Social Enterprise Creating Social Change

Social Enterprise Creating Social Change

The term Social Enterprise describes an ethical framework rather than an industrial classification such as manufacturing, so there are

social enterprises operating in the fields of health, retail, energy, leisure, construction, ICT, sport and many others, alongside private

and public sector organisations.

An Evolving Movement

1844: As a result of exploitative factory owners and shopkeepers who charged extortionate prices, 28 working men in Rochdale scraped together £28 to open their own shop – so heralding the beginning of the modern co-op movement.

1980s: ‘Community development’ became well established with a range of government grants and initiatives.

1990s: ‘Social Enterprise’ had become familiar in the UK. This signalled the shift from grant dependency to income generation. In October 2001 the government launched the Social Enterprise Unit to champion social enterprise.

2010: Big Society?

Legal Structure Overlay (additional characteristic to basic legal structure)

Badge

Company Ltd by Guarantee

Company Ltd by Shares

Industrial and Provident Society

Cooperative Company Ltd by Guarantee

Charitable Incorporated Organisation)

Charity

Community Interest Company (CIC)

Social Enterprise

Social Firm

Development Trust

Form Follows Function

Legal Structures as Vehicles for Delivery

IPS for Community Share Issues

•Settle Hydro

•George and Dragon Hudswell

Company Limited by Shares for Commercial Joint Venture or raising capital

•Café Direct

•Divine Chocolate

Company Limited by Guarantee for Trading Subsidiary

•Darnall Post Office

•The Quadrant

Whatever the theme or formal legal structure they take social enterprises are bound by common principles:

•Social mission is interwoven in the fabric of the business rather than being an add-on. For example his may manifest itself in a fair trade relationship or the provision of important services not otherwise available or job creation.

•Social ownership and interest should drive the business model rather than simply profitability for private shareholders. There are some legal models that allow private shareholding, but dividends and returns are capped to ensure the community benefit remains dominant over private profit.

•

•National Policy Framework

The Community Right to Bid aims to keep valued land and buildings in community use by giving local people the chance to bid to buy them, if and when they come onto the market.

•The Right to Challenge enables communities to challenge to take over local services that they think they can run differently and better and

•The Community Right to Build is a new way for communities to choose for themselves where and when to build homes, shops, facilities and businesses – putting power back into the hands of local people.

National Policy Framework

• The Public Services (Social Value Act) introduced in February 2012 now requires public bodies to consider how the services they commission and procure might improve the economic, social and environmental wellbeing of the area.

• The Big Venture Challenge supports “ambitious social entrepreneurs with access to finance, business support and powerful connections to help them scale their ventures.”The challenge is a 12 month programme designed to help organisations raise external investment (debt or equity) of between £50,000 to £250,000.

 • The Nesta Impact Fund aims to support the development of the impact investment market. It

concentrates on “high potential early stage social innovations” that address major social needs and produce positive social outcomes and can be scaled up or possibly replicated.

Zest

Is a social enterprise based in an inner city neighbourhood in Sheffield. They deliver public services and have a key role in local economic development. Our main areas of delivery are:

• The One Stop Shop for Employment, Training and Enterprise• The Zest Healthy Living Centre; comprising a public library, swimming pool, gym,

café, offices and meeting spaces.

• Zest turns over around £4 million this year and employs 80 staff.

Motivation

Whole household needs approach for local people

Ownership

Company Limited by Guarantee and charity with local membership

Impact

Job creation, health improvement, sports development, protecting local services

Future

More of the same

Case Studies1

SOAR BuildSOAR Build is one of a series of initiatives managed by SOAR Enterprises, a commercial joint venture between community regeneration experts Keepmoat Ltd and the Southey and Owlerton Area Regeneration Partnership. SOAR Build focuses on raising construction skill levels and increasing the future employability of excluded groups across the city of Sheffield.

MotivationEmployment, local control, income, qualityOwnershipShare capital private/social joint ventureImpactJobs Created, input to HMR, links to private sectorFutureLink to mainstream employment programmes, geographic expansion

Case Studies 2Bay Broadband

The Bay Broadband Co-operative is a 'not for profit' Social Enterprise Co-operative, set up originally to bring High Speed Broadband to a rural village which had no other means of Broadband connection.

MotivationInternet access for the villageOwnershipMutually owned by local peopleImpactCheap broadband, real connectivity, reinvestmentFutureRegional network, sell model on, invest in new services

Hot TopicsCommunity Share Issue – creating new finance for social change

Hydro Electricity Torrs Hydro, DerbyshirePubs George and DragonFarms Fordhall, Shropshire

Cooperatives - mutual action

Telecommunications The Phone CoopSport FC United of ManchesterRetail Coop StoresFinance Yorkshire Building Society

Hot TopicsSocial Investment

The Key FundCharity Bank

Social Investment Business

Unity Trust BankTriodos Bank

Big Society Capital