Social Enterprise

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Social Enterprise

• Factors for Growth

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Is the idea scaleable?

• Not all social enterprises are capable of growth
• Not all social entrepreneurs want to grow
  life style enterprise or very precise
  beneficiary focus - e.g. geographic

Spotting winning commercial businesses is not a
precise science Picking winning social
enterprises has even less track record
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SCALERS
S taffing C ommunications A lliances L obbying E
arnings R eplication S timulating Market Forces
Inter-dependent often merged
P. Bloom A.K. Chatterji Duke University 2006
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Staffing
How well do the skills, knowledge experience
of the people involved in the enterprise fit
with their stated mission activities?
If the staffing needs of the enterprise are
intensive will it need volunteers? How
effective will it be in attracting them?
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Communication
How clear convincing is the social
enterprise's message for change
improvement? How effective will it be in
communicating this message to stakeholders,
beneficiaries/customers? Does this message have
the potential to win the enterprise public
sympathy support?
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Alliances
Has the enterprise identified those
organisations, individuals or groups with which
it can form partnerships, initiate joint action,
or rely on for mutual support?
Has the enterprise a strategy for maintaining
developing its networks?
Whats in it for the partners?
Does it compete with other initiatives?
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Lobbying
How effective will the enterprise be in
persuading Government, local government,
statutory bodies or the private sector to do
what it needs?
Can this translate into a supportive policy
environment or elicit general support? E.g.
Action on healthy school meals translates to
market for locally sourced organic
milk www.freshpasturescic.co.uk
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Earnings
How effective will the enterprise be in
generating revenues to support its mission?
What consideration has been given to sustained
revenue generation beyond start-up?
How reliant will the enterprise be on any one
source of income?
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Replication
Could the enterprise replicate its mission
activities some where else?
How reliant on the lead entrepreneur is the
enterprise?
Is the enterprise proposing a model for growth?
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Stimulating market forces
How effective will the social enterprise be in
using peoples self interest to further its
mission? Reliance on grant funding alone makes
the enterprise vulnerable to shifts in policy
funding criteria
E.g. A Credit Union, offers cheaper than
commercial lending rates whilst providing
socially responsible lending to those without
access to reputable lenders
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Examples
Health care lobby group Turn over 1 billion
p.a. 39 million members - growing In operation 50
years
Community transport Operates in Ryedale N.
Yorks Serves lt 5,000 people Sustainable, not
necessarily growing
Children's fitness activity sessions One
instructor, part time Unsustainable - ceased
trading
Freda Fit
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Scalers
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Scalers
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Scalers
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You decide
Three case studies based on real social
enterprises Growth Survival Failure Be
prepared to discuss the factors that you believe
contribute to your selected outcome
Identify the relevant case study