CASE STUDY: SOCIAL ENTERPRISES

1
CASE STUDY SOCIAL ENTERPRISES

• Presenter John Perry
• General Manager

2
About BoysTown

• BoysTown is a social enterprise which operates as
  a not-for-profit public company, limited by
  guarantee. First established 1961, then public
  company from 2003. Currently employs 500 staff
  across Qld, NSW, SA and WA.
• BoysTown delivers services and programs which
  enable marginalised young people at risk of
  social exclusion to improve their quality of
  life.
• BoysTown income derived from self generated funds
  from Lotteries, corporate fundraising and
  State/Federal government contracts for delivery
  of programs and services. In 2008-9 revenue
  62.9 M expenditure 63.5 M.

3
BoysTown Enterprises

• Various enterprises within BoysTown - BoysTown
  Lotteries, Kids Helpline and BoysTown Employment,
  Education and Training (BEET).
• BEET established various intermediate labour
  market enterprises (ILMEs) which provide highly
  disadvantaged unemployed people who are not yet
  ready for work with paid employment and
  on-the-job training to help prepare them for
  labour market.
• ILMEs now a key component of successful regional
  labour market intervention strategies in the UK
  and Europe aimed at helping socially excluded
  people to re-engage with the labour market.

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Features of BoysTown ILMEs

• Types of enterprises property and asset
  maintenance horticulture (parks and gardens),
  graffiti removal, construction (housing
  refurbishment, fencing and commercial building)
  and kitchen manufacturing. All are labour
  intensive.
• Target group Young people aged 15-24 who are at
  high risk of social exclusion. Particular focus
  on Indigenous, Pacific Islander and other young
  people from CALD backgrounds and on young people
  in remote Indigenous communities.
• Location Established in areas characterised by
  high levels of intergenerational unemployment,
  poverty, early school leaving, crime and
  anti-social behaviour.

5
History

• First BoysTown ILME started in Jan 2000 with 1
  trades supervisor and 4 young enterprise
  employees. Turned over 88,000 within the first
  six months. Received seed funding from federal
  govt to establish enterprises in Qld.
• Growth phase (2000-5) - construction-based
  contracts from Qld Departments of Housing and
  Works and parks/gardens maintenance with public
  authorities.
• Interstate expansion (2006-8 )- received 100,000
  from Westpac Foundation to establish enterprise
  in Sydney 600,000 from federal govt to set up
  in Northern Adelaide
• Remote community (2008) received Federal and
  State funding to establish enterprises in remote
  Indigenous communities in the East Kimberley.

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Current position - BoysTown ILMEs

• 2008-9 ILME revenue 5.64 million
• ILME expenditure 5.44 million
• 2009 Received ¾ million in federal funding to
  establish graffiti removal enterprise in Ipswich
  Qld and property and asset maintenance
  enterprise in Western Sydney with Marist Youth
  Care (MYC).
• MYC also received 1.7 million to construct
  residences for young homeless people MYC to
  project manage BoysTown ILME to construct.
• In 2009-10, BoysTown will be operating ILMEs
  across four states, turning over 6.6 million in
  urban/regional areas and 1.1 million in remote
  Australia and providing employment for over 250
  young people during the year.

7
ILME funding

• Currently funded through mainstream contracts
  with government and other organisations.
• Support services for young people in EET programs
  funded through federal/state labour market
  programs and government grants, with BoysTown
  allocating 1.6 million to support the operation
  of employment, education and training services.
• Capacity to attract funding because of focus on
  highly visible projects which directly benefit
  both the young people and their local community.

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How the ILMEs work

• BoysTown has own national enterprise agreement
  which covers industrial aspects and terms and
  conditions of enterprise employees. BoysTown
  holds open builders licenses in Qld, NSW, SA and
  WA.
• BoysTown has MOUs with relevant state departments
  in Qld and SA and contracts for service delivery
  in Qld, NSW, SA and WA. Also have
  agreements/contract with local government
  authorities in Logan, Ipswich and Northern
  Adelaide and with other not-for-profit
  organisations, e.g. Marist Youth Care in Sydney.
• BoysTown ILMEs have capacity to employ 120 young
  people at any one time. 27 are apprentices and
  trainees and the remainder work in a range of
  other occupational areas.

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Benefits outcomes

• Personal development - Part of an holistic case
  management approach which includes
  literacy/numeracy training, counselling, coaching
  and mentoring, life skills training,
  employability and vocational skills training and
  placement.
• Training ILMEs are developed to meet regional
  skills-in-demand provide a training ground for
  local industry.
• Jobs - 90 of young people who undertake paid
  transitional employment with the ILMEs secure
  sustainable open employment. Effectively another
  contribution to local economic development.

10
Social return on investment (SROI)

• ILMEs benefit the local community both directly
  through projects of social, economic and
  environmental benefit and indirectly through
  downstream social return on investment (SROI).
• Downstream benefits include savings on welfare
  benefits, public health and justice system, plus
  benefits that accrue to enabling young people at
  risk of social exclusion to re-engage with self,
  community, learning and work.
• BoysTown currently working with Griffith Uni on
  an ARC-funded project aimed at quantifying SROI
  from BoysTown enterprises. Recent SROI evaluation
  of BoysTowns graffiti removal enterprise by NSW
  Dept of Housing - 500,000 direct cost saving on
  government benefits from a 220,000 investment.

11
Plans and prospects

• Expand number of contracts and jobs in existing
  enterprises.
• East Kimberley enterprises - 2.7 million federal
  funding over 3 years to establish programs aimed
  at addressing social exclusion. New ILME will be
  delivering Dept. of Housing and Works contracts
  to refurbish residential dwellings.
• New green business initiatives including
  recycling of medical and education equipment,
  environmental regeneration and greenscaping.
• New Artsworx and Sportworx enterprises which will
  provide experiential learning projects and
  community product - conducted by arts and sports
  experts in conjunction with youth workers.

12
Learnings and challenges

• BoysTown Enterprises built on personal networks
  which rely on key individuals and relationships.
  Now working to move our networks from the
  personal to the organisation level.
• Some State/Local Govt agencies still bound to
  award contracts largely on price. ILMEs cant
  compete - employ people who are not yet work
  ready and need support services. Need for clear
  policy statements within government agencies to
  support ILMEs.
• International studies have proved social,
  economic and community value of social
  enterprises, concept is still not well understood
  in Australia.
• Urgent need for Federal Govt to lead the way in
  this area by issuing policy guidelines on social
  procurement. This could include concept of
  quarantining a portion of procurement and capital
  works budgets to be delivered by ILMEs in
  disadvantaged areas.