Last week I attended National Union of Students Services Convention. NUS Services is the commercial arm of the NUS. NUS Services resources students’ unions through three core services: purchasing, commercial development and infrastructure support.
The idea of the NUS having any sort of commercial activity sits uncomfortably with some. Much like the Guild all of the money NUS generates is directly reinvested into the experience of the membership. The money generated is invested into things like offering students’ unions discounts on goods, providing staff support and ensuring the NUS remains financially viable in the long term future.
On the idea of the future of students’ unions one of the main areas of discussion was around operating franchises from within students’ unions. This is inviting private companies to run outlets such as; bars, coffee shops, retail spaces and food outlets. Evidence shows that students prefer spending money at franchises rather than in services ran by their students’ unions. One students’ union spoke at length how having a franchise generated hundreds of thousands of pounds they were able to directly reinvest into the student experience. Financial freedom from universities and colleges is one of the best ways students’ unions can ensure they can be an effective voice at lobbying their institution on behalf of students.
The higher education climate we currently operate in is subject to market conditions. We have seen other students’ unions receive a cut in their block grant when their institutions have had to make budget cuts. A commercially and financially successful students’ union is the best way to insulate ourselves from the reach our parent institution, and from the threats presented by an uncertain financial climate. Given that Liverpool Guild of Students is a charity all of our money is reinvested into improving the lives of students, it is imperative to our existence and your experience that the Guild remains profitable.
Of course this profit doesn’t need to solely come from franchising . University of Gloucester Students’ Union delivered a presentation on social enterprise schemes they ran. These are businesses ran by students wherein the profits are reinvested into the students’ union. They had found particular success in growing their own chilies which they made into a variety of products for sale. Other students’ unions have ran a whole range of social enterprises; from farming bees to make honey, to running property agencies.
Liverpool Guild of Students operates under an ethical investment policy. Everything we do is in the best interest of our members and in the interest of securing the long-term future of our organisation. There are so many opportunities to be innovative in making the Guild financially successful whilst opening up business opportunities for students that will provide skills for later employment. The financial success of Liverpool Guild of Students allows us to do all the things we do for our members, this must be tempered against the fact that our primary aim is not to make money. As one delegate at the convention quipped ,‘If students’ unions were interested in just making money they would open a betting shop.’
