The following slide presentation is from the Spring The following slide presentation is from the Spring 2011 series of “ 2011 series of “ Introduction to Social Enterprise Introduction to Social Enterprise ” ” workshops by Enterprising Non-Profits ( workshops by Enterprising Non-Profits ( enp enp ). ). Enp Enp offers these workshops throughout British Columbia offers these workshops throughout British Columbia (Canada) every spring and fall. (Canada) every spring and fall. The workshop presentation defines social The workshop presentation defines social enterprise, provides examples of social enterprises enterprise, provides examples of social enterprises in British Columbia, describes the business in British Columbia, describes the business development path, and explains development path, and explains enp’ enp’ s granting s granting program and grant application process. program and grant application process. For more information on For more information on enp enp , go to , go to www.enterprisingnonprofits.ca Or e-mail: Or e-mail: [email protected]
The following slide presentation is from the Spring 2011 series of “Introduction to Social Enterprise” workshops by Enterprising Non-Profits (enp). Enp offers these workshops throughout British Columbia (Canada) every spring and fall.
The workshop presentation defines social enterprise, provides examples of social enterprises in British Columbia, describes the business development path, and explains enp’s granting program and grant application process.
For more information on enp, go to www.enterprisingnonprofits.ca
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The following slide presentation is from the Spring 2011 series The following slide presentation is from the Spring 2011 series of “of “Introduction to Social EnterpriseIntroduction to Social Enterprise” workshops by ” workshops by
Enterprising Non-Profits (Enterprising Non-Profits (enpenp). ). EnpEnp offers these workshops offers these workshops throughout British Columbia (Canada) every spring and fall.throughout British Columbia (Canada) every spring and fall.
The workshop presentation defines social enterprise, provides The workshop presentation defines social enterprise, provides examples of social enterprises in British Columbia, describes examples of social enterprises in British Columbia, describes the business development path, and explains the business development path, and explains enp’enp’s granting s granting
program and grant application process.program and grant application process.
For more information on For more information on enpenp, go to , go to www.enterprisingnonprofits.ca
• Enhance our knowledge of social enterpriseEnhance our knowledge of social enterprise
• Definitions and Common LanguageDefinitions and Common Language
• Development PathDevelopment Path
•Access Access enpenp resources, supports and grants resources, supports and grants
AgendaAgenda
• What and Why of Social EnterpriseWhat and Why of Social Enterprise
• Measuring SuccessMeasuring Success
• Social Enterprise Development PathSocial Enterprise Development Path
• EnpEnp Resources & Funding Resources & Funding
Healthy Communities Have Healthy Communities Have Multiple “Capitals”Multiple “Capitals”
Economic Diversity &
Revitalization Social Capital
Employment Opportunities
Environmental Capital
Cultural Capital
Economic Capital
Social Enterprise is Social Enterprise is another tool to help build another tool to help build
strong non-profits and strong non-profits and healthy communitieshealthy communities
What is Social Enterprise?What is Social Enterprise?
A business operated by a non-profit… A business operated by a non-profit…
that is:that is:• directly involved in the production and/or selling of directly involved in the production and/or selling of
goods and services to customersgoods and services to customers
For the dual purpose ofFor the dual purpose of • generating income from sales generating income from sales andand • achieving social, cultural or environmental aimsachieving social, cultural or environmental aims
Social Enterprise Seeks Social Enterprise Seeks a Blended Return on a Blended Return on
InvestmentInvestment
Financial Return on
Investment
Social Return on Investment
Blended Value Return on
Investment
Return on Investment
For Profit / Private OwnershipFor Profit / Private Ownership
Blended Blended Return on Return on InvestmentInvestment
Business Model ContinuumBusiness Model Continuum
DonationsDonations Corporate Corporate
Social Social ResponsibilityResponsibility
Social Social EnterpriseEnterprise
Strictly Strictly Seeks Seeks ProfitProfit
Socially Socially Responsible Responsible
BusinessBusiness
Fee for Fee for ServicesServices
Not-for-Profit OwnershipNot-for-Profit Ownership
Non-Profit ContinuumNon-Profit Continuum
-------- Social Enterprise Models ---------------- Social Enterprise Models ---------- Traditional Models ---- Traditional Models --
ProgramProgramCharityCharity
SUBSIDIZEDSUBSIDIZED
Supported Supported in part with in part with other fundsother funds
SELF-SELF-SUSTAININSUSTAININ
GGSupports Supports
itself from itself from sales incomesales income
PROFITABLEPROFITABLE
Income Income exceeds exceeds
expensesexpenses
Fee for Fee for ServiceService
Why a Non-Profit Starts a Social Enterprise
• Fill a community need in the Fill a community need in the marketmarket
• Advance their Advance their missionmission
• OrganizationOrganization’’s s financial sustainabilityfinancial sustainability
• • Financial performance of the enterpriseFinancial performance of the enterprise• • What inputs are needed to derive what What inputs are needed to derive what social benefits?social benefits?• • What costs are associated with the social What costs are associated with the social mission?mission?• • What are pure business costs?What are pure business costs?
Organizational LevelOrganizational Level
What impact does the SE have on parent What impact does the SE have on parent organization’s capacity and sustainability? organization’s capacity and sustainability?
• Skills and StaffSkills and Staff• CommunicationsCommunications• Systems and ProcessesSystems and Processes• Management Capacity (board / staff)Management Capacity (board / staff)
Performance Assessment Compares Performance Assessment Compares Progress Towards GoalsProgress Towards Goals
Tells your storyTells your story Communicates the value createdCommunicates the value created Creates a platform to engage stakeholdersCreates a platform to engage stakeholders A tool for business managementA tool for business management
• Clear and Shared MissionClear and Shared Mission• Strategic Planning & EvaluationStrategic Planning & Evaluation• Financial Systems Financial Systems • PersonnelPersonnel• Learning OrganizationLearning Organization
Social Enterprise ReadinessSocial Enterprise Readiness
• Understand the ConceptUnderstand the Concept• Stakeholder Buy-inStakeholder Buy-in• Resources Available and CommittedResources Available and Committed
Are We Ready?Are We Ready?
Business ReadinessBusiness Readiness
• Business ExperienceBusiness Experience• Staff ChampionStaff Champion• Financial & Informational SystemsFinancial & Informational Systems• Capital Plan for LaunchCapital Plan for Launch• Human and other ResourcesHuman and other Resources
Are We Ready?Are We Ready?
Organizational Cultural ShiftOrganizational Cultural Shift
Risk AnalysisRisk AnalysisBecoming an “entrepreneurial” organizationBecoming an “entrepreneurial” organization
• Profit vs. GrantsProfit vs. Grants• Programs vs. Sales GoalsPrograms vs. Sales Goals• Customers and ProductsCustomers and Products
Assessing blend of business, mission, organizationAssessing blend of business, mission, organization
Canadian Social Enterprise Guide Canadian Social Enterprise Guide
(This is an exercise participants do in the workshop. A free PDF copy (This is an exercise participants do in the workshop. A free PDF copy of the Canadian Social Enterprise Guide can be found at of the Canadian Social Enterprise Guide can be found at
Business Idea and Concept Business Idea and Concept
• Who are we?Who are we?
• What do we do well?What do we do well?
• Is there a market opportunity that matches?Is there a market opportunity that matches?
Testing Enterprise IdeasTesting Enterprise Ideas
• Is the Business Concept Viable?Is the Business Concept Viable?
• What is the Potential Mission Impact for What is the Potential Mission Impact for the Enterprise?the Enterprise?
• What is the Contribution to the What is the Contribution to the Organization?Organization?
Strength
of Idea
High Impact
Low Impact
Fit with Organization
Difficult to Implement
Easy to Implement
STOP
Maybe GO
Maybe
Simple Decision MatrixSimple Decision Matrix
Group ExerciseGroup Exercise
Initial Examination and Initial Examination and Scoring of Business IdeasScoring of Business Ideas
Page 53 in the Page 53 in the
Canadian Social Enterprise Guide Canadian Social Enterprise Guide
(This is an exercise participants do in the workshop. A free PDF copy of the (This is an exercise participants do in the workshop. A free PDF copy of the Canadian Social Enterprise Guide can be found at Canadian Social Enterprise Guide can be found at
Determines the Potential of the Business IdeaDetermines the Potential of the Business Idea• Is it a Viable Business Concept? Is it a Viable Business Concept?
• Will it Meet Defined Mission Objectives? Will it Meet Defined Mission Objectives?
• Will it Contribute to the Organization’s Will it Contribute to the Organization’s Goals and Sustainability?Goals and Sustainability?
The Feasibility StudyThe Feasibility Study
Market Opportunity:Market Opportunity:Competition and CustomersCompetition and Customers
• What is your product?What is your product?
• Who else provides it?Who else provides it?
• Will customers actually purchase Will customers actually purchase youryour product? product?
• How many times and at what price?How many times and at what price?
Operational Capabilities Operational Capabilities
• Can you make it happen?Can you make it happen?
• Current Capacity and What’s Needed?Current Capacity and What’s Needed?
• PeoplePeople
• InfrastructureInfrastructure
• SystemsSystems
Financial PotentialFinancial Potential
• What do the What do the “numbers” “numbers” say?say?Cash FlowCash Flow
Income & ExpensesIncome & ExpensesSocial CostsSocial Costs
Capital ExpensesCapital ExpensesStart Up and Launch Operating CostsStart Up and Launch Operating Costs
• Can you achieve financial sustainability or Can you achieve financial sustainability or profitability goals?profitability goals?
Business Model ContinuumBusiness Model Continuum
Feasibility Analysis Examines Business Model Options: Feasibility Analysis Examines Business Model Options: Start-up Model and Ultimate Goal Start-up Model and Ultimate Goal
-------- Social Enterprise Models ---------------- Social Enterprise Models ---------- Non-Social Enterprise Models ---- Non-Social Enterprise Models --
ProgramProgramCharityCharitySUBSIDIZEDSUBSIDIZED
Supported Supported in part with in part with other fundsother funds
SELF-SELF-SUSTAININGSUSTAINING
Supports Supports itself from itself from
sales incomesales income
PROFITABLEPROFITABLE
Income Income exceeds exceeds
expensesexpenses
Fee for Fee for ServiceService
Strategic AlignmentStrategic Alignment
• What is our “Mission” goal?What is our “Mission” goal?
• Will this enterprise contribute to achieving Will this enterprise contribute to achieving “Mission” goal?“Mission” goal?
• How will we measure impact?How will we measure impact?
Contribution to Organization’s Contribution to Organization’s Strategic GoalsStrategic Goals
• How does this support the organization?How does this support the organization?
• How does it contribute to mission success?How does it contribute to mission success?
• How will it contribute to sustainability?How will it contribute to sustainability?
Based upon Feasibility AnalysisBased upon Feasibility AnalysisGO - NO GO DECISION PointGO - NO GO DECISION Point
Are the investments and risksAre the investments and risks
(financial and mission-related return on investment) (financial and mission-related return on investment)
Group Exercise Group Exercise
Enterprise Development AssessmentEnterprise Development Assessment
Page 60 of the Page 60 of the
Canadian Social Enterprise GuideCanadian Social Enterprise Guide
(This is an exercise participants do in the workshop. A free PDF copy of the (This is an exercise participants do in the workshop. A free PDF copy of the Canadian Social Enterprise Guide can be found at Canadian Social Enterprise Guide can be found at
Purpose of the Business PlanPurpose of the Business Plan
• Converts the feasibility study into an implementation Converts the feasibility study into an implementation planplan
• A roadmap for the business A roadmap for the business • A management tool A management tool • A communications tool A communications tool • A market development toolA market development tool• An investment tool for raising capitalAn investment tool for raising capital• Establishes performance objectives and strategiesEstablishes performance objectives and strategies
Business Plan Key ElementsBusiness Plan Key Elements
Business Plan Key ElementsBusiness Plan Key Elements
Business Description Business Description – Operations PlanOperations Plan– Human Resources PlanHuman Resources Plan– Financial PlanFinancial Plan– Marketing PlanMarketing Plan– Performance Assessment Plan Performance Assessment Plan
Business Plan Key ElementsBusiness Plan Key Elements
Mission ImpactsMission Impacts– Defined ObjectivesDefined Objectives– StrategiesStrategies– MeasurementsMeasurements
Organizational ContributionOrganizational Contribution– Mission Mission – Capacity Building Capacity Building – SustainabilitySustainability
Business Plan Key ElementsBusiness Plan Key Elements
Business Structure OptionsBusiness Structure Options
Non-Profit Non-Profit
Non-Profit with Charitable StatusNon-Profit with Charitable Status
For-Profit with Limited Financial ROI (CIC)For-Profit with Limited Financial ROI (CIC)
PartnershipPartnership
Is it legal for a charity to operate a Is it legal for a charity to operate a social enterprise?social enterprise?
Yes, if ...Yes, if ...• It enhances the charitable missionIt enhances the charitable mission
• Profits are not distributed to people with controlling Profits are not distributed to people with controlling interest in the organization, i.e. board, staff, etc.interest in the organization, i.e. board, staff, etc.
• If Not BOTH of the above, then must be a If Not BOTH of the above, then must be a ““hands hands offoff”” relationship relationship
• ““Destination of Funds” is not an acceptable policyDestination of Funds” is not an acceptable policy
Factors to Consider Factors to Consider When Choosing Legal When Choosing Legal
StructureStructure• Status of the business in respect to CRA policy Status of the business in respect to CRA policy • Primary purpose of business Primary purpose of business
– WhatWhat’’s the s the ““blendblend”” -- profit and social purpose -- profit and social purpose
• Amount of control organization wants to maintainAmount of control organization wants to maintain• Scale of the businessScale of the business• Need to access equity capital Need to access equity capital • Potential sources of capitalPotential sources of capital• Level of risk willing to takeLevel of risk willing to take• Effect on community image and reputationEffect on community image and reputation
Organizational OptionsOrganizational Options
““In-house” Social EnterpriseIn-house” Social Enterprise
Social Enterprise Social Enterprise Within the Within the
Financing Social Enterprise Financing Social Enterprise
Group ExerciseGroup ExerciseWriting A Thrift Store Business PlanWriting A Thrift Store Business Plan
Group 1) The Store Employs Persons with DisabilitiesGroup 1) The Store Employs Persons with Disabilities
Group 2) The Store Earns a Profit to Fund the Parent OrganizationGroup 2) The Store Earns a Profit to Fund the Parent Organization
Group 3) The Store Provides Employment Training for New Group 3) The Store Provides Employment Training for New ImmigrantsImmigrants
Group 4) The Store Sells Affordable Clothing and Household Goods Group 4) The Store Sells Affordable Clothing and Household Goods for Low-income Familiesfor Low-income Families
(This is an exercise in the workshop where participants get in four different groups and (This is an exercise in the workshop where participants get in four different groups and discuss business plan ideas for their particular kind of store. The location, pricing, discuss business plan ideas for their particular kind of store. The location, pricing, staffing, store aesthetics, marketing, organizational structure and product sourcing are staffing, store aesthetics, marketing, organizational structure and product sourcing are some of the things that will likely differ depending on the objectives of the social some of the things that will likely differ depending on the objectives of the social enterprise).enterprise).
• Market research and feasibility studyMarket research and feasibility study
• Study tours of similar businesses Study tours of similar businesses
• Business plan preparationBusiness plan preparation
• Marketing plan and communications strategyMarketing plan and communications strategy
• Expansion planningExpansion planning
Examples of ActivitiesExamples of Activities
Funds for Planning and Development ProcessFunds for Planning and Development Process
• Funds to pay for consultant and/or staff Funds to pay for consultant and/or staff • Direct costs of planning activitiesDirect costs of planning activities
• NOTNOT for operations nor for implementation for operations nor for implementation • No funds for overheadNo funds for overhead• Not retroactiveNot retroactive
• Preference for both organizational development and Preference for both organizational development and business planning business planning
Use of Enp FundsUse of Enp Funds
• Provincially or federally incorporated non-profit Provincially or federally incorporated non-profit based in British Columbiabased in British Columbia
• Qualified recipient under CRA regulations: Qualified recipient under CRA regulations: registered charity, First Nations government, registered charity, First Nations government, municipalitymunicipality
• Charitable sponsor required if the applicant is not a Charitable sponsor required if the applicant is not a qualified recipient under CRA regulatiqualified recipient under CRA regulations
Basic EligibilityBasic Eligibility
Matching FundsMatching Funds
EnpEnp accepts cash or in-kind matching funds accepts cash or in-kind matching funds
• Matching funds must be directly related to the project for which you are applyingMatching funds must be directly related to the project for which you are applying
• In-kind related to direct costs of business planning and organizational development (not operating expenses)In-kind related to direct costs of business planning and organizational development (not operating expenses)
• If staff time considered in-kind, demonstrate staff person will have designated time to conduct planning work (not just off side of desk)If staff time considered in-kind, demonstrate staff person will have designated time to conduct planning work (not just off side of desk)
The The enpenp funding partners review and approve grants, funding partners review and approve grants, and may offer you:and may offer you:
• Organizational or Enterprise Assessment Organizational or Enterprise Assessment WorkshopWorkshop
• Telephone or On-site ConsultationTelephone or On-site Consultation
• Partial grant for less activityPartial grant for less activity
• Fully funded grant as requestedFully funded grant as requested
Application Decision ProcessApplication Decision Process
• Proposal review process about 6 to 8 weeksProposal review process about 6 to 8 weeks
• Letter of offer of grant purpose and amount and Letter of offer of grant purpose and amount and
then a cheque for the amount granted then a cheque for the amount granted
• Offer of supports other than grantOffer of supports other than grant
• Nine months to complete projectNine months to complete project
– Must submit planning project ‘product’ Must submit planning project ‘product’ – Final reportFinal report
Application Decision ProcessApplication Decision Process
Grant Applications are due Grant Applications are due 4pm4pm
May 26, 2011May 26, 2011
If you do not submit an application in this If you do not submit an application in this cycle, you may apply in a later cycle.cycle, you may apply in a later cycle.
Next deadline will be Fall 2011Next deadline will be Fall 2011 Every six monthsEvery six months
Enp Support and Funding Enp Support and Funding
Technical Assistance Along the Enterprise Technical Assistance Along the Enterprise Development PathDevelopment Path
Next Grant Application Deadlines:Next Grant Application Deadlines: