28.3.2012 tim crabtree


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28.3.2012 tim crabtree

  1. 1. Social Enterprises as a mechanism to deliver AONB projects Tim Crabtree Wessex Community Assets & Cardiff University
  2. 2. Wessex Community AssetsSmall not for profit organisation which supportsthe development of community and co-operative enterprises:• Renewable energy• Sustainable food• Affordable housing• Cultural sector• Workspace
  3. 3. Wessex Reinvestment Trust groupEstablished in 2001, the group has 4 separate structures:• Wessex Reinvestment Trust, a registered charity.• WRT Core Company Limited, which provides home improvement lending.• Wessex Community Assets, which supports community asset development.• Wessex Reinvestment Society, has provided business loans.
  4. 4. Examples of Wessex Reinvestment Trust group activities 2010 - 2012 Renewable Workspace & Housing Food Wessex Core Energy Community Company: Home Business advice , e.g. Business advice , e.g. Assets Business advice , e.g. Improvement The Real Food Lending Bridport Energy Store, Exeter Lyme Regis Services Ltd: Zero carbon food Development Trust The Community production Farm, Bristol Red Brick Building Housing Centre, GlastonburSomerset, Devon Partnership with North Dorset Food y & Dorset SW Protected Incubator &Community Land Landscapes Training Network Enterprise St. Trust Project Forum: Social Forestry Michael’s, Bridport Wessex Community Assets
  5. 5. What is social enterprise?Social enterprise can be thought of as:• a particular type of organisation (i.e. a business with a primary social or environmental aim, which returns any surplus to the community which it serves)or as:• an activity carried out alongside the existing programmes of community and voluntary sector organisations (i.e. trading activity which either meets the primary purpose of the organisation or creates surpluses to fund services for the community).
  6. 6. Common characteristics of social enterprise
  7. 7. Maximum Maximumpublic benefit private benefit The “grey area” in the middle of the spectrum Charity Share company is where social economy organisations operate
  8. 8. High social return High financial return Charities/vol orgs Revenue generating social Socially “Trad- enterprises driven itional” business businessNo trading Trading Potentially Breakeven Profitable Profit Profit revenue revenue & sustainable: – all – surplus distributing maximising grants 50%+ revenue not – socially trading from distributed driven/ revenue trading mutualWest Dorset Food & Land Local Food Links Waitrose Trust Dorset Farmers’ Markets Co-op Group Dorset Food & Health Somerset Local Food Direct Whole Food Trust Markets Somerset Community Food Projects Network Green & Blacks (Cadburys) Rachels Dairy
  9. 9. Is “social enterprise” relevant to AONB’s?• AONB’s have core teams delivering statutory duties – conserving and enhancing protected landscapes.• Most AONB teams have also developed the capacity to secure additional resources and deliver projects, e.g. – Woodland management – Access / recreation – Grassland management
  10. 10. So – AONB teams already have 2 key resources which support delivery of core functions and projects: People Local Core functions & communities projectsGrant Finance Citizens
  11. 11. Some AONB’s have established (or are considering) charitable trusts• To secure grant funding & donations not available to LA-hosted AONB teams• To use such funds to deliver additional projects• To receive transferred assets from public bodies or bequests• To acquire assets, using grants and loans• To engage with the community• To undertake “primary purpose” trading activity
  12. 12. Possible way forward Social enterprise activity 1 AONB Team Local Social in Local Authority + AONB Trust + enterprise activity 2 Social enterprise activity n
  13. 13. Local communities Joint Subsidiary venture Projects Direct Support Lease & trading IPS assets Services Social enterprise activityAONB Team AONB Trust
  14. 14. Example of trust undertaking projectdelivery and primary purpose trading West Dorset Food and Land Trust – Charity, established 1998
  15. 15. West Dorset Food Week & Bridport Food Festival
  16. 16. The local food sector in West Dorset:Mapping exercise resulting in Directory
  17. 17. Grow it, Cook it, Eat it Project
  18. 18. Asset based development• West Dorset Food & Land Trust a member of the Development Trusts Association (now Locality)• Assets can generate income – e.g. building rentals or land tenancies• Decision to develop managed workspace – a “Local Food Centre”
  19. 19. Bridport Centre for Local Food
  20. 20. Bridport Centre for Local Food
  21. 21. Bridport Centre for Local Food
  22. 22. Charities are restricted in the range of trading that they can undertake so may establish subsidiaries Local Food Links – Trading company, established as subsidiary of West Dorset Food and Land Trust in 1999
  23. 23. Farmers’ Markets
  24. 24. School Fruit Scheme
  25. 25. Soup Lunch Pilot
  26. 26. Soup Lunch Pilot
  27. 27. Other examples of Trusts setting up trading subsidiaries
  28. 28. The Isle of Eigg Heritage Trust
  29. 29. Eigg Electric
  30. 30. Lyme Regis Development Trust•St. Michael’s Business Centre•Wessex secured £100,000 grant from ChangeUp,provided £13,000 loan and negotiated £35,000Programme Related Investment from CommunityFoundation for Bournemouth, Dorset & Poole
  31. 31. Lyme Regis Development Trust• New assets: – Youth café with flat – Youth centre – Monmouth house – flats• Supports project activity, e.g. – Fossil Festival• Developing proposals for £8 million Field Studies Centre with Natural History Museum
  32. 32. Trusts do not have to run operations themselves or through subsidiaries• Trusts can use their assets to support social economy activity – At a discounted rent, where the enterprise delivers against the Trust’s objects – At a market rent.
  33. 33. Local Food Links Ltd• Restructured into a Community Benefit Society (a form of Industrial & Provident Society), with membership open to parents, schools, wider community• Previously, Local Food Links only had one member – the Trust
  34. 34. New Central Kitchen at Centre for Local Food
  35. 35. Local Food Links: ethical sourcing• Meat – Genesis Farmers• Milk – Coombe Farm• Yogurt – Yeo Valley• Butter – Denhay Farms & Coombe Farm• Cheese – Denhay & Coombe Farm• Flour – Edward Gallia, Cerne Abbas• Eggs – Vurlands Farm• Vegetables in season – Bothen Hill Organic, Washingpool Farm, Somerset Organic Link• Fruit in season – Elwell Farm• Bread – Leakers, Punch & Judy Bakery
  36. 36. Local Food Links – current status• Two hub kitchens – one leased from West Dorset Food & Land Trust, one from Dorset County Council• 25 staff• 24 schools, 3 nurseries, 1 day centre, 8 lunch clubs• 1200 meals per day• Turnover: over £500,000 p.a.
  37. 37. Hostetin Apple Juicing Plant, Czech Republic
  38. 38. Apple Juicing Social Apples Enterprise Runs White Carpathians Traditions Leased to Hostetin AppleSmall farms Juicing Plant Raised funds Veronica Foundation
  39. 39. Trusts can enter into joint ventures
  40. 40. Joint Venture:Grameen –Danone YogurtBusiness Grameen-Danone Shoktidoi yogurt factory in Bangladesh
  41. 41. Minority shareholder Woodschool Ltd Majority shareholder Real Wood Studios Ltd.,a cooperative of wood workers
  42. 42. Trusts can lease assets toprivate companies or social enterprises
  43. 43. £1 million raised from community shares
  44. 44. Fordhall Community Land FordhallLand Initiative: Farm Ltd: lifetime owns land and public access Rent tenancy facilities
  45. 45. The Earth Trust• Set up as the Northmoor Trust for Countryside Conservation in 1967, with a large endowment from Sir Martin and Audrey Wood• Now own 1,200 acres of farmland, woodland, nature reserves, research plantation and wetland• Also: management of three community meadows, Thrupp Lake at Radley,• 30 staff, 100 regular volunteers• 750 regular supporters• Around 30,000 people each year take part in Trust activities annually
  46. 46. Cultivate
  47. 47. Trusts can link withCommunity Benefit Societies which then run social enterprises
  48. 48. Tablehurst & Plaw Hatch Community Farm• Founded in 1995 following a community-led campaign that raised over £150,000 to purchase the stock and business assets of Tablehurst Farm from Emerson College.• Now 400 members of the IPS, each paying £100 for their share.• The land – 800 acres – is owned by a Trust.• The Trust leases the land to the IPS.• The IPS has 2 subsidiary trading businesses
  49. 49. Tablehurst & Plaw Hatch Community Farm
  50. 50. West Oxford Community Renewables
  51. 51. Investors WOCR £ LCWO Funds Sustainable Living Solar PV Reducing Local energy food bills projects Hydro Low Reducing carbon waste travel Wind Planting SharingFinancial, trees resourcescarbonand socialreturn to Woodinvestors Green energy IPS CHARITY
  52. 52. Helping communities raise localfinance through share issues & loans
  53. 53. £152,775 raised £105,000 raised
  54. 54. REAL FOOD EXETER:Analysis of the share register on closure at 30 September 2010 Amount Subscribed Number of Totals at each Subscribers Subscription Level £100 157 £15,700 £200 47 £9,400 £500 36 £18,000 £1000 21 £21,000 £20,000 2 £40,000
  55. 55. The Community Farm• In November 2010, the Community Farm launched their community share offer inviting members of the public to invest in a 22 acre horticulture operation.• By the end of March 2011, 409 people had invested £126,000 in the Community Farm.• This investment has enabled The Farm to take over the established veg box scheme, organic growing and wholesale business of the Better Food Company.
  56. 56. £1,600,000 raised
  57. 57. Community share societies Post Pre 2009 ShareTrade sector 2009 societie Members capital societies sRenewable energy 59 13 9,642 £17,450,000Community shops 37 9 4,472 £1,103,000Community regeneration 15 9 3,668 £2,086,000Food & farming 23 4 10,430 £1,199,000Consumer co-operatives - 20 £191,275,00 8,553,000 0Pubs and brewing 11 2 1,265 £1,343,000Community finance 3 9 1.837 £2,114,000Community land trusts 10 2 558 £35,000Fair trade 2 1 9,222 £26,151,000Other 16 9 38,367 £7,260,000
  58. 58. Members improve competitive advantageMembers roles How these roles improve competitive advantageInvestor Lower cost of capital; greater acceptance of riskCustomer Greater loyalty; accept higher prices & dividendService user Demonstrates support to funders; better feedbackActivist More engagement; better feedback; better targetingVolunteer Lower labour costs; access to specialist skillsSuppliers Greater loyalty; lower input pricesWorkers Greater loyalty; lower input prices; better feedbackDirectors Access to specialist skills; lower input prices
  59. 59. Community Supported Forestry• WCA working with SW Protected Landscapes Forum to explore the potential for community engagement in woodland management.• Would involve elements of the CSA and Care Farming approaches• West Dorset Woodfuel Co-op to be establshed as IPS.• In the long term could be share issue to purchase woodland – Tamar AONB exploring pilot
  60. 60. Local Food: Different forms of support• Sector specific support, e.g. CSA’s• Specialist Enterprise Support• Advice on governance / legal structuresAlso:• Dissemination / sharing learning• Social franchising or licensing• Spin offs
  61. 61. The Making Local Food Work programme Local Shops Farmers’ Markets Home Produced Food Food Co-ops & Buying Groups CSA’s Supply & Distribution CSA’s Consumption Primary Retail/Food Production Processing Distribution Service Enterprise Support Food Mapping Governance & Legal Structures Local Food Systems
  62. 62. In-direct investment via intermediary organisations: the example of Making Local Food Work Plunket: community retail Social SUSTAIN Capital Food co-ops SUSTAIN Food hubs Human Capital Soil Association: Reshaped Reshaped CSA food operations food services Investment: Soil Association: Buying groups Physical Grant from Capital Big Lottery Co-ops UK: Governance FARMA: Natural Farmers’ Markets Capital Country Markets: Country Markets CPRE: Financial Food Webs Capital Making Local Food Work Programme
  63. 63. Other infrastructure support modelsLocality• 423 members in England• Combined income of £325 million - £172 million earned income• £660 million assets• 5,500 staff• 20,000 volunteers
  64. 64. Local communities Citizens & Consumers PrimaryProjects production Processing Distribution Retail &Services Social enterprise activity People People Buildings & equipment AONB Team In Land & natural resourcesLocal authority TRUST Trading income Grant Finance
  65. 65. Local communities Citizens Consumers Investors Primary Projects production Processing Distribution Retail & Services Social enterprise activity People Buildings & equipment Land & natural resourcesGrant Finance Loan Finance Equity Finance
  66. 66. Some conclusions• Trusts can be established as core asset holding vehicle• Can carry out primary purpose trading• Can establish trading subsidiary• Can lease assets to small businesses, coops or social economy organisations• Can explore joint ventures or partnerships, e.g. with a Community Benefit Society that engages the local community as investors, consumers and volunteers
  67. 67. Contact: Tim Crabtreetim.crabtree@wessexca.co.uk www.wessexca.co.uk