Introduction to Social Enterprise

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Jul 17, 2013 - Social Enterprise is a Business. Operated by a Non-‐Profit 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