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What is social enterprise nccu cedi presentation
 

What is social enterprise nccu cedi presentation

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This is a presentation on social enterprise for nonprofits, to be given April 9th at "Marketing Strategies: Tools for Nonprofits and Social Enterprises," a free half-day workshop hosted by The NCCU ...

This is a presentation on social enterprise for nonprofits, to be given April 9th at "Marketing Strategies: Tools for Nonprofits and Social Enterprises," a free half-day workshop hosted by The NCCU Community Economic Development Initiative. Registration is free and more info is available at http://nccunonprofit.org/about.html

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  • This presentation is based on slides from a class given by Social Enterprise Network of the Triangle (SENT – http://www.se-triangle.org) through Duke’s Certificate Program in Nonprofit Management. That 4-hour class has been condensed into a one-hour presentation for this talk. Prior slides were put together by Suzanne Steffens Smith, Ruth Peebles and Agnes Vishnevkin. Much credit for the quality in this presentation goes to them – all errors and omissions I claim as my own.
  • I am *not* an attorney! You *should* consult an attorney about legal structure!
  • In 2007, 20.9 million U.S. women lived below the federal poverty threshold.Economically disadvantaged teens are more likely to be un- or under-employed in the summer job market.Early work experience improves prospects for employability and real wages in the later teens and early 20s.Work experience in high school also increases the likelihood of graduation and lowers teen pregnancy and delinquency.

What is social enterprise nccu cedi presentation What is social enterprise nccu cedi presentation Presentation Transcript

  • A talk by Jeff Stern for NC Central University’s
    Community Economic Development Initiative
    April 9, 2011
    What isSocial Enterprise?
  • What is Social Enterprise?
    1
    3
    2
    Definition and Examples
    Getting Started
    Determining Readiness
    A framework to consider, plan and implement your social enterprise
  • 1
    Social Enterprise: an organization or venture that achieves its primary social or environmental mission using business methods.
    Definition from the Social Enterprise Alliance
  • Social Enterprise is a subset of social entrepreneurship.
    Social Entrepreneurship includes:
    Social Innovation
    Corporate Social Responsibility (CSR)
    Socially Responsible Investing
    Triple Bottom Line
    Venture Philanthropy
    Cause-related Marketing
    Direct service and advocacy groups
    Blended value organizations in various legal structures
  • What we talk about when we talk about SE
    “We look for organizations or ventures who have a primary orientation or mission of achieving a measurable social benefitand a market-based approach toward generating revenue. Most often these organizations have a nonprofit status, a clear theory of change and a commitment to transparency.”
    - Social Enterprise Network of the Triangle
    more info available at http://www.se-triangle.org
  • Social Enterprise is not:
    Social Enterprise is:
    Creating sustainable revenue streams to support mission
    Engaging market forces in pursuit of social impact
    Devising new ways to leverage existing assets
    Decreasing dependence on the external funding community
    Utilization of business methods, tools and discipline
    • Traditional fundraising
    • Grant money
    • Gifts/donations
    • A “quick fix” in a time of a crisis
    • For everyone
  • Yes, it’s legal, and it can take many forms:
    • Nonprofits can launch and operate a social enterprise and maintain 501(c)(3) tax status
    • Income Related to Exempt Purposes
    • Must be substantially related to exempt purposes
    • No limit on amount of revenue
    • Income from Unrelated Activities
    • Not substantially related to exempt purposes
    • Produces unrelated business taxable income (UBTI)
    • If less than 10-15% of budget, okay
    • If more, consider moving activity outside of nonprofit entity
    • There is no standard legal structure
  • A few examples of successful social enterprise
    The Women’s Bean Project in Denver employs women from backgrounds of chronic unemployment and poverty to manufacture gourmet foods. The project does not hire women to make and sell bean products. It makes and sells bean products to hire women.
    Juma Ventures develops and operates concessions at stadiums for the purpose of providing job opportunities to economically disadvantaged teens.
  • More examples, closer to home:
    TROSA runs several social enterprises (moving, lawn care, furniture and frame shop, grocery and more) in pursuit of its mission to enable substance abusers to be productive, recovering individuals by providing comprehensive treatment, work-based vocational training, education, and care.
    The Scrap Exchange runs a creative re-use store and education programs in pursuit of its mission to promote creativity, environmental awareness, and community through reuse.
    Extraordinary Venturesemploys young men and women with autism and other developmental disabilities. They create jobs through conference center rental and laundry services.
  • 2
    Determining Readiness
    Is social enterprise is right for your organization? Are you ready to begin?
  • Developing an enterprise is a process
    Phase 4
    • Develop a business
    plan to turn the
    opportunity into
    reality
    Planning
    Exploration
    Design & Development
    Implementation
    2 months
    4 months
    6 months
    12 months
  • Four Areas for Risk/Reward Analysis
    Mission
    + Leverage core strengths in service of both mission and margin
    + New programming opportunities
    - Reputation could be compromised
    - Risk of mission drift from core social impact activities to enterprise
    +/- Potential impact on clients
    Financial
    + Diversifies revenue streams
    + Leverages existing assets
    + Creates unrestricted funds
    - Potential to lose money
    - Start-up costs often high
    - Opportunity cost
    +/- Current funder reactions?
    Phase 1 - Exploration
    Operational
    + Business tools utilized beyond SE
    + Enhances strategic thinking
    + Increases efficiency and agility
    - Management & staff attention split
    - Increases organizational complexity
    - New systems may be required
    +/- New staff may need to be hired
    Cultural
    + Fosters innovation and new ideas
    + Market orientation improves focus on costs, client needs and results.
    - Board and staff may be alienated by business culture (may leave)
    - Resistance to change may kill SE
    +/- Tension of “old” versus “new”
  • Characteristics of a successful social enterprise:
    Source: Community Wealth Ventures - Powering Social Change
  • First, Identify Your Assets…
    People: Who works for the organization? Who volunteers? Who do they know? Who is your audience? Who are your stakeholders? What special relationships to you have that might be valuable?
    Skills: What skills/expertise has the organization developed? What reputational assets have you built? Skills of individual people identified above? What programs are in demand? What content have you developed? Events you’ve planned?
    Tangible Assets/Facilities: What buildings do you own? Program-related equipment? Real estate? Patents or other intellectual property? Other tangible assets that you have access to?
    Phase 2 – Design and Development
    Brainstorm first – feasibility comes later!
  • Remember the old saying:
    “One man’s trash is another man’s treasure”
  • Now that you’ve listed assets…which are marketable?
    Evaluate the asset
    Is it unique? Is it easily copied?
    Is it sustainable over time?
    Evaluate the market
    Are there people who would pay for this?
    How many people? Is this number growing?
    How much would people pay?
    Is there competition to consider?
  • Are we ready to launch a social enterprise?
    3 Readiness Factors
  • 3
    Getting Started
    Getting Started
    Moving from idea to implementation
  • From your list of assets, choose the 3 best ideas
    Phase 3 – Feasibility Assessment
  • Determine feasibility before creating a business plan
  • Resources and tools for analysis are plentiful
    • SWOT Analysis and other traditional business tools
    • Industry Associations and Reports: First Research, BizMiner
    • Federal government libraries and legislative websites
    • Philanthropic news and research organizations: Foundation Center, Charity Navigator, Chronicle of Philanthropy
    • Federal government statistics: Census data, SBA
    • Chamber of Commerce: Local
    • Academic library or other public information centers
    • Competitor/collaborators’ websites
    • Similar social enterprises/social innovators: Social Enterprise Alliance, Social Edge
  • The business plan is your roadmap
    • Executive Summary
    • Business Description
    • Industry & Market Analysis
    • Competitive Analysis
    • Marketing & Sales Plan
    • Operations Plan
    • Personnel & Management Plan
    • Financial Plan
    • Risk & Contingency Plan
    Phase 4– Business Plan
    Be sure to include milestones!
  • Additional Resources
    • Social Enterprise Database: http://www.communitywealth.com/Directory%20of%20Social%20Enterprises.htm
    • CASE (Center for the Advancement of Social Entrepreneurship): www.caseatduke.org
    • SocialEdge: www.socialedge.org
    • Social Enterprise Alliance: www.se-alliance.org
    • REDF: www.redf.org/learn-from-redf
    • Nonprofits Assistance Fund: www.nonprofitsassistancefund.org (business plan outline and template)
    • Stanford Social Innovation Review: http://www.ssireview.org/
  • Thanks for your time today. If you want to get in touch:
    Jeff Sternjeffrey.m.stern@gmail.com @jeffreymstern on twitter http://www.jeffstern.org for personal infohttp://www.se-triangle.orgfor SENT info