A presentation by Amanada Johnston from Social Enterprise NI helping participants understand more about what social enterprise is, what you need to consider if thinking about starting a social enterprise, what support is available and gave some examples of local social enterprises.
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Social enterprise: What is it and what to consider
1.
2. Mission
To be the voice of Social Enterprise across
Northern Ireland, connecting, supporting,
developing and sustaining vibrant businesses to
create social change.
Vision
Social Enterprise is recognised and valued as a
business model through which society profits.
โ
3. Government definition
โข A social enterprise is a business with
primarily social objectives whose surpluses
are principally reinvested for that purpose in
the business or in the community, rather
than being driven by the need to maximise
profit for shareholders and owners.โ
โข A social enterprise is a community
4. However they all have
three things in common
โข Business Focus โ surplus from trading
โข Social Purpose โ local jobs / services
โข Social Ownership โ not for individual gain
โข Profits are invested back into the business
People Profit Planet
5. The Social Enterprise
umbrella covers
โข Consumer co-operatives (circa 1840s)
โข Housing associations (1900s)
โข Trading arms of charities (1940s)
โข Credit unions (1960s)
โข Workersโ co-operatives & employee-owned firms (1960s)
โข Community businesses & community enterprises (1970s)
โข Development trusts (1980s)
โข Social firms (1990s)
โข Intermediate labour market projects (1990s)
โข Social businesses (1990s)
Dates in brackets indicate when this type of enterprise first started In the UK
Did you know?
The 6th most popular coffee brand in the UK is owned by CafรฉDirect
The Co-operative is Britainโs biggest farmer with 85,000 acres of land
7. โข DETI mapping estimates in the region of 470 Social Enterprise
across NI. (Pwc 2012)
โข Social Enterprises make up 12% of the Third Sector and contribute
49% of the sectors turnover.
โข Social Enterprises employ 40% of those working in the third sector
some 12,200 people and 13,400 volunteers
โข 68% of Social Enterprises reported a profit/surplus in 2010/11,
compared to 54% of C&V organisations
โข 77% were planning expansion
โขHighest density of SEโs emerging in Belfast and
Derry/Londonderry
Northern Ireland
8. โWe already know of the work of social enterprises, charities,
community and voluntary organisations in partnering with the
public sector to provide services.
They do exceptional work to a very high standard and
frequently cost far less than similar but less effective services
provided by the public sector. They are a growing part of our
economy and are dealing with social issues in ways in which
government simply is not able to.
โIt is my firm belief that it is time we examined how we could
make even greater and better use of this sector in supporting
us in government to achieve the outcomes we have agreed are
necessary for Northern Ireland.
Minister for Finance Simon Hamilton
Political will
9. Councils role in
making it work locally
๏ผ Senior level buy-in and activity linked to local policy and
strategy
๏ผ Creating opportunity through commission and
procurement
๏ผ Encourage and supply chains
๏ผ Lead in innovative approaches to problems
๏ผ Consult and broker relationships with SE
๏ผ Meet and Greets with all Super Councils
10. How do they
differ from
Charities?
Charities and SEโs have a lot in common
โข Independent from Government, not answerable to
shareholders or investors
โข Both aim to create social value
However
Social Enterprises take a
โข Business approach โ focus on earning income from sales not grants
โข Legal structures โ Non Charities have more flexibility and different
options of ownership, entrepreneurial leadership, and ability to access
finance.
โข Unrestricted Income
11. Legal Structures
There are many legal structures and selecting the right one
is important. It will define how you do business, who is
involved and what you with your profits.
Frequently used legal structures include
โข Company Ltd by Guarantee
โข Community Interest Companies
โข Co-operative models
12. How many legal
structures
are there?In Principleโฆ..
โข Sole Trader or self employed
โข A partnership
โข A limited Liability Company โ share and guarantee
โข Franchises
โข A limited liability partnership
โข A Co-operative (Industrial and provident society)
โข A Community Interest Company
13. Challenges for
Community
Groups
โข Concept of profit a Non profit Atmosphere
โข The Absence of Business Skills and
Knowledge
โข Behaving Like a Business
โข Maintaining Competitiveness
โข Attracting the right social entrepreneurs
โข Leveraging social finance โ share capital
14. 3 Essentials
โข Have a clear and researched business
model
โข Be clear what your social aims are
โข Make a profit and use it to further
your social aims
15. Top Tips
โข Donโt rely on grant alone to sustain you โ don't put
all your eggs in one basket
โข Innovate around new income streams
โข Increase revenue
โข Reduce costs
โข Don't trade on being a SE, trade on quality and
community good
โข Market what you do with profits
โข Show the social good
16. Social Value in Public Expenditure
What do we mean by Social value?
Social Value is about maximising the
the impact of public expenditure to get
the best possible outcomes
Social Value measures more than just
Financial transactions and direct
purchasing or goods and services
It includes additional benefit to
communitiesโฆ
โข Health
โข Happiness
โข Wellbeing
โข Inclusion
โข Empowerment
17. If ยฃ1 is spent on the delivery of goods,
services and outcomes, can that same ยฃ1 also
be used at the same time, to also produce a
wider benefit?
Social Value asks the question:
18. โInstead of paying for failure, which is
what we have been doing sometimes,
we'd start to pay for success.
We construct contracts in such a way that
the company or charity or social
enterprise who are delivering for you only
get paid when they hit certain measured
outcomes," Simon Hamilton.
Social Value and
Payment by results
19. โข Grants
โข Service Level Agreementโs
โข Procurement
โข Investment
Income Streams
20. Grants
โข Given to a charity/ social enterprise / for a specific project or
purpose.
โข You wonโt need to pay a grant back, but thereโs a lot of
competition and funding can be very restricting and at times
make it difficult to meet your social purpose.
Service Level Agreement
โข A service level agreement (SLA) is a contract between
a service provider and the Customer (i.e Health Trust, Council
etc) that defines the level of service expected from
the service provider.
โข SLAs are output-based in that their purpose is specifically
to define what the customer will receive.
Income Streams
21. eTendering is the use of secure, web-based collaborative tools by buyers ands suppliers to
conduct the tendering process online
https://e-sourcingni.bravosolution.co.uk
Govโt Procurement / eTendering
22. โข Improved efficiency (faster response/evaluation and reduced
timescales)
โข Reduce tendering costs (no ccourier / printing costs)
โข Compliance with EU procedures and procurement best
practice
โข Improve tendering visibility and governance (access 24/7)
โข Robust audit trails and reporting
โข Supplier profiling and response prepopulation
Key Benefits of
eTendering
23. โข Local Banks โ in particular Ulster Bank are
very keen to support Social Enterprises and
and recently ran an Investment Readiness
Workshop
โข Charity Bank - http://www.charitybank.org
โข UCIT - http://www.ucitltd.com/ni-home.html
Investment
24. How the
successful ones
do itโข Highly Entrepreneurial, Innovative and Responsive
โข High-quality care at affordable prices and generating
economic and social benefits
โข They are rooted in local communities
โข Local services responding to local need e.g. shift patterns
โข Able to act quickly when they see a problem
โข Create jobs in local communities
โข Don't DO IT to the communities, DO IT WITH
25. Where to get
support
โข Social Enterprise Hubs โ 11 hubs across NI
โข Unltd if you are a social entrepreneur
โข Local Super Councils
โข Local Enterprise Agencies
โข Rural Development Programme