Social Enterprise

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Social Enterprise
British Library - 16th March 2007
Robin Harris, Project Manager Social Enterprise
London Carmel McConnell, Managing Director
Magic Outcomes
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Objective of the workshop

• Demystify the concept
• Show the dynamism of the movement
• Talk about consortia in public service delivery

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Overview of the social economy

• Collection of organisations between the
  traditional private sector and the public sector
  (some times called Third Sector)

Social Economy
Social Enterprise
Socially Rep.Business
Private Sector
Gov.
Charities
VCOs
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Social economy is important because

• Job creation in new enterprises
• Contributes to efficient competition
• Offers potential for new forms of
  entrepreneurship
• Meets new needs especially of marginalised
  communities
• Favors local participation and voluntary work
• Enhances solidarity and cohesion
• Provides training and employment to disadvantaged
  communities

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What is social enterprise? definition

• Explicit social aim, noted in mission statement
• Percentage of income derived from the sale of
  goods or services
• Profit distribution is limited to activities
  supporting social aim i.e. reinvestment, funding
  of external and internal programmes, or
  profit-sharing (co-operative members)

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Social Enterprise and You
Who is one? Who knows one? Who wants to be
one? Who doesnt want to be one?
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What is social enterprise? Organisational types
in London

• Development Trust
• Co-operative
• Credit Union
• Social Firm
• Intermediate Labour Market
• Trading arm of charities

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What does social enterprise do in London?
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The London Landscape

• Highest level of social entrepreneurial start up
  activity compared to any other UK region
• 8.5 of London residents between 18 and 64 are
  engaged in social entrepreneurship
• All ethnic groupings are more likely than their
  white counterparts to be social entrepreneurs
  (GEM survey)
• Black Africans are 3 times more likely as Whites
  to be social entrepreneurs and Black Caribbeans
  are twice as likely.
• Women more likely to be social entrepreneurs as
  oppose to mainstream entrepreneurs.

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Fifteen
The purpose of Fifteen is to inspire
disadvantaged young people to believe that they
can create for themselves a career in the
restaurant business. Fifteen was set up by the
charity Fifteen Foundation.
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Met_at_lambeth
Met_at_Lambeth is a community focussed social
enterprise consortium created by leading London
training organisation Training for Life and Pulse
Fitness. Visitors to the gym not only benefit
from quality facilities at an affordable price,
but can also access basic IT training on the
first floor. Profits generated from membership
fees are re-invested into Training for Lifes
core operations.
www.metalambeth.com
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Off the Streets and into Work
OSW provides a wide range of training and
employment services for people who are homeless,
or at risk of becoming homeless. Their services
are designed to create a clear yet flexible route
into volunteering, training, education or work. 4
main programmes including Job Centre Plus and
Ready for Skills and Work
www.osw.org.uk
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Magic Outcomes
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Delivering Public Services
Many third sector organisations are already
working very successfully with the public sector
and there are significant areas of public service
delivery where the Government is opening
opportunities for the third sector. It is clear
that we will not tackle the challenges of the
coming years and continue to build the excellent
public services to which we all aspire without
the close involvement of the third
sector Cabinet Office of the Third Sector
March 2006
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Delivering Public Services
E.g. partnerships and grants provided by the
council for community projects
Voluntary andCommunity Sector
Public Bodies
Social Enterprise
Third sector engaged in delivering public services
Voluntary sector engaged in enterprise
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Consortium Building Why?
Many community based organisations face a market
for low cost services but also fierce competition
from the private sector who may have more
capacity to deliver.
A consortium is an association of organisations
formed for a particular purpose or opportunity.
It provides economies of scale, and can form the
basis for financial stability
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Consortium Building Who?
A Childcare Consortium
Playgroup
Child minder
Support Unit
Crèche group
Training provider
Nursery
After school club
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Consortium Building What?
What are the strengths / limitations of the
service? Why are the stakeholders/partners
involved? Are you looking to set up a centralised
service? Are the organisations interested in
creating specialisms? Will there be a quality
standard put in place? Will there be a support
framework? Is there a need for a single
negotiating voice? Will pooling resources improve
the service? Is there a need for marketing and
branding? Is there a need to reduce costs? Can
the groups benefit from economies of scale?
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Consortium Building How?

• Agree the key aims and objectives
• Identify partners
• Create formal agreements and membership rules
• Create policies and procedures
• Elect a management board and director
• Develop a marketing and business plan
• Fill key rolesmarketing, finance, HR and IT
• Create communication and reporting systems
• Create a system to share resources
• Develop slowly!

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What support is available
General Social Enterprise

• Social Enterprise London
• (www.sel.org.uk)
• Community Action Network
• (www.can-online.org.uk)
• Social Enterprise Coalition (www.socialenterprise.
  org.uk)

Consortium Building

• Community Engine
• (www.communityengine.org.uk)

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Magic Outcomes