Introduction to social enterprise
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Introduction to social enterprise
- 1. Social Enterprise Session 1 Sarah Stevenson
- 2. Module Aims • to support the learner in identifying what makes constitutes a Social Enterprise and how they differ from other organisations • to facilitate exploration of the learners’ immediate and wider work context in order to promote professional development Objectives By the end of this session you will be able to: • Identify the key attributes of a Social Enterprise • Understand the diverse nature of businesses that operate as Social Enterprise • Contemplate the first steps needed to set up a Social Enterprise
- 3. What is a Social Enterprise? According to the Social Enterprise Coalition, Social Enterprises are… “…businesses trading for social and environmental purposes. Social enterprises are distinctive because their social and/or environmental purpose is absolutely central to what they do - their profits are reinvested to sustain and further their mission for positive change.”
- 4. What is a Social Enterprise? “We have described and keep on describing organisations motivated by social objectives as non- profit organisations. We need to have another description: ‘non-loss ’organisations, because we don’t want to lose money and our objective is to address a particular problem. So we are non-loss businesses with social objectives.” Muhammad Yunus. Founder of the Grameen Bank, Bangladesh
- 5. History of Social Enterprise The Social Enterprise movement first emerged 1840s. In Rochdale, a workers' co-operative was set up to provide high quality affordable food in response to factory conditions that were The Rochdale Society of Equitable considered to be exploitative. Pioneers est 1844 In the UK, in the late 1990s, Social Enterprise started to reappear.
- 6. Characteristics Social Enterprises:- • Operate as commercially run businesses • Aim to make profits • Generate the bulk of their income through sales of goods or services • Use good business practices and principles • Use the majority of their profits to further social or environmental goals • May hold the Social Enterprise Mark
- 7. Key Differences Explicit Social Private sector business primarily focus is on trading; social Aims (Triple enterprises too have a commercial focus but will also have Bottom Line) an explicit social and/or environmental purpose. Funding Social enterprises often have a complex composition of sales income, commercial contracts, service level agreements and grant support. Risk Social enterprises are usually governed by a Board of volunteers, which may mean that they are more risk averse in terms of pursuing business ventures. Scale Start up costs may be much higher because social enterprise usually has to operate on a scale that is large enough to sustain its social commitment from the beginning
- 8. Key Differences Investment Social enterprises may have difficulty gaining access to traditional forms of investment such as loan finance. Leadership / Leaders of social enterprises are usually driven by Entrepreneurship the social potential of the venture and will need to find support for the other areas of the enterprise Stakeholders Social Enterprises usually have a wide range of stakeholders involved in their development, which can mean that there is a wide influence on the development process. Sweat Equity “sweat equity” is invested to grow and build the enterprise ,but the purpose is not financial gain but social
- 9. Who is a Social Enterprise? The Big Issue The Eden project Café Direct Fifteen Divine Chocolate Cooperatives UK Ethical Property Plc Green-works Activity Identify 2 local, 2 national and 2 international Social Enterprises and identify their social purpose
- 10. The Importance of Social Enterprise Current government policy is to encourage the development of Social Enterprise with regards to the delivery of public services in areas such as health, transport and leisure. Voluntary & Community Organisations are being encouraged towards Social Enterprise where appropriate to help reduce their dependency on grant funding Social enterprise achieve social benefits through standard business practice & can help create strong and sustainable communities. Social enterprise is becoming the employer of choice
- 11. Developing a Social Enterprise •Do you know why you are doing this? •Are you looking to sell a product or service to a customer? •Have you identified who that customer is? •Do you know what the market rate is for the product or service? •Have you considered how you will convince the customer to buy from you rather than from your competitors? •Do you know what success will look like?
- 12. References Social Enterprise Coalition - www.socialenterprise.org.uk Social Enterprise Mark - www.socialenterprisemark.org.uk The Big Issue - www.bigissue.com Café Direct - www.cafedirect.co.uk Divine Chocolate - www.divinechocolate.com Ethical Property Plc - www.ethicalproperty.co.uk The Eden Project - www.edenproject.com/ Fifteen - www.fifteen.net Cooperatives UK - www.uk.coop Green-works - www.green-works.co.uk
- 13. This resource was created by the University of Plymouth, Learning from WOeRk project. This project is funded by HEFCE as part of the HEA/JISC OER release programme. This resource is licensed under the terms of the Attribution-Non-Commercial-Share Alike 2.0 UK: England & Wales license (http://creativecommons.org/licenses/by-nc-sa/2.0/uk/). The resource, where specified below, contains other 3rd party materials under their own licenses. The licenses and attributions are outlined below: 1. The name of the University of Plymouth and its logos are unregistered trade marks of the University. The University reserves all rights to these items beyond their inclusion in these CC resources. 2. The JISC logo, the and the logo of the Higher Education Academy are licensed under the terms of the Creative Commons Attribution -non-commercial-No Derivative Works 2.0 UK England & Wales license. All reproductions must comply with the terms of that license. Author Sarah Stevenson Institute University of Plymouth Title Introduction to Social Enterprise Description PowerPoint Presentation Date Created May 2011 Educational Level Level 4 UKOER, LFWOER, UOPCPDLM, Work Based Learning, CPD, Keywords Continuous Professional Development, Social Enterprise Creative Commons License CC-BY-NC-SA ©University of Plymouth, 2010, some rights reserved Back page originally developed by the OER phase 1 C-Change project
Notas del editor
- Welcome to this …… module. These module resources have been developed by Sarah Stevenson from the Plymouth University.
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- Essentially, Social Enterprises are commercial businesses, designed to make profit. The difference occurs with the profit, which is reinvested to meet the social aims of the business. There are many descriptions of Social Enterprises. It is important to understand that a Social Enterprise is not a legal structure
- It is a misconception that Social Enterprise is a relatively new idea. Many long-established organisations qualify as Social Enterprises. Social Enterprise has been frequently found in the financial sector, including Mutuals and Friendly Societies. The Cooperative movement can be considered to be a major player in the field of Social Enterprise after providing benefits to members for many years.
- In February 2010 the Social Enterprise Mark was launched as the brand for social enterprises. It requires a business to meet six defined criteria in order to qualify to receive the Mark. Many commercial businesses would consider themselves to have social objectives. Whether these objectives are central to the organisation determines whether they are indeed a social enterprise or a business with Social Aims
- There are a number of significant differences between social enterprises and private enterprises, in both the way that they are developed and the way in which they continue to develop
- The social enterprise movement is very diverse. In the UK, social enterprises can include:- Community Enterprises Credit unions Trading arms of Charities Employee-owned businesses Development Trusts Social Firms CICs Commercial business with a stated Social Purpose
- There are increasing commercial opportunities for social enterprise where they may become ‘partners of choice’ in order for large organisations, both public and private sector, to demonstrate their social responsibility. Products and services offered by social enterprises may be aimed at markets quite aside from the areas in which they seek to offer social benefit. The products and services themselves may not contribute to achieving the stated social aims, but the profits generated will do so. Social enterprise has on many occasions been able to deliver results in areas of market failure for both public and private sector organisations.
- If you are in a position where you are looking to develop your organisation into a social enterprise or start a new enterprise, there are a number of questions that need to be answered. Other modules in this series will look at a number of other themes that have a bearing on the development of a Social Enterprise, however they are not designed to replace business start-up advice that can be accessed from a number of support organisations. The culture, aspiration, resources, size, capacity and previous experience of your organisation will influence how you develop your social enterprise.
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