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  • 1. Social Enterprise: Going for growth Dai Powell Chief executive, HCT Group 2 November 2011
  • 2. HCT Group: Origins
    • Founded in 1982 as Hackney Community Transport
    • “ To deliver social change through enterprise, empowerment and partnership”
    • In 1993 we won our first commercial transport contract
    • “ To be a sustainable social enterprise, we must also be an effective enterprise”
    • A business model for hundredfold growth
      • from a turnover of £202k in 1993
      • to a turnover of £28.1m in 2010/11
      • 630 employees and a fleet of 325 vehicles
    • Surpluses reinvested to support the core mission
  • 3. Our enterprise model
  • 4. Our social model
  • 5. Social impact
    • Profits reinvested in the communities where they are earned
    • Transport for community groups
      • deeply discounted accessible minibus hire
      • 93,000 passenger trips in 10/11
      • 39% of groups say they would fold without it
    • Transport projects
      • 812 community bus
      • YourCar
    • Training for transport projects
      • nearly 400 qualifications for hard-to-reach unemployed
      • 74 job outcomes (10/11)
      • often delivered in partnership
  • 6. HCT Group – A growth story
    • A conscious ambition of rapid growth
    • Growth driven by trade
    • Eliminates dependency on grants
    • 20% per year, every year
    • An industry that rewards scale
    • “ The more we grow the business, the more we grow our social impact”
  • 7. Geographical Growth
  • 8. Turnover growth
  • 9. Growing away from grants
  • 10. Profit reinvestment outstrips grants
  • 11. Governance for growth
    • For-profit company board legal duty:
      • Maximise shareholder value
    • Traditional charity board legal duty:
      • Minimise risk to the charity
    • Creates a ‘can’t do’ culture
    • HCT Group board culture (within legal constraints):
    • “ Maximise the good that we do”
  • 12. A culture for growth
    • A focus on growing the business
    • Celebrating business wins
    • All staff know what success looks like
    • Tomorrow won’t look like today
    • Invest in growth
    • Stay hungry!
  • 13. Investment for growth
    • Cost of grant-seeking vs investment-seeking
    • Social investment a key part of our story
    • Social investors seek both social and financial returns
    • They will need you to measure both – building your capabilities
    • “ When charities invest their reserves, do they also seek a mission-based social return?”
  • 14. The Social Loan
    • Adventures in high finance
    • £4m raised to finance expansion in 2010
    • Quasi-equity – based on turnover growth
    • Covenants based on social impact
    • Allows investors to share in success
    • Controversial?
  • 15. Questions? Comments?