A presentation delivered by Ian Baker, Head of Learning at the School for Social Entrepreneurs, introducing charities to social enterprise, trading and sustainable funding models.

1. Sustainable Funding Models:
Trading and Social Enterprise
Ian Baker, Head of Learning, SSE

2. About SSE
Founded in 1997 by Lord Michael Young.
We work with start up social entrepreneurs and
organisational leads …
• Individuals with an idea for a new organisation
that will tackle a deep rooted social problem.
• AND individuals leading projects or
organisations in the private sector, public sector
or the non-profit sector.
" Everybody has the capacity to be remarkable"

3. Courses we run
‘Funded’ programmes
• Fellowship startup course
• Lloyds Bank Social
Entrepreneurs Programme
One day workshops
• Unlocking Social Investment
• Sources of Funding
• Writing Successful Bids
• Kickstart your Social Media
Strategy
• Introduction to Legal Structures
• Working with Corporates
• From Asking to Earning
• Crowdfunding
• Marketing
Two day workshops
• Leadership Development
• Measuring Social Impact
Specialist courses
• Transition to Trading
• Replication and Social
Franchising
• Action Learning Facilitator
Training

4. Who we work with

5. What is social enterprise?
“Social enterprises are businesses that trade to tackle social
problems, improve communities, people’s life chances, or the
environment. They make their money from selling goods and
services in the open market, but they reinvest their profits back into
the business or the local community. And so when they profit,
society profits”.
SOCIAL ENTERPRISES SHOULD:
• Have a clear social and/or environmental mission set out in their
governing documents
• Generate the majority of their income through trade
• Reinvest the majority of their profits
• Be autonomous of state
• Be majority controlled in the interests of the social mission
• Be accountable and transparent
Source: SEUK

6. State of social enterprise (2013)
• 2m people engaged in entrepreneurship for social or
community purposes & 238,000 trying to start a social
venture
• 72,000 social enterprises (164,097 charities & 1.2m SMEs)
• >2 Million staff employed
• 39% based in deprived areas
• 59% grew last year compared to 28% of SME’s
• 57% predict growth next year
• 38% led by women
• 75% actively involve beneficiaries in governance
Source: SEUK

7. The income spectrum

8. Trading: Buying & selling in the open market for
profit
Opportunities Risks
• Can generate
unrestricted income
• Needs a good
idea (to compete in
market)
• Potentially provide
long-term viable
funding
• Can take time to
a profit (might
make a loss)
• Can unleash
to meet customer
needs
• Existing people
not have the
skills/mindset
• Customers, not
funders, determine
service provision
• It might fail

9. Who do charities trade with?
Earned income by source, 2000/01 to 2011/12 (£ billions,
2011/12 prices)
Source = NCVO 2014 Almanac

10. Some tips…
• Develop services that customers need
• Market research:
o go and talk to customers
o people who interact with customers day-to-day
know them best
o get potential customers involved/bought in at
design stage
• Pilot – soft launch – you learn 10 x as much than
planning in the abstract (doesn’t have to be perfect)
• Pricing – you might need to price low (or discount) to
get a foothold
• Know your numbers – will it make a contribution to
your overheads?

11. The Ansoff Matrix
Market Development
• Promoting your existing products
in new markets e.g. different
geographical areas or new client
groups
Diversification
• Developing a new product in a
new market
Product Development
• Developing a new product or
adapting an existing one for your
current market
Market Penetration
• Improving or expanding your
existing product(s) in your existing
market(s)
Existing product New product
New
Market
Existing
Market
Increasing Product / Offering
Innovation
IncreasingMarketInnovation
Source: NCVO & Social Enterprise Works

12. Learn more on Transition to
Trading
A six-day course at the School for Social Entrepreneurs
covering:
• Legals – what can you trade?
• How to have an entrepreneurs approach to new product
development
• Sales and marketing skills
• Leadership and culture change
• How to influence people
• Enhancing the effectiveness of your staff
https://www.the-sse.org/courses/transition-to-trading/