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  • Health warning on figures – the surveys from recent years have been based on basic data collected mainly online and with self-selection as a key way to identify social enterprises – the only current mechanisms for measuring the numbers of SEs against agreed criteria is the SEM – but that work is very early in development and numbers are low so far – so its better to go with the big figures which help to promote the collective scale and scope of SE
  • There will be more examples as we go through the workshop
  • TIM TO LEAD : Purpose here is to get participants to identify what might motivate them in developing or working in social enterprise, having seen a definition and some examplesAfter a few minutes (5/10) ask individuals/groups to feed back what their social objectives might beIt might be useful to write these up on flipchart so as to be able to refer to it later
  • TIM TO LEAD: Purpose here is to further test and embed participants understanding of SE and their motivation, and to further illustrate social objectives.So having seen a bit more detail – lets see how this might apply to you. -
  • Add these if not already raised by the group
  • Digital inclusion – our key social objective – has led us to working with a wide range of people, ages, backgrounds and abilities – from complete novices and the fear factor – to highly talented young people keen to make the most of their technology skills in developing career opportunities.
  • Rural outreach and tackling rural isolation through campaigns and projects has featured highly in our work – back in 2001 when we launched the space shuttle we were campaigning hard on the issue of rural broadband provision at good speed and affordable prices – who would have thought we’d still be doing that 10 years on!
  • Keeping people up-to-speed with ICT development is an ongoing challenge – team of digital mentors working with groups and individuals – very focussed on skills development to improve business, organisation and individual capacity in economic terms
  • Key to Cosmic’s success has been the investment in people on the team – e.g. Becky
  • Diversification for Cosmic meant linking our experiences and success to a programme which we could offer to other social enterprises – which is the Leadership Development programme. Has run for 2 years now and will be developing further in the coming months to offer a wider range of services and support to social enterprises. After this offer opportunity for questions
  • What are the key challenges which you feel will be faced in moving from public sector provision into social enterprise?
  • TIM TO LEAD: Discuss in small groups and feedback using a basic SWOT formatDiscuss in whole group and refer to support slides coming up where appropriate
  • Just a bit more on how they can be set up
  • Critical to remember that Ses must make money
  • Discuss this and feedback

Wiltshire leadgeneratorworkshopdec2010-110201023617-phpapp02 Wiltshire leadgeneratorworkshopdec2010-110201023617-phpapp02 Presentation Transcript

  • Social Enterprise WorkshopWiltshire CouncilJulie HarrisRISE31st January, 2011
  • Overview
    RISE – what we are and what we do
    What is social enterprise
    Social enterprise in the public sector
    Social objectives and standards
    Examples of social enterprises
    Governance
    Opportunities and further support
  • RISE
    RISE supports the development of sustainable social enterprise
    Membership
    BAN
    Newsletter
    Projects – marketing, leadership, food, housing, health and social care
    Business support and Training
  • The Big Picture
    Private Sector
    Third Sector/Civil SectorSocial EconomyMutuals/Co-operatives/Charities
    Public Sector
  • Social enterprise in the UK
    At least 62,000 social enterprises in the UK (SEC, Summer 2009)
    Represents 5% of all businesses with employees
    Combined turnover of about £27 billion
    Previous research (SEU, July 05) found that the South West was the 3rd largest region for social enterprise in the UK
  • Social Enterprise SW
    • Around 6,000 social enterprises and growing
    • Social Enterprise Mark
    • Examples from local authorities –
    Sandwell Community Caring Trust
    Tone Leisure
    Pluss
    Selwood Housing
    Community Foster Care
  • What do they do?
    There are social enterprises working across all sectors of the economy, from healthcare to hospitality, retail to recycling.
    Some of the most high profile include Fifteen (pictured), Divine Chocolate, The Big Issue and more locally Eden Project
    If you want to change the world and make a profit while you’re at it, then social enterprise is the smart choice.
  • Social enterprises – the driving force!
    • Local needs
    • Village shop
    • Nursery
    • Business units
    • Local opportunities
    • Regeneration programmes
    • Community-owned assets – the community centre
    • Recycling
    • Voluntary sector
    • Sustainability issues
  • Social enterprises have 2 primary aims:
    They trade
    They apply profits to social purpose
  • What are they?
    Some definitions:
    A business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners (BIS)
    Businesses that aim not only to make money, but also to have a positive effect on the communities they serve, the people with whom they work and their own employees
    (Co-active)
    Social enterprises are businesses that trade in order to pursue a social aim (Business Link)
  • Social objectives
    • Explicit social ethical values including a commitment to local capacity building. They are accountable to their members/stakeholders and the wider community for their social, environmental and economic impact
  • Values
    Not just to make a profit – having social purpose
    To make a difference:
    In the way they are managed, owned and accountable
    In the way they deliver goods and services
    In the way they work with their community and stakeholders
    In the way they do business
  • Characteristics of a successful social enterprise
    Gaining independence and autonomy through trading
    Entrepreneurial, innovative, risk-taking behaviour
    Flexible and adaptable practices
    Customer and community focus
    Stakeholder engagement
  • What do they do?
    Offer social or environmental goods and services
    e.g. recycling or childcare
    Trading to provide (or cross-subsidise) social or environmental goods or services
    Trading arms of some charities
    Use processes or ways of working that have significant social benefit
    Care workers organise themselves as a co-operative in order to take control of their work environment
  • Example 1 Carfax Health Enterprise
    Formed in 2009 through the merger of the Daniel Gooch Practice and Swindon Walk In Centre
    is a Community Interest Company run by the staff, for the benefit of the patients
    reinvests profits for the benefit of patients and improving services
    Works out of the Swindon Health Centre
  • Example 2Selwood Housing, Trowbridge
    Founded in 1989 by West Wiltshire District
    An independent housing association & registered social landlord
    5200 properties across Wiltshire & Somerset & 150 staff
    Selwood was the first housing association in UK to get the SE Mark
  • Social objectives
    What would your social objectives be?
    Share and discuss
  • Social Enterprise Mark
    National programme
    352 holders (and growing)
    Marketing
    www.socialenterprisemark.org.uk
  • Consumers Demand New Ethical Logo – Research carried out by RISE in 2009
    75% would prefer to buy from firms who put their profits back into the community
    81% believe a lot of companies pretend to be ethical to sell more products
    86% perceive some benefit from the Social Enterprise Mark
    74% would rather buy from a company that makes decisions based on concern for society and the environment
  • Social Enterprise Mark
  • How are they different?
    How are social enterprises different from
    ‘traditional business’?
    voluntary and community organisations?
    public sector?
    Clear focus on social objectives
    Trading and generating profits – financial, social, environmental
  • How are they different?
    Measures of success
    Traditional business
    Operates in the interest of the owner or shareholders
    To make profit
    A social enterprise has broader measures
    Profits are invested in social purpose
    Local good-quality employment
    Spending money in the local economy
    Providing an alternative business model
  • How are they different?
    Social Enterprise / VCOs & Charities
    Profit-driven trading
    Public service, non-trading
  • Discussion & feedback
    In small groups discuss these questions
    Why might you chose social enterprise?
    What might be the social objectives for your community (however you define it)?
  • Why choose social enterprise?
    Founders of social enterprises are motivated by
    A desire to improve their community
    Values that motivate partnership working
    Member involvement
    Concern for local services
  • Where do they come from?
    Local residents are offered a community facility if a sustainable business plan can be written
    A crèche is becoming large and parents would like to develop to a full-time nursery
    Local residents in partnership with the local council develop a disused site as business units to improve employment opportunities
    Community recycling project develops into sustainable business with local employment
    Voluntary group wishes to expand its activities and become more commercial
    A group of workers buys a business from their retiring manager
  • Where do they come from?
    A community centre offers training and skills development through accredited courses
    A group of workers creates a co-operative catering business
    A funded project coming to the end of its funding package wants to continue by charging for services and delivering under contract
    Regeneration activity has inspired a community to set up a development trust to continue managing community assets
    Community composting through volunteers has grown and needs to become a community business
  • Example - COSMIC
    Providing ICT support and services
    Turnover £500k, 16 employees
    > 50% income from trading
    Membership
    Focus on rural ICT, skills, employment
    Digital Inclusion …and now .. leadership
  • Rural ICT
  • Digital Inclusion
  • Employment and Skills
  • Leadership Development
  • Public Sector to Social Enterprise
  • Where do Social Enterprises fit?
    Public services – changes to their delivery and support
    Health and social care
    Local authority business units
    Community Land Trusts
    Probation and offender schemes
    Free schools
    Supply chains
  • Public sector to social enterprise
    The big issues include:
    Culture change
    Business structures
    Business planning
    Staff engagement (including trade unions)
    Accountability (funding bodies - stakeholders)
    The workforce can be a mix of staff and volunteers
  • What are barriers for social enterprises working with local authorities?
    New, small and less experience
    Higher costs – not cheap alternative (triple bottom line)
    Lack of understanding of social enterprise model
    Possible changes to staff contracts
    Lack of time and resource
    Size of contract
    Time investment and opportunity costs - capacity
    Lack of relationships and ‘dialogue mechanisms’
    Mission drift?
    Protection of intellectual property rights
  • Forms of social enterprise
    Community Interest Companies (run by and for a particular community)
    www.cicregulator.gov.uk
    Co-operatives (businesses owned and run by a group of people for the benefit of their members)
    www.coop.co.uk
    Development Trusts (community based and owned regeneration enterprises)
    www.dta.org.uk
  • Forms of social enterprise
    Social Firms (businesses that have a significant number of employees with a disability)
    www.socialfirms.co.uk
    Trading arms of some charities
    Charitable company with a community business that transfers surplus to the charity
    Industrial and Provident Societies
    Credit Unions, community owns shares in a shop or centre
  • Setting up a social enterprise – the issues
    Defining your mission and attracting others
    Agreeing business and social purpose
    Planning business viability
    How to handle profits and assets
    Democracy and accountability
  • Opportunities and risks
    What social enterprise opportunities are there for you?
    What are the risks?
  • Incorporation
    A social enterprise is usually an incorporated body (a company)
    Protects individuals from personal liability
    Winding up – debt
    Something going wrong
    Needs to be seen to be accountable and open
    Difficulties of engaging people if no safeguards
    Own legal identity
    Limits of protection
  • Forms of Incorporation
    Private sector company options
    Company limited by guarantee
    Company limited by shares (private or public)
    Social enterprise sector company options
    Company limited by guarantee
    Community Interest Company
    Industrial and Provident Society (IPS)
    Charitable or not charitable?
  • Forms of Incorporation
    One member one vote
    Clear membership terms supporting the objectives
    Surplus distribution for social purpose
    Community assets to be safeguarded (asset lock)
    Distribution of assets or bonuses evenly among the members (in a co-operative)
  • Models of social enterprise
    Co-operatives – IPS
    Workers own the business – worker co-operatives
    Co-operative Consortium – self-employed people or other businesses combining in marketing etc
    Community Business – CIC, Company Ltd by Guarantee
    Owned and run by a community
    Representation from the workforce, the locality, other organisations
    Development Trusts
    Asset-based development with community ownership
    Often a range of projects under one umbrella organisation
  • Sources of start-up capital
    Membership subscriptions or share capital
    Start-up grants and loans
    Borrowing from financial institutions
    Community Development Finance
    Leasing and hire purchase
    Personal funds
    Fundraising
    Volunteer labour
    Asset transfer
  • Sources of start-up capital
    Commercial Loan
    Community Development Finance Institutions:
    www.cdfa.org.uk
    Bridges Community Ventures Ltd
    Charity Bank
    Cooperative and Community Finance
    South West Investment Group
    Triodos Bank
    Wessex Reinvestment Trust Group
  • Trading Income
    Consider:
    Reinvestment in the social enterprise
    Keeping adequate reserves
    Looking beyond grants
    Making use of tax incentives
  • Trading income
    Robust financial management is needed
    Why?
    • Accountability
    • Communication between board and operational management
    • Trading income, managing cash flows, reporting on grant targets
    • A mix of trading income and other income
    • Impacts on profit/loss, health of the business
  • Support for social enterprise
    What support and other resources are already available to you
    What other support might you need?
  • Support systems
    National
    Mutuals Information – www.mutuals.org.uk
    Co-operatives UK www.cooperatives-uk.coop
    Social Firms UK www.socialfirms.co.uk
    Social Enterprise Coalition www.socialenterprise.org.uk
    Development Trust Association www.dta.org.uk
  • Support systems
    RISE – Business Advisors Network (BAN)
    Newsletter
    Business Link
    Look up your local support organisations. The RISE website gives a list of these in the South West. www.rise-sw.co.uk
  • Questions and Discussions
    Contact details –
    Julie Harris
    01392 435775
    julieharris@rise-sw.co.uk
    www.rise-sw.co.uk