enp Social Enterprise Workshops

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The following slide presentation is from the Spring 2011 series of “Introduction to Social Enterprise” workshops by Enterprising Non-Profits (enp). Enp offers these workshops throughout British Columbia (Canada) every spring and fall.

The workshop presentation defines social enterprise, provides examples of social enterprises in British Columbia, describes the business development path, and explains enp’s granting program and grant application process.

For more information on enp, go to www.enterprisingnonprofits.ca

Published in: Business, Economy & Finance

enp Social Enterprise Workshops

  1. 1. The following slide presentation is from the 2011 series of “ Building Your Social Enterprise ” workshops by Enterprising Non-Profits ( enp ). Enp offers these workshops throughout British Columbia every spring and fall. The workshop presentation defines social enterprise, provides examples of social enterprises in British Columbia, describes the business development path, and explains enp’ s granting program and grant application process. For more information on enp , go to www.enterprisingnonprofits.ca Or e-mail: [email_address]
  2. 2. Building Your Social Enterprise Workshop Fall 2011 Session 13.1
  3. 4. <ul><li>Workshop Objectives </li></ul><ul><ul><li>Enhance our knowledge of social enterprise </li></ul></ul><ul><ul><ul><li>Definitions and Common Language </li></ul></ul></ul><ul><ul><ul><li>Development Path </li></ul></ul></ul><ul><ul><li>Access enp resources, supports and grants </li></ul></ul>
  4. 5. <ul><li>Agenda </li></ul><ul><ul><ul><li>What and Why of Social Enterprise </li></ul></ul></ul><ul><ul><ul><li>Measuring Success </li></ul></ul></ul><ul><ul><ul><li>Social Enterprise Development Path </li></ul></ul></ul><ul><ul><ul><li>enp Resources & Funding </li></ul></ul></ul>
  5. 6. Healthy Communities Have Multiple “Capitals” Economic Diversity & Revitalization Social Capital Employment Opportunities Environmental Capital Cultural Capital Economic Capital
  6. 7. Social Enterprise is another tool to help build strong non-profits and healthy communities
  7. 8. <ul><li>What is Social Enterprise? </li></ul><ul><li>A business operated by a non-profit… </li></ul><ul><li>that is: </li></ul><ul><ul><ul><li>directly involved in the production and/or selling of goods and services to customers </li></ul></ul></ul><ul><li>For the dual purpose of </li></ul><ul><ul><ul><li>generating income from sales and </li></ul></ul></ul><ul><ul><ul><li>achieving social, cultural or environmental aims </li></ul></ul></ul>
  8. 9. Social Enterprise Seeks a Blended Return on Investment Financial Return on Investment Social Return on Investment Blended Value Return on Investment Return on Investment
  9. 11. For Profit / Private Ownership Blended Return on Investment Business Model Continuum Donations Corporate Social Responsibility Social Enterprise Strictly Seeks Profit Socially Responsible Business Fee for Services Not-for-Profit Ownership
  10. 12. Non-Profit Continuum -------- Social Enterprise Models -------- -- Traditional Models -- Program Charity SUBSIDIZED Supported in part with other funds SELF-SUSTAINING Supports itself from sales income PROFITABLE Income exceeds expenses Fee for Service
  11. 13. Why a Non-Profit Starts a Social Enterprise <ul><ul><ul><ul><li>Fill a community need in the market </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Advance their mission </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Organization ’s financial sustainability </li></ul></ul></ul></ul>
  12. 14. Local Market Need Vancouver Farmers ’ Market Health & Home Care Society of BC Skeena Bakery
  13. 15. Employment and Training Potluck Café and Catering in Vancouver Cleaning Solution and MP Enterprises in Vancouver The Right Stuff in Trail Prince George Prison Canteen Service
  14. 16. Mission Life Cycles – environmental issues Fiddleworks -- Music Program on Salt Spring Island Fire Hall Theatre Valemount Curling Club
  15. 17. Financial Sustainability Restore : Habitat for Humanity in Vancouver and Nanaimo Atira Property Management in Vancouver Penny Lane Retail Store in Summerland Prince George Friendship Centre
  16. 18. Reality Check!!! Solve Organizational Dysfunctional Behaviour Raise Money Quickly
  17. 19. <ul><li>Performance Assessment Process </li></ul><ul><ul><ul><li>Objectives </li></ul></ul></ul><ul><ul><ul><li>Strategy </li></ul></ul></ul><ul><ul><ul><li>Systems to Assess </li></ul></ul></ul><ul><ul><ul><li>Reporting </li></ul></ul></ul>
  18. 20. <ul><li>What to Measure in a Blended Value Social Enterprise </li></ul><ul><ul><ul><ul><ul><li>Business </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Mission </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Organizational </li></ul></ul></ul></ul></ul><ul><li>www.demonstratingvalue.org </li></ul>
  19. 21. Business Level • Financial performance of the enterprise • What inputs are needed to derive what social benefits? • What costs are associated with the social mission? • What are pure business costs?
  20. 23. <ul><li>Organizational Level </li></ul><ul><li>What impact does the SE have on parent organization’s capacity and sustainability? </li></ul><ul><ul><ul><ul><li>Skills and Staff </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Communications </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Systems and Processes </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Management Capacity (board / staff) </li></ul></ul></ul></ul>
  21. 24. <ul><li>Performance Assessment Compares </li></ul><ul><li>Progress Towards Goals </li></ul><ul><ul><li>Tells your story </li></ul></ul><ul><ul><li>Communicates the value created </li></ul></ul><ul><ul><li>Creates a platform to engage stakeholders </li></ul></ul><ul><ul><li>A tool for business management </li></ul></ul>
  22. 25. Is the non-profit ready? What could we do? Will it work? How will it work? Financing Space Staff Marketing Etc. Open the doors Demonstrating Value Business Mission Organization What next? Building a Social Enterprise The Development Path
  23. 26. Social Enterprise Development Path
  24. 27. Are We Ready? <ul><li>Organizational Readiness </li></ul><ul><ul><ul><ul><li>Clear and Shared Mission </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Strategic Planning & Evaluation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Financial Systems </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Personnel </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Learning Organization </li></ul></ul></ul></ul>
  25. 28. <ul><li>Social Enterprise Readiness </li></ul><ul><ul><ul><ul><li>Understand the Concept </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Stakeholder Buy-in </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Resources Available and Committed </li></ul></ul></ul></ul>Are We Ready?
  26. 29. <ul><li>Business Readiness </li></ul><ul><ul><ul><ul><ul><li>Business Experience </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Staff Champion </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Financial & Informational Systems </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Capital Plan for Launch </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Human and other Resources </li></ul></ul></ul></ul></ul>Are We Ready?
  27. 30. <ul><li>Organizational Cultural Shift </li></ul><ul><li>Risk Analysis </li></ul><ul><li>Becoming an “entrepreneurial” organization </li></ul><ul><li>Profit vs. Grants </li></ul><ul><li>Programs vs. Sales Goals </li></ul><ul><li>Customers and Products </li></ul><ul><li>Assessing blend of business, mission, organization </li></ul><ul><li>Dueling or Dual Purposes </li></ul>
  28. 31. Group Exercise Self Assessment Questionnaire Page 39 of the Canadian Social Enterprise Guide
  29. 32. Social Enterprise Development Path
  30. 33. <ul><li>Business Idea and Concept </li></ul><ul><li>Who are we? </li></ul><ul><li>What do we do well? </li></ul><ul><li>Is there a market opportunity that matches? </li></ul>
  31. 34. <ul><li>Testing Enterprise Ideas </li></ul><ul><ul><li>Is the Business Concept Viable? </li></ul></ul><ul><ul><li>What is the Potential Mission Impact for the Enterprise? </li></ul></ul><ul><ul><li>What is the Contribution to the Organization? </li></ul></ul>
  32. 35. Strength of Idea High Impact Low Impact Fit with Organization Difficult to Implement Easy to Implement STOP Maybe GO Maybe Simple Decision Matrix
  33. 36. Group Exercise Initial Examination and Scoring of Business Ideas Page 53 in the Canadian Social Enterprise Guide
  34. 37. Social Enterprise Development Path
  35. 38. <ul><li>Determines the Potential of the Business Idea </li></ul><ul><ul><ul><ul><li>Is it a Viable Business Concept? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Will it Meet Defined Mission Objectives? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Will it Contribute to the Organization’s Goals and Sustainability? </li></ul></ul></ul></ul>The Feasibility Study
  36. 39. <ul><li>Market Opportunity: </li></ul><ul><li>Competition and Customers </li></ul><ul><li>What is your product? </li></ul><ul><li>Who else provides it? </li></ul><ul><li>Will customers actually purchase your product? </li></ul><ul><li>How many times and at what price? </li></ul>
  37. 40. <ul><li>Operational Capabilities </li></ul><ul><li>Can you make it happen? </li></ul><ul><li>Current Capacity and What’s Needed? </li></ul><ul><li>People </li></ul><ul><li>Infrastructure </li></ul><ul><li>Systems </li></ul>
  38. 41. <ul><li>Financial Potential </li></ul><ul><li>What do the “numbers” say? </li></ul><ul><li>Cash Flow </li></ul><ul><li>Income & Expenses </li></ul><ul><li>Social Costs </li></ul><ul><li>Capital Expenses </li></ul><ul><li>Start Up and Launch Operating Costs </li></ul><ul><li>Can you achieve financial sustainability or profitability goals? </li></ul>
  39. 42. Business Model Continuum Feasibility Analysis Examines Business Model Options: Start-up Model and Ultimate Goal -------- Social Enterprise Models -------- -- Non-Social Enterprise Models -- Program Charity SUBSIDIZED Supported in part with other funds SELF-SUSTAINING Supports itself from sales income PROFITABLE Income exceeds expenses Fee for Service
  40. 43. <ul><li>Strategic Alignment </li></ul><ul><li>What is our “Mission” goal? </li></ul><ul><li>Will this enterprise contribute to achieving “Mission” goal? </li></ul><ul><li>How will we measure impact? </li></ul>
  41. 44. Contribution to Organization’s Strategic Goals <ul><ul><ul><li>How does this support the organization? </li></ul></ul></ul><ul><ul><ul><li>How does it contribute to mission success? </li></ul></ul></ul><ul><ul><ul><li>How will it contribute to sustainability? </li></ul></ul></ul>
  42. 45. <ul><li>Based upon Feasibility Analysis GO - NO GO DECISION Point </li></ul><ul><li>Are the investments and risks </li></ul><ul><li>(financial, human, social, technical, reputational) </li></ul><ul><li>Worth the benefits ? </li></ul><ul><li>(financial and mission-related return on investment) </li></ul>
  43. 46. Group Exercise Enterprise Development Assessment Page 60 of the Canadian Social Enterprise Guide
  44. 47. Social Enterprise Development Path
  45. 48. Purpose of the Business Plan <ul><li>Converts the feasibility study into an implementation plan </li></ul><ul><li>A roadmap for the business </li></ul><ul><li>A management tool </li></ul><ul><li>A communications tool </li></ul><ul><li>A market development tool </li></ul><ul><li>An investment tool for raising capital </li></ul><ul><li>Establishes performance objectives and strategies </li></ul>
  46. 49. Business Plan Key Elements <ul><li>Business Description </li></ul><ul><li>Mission Impacts </li></ul><ul><li>Organizational Contribution </li></ul>
  47. 50. Business Plan Key Elements <ul><li>Business Description </li></ul><ul><ul><li>Operations Plan </li></ul></ul><ul><ul><li>Human Resources Plan </li></ul></ul><ul><ul><li>Financial Plan </li></ul></ul><ul><ul><li>Marketing Plan </li></ul></ul><ul><ul><li>Performance Assessment Plan </li></ul></ul>
  48. 51. Business Plan Key Elements <ul><li>Mission Impacts </li></ul><ul><ul><li>Defined Objectives </li></ul></ul><ul><ul><li>Strategies </li></ul></ul><ul><ul><li>Measurements </li></ul></ul>
  49. 52. <ul><li>Organizational Contribution </li></ul><ul><ul><li>Mission </li></ul></ul><ul><ul><li>Capacity Building </li></ul></ul><ul><ul><li>Sustainability </li></ul></ul>Business Plan Key Elements
  50. 53. Business Structure Options Non-Profit Non-Profit with Charitable Status Co-operative – For-Profit Co-operative – Non-Profit For-Profit Corporation For-Profit with Limited Financial ROI (CIC) Partnership
  51. 54. <ul><li>Is it legal for a charity to operate a social enterprise? </li></ul><ul><li>Yes, if ... </li></ul><ul><ul><li>It enhances the charitable mission </li></ul></ul><ul><ul><li>Profits are not distributed to people with controlling interest in the organization, i.e. board, staff, etc. </li></ul></ul><ul><ul><ul><li>If Not BOTH of the above, then must be a “hands off” relationship </li></ul></ul></ul><ul><ul><ul><li>“ Destination of Funds ” is not an acceptable policy </li></ul></ul></ul>
  52. 55. Factors to Consider When Choosing Legal Structure <ul><li>Status of the business in respect to CRA policy </li></ul><ul><li>Primary purpose of business </li></ul><ul><ul><li>What ’s the “blend” -- profit and social purpose </li></ul></ul><ul><li>Amount of control organization wants to maintain </li></ul><ul><li>Scale of the business </li></ul><ul><li>Need to access equity capital </li></ul><ul><li>Potential sources of capital </li></ul><ul><li>Level of risk willing to take </li></ul><ul><li>Effect on community image and reputation </li></ul>
  53. 56. Organizational Options <ul><ul><li>“ In-house” Social Enterprise </li></ul></ul>Social Enterprise Within the Organization Example: Coast Landscaping Single Purpose: SE is Organization Example: Potluck Catering
  54. 57. Wholly or Partially owned subsidiary Example: Atira Property Management <ul><ul><li>Separate Entity </li></ul></ul><ul><ul><li>For-profit Subsidiary (wholly or partially controlled) </li></ul></ul><ul><ul><li> Non-profit Society – Cooperative - Joint Venture/Partnership </li></ul></ul>
  55. 58. <ul><li>Types of Money </li></ul><ul><li>Donations </li></ul><ul><li>Grants </li></ul><ul><li>Sponsorships </li></ul><ul><li>Equity </li></ul><ul><li>Debt </li></ul><ul><li>Patient Capital </li></ul><ul><li>SALES! </li></ul><ul><li>Example of Sources </li></ul><ul><li>Foundations / United Way </li></ul><ul><li>Credit Unions </li></ul><ul><li>Community Futures </li></ul><ul><li>Philanthropists </li></ul><ul><li>Investors </li></ul><ul><ul><li>e.g., Community Bonds </li></ul></ul>Financing Social Enterprise
  56. 59. <ul><li>Group Exercise </li></ul><ul><li>Writing A Thrift Store Business Plan </li></ul><ul><ul><li>Group 1) The Store Employs Persons with Disabilities </li></ul></ul><ul><ul><li>Group 2) The Store Earns a Profit to Fund the Parent Organization </li></ul></ul><ul><ul><li>Group 3) The Store Provides Employment Training for New Immigrants </li></ul></ul><ul><ul><li>Group 4) The Store Sells Affordable Clothing and Household Goods for Low-income Families </li></ul></ul>
  57. 60. Resources, Workshops & Technical Assistance Grants www.enterprisingnonprofits.ca Social Enterprise Learning Toolkits e-Library & Resources Workshops and Events Technical Assistance Grants
  58. 61. www.enterprisingnonprofits.ca
  59. 62. Social Enterprise Learning Toolkit www.enterprisingnonprofits.ca/ learning-toolkits <ul><li>Governance </li></ul><ul><li>Leadership </li></ul><ul><li>Blended Value Design </li></ul><ul><li>Product & Markets </li></ul><ul><li>Business Operations </li></ul><ul><li>Customer Relations </li></ul><ul><li>Marketing </li></ul><ul><li>Risk Analysis </li></ul>
  60. 63. Planning Your Social Enterprise www.enterprisingnonprofits.ca/ planning-your-social-enterprise
  61. 64. <ul><li>Technical Assistance Grants </li></ul><ul><li>for Social Enterprise Planning </li></ul><ul><li>Organizational Readiness </li></ul><ul><li>Enterprise Opportunity Identification </li></ul><ul><li>(Under $5000) </li></ul><ul><li>Feasibility Studies </li></ul><ul><li>Marketing Plans </li></ul><ul><li>Business Plans </li></ul><ul><li>(Maximum $10,000) </li></ul>
  62. 65. Grant Application Review Criteria <ul><li>Community Impact </li></ul><ul><li>Business Viability </li></ul><ul><li>Organizational Commitment and Capacity </li></ul>
  63. 66. <ul><li>Community Impact </li></ul><ul><ul><li>Impact on the community is defined </li></ul></ul><ul><ul><li>Impact is blended into business operations </li></ul></ul><ul><ul><li>The social enterprise contributes to enhancing organization’s mission </li></ul></ul>
  64. 67. <ul><li>Business is Real and Viable </li></ul><ul><ul><li>Product or service defined </li></ul></ul><ul><ul><li>Customers and market identified </li></ul></ul><ul><ul><li>Finances articulated </li></ul></ul>
  65. 68. <ul><li>Organizational Engagement </li></ul><ul><ul><li>Management and staff involvement </li></ul></ul><ul><ul><li>Board support and involvement </li></ul></ul><ul><ul><li>Stakeholder participation and involvement </li></ul></ul>
  66. 69. <ul><li>Readiness </li></ul><ul><ul><li>Evidence of commitment to social enterprise </li></ul></ul><ul><ul><li>Organization has done planning and research related to current request </li></ul></ul>
  67. 70. <ul><li>Grant Budget </li></ul><ul><ul><li>Appropriate use of enp funds </li></ul></ul><ul><ul><li>Adequate commitment of matching funds </li></ul></ul><ul><ul><li>(Cash & / or In-Kind) </li></ul></ul>
  68. 71. <ul><li>Readability </li></ul><ul><li>The application is well written and clear </li></ul><ul><ul><ul><ul><li>Vision </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Scope </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Potential Value of the Project </li></ul></ul></ul></ul>
  69. 72. <ul><li>Business Development </li></ul><ul><ul><li>Opportunity identification </li></ul></ul><ul><ul><li>Market research and feasibility study </li></ul></ul><ul><ul><li>Study tours of similar businesses </li></ul></ul><ul><ul><li>Business plan preparation </li></ul></ul><ul><ul><li>Marketing plan and communications strategy </li></ul></ul><ul><ul><li>Expansion planning </li></ul></ul>Examples of Activities
  70. 73. <ul><li>Funds for Planning and Development Process </li></ul><ul><li>Funds to pay for consultant and/or staff </li></ul><ul><li>Direct costs of planning activities </li></ul><ul><li>NOT for operations nor for implementation </li></ul><ul><li>No funds for overhead </li></ul><ul><li>Not retroactive </li></ul><ul><li>Preference for both organizational development and business planning </li></ul>Use of enp Funds
  71. 74. <ul><li>Provincially or federally incorporated non-profit based in BC </li></ul><ul><li>Qualified recipient under CRA regulations: registered charity, First Nations government, municipality </li></ul><ul><ul><ul><li>Charitable sponsor required if the applicant is not a qualified recipient under CRA regulati ons </li></ul></ul></ul>Basic Eligibility
  72. 75. <ul><li>Matching Funds </li></ul><ul><li>enp accepts cash or in-kind matching funds </li></ul><ul><ul><li>Matching funds must be directly related to the project for which you are applying </li></ul></ul><ul><ul><li>In-kind related to direct costs of business planning and organizational development (not operating expenses) </li></ul></ul><ul><ul><li>If staff time considered in-kind, demonstrate staff person will have designated time to conduct planning work (not just off side of desk) </li></ul></ul>
  73. 76. <ul><li>The enp funding partners review and approve grants, and may offer you: </li></ul><ul><ul><li>Organizational or Enterprise Assessment Workshop </li></ul></ul><ul><ul><li>Telephone or On-site Consultation </li></ul></ul><ul><ul><li>Partial grant for less activity </li></ul></ul><ul><ul><li>Fully funded grant as requested </li></ul></ul>Application Decision Process
  74. 77. <ul><ul><li>Proposal review process about 6 to 8 weeks </li></ul></ul><ul><ul><li>Letter of offer of grant purpose and amount and </li></ul></ul><ul><ul><li>then a cheque for the amount granted </li></ul></ul><ul><ul><li>Offer of supports other than grant </li></ul></ul><ul><ul><li>Technical Assistance provider coaching </li></ul></ul><ul><ul><li>Nine months to complete project </li></ul></ul><ul><ul><ul><ul><li>Must submit planning project ‘product’ </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Final report </li></ul></ul></ul></ul>Application Decision Process
  75. 78. <ul><ul><li>Grant Applications are due 4pm </li></ul></ul><ul><ul><li>November 24, 2011 </li></ul></ul><ul><ul><li>If you do not submit an application in this cycle, you may apply in a later cycle. </li></ul></ul><ul><ul><li>Next deadline will be Spring 2012 </li></ul></ul><ul><ul><li>Every six months </li></ul></ul>
  76. 79. enp Support and Funding Technical Assistance Along the Enterprise Development Path Next Grant Application Deadlines: November 24, 2011 Spring 2012

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