Hi. I am… fred social enterprise practitioner www.reddengreen.com www.sse.org.au
What would I know? fred• DECS• Wheelchair Sport / SIU / APC• SPARC Disability Foundation• SA Mental Health• CanTeen• Consulting – NDS• Youthinc• School for Social Entrepreneurs
The starting point for any gooddiscussion, meeting, orworkshop on social enterpriseshould be a sharedunderstanding of what a socialenterprise actually is.
Social enterprises are organisations that:a. Are led by an economic, social, cultural, or environmental mission consistent with a public or community benefit;b. Trade to fulfil their mission¹;c. Derive a substantial portion of their income from trade²;d. Reinvest the majority of their profit/surplus in the fulfilment of their mission.¹Where trade is defined as the organised exchange of goods and services, including: • monetary, non-monetary and alternative currency transactions, where these are sustained activities of an enterprise; contractual sales to governments, where there has been an open tender process ; and • trade within member-based organisations, where membership is open and voluntary or where membership serves a traditionally marginalised social group.²Operationalised as 50% or more for ventures that are more than five years from start-up, 25% or more for venturesthat are three to five years from start-up, and demonstrable intention to trade for ventures that are less than twoyears from start-up.Social Enterprises take a number of forms and deliver outcomes as diverse as employment for the disadvantaged, importantgoods and services or fundraising for other charitable activities and community projects.
A social enterprise is defined as anybusiness venture created for a social purpose--mitigating/reducing a socialproblem or a market failure--and to generate social value while operating with the financial discipline,innovation and determination of a private sector business.Social enterprises use entrepreneurship, innovation and market approaches to create social value and change; they usually share thefollowing characteristics:Social Purpose - created to generate social impact and change by solving a social problem or market failure;Enterprise Approach – uses business vehicles, entrepreneurship, innovation, market approaches, strategic-orientation, discipline and determination of a for-profit business;Social Ownership – with a focus on public good and stewardship, although not necessarily reflected in the legalstructure.Social enterprises may be structured as a department within an organization or as a separatelegal entity, either a subsidiary nonprofit or for-profit.The purpose of the social enterprise may be:an additionalfunding mechanism for the organization s social programs or operating costs;a sustainable program mechanism in support of the organizations mission; ora leadership development mechanism in support of social innovation. business success and social impact areUsed for either purpose,interdependent.
WARNING:What follows is anon-profit-centricview of the world(!)
$(S) social earned- innovation income G& business ventures P-S socialCSR S-Ent business venture(s) non-profit micro- SRB activism finance P social enterprise V as a noun or a verb
Social enterprise in South Australia.Via the rest of the world…
USA NYC, Wash. (2008)
USA/CAN SF, Vanc. (2010)
Some observations:• disconnectedness• co-opetition• welfare / charity / CRM• innovation, more than SBV• e.g. Jobs Fund (8 & 1)• no gathering around SE (noun)
Interesting opportunities:• TACSI• social enterprise hub• Renew Adelaide• Indigenous social enterprise• SEDIF• Adelaide SSE
"At least half the non-profit executivesin this country now understand that theyhave to do something different…probably the best 2% to 3% of themunderstand what needs to be done andhave the guts to actually try it." (Jerr Boschee, 2007) http://www.inc.com/magazine/19970515/1497.html
At the end of the day…• grants V earned-income• guidelines V innovation• funders V clients• compliance V relationships• strings V self-determination• funding V self-sufficiency• survival V social impact Take a look around…
SSE & study tour… fred M: 0411 864 820www.reddengreen.com www.sse.org.au