From Grant Dependence to Independence: Can Social Enterprise Fill - PowerPoint PPT Presentation

From Grant Dependence to Independence: Can Social Enterprise Fill the Gap? A presentation for the Community Learning Conference August 2011 Di Jennings Convenor, CEDNZ Network

Background • Worked in the creative sector; grass roots community development in New Zealand; social enterprise sector in Scotland • My Ah Hah! moment • Currently convening the CEDNZ Network – two successful conferences held 2010/11

Social Enterprise Definition • Social and/or environmental objectives • Trading businesses aspiring to financial independence • Have an asset lock on both trading surplus and assets • Driven by values – both in their mission and business practices Senscot (Social Entrepreneurs Network for Scotland)

Community Economic Development Definition “A sustained and united effort by the whole community to improve their local economy and quality of life by building their capacity…..local people taking responsibility for their economic future” Peter Kenyon ( Bank of I.D.E.A.S. Australia)

Why a Social Enterprise Approach? • Reduced funding pool from grant makers and government • Growing emphasis on self-help, cooperation and mutuality - rather than individualism and competition • Reduced risk of funder capture • Emphasis on ocalism, devolution and place

Why a Social Enterprise Approach? • Assists in achieving financial viability and sustainability • Builds on asset based approach to scarcity (ABCD) • A values based alternative to “business as usual” – economic model based on growth and individual wealth that has lead to political instability and an unsustainable environment

New Zealand Examples • Traditional social enterprises: cooperatives, mutuals, credit unions e.g. Awhi Credit Union, PSIS • Government contracts to community initiatives – community education, anti-violence programmes – Dependence? – Contracting process and social impact? • Social movements : Fair Trade, Maori development (Ngati Whatua)

New Zealand Examples • Social Firms: Employment of marginalised people, e.g. Workforce Industries, Auckland • Faith based : e.g. VisionWest, Glen Eden; Sharat Trust, Glen Innes; • Place based : e.g.Whalewatch, Kaikoura; Ranui Community House • Environment: e.g. Xtreme Waste Raglan, “ Oooby ” local food, Auckland

Elkton Community Education Centre • Social enterprises to help fund community education programs and provide youth employment • The Outpost: cafe and catering enterprise • The Gift Shop: features work from local artists and is staffed by local youth • Weddings in the park - with on sight coordinator • The Native Plant Propagation and Marketing Class; – hands-on plant production – students learn marketing skills and practices – and put them to work to arrange, sign and display plants for sale to the general public

Benefits • Stronger community organisations with enhanced business skills, resilience and potential to increase cash flows, acquire assets and build net worth • Job creation - in particular employment of marginalised people (Social firms) • Increase in socially beneficial products and services provided • Profits utilised for community benefit

Benefits • Cross subsidise earned income from customers with disposable income - to services for disadvantaged people • Local economies strengthened and stabilised thru social enterprise flourishing in low-income communities • Empowerment for community sector, independence, dignity – a hand up not a hand out

A simple recipe “Social enterprise for viability Asset ownership for sustainability”

How to develop as a social enterprise? 1. Identify the organisation’s assets by completing an asset map 2. Analysis the assets to see what is unique, exploitable and developable. 3. Establish organisation’s entrepreneurial edge. Consider culture, people and appetite for risk. 4. Brainstorm income earning opportunities based on the assets and entrepreneurial edge.

How to develop a social enterprise? 5. Prioritise the business opportunities through an initial Idea Testing – Can product/service be clearly described? – Does it fit with organisational values, vision, strategic plan – Does the initiative address a customer need? – Is it a “big” idea -does it have potential to make significant money? 6. If opportunity passes this check, conduct a feasibility study

How to develop a social enterprise? 7. If feasibility plan OK - prepare Business Plan 8. Look for potential business partners and strategic alliances 10. Obtain board approval! 11. Implement business plan and monitor success of the venture

Social Investment Required by Social Enterprises • Early Investment for Research and Development phase • Social loans for early trading and/or scaling up • Capital Development – for building assets

Lessons Learned to date • Combine SE with a community development approach for best outcomes • Build on existing assets (soft and hard) • Separate legal structure? • Careful market analysis is required

More Lessons Learnt • Social Entrepreneur and Manager usually different roles • Don’t get involved in areas where private businesses are the primary providers • Get the gearing right (debt/equity) Caution!

More Lessons Learnt • Its not for everyone! • It takes investment of money and time • It requires rigour and focus • It is not a quick fix!

Community empowerment and hubs/anchors: “A common characteristic of communities which have empowered themselves - is that they have been able to unite under the leadership of one locally owned organisation - which acts as the 'Anchor' for future progress”. Laurence de Marco, Local People Leading, Scotland

A community anchor is: • A building/ space which is community led , owned or controlled • A platform for community development , promoting cohesion while respecting diversity • A focus for services and activities meeting local need • A vehicle for community led enterprise and community owned assets • A bridge between communities and the state which promotes and brings about social change.

Asset Transfer • Transfer of buildings/ land from public sector to community for mutual benefit • Mutualisation – not privatisation! • Asset lock imperative • Best results thru genuine partnering • Local people can make a building viable and relevant to community where Council has failed Check out www.atu.org.uk

Big Picture

NZ Asset Transfer Opportunities

State of the game in NZ • CED National Network established – over 700 supporters • Two significant CED Conferences held 2010/2011 - have raised awareness, inspired and educated • Social enterprise thriving in Maori world • Social Entrepreneurs Fellowship (Vivian Hutchinson) • School for Social Entrepreneurs (Auckland) • Social Enterprise School (Christchurch)

State of the game in NZ • CED National Network established – over 700 supporters • Two significant CED Conferences held 2010/2011 - have raised awareness, inspired and educated • Social enterprise thriving in Maori world • Social Entrepreneurs Fellowship (Vivian Hutchinson) • School for Social Entrepreneurs (Auckland) • Social Enterprise School ( Christchurch)

State of the game in NZ • Many social enterprises at the grass roots – but many don’t know that they are ! • Fast growing interest from community sector • Understanding and common language developing well • “Broad church” movement to date • Next step is to move to a practitioner base and a peer exchange programme

State of the game in NZ • Local CED networks emerging • Need research and case studies carried out in NZ context • Some interest from philanthropics and local government (variable)

State of the game in NZ • Minimal interest from central government (mainly OCVS to date) • Importance of “intrapreneurs” – our advocates in the system • Lack of resources for infrastructure to grow the sector • Adversity breeds innovation?

Be willing to do things differently… “The future is not a result of choices among alternative paths offered by the present, but a place that is created ... created first in the mind and will, created next in activity. The future is not some place we are going to, but one we are creating. The paths are not to be found, but made... and the activity of making them, changes both the maker and the destination.” John Schaar on change quoted by Colin Campbell from Assist Social Capital

Questions For more information go to www.ced.org.nz