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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
  • Transcript

    • 1. Social Enterprise WorkshopWiltshire CouncilJulie HarrisRISE31st January, 2011
    • 2. 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
      Opportunities and further support
    • 3. RISE
      RISE supports the development of sustainable social enterprise
      Projects – marketing, leadership, food, housing, health and social care
      Business support and Training
    • 4. The Big Picture
      Private Sector
      Third Sector/Civil SectorSocial EconomyMutuals/Co-operatives/Charities
      Public Sector
    • 5. 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
    • 6. Social Enterprise SW
      • Around 6,000 social enterprises and growing
      • 7. Social Enterprise Mark
      • 8. Examples from local authorities –
      Sandwell Community Caring Trust
      Tone Leisure
      Selwood Housing
      Community Foster Care
    • 9. 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.
    • 10. Social enterprises – the driving force!
    • Social enterprises have 2 primary aims:
      They trade
      They apply profits to social purpose
    • 20. 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
      Social enterprises are businesses that trade in order to pursue a social aim (Business Link)
    • 21. 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
    • 22. 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
    • 23. 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
    • 24. 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
    • 25. 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
    • 26. Social objectives
      What would your social objectives be?
      Share and discuss
    • 27. Social Enterprise Mark
      National programme
      352 holders (and growing)
    • 28. 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
    • 29. Social Enterprise Mark
    • 30. 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
    • 31. 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
    • 32. How are they different?
      Social Enterprise / VCOs & Charities
      Profit-driven trading
      Public service, non-trading
    • 33. 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)?
    • 34. 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
    • 35. 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
    • 36. 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
    • 37. Example - COSMIC
      Providing ICT support and services
      Turnover £500k, 16 employees
      > 50% income from trading
      Focus on rural ICT, skills, employment
      Digital Inclusion …and now .. leadership
    • 38.
    • 39. Rural ICT
    • 40. Digital Inclusion
    • 41. Employment and Skills
    • 42. Leadership Development
    • 43. Public Sector to Social Enterprise
    • 44. 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
    • 45. 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
    • 46. 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
    • 47. Forms of social enterprise
      Community Interest Companies (run by and for a particular community)
      Co-operatives (businesses owned and run by a group of people for the benefit of their members)
      Development Trusts (community based and owned regeneration enterprises)
    • 48. Forms of social enterprise
      Social Firms (businesses that have a significant number of employees with a disability)
      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
    • 49. 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
    • 50. Opportunities and risks
      What social enterprise opportunities are there for you?
      What are the risks?
    • 51. 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
    • 52. 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?
    • 53. 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)
    • 54. 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
    • 55. 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
      Volunteer labour
      Asset transfer
    • 56. Sources of start-up capital
      Commercial Loan
      Community Development Finance Institutions:
      Bridges Community Ventures Ltd
      Charity Bank
      Cooperative and Community Finance
      South West Investment Group
      Triodos Bank
      Wessex Reinvestment Trust Group
    • 57. Trading Income
      Reinvestment in the social enterprise
      Keeping adequate reserves
      Looking beyond grants
      Making use of tax incentives
    • 58. Trading income
      Robust financial management is needed
      • Accountability
      • 59. Communication between board and operational management
      • 60. Trading income, managing cash flows, reporting on grant targets
      • 61. A mix of trading income and other income
      • 62. 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?
    • 63. Support systems
      Mutuals Information –
      Co-operatives UK
      Social Firms UK
      Social Enterprise Coalition
      Development Trust Association
    • 64. Support systems
      RISE – Business Advisors Network (BAN)
      Business Link
      Look up your local support organisations. The RISE website gives a list of these in the South West.
    • 65. Questions and Discussions
      Contact details –
      Julie Harris
      01392 435775