Developing Social Enterprise

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This presentation was delivered as an introduction to social enterprise and business model generation at the University of Sheffield.

Information in the presentation was gathered from organisations across the social enterprise sector, including UnLtd, Regen School, The Social Investment Business, The Young Foundation and Venturesome.

The Business Model Canvas is based on the work of Alexander Osterwalder. See http://alexosterwalder.com/ for more information.

Published in: Business, Economy & Finance
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Developing Social Enterprise

  1. 1. Nic Jones Developing Social Enterprise@NavigatorNicnavigatornic.co.uk
  2. 2. Developing Social EnterpriseAim:• To increase awareness and understanding of social enterprise business models and to enable the design + implementation of new socially-minded project ideas.You will learn:• The 6 stages of project cycle management• How to begin to use 2 tools of business model design• How to practically apply these ideas• How to communicate your business modelAssessment:Based on 1 page business model for the assessment
  3. 3. Introduction Identify Design Communicate• Group Discussion: • Business Model • Pitching Global & Local Definitions Problems • Voting • Structure (canvas)• Problem Tree ideas • Communicating generation • Prototyping / Modelling• Theory of Change• Case studies
  4. 4. Definition“A social enterprise is a business with primarily social objectives whose surplusesare principally reinvested for that purpose in the business or in thecommunity, rather than being driven by the need to maximise profit forshareholders and owners.” (Social Enterprise: Strategy forSuccess, DTI, July 2002)“Social enterprises are businesses set up to tackle a social or environmental need.” (SCEDU – 2009)“Social enterprises are businesses which exist to address social or environmentalneed.Rather than maximising profit for shareholders or owners, profits are reinvestedinto the community or back into the business. It’s this which makes social enterprisethe most exciting and inspiring business movement in the world.” (SEL- 2009)
  5. 5. Profit +Traditional business Social Enterprise- + Impact Traditional charity -
  6. 6. Characteristics• Can be distinguished from private businesses in the way they use their profits for social gain• Merge mission and money• Operate across all employment sectors• Are diverse – include local, mutual organisations (co-operatives) and large-scale organisations• Entrepreneurial, calculated risk-taking• Bring excluded groups into the labour market• Contribute to socially inclusive wealth creation (e.g. by retaining wealth)• Enable individuals and communities to work towards regenerating their local neighbourhoods• Help to develop active citizenship
  7. 7. Sector merging PUBLIC PRIVATE Becoming Becoming more more independent social VOLUNTARY Becoming more enterprising
  8. 8. http://www.youtube.com/watch?v=dMOxfW5bLK8&feature=related
  9. 9. Venturesome (https://www.cafonline.org/charity-finance--fundraising/banking-and-investments/loans-and-capital.aspx)
  10. 10. The spectrum of SECharity owned Community Owned by Owned by Owned by owned public sector Entrepreneur(s) private business (as not for profit)Trading arm of Co-ops Public services Actis ActsCharity Development (foundations) Trusts
  11. 11. http://www.youtube.com/watch?v=ikCrx1K7Weg&feature=youtube_gdata
  12. 12. Policy and importance• Big Society • Recent rapid emergence due to social and environmental need (50% growth since 2000) . Now over 62,000 in the UK. • Combined turnover (£27bn). 5% of all businesses. 8.4 billion to economy. 1% GDP • Most recent sector-led survey: 2011 Social Enterprise UK “Fightback Britain – A report on the State of Social Enterprise Survey ” showed • 14% of all social enterprises are start-ups, less than two years old – more than three times the proportion of start ups among mainstream small businesses • Median annual turnover of social enterprises has grown from £175,000 in the 2009 survey to £240,000 • 39% of all social enterprises work in the 20% of most deprived communities in the UK compared to 13% of standard businesses • 74% of social enterprises actively involve their beneficiaries in decisions about their business • 86% of leadership teams boast at least one female director, 27% of leadership teams have directors from BME communities and 7% have directors under the age of 24
  13. 13. Policy and further reading • Social enterprise action plan Scaling new heights 2006 • Voluntary Action in the 21st Century 2008 • Financing Civil Society (Venturesome 2009) • Big Society Not Big Government 2010
  14. 14. Case studies International Grameen bank National Worn Again Local Jamie’s Farm
  15. 15. Grameen bank http://en.wikipedia.org/wiki/Grameen_Bank
  16. 16. Worn Again http://www.wornagain.co.uk/
  17. 17. Jamie’s Farmhttp://www.jamiesfarm.org.uk/
  18. 18. AL AL AIS ysis AIS llysis N PR SIG rk P a s s wo AP er A a y AP er An allysi DE me is Fra ys ld An ld An al Anal ho al ho al ke tu ke tu gic Sta ntex Sta ntex Lo Risk Co Co ProjectIDENTIFICATION Problem Tree & Cycle APPROVAL Business Plan Intelligence na The tio n g& g& mi & g in g gi g se ew na r n na rin N Ma TIO TIO a N Dis o o TIO nt nit vi Mo Mo TA TA Re UA AL EN EN EM EM EV PL PL IM IM
  19. 19. Identification1. Social problem(s)2. Thematic grouping3. The Problem Tree= Your mission
  20. 20. effects causes
  21. 21. Theory of change Mission, vision and the social change model Mission Social Change Model Vision “One day . . .” Theory of the Problem “As an organisation, we . . .” Theory of Theory of Action Change  What the  The ‘engine of change’ that bridges  The future state the organisation intends mission and vision organization wants to do; its reason  Captures an organisation’s views about to create for being the problems it is trying to solve, levers necessary to cause desired changes and the organisation’s unique model for creating these changes Note: Social Change Model framework adapted from David KantorSocial Change Model framework adapted from David Kantor
  22. 22. Theory of change1. Identify ultimate goalWhat problem are we addressing?Who are the intended beneficiaries?What can we do to solve this part of the problem for our beneficiaries?What does success look like?2. Identify the direct pre-conditions to achieving thisgoal? (Context)What needs to happen in order for this goal to become a reality?3. Think through assumptions associated with your goalThe pre-conditions – ie the reasons you think your approach will work.4.Mapping and connecting outcomesThe purpose of the map is to tell a story5. Indicators
  23. 23. Work in progress - For illustration only SI’s leverage the SI’s derive real The Hub Theory of Action Model networks value Alternative “People and ideas collide and realise imaginative viewpoints and The Hub provides multiple stimuli access to the right initiatives for a radically better world” infrastructure for Better testing innovation and prototyping Networks are • Space visible and • Talent accessible More diverse • Knowledge skill-sets applied A diverse • Investment to more ideas range of Sis Resources are Enhanced attracted to accessible Innovation the Hub Better market definition /Note: SI = Social assessment Innovator (collaborators, Specialised skills customers, suppliers) and knowledge are made available The Hub cultivates the right culture for Enhanced innovation credibility Optimism, • Welcoming, hospitable, convivial encouragement, confidence • Collaborative design • Choosing right mix of SI’s • Matchmaking • Diversity • Community and belonging • Collective intelligence and memory
  24. 24. AL AL AIS ysis AIS llysis N PR SIG rk P a s s wo AP er A a y AP er An allysi DE me is Fra ys ld An ld An al Anal ho al ho al ke tu ke tu gic Sta ntex Sta ntex Lo Risk Co Co ProjectIDENTIFICATION Problem Tree & Cycle APPROVAL Business Plan Intelligence na The tio n g& g& mi & g in g gi g se ew na r n na rin N Ma TIO TIO a N Dis o o TIO nt nit vi Mo Mo TA TA Re UA AL EN EN EM EM EV PL PL IM IM
  25. 25. Design1. Mission – Your ‘value proposition’2. Your entrepreneurial solution... – The Business Model
  26. 26. Traditional Business plan• Hierarchy of AIMS Vision Mission In Activities Outputs Outcomes Impact
  27. 27. Business model discussion
  28. 28. Business model generationBusiness model canvas: Alex Osterwalder: http://alexosterwalder.com/
  29. 29. Activities Relationship CustomerPartnerships Value Proposition Segment / Beneficiaries Resources Distribution Costs Revenue Stream
  30. 30. Partnerships Key Activities Core Offer Customer Relationships Customer Segment / (Value Proposition) Beneficiaries Key Resources Distribution Channels (Route to market)Costs Revenue
  31. 31. Grameen Bank Fund management 1:1 Risk Management Bangladesh Affordable Loans Entrepreneurs Government Brand Reputation Peer Lending Platform Fund management % interest
  32. 32. Worn Again Design process 1:1 with corporate Manage clients manufacturing Web 1. High profile 1. Corporate Virgin Corporate Waste Clients 2. Consumer Eurostar 2. Aware products consumer Brand Name Uniform People manufacturers Web platform Web Sourcing product line. Manufacturing Consultancy Product Sales
  33. 33. Old Fundraising Model Oversee activities 1:1 Marketing Donor Dependant on charity – often Charity CSR Beneficiaries Brand Aid Agency / Local partners People Direct Market. Cost of delivery Donations
  34. 34. Activities Relationship CustomerPartnerships Value Proposition Segment / Beneficiaries Resources Distribution Costs Revenue Stream
  35. 35. Apple Partnerships Key Activities Core Offer Customer Relationships Customer Segment / (Value Proposition) Beneficiaries Key Resources Distribution Channels (Route to market)Costs Revenue
  36. 36. Credits This presentation was based on information gathered from organisations across the social enterprise sector including: UnLtd, The Social Investment Business, Regen School, The Young Foundation and Venturesome. The Business Model Canvas is inspired by the work of Alex Osterwalder. Please see http://alexosterwalder.com/ for more details

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