The presentation was a workshop at Evolve 2014: the annual event for the voluntary sector in London on Monday 16 June 2014. The presentation was chaired by Craig Carey from Social Enterprise UK and looks what a social enterprise is and how to earn sustainable income. Find out more about the Evolve Conference from NCVO: http://www.ncvo.org.uk/training-and-events/evolve-conference

1. Workshops
AM6: Earning income: How to
develop a more sustainable mix
Craig Carey, Programme Manager, Social Enterprise UK
Kathryn Uche, Chief Executive, CAYSH
Jeremy Hime, Business Development Manager, CAYSH

2. Social Enterprise UK
• Established in 2002 as the national body for social
enterprise (as a coalition)
• Membership organisation: nearly 700 members; reach to
over 12,000 through founding partners
• Bring together all the different forms of social
enterprise under one umbrella
• Main purposes:
• Supporting social enterprises to thrive
• Developing the evidence base for social enterprise
• Influencing policy and political agendas (with govt)
• Showcasing the benefits of social enterprise
• Broker, facilitator, market builder

3. What is Social Enterprise?
Social enterprises are businesses driven by a social purpose. They:
1. Have a social mission set out in their governing documents
2. Are independent businesses that earn more than half of their
income through trading
3. Reinvest or give away at least half our profits towards our social
purpose
4. Are controlled or owned in the interests of the social mission
5. Are accountable and transparent in the way they operate and
about the impact they have
Often have an asset lock and use a range of different legal structures.

6. Social Enterprise in the UK – state of play
• c. 70,000 social enterprises in the UK (5% of all businesses)
• Contributing c.£20 billion to the UK economy and employing
over 1 million people.
• Operate in almost every sector: from health and social care, to
renewable energy, transport, retail and housing
• There are many routes to becoming a social enterprise
including:
 spinning out of parts of the public sector
 entrepreneur-led organisations
 charities becoming more business-orientated

7. What is Social Enterprise NOT?
• A fast and easy route to quick £ / silver bullet
• A change of legal structure
• Fundraising
• Suitable for ALL charities / charitable activities
• Going over to the dark side (off mission)

8. Why the social enterprise model?
Added social
value / greater
impact
Social
Investment
Innovation
Reinvest profits for
social purpose
Engaging
stakeholdersCultural fit
Accountable +
sustainable modelEffective use of
resources
Access harder
to reach groups

9. Two main approaches
> Setting up a trading arm to sit alongside the
charity
> Changing the whole charity into a social
enterprise

10. What to consider?
> Know why are you doing it
> Discuss with your stakeholders
> Legal structure & business model
> Write the business plan

11. > Don’t be afraid of the ‘P’ word –
PROFIT!
> Remember the culture trumps
structure!
> Work out - who really are your
customers and how are you going to
reach them? Is there a market demand?
> Mix up your trading activity –
different products/services, customers &
types of income
> Don’t forget the expenses column

12. > Delivering new services – don’t
deviate from what you are good at!
> Get the pricing right (vs.
perceived value)!
> Measure your impact & quality –
creating social value
> It takes time and money to do –
NO shortcuts!
> Be persistent – not an easy
journey!

14. Purpose of the business plan
To give you and other stakeholders
confidence that –
> You are going in the right direction
> There is a market need
> The finances add up
> You have the right people doing it
Otherwise it will not succeed!!

15. Magnificent Business Plan - 8Ms!
1. Mission
2. (Understand) Market
3. Money
4. Measurement
5.(Wo)manpower
6. Marketing
7. Mitigation (Risk)
8. Masterplan

16. London Early Years Foundation
Sector: Children Nurseries
CEO: June O’Sullivan http://www.leyf.org.uk
Model: Former charity started 1903 now a social enterprise
Overview: The London Early Year's Foundation (LEYF) is the
UK’s most well-known and respected childcare social enterprise,
providing day care and parenting support to a diverse mix of
families in 25 community, workplace and Children’s Centre
nurseries across six London boroughs.
How we help children: Through our unique curriculum, we focus
on each child’s cognitive, social, emotional and physical
development. The quality of our learning environments and
excellence in childcare is recognised through parental feedback
as well as external assessment.

17. Street League
http://www.streetleague.co.uk
The organisation: Originally founded as an organisation working
with homeless people in 2001, we now work with 16 to 25-year-
olds who are not in employment, education and training (NEET).
What they do: Street League is one of the most exciting,
dynamic and fastest-growing charities in the UK. We specialise in
changing the lives of young people from disadvantaged
backgrounds through the power of football.
Structured football and education 'Academy' programme, with two
hours (over 8 weeks) in the classroom and two hours on the pitch
each day. It also offers nationally-recognised qualifications.
Scaling up: Multiple franchise model now with 10 locations

19. Further reading resources
Get Legal http://www.getlegal.org.uk/
CIC Regulator http://www.bis.gov.uk/cicregulator/
Charity Commission http://www.charity-commission.gov.uk/
SEUK website http://www.socialenterprise.org.uk/
NCVO website http://www.ncvo.org.uk/

20. craig.carey@socialenterprise.org.uk
www.socialenterprise.org.uk

21. Workshop – AM6
Social Enterprise for Charities
Earning income: how to develop a
more sustainable mix

22. Objective
• To give a realistic and engaging account of
why and how CAYSH transitioned from a
charity to a social enterprise model

23. Contents
• Who we are
• The Idea
• Why Social Enterprise?
• Main Challenges
• Growth of the Service
• Top Tips
• Contact Us

24. Who we are
Kathryn Uche
Chief Executive
CAYSH
Jeremy Hime
Business Development
Manager
CAYSH Enterprise CIC

25. • Who we are
• What we do
• Where we work
• How long we’ve been doing it

26. We now operate in every South London borough

29. The Idea
• A changing environment
• Rising needs of service users
• 2010 Spending Review

30. The Idea
• Charity expansion – into new borough
• Existing security services expensive and not
fit for purpose
• Recognised gap in the market
• Confidence in the belief that we could do it
better!

31. The Idea
• Value for money
• Quality of service
• Training and expertise
• Values and principles

32. The Idea
• New contract acted as an incubator to the
idea
• Supportive Local Authorities
• Over reliance on Supporting People income

33. CAYSH Concierge Services
CAYSH Concierge Services provides a unique
approach to security provision in supported
housing that protects the interests of
vulnerable people first and foremost whilst
delivering reduced costs and reduced
incidents for commissioners and the local
community.

34. CAYSH Concierge Services

36. Why Social Enterprise?
• Potential surplus
• Culture
• Governance
• Guidance - SEUK

38. Challenges
• Fear
• Cultural change
• Buy in
• Resistance

39. Challenges
• Staying strategic whilst being operational
• Turning blue sky to reality
• Getting the finances right
• Balancing business and charity approach

40. Keeping Residents Safe

41. 2013 2014
600k 1.5m
11 Staff 50+ Staff
150 SUs 350 SUs

42. Concierge Service Growth
• Financial
• Personnel
• Customers / location
• Systems
• Business strategy and vision
• Reputation
• Confidence

43. • Get help!
• Build the team – from Trainee to Trustee
• Have a plan B
• Stay focused
• Don’t give up
• Good communication
• Do not be afraid to make mistakes
Top Tips
Advice for any charity leaders considering a social enterprise
route

47. Launched culture of
enterprise
New office – new
opportunities
Maintain vision and
confidence
The next idea…

48. Many of life’s failures are
experienced by people who did not
realize how close they were to
success when they gave up.
Thomas Edison

49. Contact us
Kathryn Uche
Chief Executive CAYSH
kathryn.uche@caysh.org
Jeremy Hime
Business Development
Manager
CAYSH Enterprise CIC
jeremy.hime@caysh.org

50. Evolve 2014