Introduction to Social Enterprise Part One of a Three Part Webinar Series July 17, 2013

Transcription

1 Introduction to Social Enterprise Part One of a Three Part Webinar Series July 17, 2013

2 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

3 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

4 Every Possible Type of Business Recycle Farmers Markets Health Care Arts Recreation Retail Car Shares Landscaping Catering Manufacturing Maintenance

5 A Full Array of Potential Community Impacts Employment Care Food Health Security Youth Training Culture Succession Planning Social Inclusion Disabilities Education Economic Development

6 Blended Return on Investment Social Return on Investment Blended Value Return on Investment Return on Investment Financial Return on Investment

7 Business Model Continuum Not- for- Profit Ownership For Profit / Private Ownership Dona%ons Fee for Service Social Enterprise Socially Responsible Business Corporate Social Responsibility Strictly Seeks Profit Hybrid Models (BC & NS) Blended Return on Investment

8 Non- Profit & Social Enterprise Revenue Continuum Traditional Models Social Enterprise Models Gifts Donations Fee for Service SUBSIDIZED Supported in part with other funds. SELF- SUSTAINING Supports itself from sales income. PROFITABLE Income exceeds expenses.

9 Why start social enterprises Fill a community need in the market Advance social mission Contribute to financial sustainability

10 Employment Continuum Social Enterprise Employment Continuum Training Usually a defined term and focused content Transitional Varying length, focused on moving on to employment, education or further training Long Term On- going, stable, Long term employment opportunities 10

11 Examples: Employment Training Eva s Phoenix Print Shop in Toronto HAVE Culinary in Vancouver Affirmative Ventures in Halifax 11

12 Examples: Transitional Employment Mission Possible in Vancouver BUILD in Winnipeg EMBERS Day Labour 12

13 Examples: Long Term Employment Cleaning Solution in Vancouver Inner City Renovation in Winnipeg Krackers Katering in Ottawa 13

14 What to Measure in a Social Enterprise

15 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.

16 Market or External View of Social Enterprise Price Quality Social Green

17 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

18 Social Enterprise is not. Not a Quick & Easy Source of Cash Not a Silver Bullet Won t Solve Dysfunc;onal Behaviour

19 Building a Social Enterprise The Development Path What could we do? How will it work? Open the doors What next? Is the non- profit ready? Will it work? Financing Space Staff Marketing Etc. Business Success & Social Impact

20 Three Key Elements of Non- Profit Organizational Readiness Organizational Capacity Culture Governance Social Enterprise Concept Entrepreneurial From Grants to Sales Business Readiness Risk Tolerance Business Skills

21 The Social Enterprise Development Path

22 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?

23 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.

24 The Social Enterprise Development Path

25 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?

26 Social Enterprise Relationship to Sponsoring Non- Profit Organization Social Enterprise is Within the Organization Single Purpose: The social enterprise is the organization Example: Coast Landscaping Example: Potluck Café & Catering

27 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

28 The Social Enterprise Development Path

29 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?

30 Q & A 30

31 Join us for Part Two: July 24, 2013 An interview with three employment focused Social Enterprises