorporate a variety of provision, including employment, paths into
mainstream work and opportunities for youth enterprise. We believe this will work most effectively within integrated projects that are tailored around the needs and circumstances of the individual
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promote existing sources of support for youth enterprise development to practitioners and
organisations working with gang-involved young people
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engage the Department for Business Innovation and Skills on this agenda, recommending a
designated gangs and enterprise lead, along with specific commitments to the Ending Gang and Youth Violence Cross-Governmental Strategy
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strengthen the UK evidence base on facilitating gang exit, and the role of enterprise within this.
The business case for investment
The experience of organisations currently working in this field suggests that commercial activity alone is
unlikely to be sufficient to enable businesses to reach full viability whilst also providing wrap-around
support services. For example, only $4 million of Homeboy Industries’ $14 million turnover comes from
commercial activity, with the remainder coming from government contracts ($2 million), foundations and
private donors ($8 million).
However, the potential savings accrued through preventing young people’s gang involvement are very high,
as research shows that gangs intensify crime and anti-social behaviour. The Metropolitan Police have
recently argued that gangs are responsible for more that a fifth of youth crime in London, and government
assessments have put the cost of prolific young offenders to society and services at £80,000 per person
per year14. If social as well as commercial returns on investment are taken into account, enterprises geared
to supporting young people’s gang exit would seem to be strong candidates for social investment.
We welcome approaches from partners with a shared interest in these issues.
Notes
Lipsey, M. (1995) ‘What do we learn from 400 research studies on the effectiveness of treatment with juvenile
delinquents?’ In: McGuire, J. (Ed.) What works? Reducing reoffending. Chichester: Wiley
2
Bendixen, M., Endresen, I. M., and Olweus, D. (2006) Joining and leaving gangs: selection and facilitation effects on
self-reported anti-social behaviour in early adolescence. European Journal of Criminology, 3(1):85–114
3
Harris, D., Turner, R., Garrett, I., and Atkinson, S. (2011) Understanding the psychology of gang violence: implications
for designing effective violence interventions, MOJ
4
Sanchez-Jankowski, M.S. (1991) Islands in the Street: Gangs and American Urban Society. Berkeley, CA: University
of California Press
5
Decker, S. H., & Lauritsen, J. (2002) Leaving the gang. In C. Ronald Huff (Ed.), Gangs in America (3rd ed., pp. 51-67)
Thousand Oaks, CA: Sage
6
Farrall, S., Bottoms, A.E. and Shapland, J. (2010) ‘Social structures and desistance from crime’, European Journal of
Criminology, vol. 7(6), 546-570
7
http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/july-2012/table-a05.xls
8
Hallsworth, S., & Young, T. (2012) The role of the family in facilitating gang membership, criminality and exit, Interim
Report
9
Farrall, S., Bottoms, A.E. and Shapland, J. (2010) ‘Social structures and desistance from crime’, European Journal of
Criminology, vol. 7(6), 546-570
10
Lord Young (2012) Make Business Your Business
11
Social Firms UK (2010) Mapping Report: The UK social firm sector 2010
12
City and Guilds (2012) Ways into Work: Views of Children and Young People on Education and Employment
13
Cross-Government report (2011) Ending Gang and Youth Violence
14
Home Office (2008) Young People and crime: Findings from the 2005 Offending, Crime and Justice survey
1
5
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