Jul 17, 2013 - Social Enterprise is a Business. Operated by a Non-âProfit Organiza on. ... Disabilities. Succession. P
Introduction to Social Enterprise Part One of a Three Part Webinar Series July 17, 2013
Webinar Series Agenda
Today: The What, Why & How of Social Enterprise Part Two: July 24, 2013 An Interview with three employment focused Social Enterprises
Part Three: July 31, 2013 Resources and Supports for Social Enterprise 2
Social Enterprise is a Business Operated by a Non-‐Profit Organiza;on. They generate income through the sales of goods and services AND Create a social, cultural or environmental value…
Every Possible Type of Business Retail
Health Care
g n i p a c s d n a L
Recycle s r e m r Fa s t e k r Ma
Catering
Arts n o i t a e r Rec
es r a h S r Ca
Manufacturing
e c n a n e t Main
A Full Array of Potential Community Impacts Employm ent Health Care
Food ity r u c e S
n o i s s Succe ng i Plann
Training
Culture
Youth Disabilitie s Social n o i s u l c In
Education
Economic Developm ent
Blended Return on Investment Social Return on Investment
Blended Value Return on Investment
Return on Investment
Financial Return on Investment
Business Model Continuum Not-‐for-‐Profit Ownership
Dona%ons
Fee for Service
For Profit / Private Ownership
Socially Social Responsible Enterprise Business Hybrid Models (BC & NS)
Blended Return on Investment
Corporate Social
Responsibility
Strictly Seeks Profit
Non-‐Profit & Social Enterprise Revenue Continuum Traditional Models
Gifts
Donations
Fee for Service
Social Enterprise Models SUBSIDIZED Supported in part with other funds.
SELF-‐ SUSTAINING Supports itself from sales income.
PROFITABLE Income exceeds expenses.
Why start social enterprises… • Fill a community need in the market • Advance social mission • Contribute to financial sustainability
Employment Continuum Social Enterprise Employment Continuum Training Usually a defined term and focused content
Transitional
Varying length, Long Term focused on On-‐going, stable, moving on to Long term employment employment, opportunities education or further training
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Examples: Employment Training
Eva’s Phoenix Print Shop in Toronto HAVE Culinary in Vancouver Affirmative Ventures in Halifax
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Examples: Transitional Employment
Mission Possible in Vancouver BUILD in Winnipeg EMBERS Day Labour
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Examples: Long Term Employment
Cleaning Solution in Vancouver Inner City Renovation in Winnipeg Krackers Katering in Ottawa
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What to Measure in a Social Enterprise…
Measurement Examples:
• Measure immediate outputs, such as people hired • Focus on long-‐term outcomes in the lives of individuals through gains in future income • Aim for both individual outcomes and broader impacts on society such as reduction in poverty rates.
Market or External View of Social Enterprise Price
Quality
Social
Green
Blended Value Mapping Matrix High
High Social & Low $$$
High Social & High $$$
Social Impact Axis
Low
Low Social & Low $$$
Financial ROI Axis
Low Social & High $$$
High
Social Enterprise is not…. Not a Quick & Easy Source of Cash Not a Silver Bullet Won’t Solve Dysfunc;onal Behaviour
Building a Social Enterprise The Development Path What could we do?
Is the non-‐profit ready?
How will it work?
Will it work?
Open the doors
Financing Space Staff Marketing Etc.
What next?
Business Success & Social Impact
Three Key Elements of Non-‐Profit Organizational Readiness Organizational Capacity Culture Governance Social Enterprise C oncept Entrepreneurial From Grants to Sales
Business Readiness Risk Tolerance Business Skills
The Social Enterprise Development Path
Initial Testing of Blended Value Enterprise Ideas • Is the Business Concept Viable? • What is the Potential Mission Impact? • What is the Contribution to the Organization?
It is legal for a “Charity” to operate a social enterprise, if… i-‐ The enterprise enhances the charitable mission; it must be a business directly “related” to charity’s purpose.
ii-‐ Profits are not distributed to people with controlling interest in the organization, i.e. board, staff, etc.
IF NOT BOTH of the above then there must be a “hands off” operating relationship. “Destination of Funds”, that is, just raising money for a charitable purpose, is not acceptable.
The Social Enterprise Development Path
The Feasibility Study for Blended Value Business Determines the Potential of the Business Idea Is it a Viable Business Concept? Is it Aligned with Social Objectives? How will we measure SUCCESS?
Social Enterprise Relationship to Sponsoring Non-‐Profit Organization
Social Enterprise is Within the Organization Example: Coast Landscaping
Single Purpose: The social enterprise is the organization Example: Potluck Café & Catering
Separate Entity For-‐profit subsidiary (wholly or par:ally controlled) Non-‐profit society Coopera:ve, Joint Venture/Partnership
Wholly or Par;ally owned subsidiary Example: A:ra Property Management
The Social Enterprise Development Path
Draft of Business Plan Business Description What We Sell to Whom Marketing & Sales Plan Operations: People / Location / Systems The Financial Projections Integrated with Defined Mission Impacts Our Social Purpose is… What will we do to achieve this goal? What will we measure and how?
Q & A
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Join us for Part Two: July 24, 2013
with three An interview employment focused Social Enterprises www.counselling.net www.enterprisingnonprofits.ca