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fred social enterprise practitioner
www.reddengreen.com www.sse.org.au
Hi. I am…
fred • DECS • Wheelchair Sport / SIU / APC • SPARC Disability Foundation • SA Mental Health • CanTeen • Consulting – NDS • Youthinc • School for Social Entrepreneurs
What would I know?
The starting point for any good discussion, meeting, or workshop on social enterprise should be a shared understanding of what a social enterprise actually is.
Social enterprises are organisations that:
a. Are led by an economic, social, cultural, or environmental mission consistent with a public or community benefit;
b. Trade to fulfil their mission¹; c. Derive a substantial portion of their income from trade²; d. Reinvest the majority of their profit/surplus in the fulfilment of their mission. ¹Where trade is defined as the organised exchange of goods and services, including:
• monetary, non-monetary and alternative currency transactions, where these are sustained activities of an enterprise;
contractual sales to governments, where there has been an open tender process ; and • trade within member-based organisations, where membership is open and voluntary or where membership serves a traditionally marginalised social group.
²Operationalised as 50% or more for ventures that are more than five years from start-up, 25% or more for ventures
that are three to five years from start-up, and demonstrable intention to trade for ventures that are less than two years from start-up.
Social Enterprises take a number of forms and deliver outcomes as diverse as employment for the disadvantaged, important
goods and services or fundraising for other charitable activities and community projects.
A social enterprise is defined as any business venture created for a social purpose--mitigating/reducing a social
problem or a market failure--and to generate social value while operating with the financial discipline, innovation and determination of a private sector business. Social enterprises use entrepreneurship, innovation and market approaches to create social value and change; they usually share the following characteristics:
Social Purpose - created to generate social impact and change by solving a social problem or market failure;
Enterprise Approach – uses business vehicles, entrepreneurship, innovation, market approaches, strategic-orientation, discipline and determination of a for-profit business;
Social Ownership – with a focus on public good and stewardship, although not necessarily reflected in the legal structure.
Social enterprises may be structured as a department within an organization or as a separate legal entity, either a subsidiary nonprofit or for-profit. The purpose of the social enterprise may be:
an additional funding mechanism for the organization’s social programs or operating costs;
a sustainable program mechanism in support of the organization's mission; or a leadership development mechanism in support of social innovation.
Used for either purpose, business success and social impact are interdependent.
www.socialinnovator.info/
WARNING: What follows is a non-profit-centric view of the world(!)
social innovation
social business
venture(s)
earned-income
micro-finance
business ventures
non-profit
S-Ent
$(S)
G & P-S
CSR
SRB
P ‘social enterprise’ as a noun or a verb
activism
V
Social enterprise in South Australia. Via the rest of the world…
UK (2007)
USA NYC, Wash.
(2008)
USA/CAN SF, Vanc. (2010)
South Australia
Op shops x135
Some observations:
• disconnectedness • co-opetition • welfare / charity / CRM • innovation, more than SBV • e.g. Jobs Fund (8 & 1) • no gathering around SE (noun)
Interesting opportunities:
• TACSI • social enterprise hub • Renew Adelaide • Indigenous social enterprise • SEDIF • Adelaide SSE
"At least half the non-profit executives in this country now understand that they have to do something different… probably the best 2% to 3% of them understand what needs to be done and have the guts to actually try it." (Jerr Boschee, 2007)
http://www.inc.com/magazine/19970515/1497.html
At the end of the day… • grants V earned-income • guidelines V innovation • funders V clients • compliance V relationships • ‘strings’ V self-determination • funding V self-sufficiency • survival V social impact
Take a look around…
fred M: 0411 864 820
www.reddengreen.com www.sse.org.au
SSE & study tour…