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Social Enterprises as a mechanism to deliver AONB projects

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by Tim Crabtree.

Non-Exchequer Funding Research Outcomes and Next Steps Workshop - held in Birmingham - 28th March 2012

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Social Enterprises as a mechanism to deliver AONB projects

  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  organisa>on  which  supports  the  development  of  community  and  co-­‐opera>ve  enterprises:• Renewable  energy• Sustainable  food• Affordable  housing• Cultural  sector• Workspace
  3. 3. Wessex  Reinvestment  Trust  group
  4. 4. Wessex  Reinvestment  Trust  groupEstablished  in  2001,  the  group  has  4  separate   structures:
  5. 5. Wessex  Reinvestment  Trust  groupEstablished  in  2001,  the  group  has  4  separate   structures:• Wessex  Reinvestment  Trust,  a  registered  charity.
  6. 6. 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.
  7. 7. 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.
  8. 8. 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.
  9. 9. Examples  of  Wessex  Reinvestment  Trust   group  ac>vi>es  2010  -­‐  2012 Renewable   Workspace  &   Housing Food Energy Community   Wessex  Core   Business  advice  ,  e.g. Assets Company: Business  advice  ,  e.g. The  Real  Food   Business  advice  ,  e.g.Home  Improvement   Store,  Exeter Bridport  Energy   Lending Lyme  Regis   Services  Ltd: The  Community   Zero  carbon  food   Development  Trust Farm,  Bristol produc>on Housing Red  Brick  Building  Somerset,  Devon  &   North  Dorset  Food   Partnership  with   Centre,  Glastonbury Dorset Incubator  &   SW  Protected   Community  Land   Training  Network Landscapes  Forum: Enterprise  St.   Trust  Project Social  Forestry Michael’s,  Bridport Wessex  Community  Assets
  10. 10. What  is  social  enterprise?Social  enterprise  can  be  thought  of  as:• a  par>cular  type  of  organisa.on  (i.e.  a  business   with  a  primary  social  or  environmental  aim,  which   returns  any  surplus  to  the  community  which  it   serves)  or  as:• an  ac.vity  carried  out  alongside  the  exis>ng   programmes  of  community  and  voluntary  sector   organisa>ons  (i.e.  trading  ac>vity  which  either   meets  the  primary  purpose  of  the  organisa>on  or   creates  surpluses  to  fund  services  for  the   community).  
  11. 11. Common  characterisGcs  of  social  enterprise
  12. 12. Maximum  public   Maximum   benefit private  benefit Charity Share  company
  13. 13. Maximum  public   Maximum   benefit private  benefit The  “grey  area”  in  the  middle  of  the  spectrum Charity Share  company
  14. 14. Maximum  public   Maximum   benefit private  benefit The  “grey  area”  in  the  middle  of  the  spectrum Charity Share  company is  where  social  economy  organisaGons   operate
  15. 15. High  social  return High  financial  return ChariGes/vol  orgs Revenue  generaGng  social   Socially   “Trad-­‐ enterprises driven   iGonal”   business business No trading Trading Potentially Breakeven Profitable – Profit Profit revenue revenue & sustainable: – all surplus not distributing maximising grants 50%+ revenue distributed – socially trading from trading driven/ revenue mutual West  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
  16. 16. Is  “social  enterprise”  relevant  to  • AONB’s  have  core  teams  delivering  statutory   du>es  –  conserving  and  enhancing  protected   landscapes.• Most  AONB  teams  have  also  developed  the   capacity  to  secure  addi>onal  resources  and   deliver  projects,  e.g. – Woodland  management – Access  /  recrea>on – Grassland  management
  17. 17. So  –  AONB  teams  already  have  2  key  resources  which  support  delivery  of  
  18. 18. So  –  AONB  teams  already  have  2  key  resources  which  support  delivery  of  People  
  19. 19. So  –  AONB  teams  already  have  2  key   resources  which  support  delivery  of   People  Grant  Finance
  20. 20. So  –  AONB  teams  already  have  2  key   resources  which  support  delivery  of   People   Local   communiGesGrant  Finance
  21. 21. So  –  AONB  teams  already  have  2  key   resources  which  support  delivery  of   People   Local   communiGesGrant  Finance Ci>zens
  22. 22. So  –  AONB  teams  already  have  2  key   resources  which  support  delivery  of   People   Core  funcGons &   Local   projects communiGesGrant  Finance Ci>zens
  23. 23. Some  AONB’s  have  established  (or  are  • To  secure  grant  funding  &  dona>ons  not  available   to  LA-­‐hosted  AONB  teams• To  use  such  funds  to  deliver  addi>onal  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  ac>vity
  24. 24. Possible  way  forward Social   enterprise   acGvity  1 AONB  Team  in   Local   Social   Local   Authority + AONB  Trust + enterprise   acGvity  2 Social   enterprise   acGvity  n
  25. 25. Projects &  Services
  26. 26. Projects &   ServicesAONB  Team
  27. 27. Projects &   ServicesAONB  Team AONB  Trust
  28. 28. Local  communiGes Projects &   ServicesAONB  Team AONB  Trust
  29. 29. Local  communiGes Projects &   Services Social  enterprise  acGvityAONB  Team AONB  Trust
  30. 30. Local  communiGes Projects Direct   &   trading Services Social  enterprise  acGvityAONB  Team AONB  Trust
  31. 31. Local  communiGes Subsidiary Projects Direct   &   trading Services Social  enterprise  acGvityAONB  Team AONB  Trust
  32. 32. Local  communiGes Subsidiary Projects Direct   Lease   &   trading assets Services Social  enterprise  acGvityAONB  Team AONB  Trust
  33. 33. Local  communiGes Subsidiary Projects Direct   Support   Lease   &   trading IPS assets Services Social  enterprise  acGvityAONB  Team AONB  Trust
  34. 34. Local  communiGes Joint   Subsidiary venture Projects Direct   Support   Lease   &   trading IPS assets Services Social  enterprise  acGvityAONB  Team AONB  Trust
  35. 35. Example  of  trust  undertaking  project  delivery  and  primary  purpose  trading West  Dorset  Food  and  Land  Trust – Charity,  established  1998
  36. 36. The  local  food  sector  in  West  Dorset:Mapping  exercise  resul>ng  in  Directory
  37. 37. The  local  food  sector  in  West  Dorset:Mapping  exercise  resul>ng  in  Directory
  38. 38. Asset  based  development• West  Dorset  Food  &  Land  Trust  a  member  of   the  Development  Trusts  Associa>on  (now   Locality)• Assets  can  generate  income  –  e.g.  building   rentals  or  land  tenancies• Decision  to  develop  managed  workspace  –  a   “Local  Food  Centre”
  39. 39. Bridport Centre for Local Food
  40. 40. ChariGes  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
  41. 41. Other  examples  of  Trusts  se[ng  up  
  42. 42. The Isle of Eigg Heritage Trust
  43. 43. Eigg Electric
  44. 44. Lyme  Regis  Development  Trust•St.  Michael’s  Business  Centre•Wessex  secured  £100,000  grant  from  ChangeUp,  provided  £13,000  loan  and  nego>ated  £35,000  Programme  Related  Investment  from  Community  Founda>on  for  Bournemouth,  Dorset  &  Poole
  45. 45. Lyme  Regis  Development  Trust• New  assets: – Youth  café  with  flat – Youth  centre – Monmouth  house  –  flats• Supports  project  ac>vity,  e.g. – Fossil  Fes>val• Developing  proposals  for  £8  million  Field   Studies  Centre  with  Natural  History  Museum
  46. 46. 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.
  47. 47. 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
  48. 48. 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• Food service – Essential Trading
  49. 49. 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.
  50. 50. £1 million raised from community shares
  51. 51. Fordhall   Community   Land Fordhall  Land  IniGaGve:   Farm  Ltd:     life>me   owns  land  and   Rent tenancy public  access   facili>es
  52. 52. 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
  53. 53. Cultivate
  54. 54. Trusts can link withCommunity Benefit Societies which then run social enterprises
  55. 55. Tablehurst  &  Plaw  Hatch  • 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
  56. 56. Tablehurst & Plaw Hatch Community Farm
  57. 57. West Oxford Community Renewables
  58. 58. IPS CHARITY
  59. 59. 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 2 £20,000 £40,000
  60. 60. 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.
  61. 61. £1,600,000 raised
  62. 62. Community share societies
  63. 63. 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
  64. 64. 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
  65. 65. Local  Food:  Different  forms  of  support• Sector  specific  support,  e.g.  CSA’s• Specialist  Enterprise  Support• Advice  on  governance  /  legal   structuresAlso:• Dissemina>on  /  sharing  learning• Social  franchising  or  licensing• Spin  offs
  66. 66. The  Making  Local  Food  Work  programme Local  Shops Farmers’  Markets Home  Produced  Food Food  Co-­‐ops   CSA’s Supply  &  DistribuGon CSA’s ConsumpGon Primary   Retail/Food   ProducGon Processing DistribuGon Service Enterprise  Support Food  Mapping Governance  &  Legal  Structures Local  Food  Systems
  67. 67. In-­‐direct  investment  via  intermediary  organisaGons:  the  example  of  Making  Local  Food  Work Plunket:   community  retail Social   SUSTAIN   Capital Food  co-­‐ops SUSTAIN   Food  hubs Human   Capital Soil  Associa>on:   Reshaped Reshaped CSA Investment: food  opera>ons food  services Soil  Associa>on:   Buying  groups Physical   Grant  from   Capital Big  Lo]ery Co-­‐ops  UK:   Governance FARMA:   Natural Farmers’  Markets Capital Country  Markets:   Country  Markets CPRE:   Financial Food  Webs Capital Making  Local  Food  Work Programme
  68. 68. 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
  69. 69. AONB  Team InLocal  authority
  70. 70. AONB  Team InLocal  authority TRUST
  71. 71. AONB  Team InLocal  authority TRUST
  72. 72. Primary  Projects producGon Processing DistribuGon Retail &  Services Social  enterprise  acGvity AONB  Team InLocal  authority TRUST
  73. 73. Local  communiGes Ci>zens & Consumers Primary  Projects producGon Processing DistribuGon Retail &  Services Social  enterprise  acGvity AONB  Team InLocal  authority TRUST
  74. 74. Local  communiGes Ci>zens & Consumers Primary  Projects producGon Processing DistribuGon Retail &  Services Social  enterprise  acGvity AONB  Team InLocal  authority TRUST
  75. 75. Local  communiGes Ci>zens & Consumers Primary  Projects producGon Processing DistribuGon Retail &  Services Social  enterprise  acGvity People   AONB  Team InLocal  authority TRUST
  76. 76. Local  communiGes Ci>zens & Consumers Primary  Projects producGon Processing DistribuGon Retail &  Services Social  enterprise  acGvity People   People   AONB  Team InLocal  authority TRUST
  77. 77. Local  communiGes Ci>zens & Consumers Primary  Projects producGon Processing DistribuGon Retail &  Services Social  enterprise  acGvity People   People   AONB  Team Land  &  natural  resources InLocal  authority TRUST
  78. 78. Local  communiGes Ci>zens & Consumers Primary  Projects producGon Processing DistribuGon Retail &  Services Social  enterprise  acGvity People   People   Buildings  &  equipment AONB  Team Land  &  natural  resources InLocal  authority TRUST
  79. 79. Local  communiGes Ci>zens & Consumers Primary  Projects producGon Processing DistribuGon Retail &  Services Social  enterprise  acGvity People   People   Buildings  &  equipment AONB  Team Land  &  natural  resources InLocal  authority TRUST
  80. 80. Local  communiGes Ci>zens & Consumers Primary  Projects producGon Processing DistribuGon Retail &  Services Social  enterprise  acGvity People   People   Buildings  &  equipment AONB  Team Land  &  natural  resources InLocal  authority TRUST Trading  income Grant  Finance
  81. 81. Local  Consumers Ci>zens communiGesInvestors Primary   Projects producGon Processing DistribuGon Retail &   Services Social  enterprise  acGvity People   Buildings  &  equipment Land  &  natural  resourcesGrant  Finance Loan  Finance Equity  Finance
  82. 82. 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  organisa>ons• Can  explore  joint  ventures  or  partnerships,  e.g.   with  a  Community  Benefit  Society  that   engages  the  local  community  as  investors,   consumers  and  volunteers
  83. 83. Contact: Tim  Crabtree>m.crabtree@wessexca.co.uk   www.wessexca.co.uk  

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