CREATING AN ENABLING, SUPPORTIVE ENVIRONMENT FOR THE SOCIAL ENTERPRISE

SECTOR IN IRELAND

Submissionto:TheIrishLocalDevelopmentNetwork

Producedby:

DrBrigaHynesKemmyBusinessSchoolUniversityofLimerick

June2016

AcknowledgementsThe author acknowledges the valuable input of Oliver Herbst(Oliver.Herbst@ul.ie) inpreparingthisdocument.His insightsandcommentary,informedbyhis researchon thesocialentrepreneurship sector,haveadded totheunderstandingofthedynamicsofthesocialenterprisesector.Wewouldalso like to thankall theparticipantswhocompleted the survey forthisstudy.

Authordetails:DrBrigaHynes,KemmyBusinessSchool,UniversityofLimerick

Email:Briga.Hynes@ul.ie Telephone:061-202619

FOREWORDAs Chairperson of the Irish Local DevelopmentNetwork (ILDN), I amdelightedthatwenowhaveasignificantpieceofresearchsuchasthis,whichconfirmsthevaluablerolethatLocalDevelopmentCompanies(LDCs)playinsupportingsocialenterprisesintheircommunities.As local enablers forour communities, eachofour49 LDCmembershaveandcontinuetoplayanimportantroleinsupportingthedevelopmentoftheirarea.The concept of creating an enabling and supportive environment for socialenterpriseisnotatheoreticalconstructbutarealitybeingdeliveredbyLDCsonan ongoing basis. This report confirms that LDCs are playing a central role increatingand supporting socialenterprises,which in turnareprovidingaviableplatform to deliver services and products where market conditions such asgeographywillnotallow.The maintenance of services to marginalised communities through the socialenterpriseconstructhasanessentialcommunityvalueinthatitstrengthensthesocialcohesionthatiskeytobuildingsustainablecommunities.Settingupasocialenterpriseisnotwithoutitschallenges.Thisreportidentifiesanumberoffinancial,legalandotherareas,suchasdependenceonvolunteersforrunningabusinesswitha commercialdimension. This iswhere LDCshaveandcontinue to play a key role in supporting the proper management of theseorganisations.Thesesupportsarenotoftenrecognised,butthisreportprovidesthe empirical evidence and analysis of the enabling role of LDCs for the socialenterprisesector.Finally, Iwould like to thankDr BrigaHynes of KemmyBusiness School in theUniversityofLimerickforherwork,aswellastheILDNSocialEconomyWorkingGroup for overseeing thedevelopment of this important report on the role ofLDCsinsupportingsocialenterprisesinIreland.MariePriceBolgerChairperson,IrishLocalDevelopmentNetwork(ILDN)

ExecutiveSummarySocialenterprises in Irelandoperateacrossawiderangeofbusinesssectors, inurbanandruralaswellassociallyandeconomicallymarginalisedlocations.Theyvary in size from small independent operators to larger community-basedenterprises.Although they are important drivers of social, economic and environmentalchange, it isnoteasytodemonstratethemanybenefitsthattheyprovide,asameansofvalidatingtheirexistenceandjustifyingsupportforthem.However,theresultsofthisempiricalstudy,involvingrepresentativesof20LocalDevelopment Companies, provide insights into the contributions of the socialenterprisesector,thechallengesencounteredinarrivingattheirsocialmission,and the supports required to start and scale social enterprises in a moresuccessfulmanner.Theprimaryconclusionsthatarisefromtheresearchare:• Theconceptofsocialenterpriseisnotwellunderstoodgenerally.Amongthe

variousstakeholders,thedefinitions,valuesandmeasuresofsuccessvary.

• Socialenterprisesprovideacombinationofsocial,economicandenvironmentalbenefitstoindividualsandregionsinneedofregeneration.

• Start-upandestablishedsocialenterpriseshavesimilarexternalchallenges,particularlyinrelationtolegalandgovernancecomplianceissues,andsourcingandaccessingfunding,whethertostartuportoscaleupthesocialenterprise.Therearecallsforthefundingframeworkstobesimplified,andfortherelatedadministrativeproceduresforapplyingforfundingtobeimproved.

• Internally,forthestart-upenterprise,issuesarisewithvalidatingthemarketopportunityandwithstaffing.Fortheestablishedsocialenterprise,thechallengesrelatemoretomanagementandgovernance,andtherecruitmentofboardmembers.

• Thecurrentlandscapeofsupportsforthesocialenterpriseislargelybasedonmainstream,micro,smallandmediumenterprisepolicy,withoutacknowledgementofthedifferentiatingcharacteristicsofthesocialenterprise,especiallyinareasoffinancing,governanceandperformancemeasurement.

• Asocialenterprisepolicyneedstobedevelopedwiththeaimofestablishingavibrantandsupportiveenvironmentforsocialenterprisestostartupandscaleup,leadingtoabalancedpipelineofsocialenterprisesinIreland.

Arisingfromtheresearchfindings,recommendationsinsixareasareproposedtoinformamorededicatedsocialenterprisepolicy,asoutlinedbelow.1.Enhanceawarenessof,educationabout,andpromotionandrecognitionofsocialenterpriseactivityItisnecessarytopromoteamorerealisticandcomprehensiveunderstandingofthemotivations,characteristicsandbenefitsofsocialenterpriseactivitythroughthefollowingactions:• Establishingandresourcingadedicatedsystemforsocialenterprises,ora

championentitythatisrecognisedasthe‘goto’entityforinformationordealingsonsocialenterpriseformationordevelopment.ItsownershipwouldbebestplacedinLocalDevelopmentCompanies,giventheirimpactonthedevelopmentofthesocialenterprisesectortoitscurrentstatedespitelimitedresources.

• ProgressingthedevelopmentofaSocialEnterpriseBrandorofabrandingofthesocialenterprisesector,andestablishingawebsitethatisthe‘shopwindow’forthesocialenterprisesectorinIreland.

• Developingcasestudiesorstoriesandtestimonialspresentingrolemodelsandadvocatesofgood-practicesocialenterprises,soastogenerateconfidenceinsocialentrepreneurshipandgiveitlegitimacyinlinewithmainstreammicro,smallandmediumenterprises.

• Deliveringtargetedsocialenterpriseinformationandknowledge-sharingeventssuchasanationalstakeholderconferenceforsocialentrepreneurship;forexample‘TheIrelandSocialEnterpriseSummit’;arrangingseminarsandworkshopsregionallyinvolvingmultiplestakeholdersengagedwiththeprogressionofsocialenterpriseactivity.Participationandcollaborationingeneralmicro,smallandmediumenterpriseeventsrunbyLocalEnterpriseOffices(LEOs)andEnterpriseIrelandwillalsoheightenawarenessanddeepentheirintegrationwiththemainstreammicro,smallandmediumenterprisesector.

Government support for the social enterprise sector must be tangible. It issuggestedthatanationwideSocialEnterpriseSupportCentrebeestablishedtostreamlinetheservicesofferedandtheactivitiesoforganisationsengagingwith

social entrepreneurs in a more formalised manner, thus leading to additionaleconomiesofscaleandsynergybetweenproviders.Morestrategically,considerationshouldbegiventodevelopingSocialEnterpriseHubsthatprovideinnovationspacestohelpbothstart-upsocialenterprisesandgrowingenterprises,offeringcommonresourcesandadministrativesupports,aswellasassistanceinareassuchasmarketing,governanceandnetworking.2.EstablishasupportivefinancialinfrastructurethatacknowledgesandrewardsthemultiplecontributionsofthesocialenterprisesectorCurrent social enterprise funding mechanisms need to be reconfigured toaddressthedifferentsocialenterprisebusinessmodelsandthevaryingstagesofsocialenterprisedevelopment.Thisrequiresthefollowing:• Changingthemindsetsoffunders(publicandprivate)andequallyofthe

socialentrepreneurastowhatrolefundingandfundersshouldplayinstartingupandscalingupthesocialenterprise.

• Enablingthesocialentrepreneurtobecomeinvestor-readyasopposedtojustgrant-ready.ThisrequiresincreasedavailabilityoftraininginFinancialPlanningandFinancialManagement,SourcingFundingandManagingCashFlow.

• Creatingalevelplayingfieldbetweensocialenterprisesandmainstreammicro,smallandmediumenterprisesforaccesstofunding,bycompensatingforormodifyingpublicfundingcriteriatoensurethatsocialenterprisescanaccessequivalentfinancialresources.

• Facilitatingamoveawayfromdependencyongrantandwagesubsidisationtoasituationwheresocialenterpriseshaveagreaterincentivetoproduce,trade,generaterevenueandreinvestsurpluses.

• Identifyingandtestinghowcontemporaryfundingorsocialfinanceintermediaries(angelinvestors,diaspora,individualinvestors,venturecapitalists,crowdfunding)arepredisposedorwillingtoprovideloans,guaranteesorquasi-equitytosocialenterprises.

• Providingmoreequitableaccesstosocialentrepreneurstosecurepublicprocurementcontractsbymodifyingthecontractualstipulationsforsocialenterprises.

Itisimportanttokeepinmindthatitisnotenoughtoincreasefundingwithoutimprovingtheallocationmechanismstoensurethatfunding isputtogooduseand tocreateabetteralignmentbetween theexpectationsof fundersand theneedsofsocialentrepreneurs.

3.ViewgovernanceandleadershipasapracticeratherthanasetofindependenttasksThe followingactionswill alleviategovernancechallenges,whichareaprimarybarrierforsocialentrepreneurs.• Clarifyingtothesocialentrepreneurwhattheconceptofgovernancemeans,

tolessenthefearsandtrepidationsassociatedwithit.Socialentrepreneursneedtounderstandthateffectivegovernanceisnotjustaboutrules,bureaucracy,andthestiflingofprogress.

• Focusingattentiononearly-stageandstart-upsocialenterprisesthatareconsumedwithestablishingapresenceinthemarketcanleadtogovernancearrangementsbeingneglected,oronlyconsideredwhenconcernsareraisedbyfundersorpublicservicecontractors.

• Devisingandimplementingbettermentoringongovernancemanagement,coveringsourcing;recruitingandassemblingaboardofdirectors;managingandleadingtheboardofdirectors;managingconflictintheboard;rules,policiesandproceduresformanagingboardoperations.

Thesocialentrepreneuralsorequiresguidelinesandinstructionsontheprocessof recruiting a board of directors, reviewing board performance, managingconflict,andmanagingtheinterdependenciesbetweenboardandmanagement.Theincreaseddemandforgovernance-relatedservicesincreasestheworkloadfor Local Development Companies; resources need to be allocated to them todelivertheseservices.Further,trainingingovernanceshouldbemadeavailableforindividualsworkinginLocalDevelopmentCompanies.

4.CreateanalignmentbetweenevaluationandmonitoringmetricsA range of suitable measurement methods, which realistically capture thecombinedenterpriseperformance(outputs)andtheprocessofachievingresults,needstobeformulated.Thefollowingshouldbeconsidered:• Differentimpactmeasurementtoolsandmetricsshouldbeappliedforearly-

stagesocialenterprisesversusmoreestablishedones.

• Monitoring,measuringandtrackingofenterpriseactivitiesmustbeintegratedintothesocialenterprisestrategydevelopmentprocessesandprocedures,andnotbeanadd-onorbeperipheraltoday-to-dayactivitiesorbecompletedonlywhenrequiredforfundingorassessmentpurposes.

• Situationsinwhichdifferentfundersandagenciesimposesignificantlydifferentanddemandingmeasurementmethodsonindividualsocialenterprisesmustbemanagedandreduced.

• Currentrequirementsandstipulationsformeasuringsocialenterpriseperformancethatareoverlyprescriptiveandoutput-focusedmustberedesigned,sothatthemethodsfocusontheprocessofsettingtargetsandachievingoutputs,andrelatetotherealitiesoftheoperationsandmilestonesofthesocialenterprise.

• TrainingandcompetencydevelopmentneedstobeprovidedforsocialentrepreneursandpersonnelinLocalDevelopmentCompaniesandfundinginstitutions,intheareaofmeasuringperformanceandimpactinthesocialenterprise.

5.Providecompetencyandcapabilitytrainingforstart-upandscaling-upsocialenterprisesTheavailabilityofresourcesontheirownwillnotguaranteeasustainedpipelineofsocialenterprises if thesocialentrepreneur isnotcapableandcompetent inaddressingthechallenges,barriersandopportunitiesaffectingtheiroperationaland strategic decisions. Therefore the provision of cross-functional trainingaddressingthesocialandcommercialrequirementsoftheenterpriseshouldbesupportedinthefollowingareas:• Managementandleadership–bridgingthebusinessfunctionstoachieve

socialandcommercialimpact

• Validatingthesocialconcept–thequestionstoaddress

• Applyingforfundingandmanagingfinance,funding,pricingstrategies

• Strategydevelopment–developingstrategicthinkinginthesocialenterprise

• Integratingsocialandcommercialbusinessmodelstoachievescale

• Monitoringandmeasuringperformance–beyondasetofmetrics

• Workingthroughandwithchange

• Personaldevelopment–bridgingthesocialandbusinessmindsettoachievescaling

• GovernanceandboardofmanagementcompetencydevelopmentMentoringisanimportantpartofthedeliveryprocess.Greaterengagementwithmentors from financing institutions and experienced social entrepreneurs willprovide complementary learning opportunities for social entrepreneurs. To

provide training personnel in the Local Development Companies and othergovernmentagenciesdeliveringservicestothesocialenterprisesector,upskillingandtrainingintheseareaswillberequiredtoensurethatcontentanddeliveryaddresstheever-changingtrendsintheseareas.6.Enhancenetworking,partnershipandcollaborations,toachievegreatersocialimpactNetworkingacrossorganisationalboundariestocreatesocialvalueisapowerfulscalingstrategyforsocialentrepreneurs,ascreatingsocialvaluedoesnotrequirethat value be capturedwithin a single enterprise boundary. It’s not just aboutundertakingmorenetworkingeventsbutrather theobjective is todeepenandcapitaliseoncurrentnetworkswithaviewtodeterminingwhichonesworkbest,and why and how to expand on them. The following actions will assist inattainingthisobjective:• Bemoredeliberateinusingexistingnetworksasplatformsforknowledge-

creation,learningandshapingtheexternalenvironmentinfavourableways,andcollaboratewithothersocialentrepreneurs,funders,educators.

• Improvethecommunicationsmechanismsandlearningopportunitiesacrossrelevantnetworks,perhapsorganisingsub-groupsaroundspecifictopicsofinterest.

• Considerdevelopingcommonlearningprogrammesandcurriculaacrossdifferentformalnetworksinwhichthemembershavesimilarneeds.

• Developnetworkingskillsinthesocialentrepreneurfortherolesof‘networker’and‘collaborator’.

• Evaluateandtestbusinessdevelopmentpartnershipoptionssuchasskillspartnerships,channelpartnerships,andventurepartnerships.

Theserecommendations,drivenbyacommonconsensualgoalofcreatinganenablingandsupportiveenvironmentforthesocialenterprisesectorinIreland,mustbefrontedandsupportedbygovernment.Theirimplementationmustbesharedbythekeystakeholdersinteractingwithsocialentrepreneurs.

TableofContents

1.0Introduction 1

2.0WhatisaSocialEnterprise? 3

3.0TheSocialEntrepreneurshipMilieu–SocialEntrepreneur,SocialEnterpriseandEnvironmentalConditions 6

4.0ResearchApproach–DataCollection 9

5.0ResearchInsights 105.1Supportsprovidedtosocialenterprises–directandindirectserviceprovision 12

5.1.1Directsupportsofferedtosocialenterprises 135.1.2Indirectsupportsofferedtosocialenterprises 17

5.2Thecontributionsthatsocialenterprisesprovide 245.2.1Employmentcontribution 255.2.2Trainingandupskillingcontribution 285.2.3Socialcontributions 28

5.3Opportunitiesandchallengesfacingsocialenterprises 35

6.0CreatinganEnablingandSupportiveEnvironmentforSocialEnterpriseActivity 446.1.Enhanceawarenessof,educationabout,andpromotionandrecognitionofsocialenterpriseactivity 476.2Establishasupportivefinancialinfrastructurethatrewardsthemultiplecontributionsofthesocialenterprisesector 526.3Viewgovernanceandleadershipasapracticeratherthanasetofindependenttasks 576.4Createanalignmentbetweenevaluationandmonitoringmetrics 606.5Providecompetencyandcapabilitytrainingforstart-upandscaling-upsocialenterprises 636.6Enhancenetworking,partnershipandcollaborations,toachievegreatersocialimpact 65

7.0ConcludingComments 697.1Keepingtheconversationgoing–areasforcontinuedresearch 70

References 71

Appendix1:Copyofquestionnaire 72

Appendix2:Examplesofgood-practicesocialenterpriseactivity 87

1

1.0 Introduction Socialentrepreneurscontributesubstantially to the Irisheconomy(ILDN,2014;Forfás2013; IrishSocialEnterpriseNetwork,2012;DoyleandLalor,2012).Thesectorisdiverseintermsoftheprofileofthesocialentrepreneurandthenatureandstructureofthesocialenterprise,rankingacrossaspectrumofcommunitygroupstocommercialandprofit-makingentities.As social enterprise activity has intensified, government policy focus on thissectorhasstrengthened,withtheestablishmentofaSocialEnterpriseTaskforce,publication of the Forfás report Social Enterprise in Ireland: SectoralOpportunities and Policy Issues (2012), and the development of anInterdepartmental Working Group focusing on incorporating the socialenterpriseagendainthekeyEUIrelandPartnershipAgreementandOperationalProgrammesfor2014-2020.Theimportanceofdevelopingthissectorishighlightedinthecomment:

It is important that we build a framework through which socialenterprises across the spectrum can obtain supports fromGovernment Departments and agencies which are appropriate totheir levelofdevelopment, thenatureof their activities and theircommercialambition’(Forfás,2012).

Thedevelopmentofsuchaframeworkisanongoingtask.Thissocialenterprisesupport framework should combine a strategic perspective and an alignedoperationalfocustoaddressthemanyneedsoftheheterogeneouspopulationofsocialentrepreneursinIreland.Itsformulationnecessitatesanunderstandingofthe interconnectedandoftencomplexrelationshipbetweenthe internal forces(social entrepreneur) and external environmental conditions (funding, marketdemand,publicacceptance,economicandsocietal)affectingdecisionstostartorscaleupasocialenterprise.The findings from this research study, commissioned by the Irish LocalDevelopmentNetwork(ILDN),willfeedintothedevelopmentoftheframework.Theyprovideacontemporaryperspectiveof theoperational,managementandgovernancechallengesencounteredbysocialentrepreneursastheystartuporscaleuptheirenterprises.

2

The scope of the study is to profile social enterprise activities and theircontributions,andtoidentifythechallengesthatsocialentrepreneursencounterindevelopingandscalingtheirenterprise.• Thereportbeginswithabriefdiscussionoftheclassificationsanddefinitional

issuesassociatedwithsocialenterprises,followedbyananalysisoftheinterdependencybetweenthesocialentrepreneurandthesocialenterprise.Inthisway,thecontextframingsocialentrepreneurialbehaviourisestablished.

• Next,theresultsoftheempiricalsurvey,involvingrepresentativesof20twentyLocalDevelopmentCompanies,arepresentedinordertoprofile:

o theactivitiesofsocialenterprisesandtheirmanycontributions

o therangeofdirectandindirectsupportsrequestedbysocialenterprises

o thechallengesandissuesaffectingthescalingofsocialenterprises

o theopportunitiesthatlieaheadforsocialenterprises

• Recommendationsarethenofferedconcerningthedevelopmentofsupportinterventionstostimulate,nurtureandenableamorevibrantsocialenterprisesectorinIreland.

• Finally,someavenuesforfurtherinquiryemergingfromtheanalysisofthefindingsarepresented.

3

2.0 What is a Social Enterprise? The social enterprise sector is a relatively emerging construct in the overallpopulationof enterprises. In some instances, it is viewedas a ‘niche sector’, a‘fad’ or a ‘grey area’ nestled somewhere between the for-profit and not-for-profitsectorsorcommunityprojects.Socialenterprisesbridgeproductandservicegaps ingeographicalandsectoralareasneglectedbygovernmentinterventionsordeemedfinanciallynotviablebytraditional enterprises. They benefit society by smoothing out economicshortcomings through raising social awarenessandproviding solutions (Santos,2012).Social enterprise activity covers a broad spectrum, from community-basedprojects funded by the State, to a smaller number of businesses trading on acommercial basis and owned solely or by a team of entrepreneurs and co-operatives.Theymergeatoneendwiththevoluntaryandcommunitysectorandattheotherwithcommerciallyoperatedbusinesses.Theseenterprisesoperateacross a varietyof sectors, provide a rangeof services, operate in allmarkets,and tackle complex social and environmental challenges in innovative andsustainableways.Thevariationinthestructuresofsocialenterprisescompoundsthechallengeofarriving at a common definition for the social enterprise. In the Irish context,socialenterprisesaredefinedbyForfásas:

…anenterprisethattradesforasocial/societalpurpose,whereatleast part of its income is earned from its trading activity, isseparate from government and where the surplus is primarilyreinvestedinthesocialobjective’(Forfás,2013).

4

SocialenterpriseversuscommunityenterpriseThis definition masks the range of social enterprise activity in Ireland, wherecommunityenterprisesformanimportantcomponent.Forinstance,communityenterprises are assumed into the same definition as social enterprises, butcommunity enterprises are typically owned andmanaged by individuals in thecommunity, who were in some cases managers or employees in communityinitiativesandevolved into the social entrepreneur role. Theseenterprises candevelop sub-enterprises, products, services and projects to meet a range ofspecificsocial,economicandenvironmentalproblemsintheircommunity.Theyprovideajoined-upapproachtotacklingoftendeep-rootedandcomplexissues.Asocialenterprise,ontheotherhand,isoftenseenasmorerootedintheworldofbusinessanddevelopsproductsand services thathavegreaterpotential forgeographicexpansion.Shoulda communityenterprise, then,be viewedas a social enterprise, or is itnecessarytodevelopanalternativedefinitiontoaccommodatethevariationsinactivityandmodesofoperation,andindeed,insomecases,theethosdrivingtheentity.?The difficulty in arriving at a single unifying definition is not unique to Ireland(BornsteinandDavis,2010;Vasi,2009). It ispartlyduetotheheterogeneityofthesocialenterprise,variationsinitsstageofevolutionandgrowth,thenatureof the product or service offered, and the governance and business modelconfigurations.Risksofapplyinga‘onefitsall’ definitionGiventheheterogeneityofthesector,isitappropriatetostrivefora‘onefitsall’definition, rather than devising a set of guidelines or characteristics that takesaccountofthenationalcultural,economic,regulatoryandsocialmilieushapingsocial enterprise activity? Such a descriptor could provide the parameters toguidemoreinclusivesocialenterprisepolicy.WhiletheevolutionofanIrishgovernmentdefinitioncapturingsocialenterpriseactivity is a step in the right direction, caution should be exercised aboutapplying it inastrictwaywhenitcomestoallocatingsupports;thismight limitsocial enterprise access to government supports, in particular fundingopportunities.Further,itmightbedifficultforsomesocialentrepreneurstopositionorfittheirenterprise into the parameters of the definition, which wouldmean a lack of

5

recognition for theoutputsand important socialbenefits they spinoff to localeconomies.Moreover,theapplicationoftoonarrowadefinitioncouldmasktheactualleveland intensity of social enterprise activity in the country, as thosewho do notalignwiththedefinitionwouldnotberecordedinfundingapplicationsorinthegeneralmicro,smallandmediumenterprisedatabases.Central to thedevelopmentof anappropriatedescriptorofwhat constitutesasocial enterprise is an understanding of the interconnected behaviour of thesocialentrepreneurandthesocialenterprise,asameansofidentifyingtheroleof internal drivers (motivation of the social entrepreneur, the operational andbusinessmodeladopted)andtheexternalenvironmentalconditionsshapingthebehaviourofthesocialentrepreneur.

6

3.0 The Social Entrepreneurship Milieu – Social Entrepreneur, Social Enterprise and Environmental Conditions To examine the performance of the social enterprise, we need to take a dualperspective:understanding(a)thesocialentrepreneurandtheircharacteristics,and the social enterprise they develop, and (b) the external conditions theyoperate in.Theexternalenvironment,describedas factorsaffectingthenatureandoutcomeofthesocialenterpriseopportunity,includesthemacroeconomy,funding,andthesocietal,financialregulatoryandsociopoliticalenvironment.This composite insight into the rationale for the decisions of the socialentrepreneur–onscaling,onthebusinessmodeltoadopt,onsourcesoffundingand performance outputs – will identify capability and competency gaps thatrequireattention inpolicy supports. Itwill also show if currentpolicy supportsareappropriateorsufficientlytargetedtotheneedsofthesocialenterprise.Social enterprises mainly focus on value creation or value capture, which isembedded in the architecture of the organisation design, decision-makingprocesses,networksand relationships that socialentrepreneurshaveaccess toanduse(Santos2012;Zeyenetal.,2012).Socialentrepreneursmeasuretheirsuccessnotprimarilybytheamountofprofittheymake,butmorebythedegreeofsocialvaluetheycreate(Hartigan,2006;Zeyenetal.,2012).Theseprofitsmaybepartiallydistributedtothestakeholdersor typically reinvested in the enterprise to fulfil itsmission. The impact of theenvironmental context on a social entrepreneur differs from that on a

7

commercialentrepreneurduetotheinfluenceofthesocialentrepreneuronthesocialmissionasadriverforthedevelopmentoftheenterprise.Themarket-selectionmechanismsinthesocialsectorlackintensitybecausetheyhavelesspowerovermarketconditionsandactover longerperiodsoftime. Inothercases,asocialissuemaybecompellingonlytoarelativelysmallnumberofconstituenciesandmayhavevery lowvisibility, anda socialentrepreneurmayseektomakeanimpactbyraisingawarenessabouttheissue.Indeed,anadversecontextmay often lead the social entrepreneur to seek to change the contextitself,asoftenthesocialproblemisdeeplyembeddedincontextualfactors.Essentially, social entrepreneurs are viewed as initiators of a socialentrepreneurial endeavour driven by a social agenda to push through socialinnovationsandprocessesofsocialchange(Ziegler,2010),eitherindividuallyorcollectively(BacqandJanssen,2011).Santos(2012)triedtobringmoreclaritybydistinguishing between social and commercial entrepreneurs. He claimed thatsocialentrepreneursaredistinctfromtheircounterpartinthreemaindomains:1) thegoalstheytrytoachieve

2) thedifferentbusinessmodelsandmethodstheyuse

3) theirmanagementstyles,andoperationalandgovernancepoliciesandprocedures

Socialentrepreneursinwhatevercontext(communitygroups,co-operativesandindependentsocialenterprises)aredrivenbyastrongsocialethos;theyneedtoapply a range of enterprising skills and behaviours that are associated withventurecreationandgrowthtosustaintheirenterprisesandachievetheirsocialmission.Socialentrepreneursprovideavehicle forestablishinganddevelopingpersonalautonomyandempoweringindividualsinsociallyexcludedgroupswithindependence, enhanced personal development, self-actualisation and self-definition, thus enabling them to act as credible contributors to the economyratherthanasrecipientsofstateaid.ThechallengeforthesocialentrepreneurThe social enterprise is a collective construct; it contains elements fromcommercial and non-commercial organisations, extended with entrepreneurialattributes, behaviours and competencies, and is motivated by many sociallyrelated and impactful goals. The attainment of these goals requiresentrepreneurial knowhow on how best to combine business efficiencies whileachievingsocialimpactandthusachieveadoublebottom-lineresult.

8

Therein lies a challenge for the social entrepreneur: how to align their socialenterpriseformattoaddressandsatisfythechangingneedsoftheirstakeholderswhilstmaintainingarevenuestreamtosustaintheenterprise.Moreover, social enterprises compete with each other for scarce funding,governmentgrantsandcontracts,forvolunteers,forcommunitymindshare,andfor employeeswithin their ‘industry’ contexts. This is an issue often forgottenaboutinpolicydevelopment.Understandingwhatconstitutesasocialenterpriserequiresclearunderstandingof the social entrepreneur capability and competencies and their interactionswith external environmental forces shaping their decisions. This understandingmust extend to the characteristics of the enterprise, to where they fit in thespectrum of business entities, and their real contribution beyond their socialagenda.The evolving perceptions of social enterprise are mediated by externalenvironmental(economic,political,marketopportunitiesanddemand,fiscalanddemographic) forces.Thus the focusondefinitionbecomes lesscritical; rather,theemphasis shouldbeon identifyingareasofopportunities, anddeterminingthecompetenciesandcapabilitiesofthesocialentrepreneurandthecapacityofthesocialenterprisetodeliverontheseopportunities.Whileorganisationalsurvivalinthesocialsectormaynotalwaysseemtodependon responsiveness to the external context, a social enterprise that continuallymonitors the context closely can develop strategies to reduce the effects ofadverseenvironmentalchanges,andexploitopportunitiesthatmightarisefromfavourabletrends.Theexternalcontextshapestheopportunitiesavailabletothesocialentrepreneur,andaproactivemanagementapproachwillbestenabletheentrepreneur to target opportunities and mobilise resources to achieve thegreatestsocialimpact.TheenterprisejigsawInsummary,socialenterprisescanbeviewedasanimportantpieceofthejigsawpuzzleofthetraditionalworldsofgovernment,non-profitandprofitbusinesses;itisimportantthat,whileitsdistinctcontributionisacknowledged,thispiecefitsinaseamlessandlinkedmannerintotheoveralljigsaw.Thisstudywilldemonstratewhythesocialenterpriseshouldbeacknowledgedasa keypieceof theoverall jigsawof thebroaderpopulationofenterprises, andwill show that,while it fits in cohesively, it yet hasdistinct characteristics thatrequirededicatedpolicyinterventions.

9

4.0 Research Approach – Data Collection The aim of this research was to elicit information on the operational,managementandscalingissuesandchallengesencounteredbysocialenterprisesinstartingupandscalingup.Representatives of Local Development Companies (LDCs) have performed acentral role in developing and providing advice and supports to advance thesocial enterprise sector in Ireland. They are frequently the first touchpoint forindividualswishingtostartasocialenterprise.LDCshavebeenidentifiedbygovernmentasthekeyimplementingpartnersforthe Social InclusionProgramme fundedby the European Social Fund (ESF) andthe European Agricultural Fund for Rural Development (EAFRD) LEADER, andhavebegundeliveringthetwokeyprogrammes.A targeted sample of 20 representatives of LDCs was surveyed. The surveyquestionselicitedinformationon:• theprofileandcontributionofthesocialenterprisesthatLDCsworkwith

• thevarietyofservicesofferedbyLDCstosocialenterprises

• thesectoralareasseenasprovidingopportunitiesforsocialenterpriseactivity

• thechallengesencounteredinstartingupandscalingupsocialenterprises

TherepresentativeswerealsoaskedforsuggestionsonthesupportsrequiredtodevelopamoresustainablesocialenterprisesectorinIreland.

AppendixIcontainsacopyofthesurveyinstrument.

10

5.0 Research Insights The research findings are presented according to the primary themesinvestigatedinthesurvey.• Thefirsttopicdescribestherangeofdirectandindirectsupportsofferedby

LocalDevelopmentCompanies(LDCs)tosocialenterprisesandthesupportsmostsoughtbysocialentrepreneurs.

• ThesecondsectionprofilesthesocialenterprisesusingLDCservicesandprovidesanoverviewoftheirmanycontributions.ThemethodsofperformanceevaluationthatLDCsapplytosocialenterprisesarealsodiscussed.

• Withaneyetothefuture,suggestionsarepresentedonthesectoralareasthatofferopportunitiesforsocialentrepreneurs,andthechallengesencounteredbysocialentrepreneursinstartingupandscalingupsocialenterprisesaredescribed,withoutlinesuggestionsonhowthesechallengescanbeovercome.

• Theresultsfromthevarioussectionsareintegratedtopresentapractical,holisticandup-to-dateinsightintotheopportunities,challengesandbarriersfacingsocialentrepreneursatthestart-upandscalingstagesofthesocialenterprise.

Theresultsofthisstudywillguidepolicydevelopmentonthetypeofdirectandindirect supports needed to establish a more successful and vibrant socialenterprisesector.Table1.0showstherespondentprofile.

11

Table1.0:RespondentprofileRespondentName LocalDevelopmentCompany

AnnFlynn North-EastMayoTomBermingham WexfordLocalDevelopmentElaineMcGrath PaulPartnershipFrancisMcCarron MonaghanIntegratedDevelopmentTrionaMurphy IRDDuhallowMichaelBowe TolkaAreaPartnership

BrendanO’Loughlin OffalyIntegratedLocalDevelopmentCompanyConorRyan BlanchardstownAreaPartnershipTaraSmith CanalCommunitiesPartnershipLarryO’Neill SDCPPádraigCasey BallyhouraDevelopmentLtd

EleanorMcLoughlin WestLimerickResourcesNoritaClesham South-WestMayoDevelopmentCompanyPatriciaKelly GalwayRuralDevelopmentCompanyLtd.LizRiches WaterfordAreaPartnership

RalphJames Ballyfermot/ChapelizodPartnershipElizabethDunne Co.WicklowPartnership

MichaelBegleyandMaryBarry-Guerin

SouthTipperaryDevelopmentUnit

RobertCarey North-EastandWestKerryDevelopmentRyanHoward South&EastCorkAreaDevelopmentLtd

The respondent LDCs represent a number of regions and a variety of socialenterprises, providing a good representation of the varied mix of socialenterprisesinoperationacrossIreland.

12

5.1Supportsprovidedtosocialenterprises–directandindirectserviceprovisionLDCs support the community and voluntary sectorbyprovidingenterprise andemployment-related supports for start-up and established enterprises. Thefindings of this research demonstrate the comprehensive range of supports(direct and indirect) made available to meet the needs of a diverse socialenterprisesector,atdifferentstagesofdevelopment.Thedirectsupportsprovidedinclude:• Pre-enterprisetrainingprogrammes

• Adviceforbusinessideadevelopment

• Devisingandpresentingabusinessplan

• Assistancewithmarketingandstrategydevelopment

• Guidanceonprocurement,andadviceandassistanceonsourcingandapplyingforfunding

Additionally, theLDCsadministerandcoordinateworkplacementschemesandnetworking events, and deliver bespoke services as required by socialentrepreneurs.Across the total sampleof respondentLDCs, itwas found that certain typesofsupportswereparticularlypopular,asdiscussedbelow.

13

5.1.1DirectsupportsofferedtosocialenterprisesThe range of enterprise and employment supports cover the spectrumof pre-start-up to established social enterprise requirements. In the main they aredelivered separately to the more general enterprise supports offered by theLDCs.Pre-enterprisetrainingsupportsOver 50% of respondents provided the tailored ‘Start your Social Enterprise’programme,complementedbymentoringandadvice.Thementoringandadvicecovers a range of topics such as developing a business plan; how to sourcefunding; financial planning; human resource management, and assembling aboardofdirectors.Inadditiontomentoring,thereisastrongfocusonprovidingnetworkingexpertiseandidentifyingrelevantnetworkingopportunitiesforsocialentrepreneurs.Theseservicesaredelivereddirectly,usingthein-houseskillsoftheexperiencedstaffanddirectorsoftheLDCs.Comments from respondents indicated that primary areas of learningopportunitiesforsocialentrepreneursincludeskillsinnetworking,knowingwhotonetworkwith,andhowtoidentifyrelevantnetworks.Grantassistanceforsocialenterprisestart-upandexpansionGrant assistance to social enterprises is allocated through a variety ofprogrammes such as LEADER, the Local Development Social InclusionProgramme, the Rural Development Programme, and the Social Inclusion andCommunityActivationProgramme(SICAP).SICAPisthemostpopularscheme.Fundingisallocatedforavarietyofoperational-levelenterpriseactivitiesinareassuchasassistingsocialentrepreneurstoapplyforfunding,marketingactivities,business-plan development, market research, sourcing reports, applying forgrantaid,legalcosts,andtheimplementationofstrategy.Support and advice on how best to address the business-plan criteria andcompleting the funding application form is a support frequently requested byaspiringandstart-upsocialenterprisesduetodifficulties in tryingtodevelopacompelling business argument for an enterprise with a predominantly socialmission.Linked to the above is the requirement for assistance and guidance onidentifyingsourcesoffundinganddeterminingwhatsourcesarerelevanttothevarioussocialenterprisepropositions.

14

Additionally,fundingisallocatedforthedevelopmentoflarger-scalecommunity-basedinitiatives.CommunityandvoluntaryplacementsThe opportunity to employ individuals in the social enterprise through thevarious community and voluntary schemes bridges an important resource gapfor the social enterprises at the start-up and scaling stages. This employmentavenueenablessocialenterprisestosecurestaffforbusyperiods,andprovidesflexibility in managing staff numbers to accommodate the demands of theenterpriseinacost-effectiveandspeedymanner.Schemes such as the Community Employment Schemes, Tús, the Rural SocialScheme (RSS) and Job Initiative were themost frequently used. The LDCs areresponsibleforcoordinatingandadministeringtheseschemes,andarepivotalincollaboratingwithsocialentrepreneursonselectingthemostsuitableschemes,andassistingintheapplicationprocess.Tús was used in 14 cases and was viewed as important in providing staff forshort-term and temporary roles in projects that deliver home repairs andimprovements,communitycentres,communityshops,craftcentres,etc.Furtherexamples cited Tús as providing important staffing requirements for coreservices to the community such as communitymeals, and in the operation oflocaldaycarecentres,whichmightnotbefeasibleifthissourceofemploymentwasnotavailable.TheCommunityEmploymentSchemewasalsocommonlycitedbyrespondentsfor projects such as providing services for older people and primary schoolchildren(suchasafter-schoolclubs),farmprojects,etc.TheRSSprovideswork-experienceopportunitieswithsocialenterprisesacrossabroad range of sectors such as environment, heritage, arts, tourism, childcareand social serviceprojects.Comments indicated thatapositiveelementof theRSS is that participants can work up until retirement, and that this longevityprovesvital in thecontributionof services,andadditionallyprovides inclusivitytoabroaderrangeofindividualswhoareseekingworkopportunitiesandasenseofbelongingandvalue.TheuseofJobInitiativewaslessevidentintheresponses;whereonoffer,itwasusedtoengageindividualsassupportstaffforsocialenterprises.Likewise,therewas a relatively low uptake on the JobBridge scheme, involving just fourrespondents.

15

ValueofworkschemesThere was a consensus amongst respondents that the various programmespresentanimportantmechanismtobridgeskillsdeficienciesinsocialenterprisesandanswertheneedformeaningfultrainingandemploymentopportunitiesformarginalised groups of individuals who are in many instances excluded frommainstream employment opportunities (individuals with disabilities, ex-prisoners,ex-offenders,earlyschool-leavers,etc).Thatsaid,thetemporarynatureoftheworkplacementcontractcanbelimitingfor the participants in terms of skills enhancement and learning; in manyinstances, once the period ofwork is over theremay not be any follow-up orsimilarworkopportunitiesavailabletothem.Thebenefitsaccruingfromtheschemesareinstrumentalinthecontinuityofthesocialenterprise.However, cognisancemustbe takenoff the issuesassociatedwith the lack of staff continuity, high staff turnover, loss of skills, and the lowreturnonthetimeandeffortspentbythesocialentrepreneuroninductionandrole-training.Essentially, the use of these schemes is a short-term strategy tomeet staffingrequirements.Itwouldbeinterestingtodetermineiftheiruseshapesthenatureandexperienceofthepersonemployedinthesocialenterprise,ordoesthejobspecification drive which scheme is used to source staff? Further, how hasparticipationinaschemebenefitedtheclientintheircareerpath,andhowcansuchschemesbeadoptedtoprovidelonger-termmutuallybeneficialreturnsforboth the social entrepreneur and the schemeparticipant. These are importantquestions to address to help ensure effective and sustainable human resourceplanningandcapability-buildinginthesocialenterprise.LDCs provide direct supports for competency development in changemanagement, staff management, setting targets, monitoring progress, andgettingthemostfromstaffingresources.Wheredeemedrelevantandrequestedby social entrepreneurs, bespoke workshops were designed and delivered toaccommodate specific enterprise needs. In some instances these workshopsweredeliveredacrossthelevelsinthesocialenterpriseinvolvingmembersoftheboard,management,staffandvolunteers.While consistent trendsemerged in the survey responseson themostpopulardirectand indirect supportsoffered, responses indicated that it isnecessary tomodify programmes aswell as design tailored programmes to fit the stage ofprogressionofthesocialenterpriseanditsspecificneeds(includinganylocalorregionalvariations).

16

Theavailabilityoftheseprogrammeswasdeterminedbytheresources(peopleandfinance)availabletotherelevantLDC.Somepositivecommentsmentionedthe possibility of receiving increased resources under the next LEADERprogramme,whichwillhaveamorededicatedfocusonsocialenterprisestart-upbusinessprogrammes,thusinsomewayaddressingtheresourcechallengethatLDCsarecurrentlyfacing.Thepivotal roleof theLDCwas further identified in thedesignanddeliveryofindirectsupportstothesocialentrepreneur.

17

5.1.2IndirectsupportsofferedtosocialenterprisesA common rangeof indirect supports (standardisedand tailored)wereofferedacross the cohort of respondents. These emphasised training and advice foroperational management, general management and governance issues.Complementing the workshops, particularly in the area of governance, thefacilitationofpeerlearningwasviewedasbeneficial,wherelearningfromboardmembers or social entrepreneurs who have experience in this area proved apositivelearningandnetworkingencounter.AnumberofLDCshavedevelopedtrainingmaterials, templatedocumentsandinformationguideswhicharebeingusedonmanyoccasionsandhavepotentialfor transferability and use by other LDCs. For example, templates weredevelopedforadministrativeormanagerialstaffformonitoringongoingprogressagainst income targets through theuse of Excel (charts). Theheterogeneity ofsocial entrepreneur needs is evident in the analysis of the responses to theirvariedrequirementsforindirectsupportsandcompetencydevelopment.Aswith the provision of direct supports, the pre-emptive approach of staff inLDCs is paramount in thedesign and customisationof serviceswhen required,and in the ability to respond to bespoke requests, in addition to the morestandardrequestsfromsocialentrepreneurs.This addedworkload is not typically accounted for as the indirect supports onoffer are developed largely for mainstream micro, small and mediumenterprises. Many of these more bespoke services relate to sourcing andsecuringsocialenterprisefunding,suchasthepreparationofgrantandfundingapplications; identification of sources of funding; how to address eligibilitycriteriaforfunding,andassistancewithgeneraladministrativeduties,especiallyinvolvinggovernanceandcomplianceissues.There is increasing demand for support and assistance with governance andcompliance requirements for the sourcing and recruiting of board members;writing terms of reference for the board; defining the roles, duties andobligations of the board, and identifying best-practice cases of how boardsshouldoperate. This increaseddemandhas timeand resource implications forstaff in the LDCs, generating challenges as to how finite resources can bestretchedacrossabroadersetofcommitmentsfromthesocialenterprisesector,whilstsimultaneouslyprovidingservicestotheirotherenterpriseclients.Insomecases,externalexpertsarecontracted intodelivergovernance-relatedadviceandmentoring.Thisusesupscarce fundingand in the longer termmaynotbe thebestoption. LDCstaff shouldbesupported toundertake training in

18

therelevantareassothattheycandelivertrainingandmentoringtothesocialenterprisestheydealwith.Giventhechangingregulatorygovernancecompliancerequirements,additionalresourceswillberequiredtodeliverinformationworkshopsontheGovernanceCodeforcommunity,voluntaryandcharityorganisationsinIreland;manysocialentrepreneursarenotdeeplyknowledgeableaboutthecodeor its implicationsfortheoperationsofthesocialenterprise.ThereareopportunitiesforLDCstaffto participate in refresher training to ensure they are updated on the mostrecentgovernancecomplianceissues.The governance-related supports on offer include workshops to provideinformation on the code and its requirements, and structured trainingprogrammes to facilitate social entrepreneurs in becoming code-compliant. IfLDC training is lacking, the social entrepreneurs are referred to relevantsuppliers.Toalesserdegree,andmainlyonademandbasis,trainingisprovidedon the legal issues involved in runningandmanaginga socialenterprise,alongwith information on self-governance and ethical issues, and advice on riskmanagement.Governance-relatedburdenThenumberofgovernance-relatedtasksthatneedtobecompletedbythesocialentrepreneurhas increased; thisaffects theoperationsof the socialenterpriseandconsumesbothtimeandresources.Ingeneral,thesocialentrepreneurisnotfamiliarwith the specifics of the compliance requirements and thus resorts totheirLDCcontacttoassistthemincompletingthevarioustasksandinensuringthattheirenterpriseiscompliant.Therequestsforassistance,asfoundinthisstudy,highlightthreecoreareasthatareincreasinglyviewedasachallengeandbarrierforthesocialentrepreneurinprogressingtheirenterprise;choosingboardmembersforthesocialenterprise;engaging with the chair of the board of directors, and participation in ormembershipofthesocialenterprisemanagementcommittee.The nature and depth of governance-related compliance requirements haveresulted in social entrepreneurs expecting more assistance from their LDCcontact.LDCemployeesareexpectedtoextendtheirrolebeyondadvisorto, insome instances, undertaking certain governance-related tasks on behalf of thesocialentrepreneur.

19

ChoosingboardmembersRespondents were unanimous that social entrepreneurs find it increasinglyproblematic to source, profile, screen and recruit new board members. As aresult, social entrepreneurs are resorting to LDCs to assist them or, in someinstances, undertake this duty on their behalf, as described in the followingcomments:

‘Allofthecompanies(withnoexception)havestatedthatitisdifficulttofindnewboardmembers.DuringworkshopssuchastheGovernancetraining,discussionsaroundthischallengealwaysemerge.Companiesareencouragedtoco-optmissingexpertiseontoasub-committee(e.g.FinanceorHR)asafirststeptoencouragingnewpeopletogetinvolved.SomeofthecompanieshavepublicisedtheirAGMs,invitingpeoplefromthelocalcommunitytoattend.Thishasresultedinsomenewmembersbeingrecruited.Thisisaworkinprogressandoneoftheplansduring

theperiodoftheSocialInclusionandCommunityActivationProgrammeistodevelopapilotinitiativewithMayoVolunteerCentretoencouragenewmembers.Atthisstage,justpreliminaryconversationshavetakenplacewiththeCo-ordinatoroftheVolunteerCentreanditwillbe2016

beforeweareinapositiontodevelopthisfurther.’

‘[Wea]ssistgroupsifrequestedtoidentifytheskillmixrequiredforparticular-typesocialenterprises.’

‘WesitonBoardofdirectors,supportBoardinselectionofpotential

Boardmembersvis-a-viscontributiontosustainabilityoftheenterprise.’

‘[Wea]ctinanadvisorycapacityonbestpracticeinareasofgovernancearoundestablishingBoardofDirectors,throughliaisingwithBoardsof

DirectorsofotherSocialEnterprisesinthearea.’

‘[Wea]ssistintheestablishmentoffirstboard,encourageresidentstobecomeinvolvedandencourageboardstousevolunteercentresand

boardmatchforrecruitingnewdirectors.’

‘[Wed]onotgetinvolvedinchoosingbutsupportings/e[socialenterprise]toengagedirectorswithspecificexpertise.’

‘ItishopedthattheSteeringGroupwillformthebasisforastand-alone

entityandBCPwillparticipateinthisprocess.’

20

The comments reflect the increasing hands-on assistance required by socialentrepreneurs to secure and assemble a board of directors. The socialentrepreneurhasalimitednetworkofrelevantpeopletocallontoparticipateintheboardandalsohaslimitedtimeforsuchatask,giventhattheyarecentraltotheoperationsoftheenterprise.EngagementwiththechairoftheboardofdirectorsRespondentsalsoindicatedthattheirdutiesextendtoengagingwiththechairofthe board of directors on regulatory and compliance issues, and on reportingprocedures.Aswith theselectionofboardmembers, there isan increasing relianceon theLDCtoassisttheboardchairwithdetailsonwhatisrequiredoftheenterprise,accountingandreportingmilestones,fundingproposals,andplansforexpandingthe enterprise. This is particularly the case where the chair may not haveexperience in the operations of a social enterprise or be familiar with therelatively new compliance requirements and the consequences of non-compliance.The following comments highlight the increasingly embedded role of the LDCwhenitcomestogovernance-relatedissues:

‘TherehasbeeninformalengagementwiththeChairsoftheBoardofDirectorsthroughHR/GovernanceandFinancialtraining.ThishasledtocontactbeingmadeandinaminorityofcaseshasledtofurthercloserworkwiththeChair.Inprovidingsupporttothebusinessesittakestime

tobuilduparelationshipoftrustwiththeManagerandtheChairperson.Thetypeandlevelofengagementisonethatmustbeapproached/coordinatedcarefullysothateitherpersondoesnotfeelunderminedbythesupportsbeingputinplace.Theexperienceof

workingwithcompaniesinrelationtoadoptingtheGovernanceCodeallowsthisengagementtoprogressinapositiveway.’

‘Advise/guidancetoBoardofDirectorsreprotocol/formatandelectionprocess,sitonBoardofdirectors,supportBoardinselectionofpotentialBoardmembersvis-a-viscontributiontosustainabilityoftheenterprise.’

‘Actinanadvisorycapacityonbestpracticeinareasofgovernance

aroundestablishingBoardofDirectors,throughliaisingwithBoardsofDirectorsofotherSocialEnterprisesintheareawhichBallyhoura

Developmenthassupported.’

21

‘FullysupportchairsandinmanycasesSDCPstaffserveaschairofBOD.’

‘Provisionofongoingsupportregardingroles,trainingneeds,etc.’

‘Yeswesupportthechairwithadviceandmentoring.’

‘Operatesasocialeconomyworkinggroupintheregionandthisactsasadrivingforceforallthirdsectoractivityintheregionwhereguidanceisreceivedonfinance,goalsettingandmonitoringoutcomesona

monthlybasis.’

‘ViatrainingforSocialEnterpriseandforboardmembersinreviewprocessonanannualbasis.’

ParticipationinormembershipofmanagementcommitteeThe third aspect of assistance relates to the role of LDCs as participants orperforming roleson the socialenterprisemanagementcommittee.This serviceembeds the LDC staff more intimately into the governance of the socialenterprise,andhasimplicationsintermsofresourcerequirementsfortheLDC,andlearningissuesforthesocialentrepreneur(concerningthefinelinebetweenenablingsocialentrepreneursforthistaskorexecutingitforthem).Withaviewtothelonger-termscalingandsustainabilityofthesocialenterprise,it is imperative that the social entrepreneur develop skills and competenciesrelevanttomanagingandleadingthesocialenterprise.Trainingandcompetencyprogrammes will, therefore, be increasingly needed by social entrepreneurs –whichhasimplicationsfortheresourcesandrolesofstaffinLDCs.Theexamplesdescribedbelowdemonstratetheneedforassistanceinthisarea:

‘ThestaffmemberwithresponsibilityforSocialEnterpriseparticipatesononeManagementCommitteethatwasestablishedin2015to

supportacompanywithnewprojectdevelopment.Oneofthemainreasonsbehindencouragingthiscommitteetobeestablishedwastobringexpertisearoundthetablethatdoesnotcurrentlyexistatboard

level.Itisaworkinprogress.’

‘ParticipationormembershipofSocialEnterpriseManagementCommittee–yesstaffmembersorboardmemberswouldsitonthe

boardofanumberofsocialenterprises.’

22

‘Actinanadvisorycapacityonbestpractice.’

‘SDCPserveon47independentboardsincludingservingonsubgroupssuchasHR/Finance.SDCPprovideprofessionalindemnityinsurancefor

thoseservingasdirectors.’

Thegroupsallhavedifferentbackgroundsandspecificareasofexpertiseincluding:Environment,CustomerRelations,BusinessProcesses,HR,Finance,AuditandGovernance,Community,Rural

Developmentetc.’

‘…boardmembersofOffalyLocalDevelopmentCompanybutstaffdonotsitonboardsaspolicydiscussion.’

Thecommentsreflectemergingtrendsandtheassociateddemandsinmanagingthegovernanceandregulatoryrequirementsofthesocialenterprise.Managing governance-related tasks safeguards the mission of the enterprisewhile allowing the social entrepreneur to meet the demands of variousstakeholderssuchasinvestors,employees,volunteers,clientsandbeneficiaries,aswellascomplywithpublicpoliciesandregulations.The research highlights the intensifying demands on LDC staff to beknowledgeable about regulatory and legislative requirements, and on LDCs toallocateresourcesforthedesignandprovisionofdirectsupportsinthisarea.Overall, the results suggest emerging in the hierarchy of services expected bysocial entrepreneurs is a bias in favour of supports inmentoring, training andskillsdevelopmentforgovernanceissuessuchasrgwselectionandrecruitmentof and Board of Directors and human resource management. This presents achallenge for organisations such as LDCs on how to balance the need forstandardised services in these areas with the necessity to be flexible andadaptable to accommodate the requirement for bespoke services from early-stageandestablishedsocialenterprises.The cumulative demand on LDCs to provide a range of direct and indirectsupportshasimplicationsforresourcerequirements.Inmanycases,theservicesto social enterprises are assumed as part of the portfolio of supports to thegeneral population ofmicro, small andmedium enterprises, and thus are notgiventheindependentrecognitionorresourceallocationrequired.

23

Moreover, from the LDC perspective, the actual time allocated to the socialenterprisesectorisdifficulttocapture;dependingontheparticularLDC,therolemay straddle individuals or fall under different functional headings. This is notsustainable forLDCsasthedemandsof thesocialenterprisesector intensify. Ifthesectoristobegivenopportunitiesandsupportsequaltothoseprovidedtomainstream entrepreneurs,more resources need to be deployed to LDCs. Thededication of social enterprise-specific resources is an important barometer ormarkerofgovernmentpolicycommitmenttotheadvancementofthissector.As with the allocation of time, similar issues relate to the inability to directlyquantify the financial resources allocated to working with social enterprises;many are costed under supports and programmes such as the RuralDevelopmentProgramme(RDP),LEADER,theLocalDevelopmentSocialInclusionProgramme(LDSIP)andSIDC.Thedesignofadditionalornewsocialenterprisesupports must take account of the current portfolio of resources allocated tosocialenterprises,andforwhatpurposes,asameansofidentifyinghoworifthecurrent support infrastructuresare suitable tobuildon.Themostefficientandsuccessfulmodelsofdirectandindirectsupportalsoneedtobeidentified.Inregionswithalargenumberofsocialenterprises,thisbecomesamoretestingtaskforLDCs.Theimplicationforpolicyisthatinterventionsneedtobedeterminedordevisedtoenablesocialentrepreneurstoleveragegovernanceasameanstoreachtheirhighestpotentialandsustainthecoreethosoftheenterprise.Consideration must be given to initiatives that will enable and build relevantcompetencies among social entrepreneurs while ensuring that LDCs have thenecessary skills and financial and time resources tomatch the needs of socialentrepreneursandthestageoftheenterprise’sdevelopment.

24

5.2ThecontributionsthatsocialenterprisesprovideSocial enterprises operate across a wide range of business sectors, and areimportant drivers of social, economic and environmental change. Among theirmanybenefits,itisdifficulttoisolateandquantifytheirsocialandenvironmentalbenefits. To address this challenge, this research attempted to identify thecontributionthatsocialenterprisesmake,andhowandwheretheyaddvalueorbridgeasupplygaptoenhancethelifeandwellbeingoftheirtargetedgroups.The 20 LDCs assisted over 3,376 social enterprise entities, which representedmoreintenseclustersofsocialenterpriseactivity.Thiswasmostpronouncedinlocations such as Ballyhoura and Wexford. Ballyhoura deals with 127 socialenterprise legalentities,whileWexfordLocalDevelopmentNetworkis involvedwith57suchentities,followedbyWestLimerickResources(31)andMonaghanIntegratedDevelopment(22).Theremainingresponsescitedfewerthan20.Whilst the sectors represented are diverse, a large proportion serves thechildcare and health and social care and wellbeing and care for the elderlymarkets. Other enterprises work with specific in-need groups such as earlyschool-leavers,unemployedyouth,elderlypeople,homelesspeople,and thoseleavingprison.Many social enterprises are involved in building confidence and competencies,creating work opportunities for those whowould otherwise find it difficult tosecure a job. There are social enterprises focusing on protecting theenvironment, tackling poverty, revitalising rural communities, and improvinghealth and wellbeing, which cumulatively promote more sustainable localeconomiesandfeedintoamorepositivenationaleconomy.Socialenterprisesalsoofferservices intheareasoffoodandcatering,tourism,arts, culture, music, recycling, transport and distribution, and serve both thebusiness-to-businessandpublic sectormarkets inaddition to sellingdirectly totheindividualmarket.The level of activity in the business-to-business market is strong, andcomplements the revenue streams from the individualbeneficiarymarket. Theenterprises focus on local and regional markets that, in some instances,incorporate large ruralandurbangeographicareasexperiencingeconomicandinfrastructural deficiencies. The benefits of their activities extend beyond thelocal market they serve; social enterprises create spin-off revenue and

25

employment opportunities for suppliers and subcontractors outside their localbase.Thiscontributionisnotsufficientlyrecognised.5.2.1EmploymentcontributionInadditiontoprovidingmuch-neededservicestocommunities,socialenterprisesareanimportantsourceofemploymentcreation,accountingforover1,200full-timeand70part-timepositions.Socialenterprisesalsoparticipate inanumberof work placement schemes, offering part-time positions for more than 907people.TheCommunityEmploymentprogrammewas themostpopular scheme,beingthesourceof483employees.Túsprovidedworkopportunities for350people,andJobInitiativeandJobBridgeprovidingtheotheremploymentsources.Theuseofworkplacementschemesisnotable;inparticular,TúsandCommunityEnterpriseschemesareimportantsourcesofemploymentforsocialenterprises,and also provide employment opportunities locally for individuals who mayotherwisefinditdifficulttosecureemployment.For the participant, the opportunity to work with a social enterprise presentsaccesstoworkthatotherwisewouldnotbeavailableduetothelackofrelevantworkopportunitiesorinsufficientqualifications,skillsandcompetencies(e.g.forindividuals who are long-term unemployed, members of marginalised groupssuchasTravellers,formeroffenders,andrecoveringdrugusers).Securing a job enables the individual to build experience and enhance theirpersonalandprofessionalskills,whichrendersthemmorecapableofseek full-time employment opportunities. Additionally, the work experience provides amechanism for individuals to gain confidence and build personal as well asprofessionalskillsandnetworkstopreparethemtore-engagewithsociety.Thisis a fundamental foundation for gaining a sense of belonging and ameans ofcontributingtoacommunityinapositiverole.Ofnoteisthereliancethatsocialenterpriseshaveonvolunteerstoassistintheiroperations; these vary by type of social enterprise. Those offering communityservicessuchasmeals,cateringandretailtendtousevolunteersmore.Thistypeof social capital represents a significant non-monetary resource for socialenterprises, contributing voluntary labour and managerial skills at differentlevels.Inviewofchanginglifestylesandtheregularlyciteddifficultyin‘recruiting’newvolunteers, socialenterpriseswillneed to considernewwaysofattractingand

26

retaining volunteers, and embedding them more personally into the socialenterprise.Asthesocialenterprisescalesup,thesocialentrepreneurneedstoconsiderhowbesttobalancethemixofvolunteersandemployeesfromplacementschemes,andfull-andpart-timeworkers.Socialenterprisesare importantsourcesofemployment,but it’snot justaboutemploymentcreation.Weneedtotakeaccountofthenatureandvalueofthejob to the employed person, and indeed the cost savings to the broadereconomyaseachjobreducestheneedforfinancialsupportbytheState.The multiple spin-offs (social, personal, economic) emanating from the socialenterpriseareexemplifiedinthemanyindividualandcommunitybenefits,whicharebestcapturedinthecommentsofrespondents:

‘Threecompaniesoperateinthissectoremploying21staffandwithacombinedturnoverin2014of€589,557.Onepart-timepermanentpositionhasbeencreatedbyonecompanyfromitsownincome.’

‘Thecompanymanufacturessilkflowerwreathsthatitsellsinto14countiesintheBMWregion.Italsohasanumberofprivatecontractsfromlocalmanufacturingcompanies.Itprovidessocialemploymentfor

peoplewithdisabilities(bothphysicalandmental).Intotal44individualsareemployedbythecompany,madeupof15CSP-fundedstaffand9staffthatareinreceiptofaWageSubsidyfromDSP.TheremainingstaffarereferredfromthelocalHSEtrainingcentresforPeoplewithDisabilities.Theturnoverfor2014wasintheregionof

€479,393.’

‘GalwayRuralDevelopment–BallinasloeEnterpriseCentre180people–14businesses235enterprises,theyareresponsibleforelderlyinvarious

formsandviewedaskeyYouth–jobcreationandprovidingthat‘missinglink’heretoforeaddressedbyapprenticeshipsBallyhouraand

CanalBank.’

‘PeoplecometoTECtoavailofourenterprisesupportsaresurvivingonsocialwelfarepayments.Thebenefitsofstartinguptheirownviablebusinessarelifechangingbothfinanciallyandpersonally.Small

businessestendtorelyontheirlocalcommunitybothfortheirsuppliesandtheircustomersandsoself-employmentnotonlyimprovestheirownqualityoflifebutalsothatoftheirlocalcommunity.TEChaveparticipantscompleteafeedbackformafteralltheircourses.’

27

‘Atotalof128individualsareemployedby9businessesinthissectorwith35oftheseinfulltimeemployment.Employmentfromown

sourceshasbeenprovidedfor2.5fulltimestaff.Thecompaniesmakeaconsciousefforttosourcesupplierslocallythereforeensuringthattheyaresupportingthelocaleconomy.Thetotalturnoverfortheninecompaniesin2014was€2,404,906.’

‘Threecompaniesoperateinthissectoremploying47staffandwitha

combinedturnoverin2014of€770,130.Twostaffmembersareemployedfromincomegeneratedbythecompanies.’

‘1stSportsandRecreation–Approx.50jobscreatedandturnoverof€4

million2ndHealthandSocialCare–Approx.25jobscreatedandturnoverof€2

million3rdChildcare–Approx.18fulltimeand20parttimejobsandturnover

of€2million4thEducationandTraining–Approx.12fulltimeand12parttimejobs

andturnoverof€1.5million’

‘Childcareindisadvantagedareas,recyclingopportunities,Europe’sonlyfreedoortodoorcollectionofelectricalgoods–operatingingreaterDublinarea’

‘Employmentforpeoplewhowouldnototherwisefindajob.Mentoringclientscomingfromdisadvantagedbackgrounds,upskillingandcapacitybuildingisakeyfeatureoftheenterprise.Thisiscrucialtoenablingpeoplethathavebeen

‘leftbehind’toenhancetheiremployabilityandimprovetheirchancesofgainingworkthatpaysalivingwage.’

Twoof the CSPswere established to provide social employment opportunitiesforpeoplemostdistantfromthelabourmarket.Bothcompaniesemploypeoplewith disabilities andmembers of the Traveller Community. Feedback receivedwhenvisitingthecompaniesduringtheresearchprocessincludes:

‘Thereisareasontogetoutofbedinthemorning.SometimesIcanworkgreatbutothertimesIamnotabletodoalot.Thisisok.’

‘Themajorityofemployeeswouldnotfindemploymentelsewhereduetothe

natureoftheirbackgrounds;excludedandearlyschoolleavers.’

‘Theenterprisenotonlyprovidesemploymentfordisadvantagedpeople,itoffersafullyaccessible,multi-purposebuildingthatisusedbyawiderangeof

28

communitygroupsthathirethecentreatcommunityrating.Itisalsotheonlydedicatedconferencecentre,trainingfacility,meetingrooms,trainingrooms,

amplefreecarparking,organicfarmshop,attracts36–40‘sabbaticalstudents’thatcontributetothelocaleconomy(biannually).’

5.2.2TrainingandupskillingcontributionInadditiontoemploymentcreation,socialenterprisesprovideamechanismforupskilling and training to individuals who have limited access to mainstreamtraining opportunities Examples of these are presented in the respondentcommentsbelow:

‘Yes,opportunitiesforpeopletotakeon-the-jobtrainingandworkexperience,aspartofanaccreditedprogrammeorasvolunteers.’

‘Alloftheenterpriseshavecreatedemploymentinareasthatwouldbe

unsustainablewithintheprivatesector.’

‘Developmentofprojecttothelevelwhereithasthepotentialtocreatejobopportunities.Enhancingskillsoflocalcommunitymembersthat

couldbeusedtosourceemployment.’

‘TrainingProgrammessuchastheLTIandBTEIprovidetrainingandjobopportunitiestodisadvantagedyouth.Newapprenticeshipdirectorsin3

SEsallu25yearsandfromdisadvantagedareas.’

‘Placementandtrainingprovidedtodisadvantagedwhichcouldnotbeaccessedintheprivatesector.’

5.2.3SocialcontributionsTheprovisionofemploymentasamechanismfordisadvantagedgroupstoavailoftraininghaspositivepersonalandcommunityimpacts.Thesespananumberof avenues of regeneration of locations, stimulating a sense of wellbeing andbelongingformarginalisedindividualsandregions.The combined economic and social benefits have a synergistic impact on eachother;where there is economic activity, individuals can find employment, andthe monetary contribution to the local economy then adds vibrancy to theregion,aswellasasenseofpride,asthefollowingcommentsindicate:

29

‘Enableactivityinruralvillagesandsmalltownthatwouldotherwisebedeemednotvalueformoney.’

‘Providingculturalandrecreationalinfrastructurewhereitisnotviable

todosoonafor-profitbasis.’

‘Enhancestheculturalandsportinglandscapeinruralareas.Provideseducationalandtrainingandemploymentopportunitiesin

disadvantagedruralareas.’

‘ThereisademonstrablesocialgainthroughtheexistenceoftheActiveITSociety.Thedigitalskillscoursesarenotableintermsoftheirsocial/communityoutcomesasthefeedbackcommentsfromparticipantsaresignificantlypositive.Therespondentsrepeatedlyrefertoenhancement

intheirliveswithclearevidenceofthedigitalgapbeingclosedasparticipantscommentthattheycannowshareinformationandphotosaswellasparticipatingindigitalmediaandsocialtechnologywiththeir

families,friendsandcommunities.Theconnectionsmadebetweenparticipantsonthecourseisalsopositiveasitbringsthelocal

communitycloserasolderpeoplewithsimilarinterestsarebroughttogetherandabletobuildandmaintainfriendshipsthroughtheir

newfoundskills.’

‘Improvedmyqualityoflifeconsiderably.’

‘Iaminmymid-seventiesandgotapresentofaniPadlastyear.WhileIamfamiliarwithalaptopIcoulddonothingwiththeiPad.IcannowdoalmostanythingIwanttoonitbutIgreatlylookforwardtolearning

more.’

‘AITShasbeenveryhelpfulindevelopingsomenewskillsIotherwisewouldnothavehadaccessto.’

‘Encouragementofyoungerpeoplethroughvolunteerismand/orAllotments,withpotentialfortrainingandemploymentinfuture.’

‘Improvedlocalservices,employmentopportunitiesformarginalisedgroups,people-centredmodelofeconomicgrowth.Localemploymentaidingthedevelopmentofself-esteem,feelingapartofthecommunity,

makingacontributiontosociety.’

‘ServicestoolderpeoplesuchasMealsonWheelsmeansthatthereisdailycontactforsomeindividualswhomaynototherwiseseeanyone.’

30

‘Socialenterprisesaregenerallywellpositionedtodowhattheprivateandpublicsectorsarenotdoingadequatelyoratall.Like-minded

individualsworkingtogetherandnotfor“themselves”orfor“profits”canachievegreatthings.Socialenterprisessuccessfullytacklesocial

inclusionissuesbutarerestrictedduetounpredictablefundingsupports.’

.‘Theenterpriseinquestionherewouldnotbesustainedbyaprivate

ownerasitwouldnotgenerateenoughprofit(atpresent).Manypeoplelocallywouldsay(ifasked)thattheexistenceofthecentre,a70acrefarmintheverymiddleofanurbancentre,isunique.Itisacentreofexcellenceintheprovisionofcommunityspaceandorganicproduceaswellasrecreationalamenitiesandtheprotectionofrarefloraand

fauna.Itsexistencealsoallowschildrenfromveryurbanisedplacestovisitaworkingfarmandlearnabouthowfoodisproducedandthe

damagethatchemicalsdototheenvironment.’

‘Developmentofprojecttothelevelwhereithasthepotentialtocreatejobopportunities.Enhancingskillsoflocalcommunitymembersthat

couldbeusedtosourceemployment.Allowsolderpeopleandpeoplewithdisabilitiestoliveindependentlivesindignitywithintheirowncommunities(NorthKerryOlderPerson’sDayCareCentre/shelteredhousingprovidemealsandcateringservicesto

theelderlyandrural-dweller.’

‘Providesservicestosociallyexcludedthusaddressingsocialexclusion.’

‘EmploymentandtrainingopportunitiesforlocalpeopleinanareawithDesignatedDisadvantagedstatus.’

‘Bringsacommunitytogethertopositivelyrespondtotheneedsoftheir

localityandempowerspeople.Providesvitalservicesacrossmanysectorsforlocalcommunities.

Mentoringclientscomingfromdisadvantagedbackgrounds,upskillingandcapacitybuildingisakeyfeatureoftheenterprise.Thisiscrucialto

enablingpeoplethathavebeen“leftbehind”toenhancetheiremployabilityandimprovetheirchancesofgainingworkthatpaysa

livingwage.’

‘Thefundingofstaffforruralcommunityhallshasgivennewlifetowhathadbecome“whiteelephants”.Thefacilityofadedicated

31

caretakerwithinaprojectcannotbeoverstatedintermsofthedevelopmentofservices.’

‘Theenterprisefocusesongrowing,sellingandpromotinguseof

organicfoodsandencouragingasustainablelifestyle.Itcomprises2xelements,organicfarmingandanecologycentre.’

‘Itoffersafullyaccessible,multi-purposebuildingthatisusedbyawiderangeofcommunitygroupsthathirethecentreatcommunityrating.Itisalsotheonlydedicatedconferencecentre,trainingfacility,meetingrooms,trainingrooms,amplefreecarparking,organicfarmshop,attracts36–40‘sabbaticalstudents’thatcontributetothelocal

economy.’

‘Socialenterprisescanhaveatripleheliximpact–economic,socialandenvironmentalthroughdirectjobcreationaswellascontributingtoawiderangeofcommunityandsocialservices.Theydeliverarangeofbenefitstomarginalisedcommunitiesnotadequatelyservicedbythepublicorprivatesector,toincludedeliveryofgoodsandservices,

therebycontributingtothesocialdevelopmentofcommunities.Theyprovidejobopportunitiesespeciallyforthoseunabletoaccess

mainstreamemploymentforavarietyofreasons.’

‘Childcareindisadvantagedareas,recyclingopportunities,Europe’sonlyfreedoortodoorcollectionofelectricalgoods–operatingingreater

Dublinarea.’

‘Providesopportunitiesforpeopletovolunteerandenhanceworkreadiness,empowermentofstaff,guidedwalks,venue/&tutorsforeducationcoursesonenvironment,cosmology,sustainablelivingforadultsandchildren(linkswithlocal2ndlevelschoolsreprovisionofTransitionyearprogrammesontheseissues).Exposeschildrenand

adultstoknowledgeonenvironmentalissues…’

‘Reducedisolationandincreasedfamilycohesionandwellbeing.’

‘EnablingthecontinuationanddevelopmentofcommunityandnewinnovativeprojectswithinareasofsignificantdisadvantageandwithspecifictargetgroupsthatweresupportedthroughpreviousState

communitydevelopmentfunding.’

‘Increasedfamilycohesionandwellbeing.’

32

‘Socialenterprisesaregenerallywellpositionedtodowhattheprivateandpublicsectorsarenotdoingadequatelyoratall.’

There are mutual advantages between the economic, social and financialbenefits which are inextricably linked accruing form social enterprise activity.Thus, focusing excessively on one area misrepresents the embedded andmultifaceted contributionsof social enterprises.A vibrant social enterprisewillbring financial benefits to the local economy as money earned locally will bespent locally, and this may result in increased employment and capitalexpenditureinthearea.The contribution of the social enterprise sector highlights some keymessageswhichareimportanttoconsiderintherecognitionofthesectorandinvalidatingtherationaleforfundingmoretargetedsupportsundergovernmentpolicy:• Socialenterprisesprovideanimportantmechanismforachieving‘inclusive

growth’,wheremarginalisedgroupswhoarenotincludedwithintheeconomybenefitfromeconomicgrowththroughparticipationinthesocialenterprise.

• Socialenterprises–throughemploymentcreation,theuseoflocalresourcesandaddressinglocalproblems–provideamonetarycontributiontothelocaleconomy,whichaddsvibrancytotheregionsinwhichtheyareactive.

• Successfulsocialenterpriseinitiativesbuildonlocalcapacitiestoaddresssocial,economicandenvironmentalproblems.

• Socialenterprisesareengagedandembeddedinlocalcommunitiesandusetheirknowledgeandnetworkstofindsolutionsfortheirproblems–thusprovidinglocalownershipinsolvingproblemsinasustainablemannertoachieveindividual,community,andregionalcohesionandregeneration.

Therangeofbeneficiariesofsocialenterprisesandtheirgeographicscalepointstothevaluablecontributiontheymaketolocalcommunities,botheconomicallyandsocially.The localisedservicesprovidedby socialenterprisesareoften thetypes of services that would otherwise not be available to people who liveoutsideofmajortowns.Themultiplicityof impactsandthevariedbusinessmodelsofsocialenterprisesmakes it difficult to evaluate their activities. An examination of the currentpracticesof thisareawill identify thepractical issuesencountered incapturinginformation to truly reflect the multidimensional contributions of socialenterprises.

33

EvaluationchallengesThe level of evaluation undertaken by the respondent LDCs, combining formaland informal methods, varied. In the assessment of social enterprise activity,issuesarisewhenitcomestocapturingsocialenterpriseoutcomesandoutputsin the evaluative metrics and frameworks applied by government; these arepredominantly designed for evaluating the broader population ofmicro, smallandmediumfirms.Theseframeworksdonottakeintoconsiderationtheuniqueand differentiating characteristics of the activities, objectives and benefits ofsocialenterprises,whicharequalitativeandhavelonger-termobjectives.The approaches to and difficulties encountered in evaluating social enterpriseperformancearedetailedinthefollowingcommentsbyrespondents:

‘Atthemomentwedonothaveaformalevaluationprocessinplace.WeworkcloselywiththePobalstaffmember.Wehaveyettoput

metrics/indicatorsinplacethatwillmeasuretheimpactandoutcomesofthesupports/resourcesprovidedtotheCSPsundertheSocialInclusionandCommunityActivationProgramme.ThenationalindicatorsfortheSocialInclusionandCommunityActivation

Programmearequantitativeinnatureandcapturethenumberofbusinessessupportedandnewinitiativesdeveloped.Thereisan

opportunitytodevelopindicatorsthatwillcapturethediverserangeofsupportsandresultingoutcomesduringtheprogramme.Thisisawork

inprogress.’

‘NoformalevaluationprocedurebutattendanceatBoardmeetingsisamechanismfordoingso.Keyindicatorsinclude:No.ofpeopleemployedbythecentre/enterprise;No.ofpeoplefromdisadvantagedgroupsthatareemployed;No.oflabourmarketparticipantsemployed;RotationofBoard;CompliancewithGoodGovernancevisH&S,ChildProtection,FinancialManagementetc;No.ofsocialinclusionfocusedgroupsusing

thecentre.Contributiontolocaleconomy;wages,incomefromPobalunderCSP,

leverageoffundsfromPhilanthropicbodies/No.ofVolunteers,protectionoftheenvironment(canbemeasuredbyapproval/

compliancewithOrganicregs),Socialinclusionfocus.’

‘Whilstquantitativeresearchoftenliesmorecomfortablywithgovernmentdepartments,weencouragetheintegrationofbothaqualitativeandquantitativeapproach(wherepossible)tohelpustoconsiderbothsidesofthecoinwhiledemonstratingtherealitybehindthenumbers.Totrytoevaluatethesocialenterprisesexclusivelyfroma

34

quantitativeperspectivefailstounderstandorappreciatethehumandimensionofcommunityworkandismuchlesslikelytodemonstrate

thereal“humanfaces”andreasoningbehindthosefigures.Furthermore,aquantitativeevaluationapproachwouldnotincludethearrayofnon-financialcostsandbenefitswhichoftenemergefromthistypeofevaluation,forinstancethereducedlevelsofisolationandthe

increasedsafety&security.Thiswouldbeamissedopportunityintermsofaccuratelyrevealingthetruevalueformoneyofasocialenterprise.’

‘Allprojectsthatreceivefundinggothrougharobustevaluationprocesswhichexaminesthepotential/enterprisestobesustainable,realistic,

generateemploymentandmeetthesocialneedsoftheirarea.’

‘Capacityofthemanagementcommittee;financialviability;DemandfortheServicesDisplacement;JobCreation.’

‘QuantitativeIndicatorsQualitativeCaseStudyEvaluations.’

‘Fullydevelopedintoformalprocesses.SDCPstaffmembersaretrained

ingovernanceandsomeinfinancialoversight.’

‘Self-evaluation,participantcenteredevaluation.’

‘OurprocessofevaluatingasocialenterprisefallsundertheevaluationprocessesoftheRDPandLCDPguidelines.’

‘Thisprojectisstillinthedevelopmentalstageanditisdifficulttoprovideanevaluationmethodology.Alldevelopmentsarecarefully

monitoredandreportedandthisprocesswillcontinue.’

‘SocialenterprisesarecarefullyassessedbyrelevantLDCstaffandBoardrepresentativespriortoengagingintheprovisionofservices.

TheyaresubsequentlymonitoredonanongoingbasisviadirectcontactwithLocalDevelopmentCompanystaff.’

Thecommentshighlightissuesbothintheprocessofevaluationandthemetricsor criteria applied to measuring social enterprise performance. The LDCrespondents are intimately familiar with the benefits that social enterprisesprovide both socially and economically and at the individual and communitylevels,butyetareunabletopresentthistorelevantgovernmentstakeholders.

35

Thepracticality inevaluatingsocialenterpriseperformancemakes itdifficult todescribe their multifaceted social and economic influences, resulting in anunderestimation of their true impact. Consequently, it is difficult to present acompelling case for financial government supports for social enterprises. Fromthesocialentrepreneurperspective,beingunabletousethemetricsappliedtomainstream enterprises diminishes their contributions and organisationallegitimacy.

5.3OpportunitiesandchallengesfacingsocialenterprisesTheroleandcontributionofsocialenterprises,andthedifficultiesinevaluatingtheirperformancehavebeenoutlinedabove.Thefinalsectionofthesurveyhasan eye to the future, focusing onwhich sectors are viewed as holding growthopportunitiesforstart-upandestablishedsocialenterprises. The responses indicate opportunities for social enterprise activity across anumber of sectors, some of which build on those sectors where socialenterprisesoperate,while somenewsectorsalsoemerged. Table2.0presentsthemostcommonlycitedsectorsprovidingopportunitiesforsocialenterprises.

36

Table2.0:Opportunitiesforsocialenterpriseactivity

• Healthcare/wellbeing–somesuggestionsindicatedtheaddedvalueofapplyingtheuseoftechnologytotheprovisionoftheseservices;wellbeing-focusedprojectswerementionedonanumberofoccasions.

• Educationandprovisionofonlinelearningandlifelonglearning

• Environment-relatedprojects–community-ownedrenewableenergyprojectse.g.windfarms

• ThesocialfarmingmodelaspilotedintheBordercountieshaspotentialtobedevelopedasasocialenterprise,withadualfocusonthosemarginalisedinsocietyaswellasfarmerssufferingruralisolation.Communityshopshaveprovenpotentialundertherightcircumstancestoaddressruraleconomicdeclineandruralisolation.

• Publicprocurement–thereisachangeemergingfromdifferentgovernmentdepartmentswherebythedeliveryofservicesisbeingpursuedthroughpublictendering.Thereisanopportunityforbusinessestobeestablishedinthisareatosupportotherbusinessestowinpubliccontracts.

• Pre-schoolandafter-schoolchildcareinsmallruralvillages,andinparticularforsingleparentswhowishtoreturntowork.Alsoopportunitiesinvolvingchildrenwithspecialneeds.

• Carefortheelderly,asmanyolderpeoplearelivinginfrugalcircumstances.Inonecomment,itwaspointedoutthatthissocialneedisnotcurrentlybeingadequatelyaddressedbyeithertheprivateorpublicsectorentitiesinDuhallow.Oranywhereelse?!

• Community-ledand-basedprojectssuchascommunityshops,cafesandcommunityhubs,socialandcommunityhousing

• Projectstoaddressmarginalisedanddisadvantagedgroups,inparticularunemployedyouth,peoplewithadisability,etc(withcontractssecuredthroughtheCommunityBenefitClausesandSocialProcurement)

• Projectstoaddressruraleconomicdeclineandruralisolation(e.g.communityshopsandpubs,basedonUKexperience)

• Tourism,recreationandheritageproductsandservices

37

The ability of the social enterprise to leverage these opportunities relies on anumber of external factors, relating to support and recognition, and internalfactors relating to the skills and competencies of the social entrepreneur andtheirresourcebase(peopleandfinance).Fromtheexternalperspective,respondentcommentsstressedthatthecurrentlack of understanding of or myths associated with social enterprises requiredattentionastheylimitedadvancementoftheoverallsocialenterprisesector.Theimportance of increasing awareness of social enterprise activity and how theybenefit local and regional economies at the policy, funder and general publiclevelsareconfirmedinthefollowingcomments:

‘Theneedforheightenedrecognitionnationallyandatpolicylevelwasviewedasfundamentaltosecuresupportandassistance.’

‘Thesectorneedstoberecognisedandsupportedatanationallevel.Accesstofundingatstart-upphase.Clearaccesstosupportsandprovisionoffullrangeofsupports(iebusinessplanning,financial

planning/budgeting/strategicplanning/HR/Governance/recruitmentandcapacitybuildingforboardmemberson

allaspectsofthebusiness).Networksofenterprisesasasupportandlearningmechanism.’

‘Thereneedstobeapolicycommitmentwhichrecognisestheroleandthepotentialrolethatsuchenterprisescanhaveandtotheremovalofbarrierstosupportandengagementfromthetraditionalenterprise

supportsector(LEO).Thereisagreatdealofconfusionregardingwhatisandwhatisnotasocialenterprise,acommunityenterpriseetc,andthereappearstobeareluctancetoengagewithsocialenterprisesfromkeysupportagencies.Attheendofthedaytheseareenterprisesandneedtooperateassuchalbeitthosesocialobjectivesareasimportantasthetradingcapacity.TheForfásreportrecommendationsprovideagoodstartingpoint,asdothoseinthereportonsocialenterprisesfrom

theCountyKildareLeaderPartnership.’

‘AparticularpolicyfocusonSocialEnterpriseaswasavailabletocommunityenterprisedevelopmentinFASinthe1980’sand1990’sand

viatheCommunityServicesProgrammeintheearly2000’s.’

‘Needtounderstandwhattheyareinthefirstinstanceandalsoprovidestaffsupportingservices.’

38

Enablingthesocialentrepreneurtoavailoftheopportunitiesidentifiedaboveisdependent on the possession of managerial and leadership competencies,particularly in financial management, human resource management andgovernance. The social entrepreneur also needs to adopt amore professionalapproachtotheoperationsandmanagementoftheirenterprise.Policies and interventions to enable social entrepreneurs to adopt such aprofessional approach necessitate an understanding of the challenges theyencounter, both internally (skills and competencies) and externally (economic,regulatoryandfinancialissues).Respondents were asked to indicate the primary internal and externalenvironmental challenges facing start-up and established social enterprises inleveragingthepotentialfromtheareasofopportunityidentified.Theresponsespoint to the most appropriate direct and indirect supports required by socialenterprises. The challenges facing the start-up social enterprise are shown inTable3.0.

39

Table3.0:Challengesencounteredbystart-upsocialenterprises

InternalChallenges ExternalChallenges

Financial/legalimplications Over-regulation

Structureofmanagementcommittee

Volunteerswithresponsibilityofrunningcommercialbusiness

Feasibilityofbusinessmodel Findingsuitablepremises,negotiatingleases,accessingfunding,mentoring

Managementexperience Regulationcosts,changesinfundingcriteria,lackofstart-upcapitalsupports

Governance Engagingwithgovernmentfundersandoversightbodies

Strategy,marketing,HR Governmentsectoralandemploymentpoliciesandnot-so-flexiblegeneralregulations

Professionalisationofoperations

Lackofunderstandingofpolicesandregulationsorhowtocomplywiththem

Lackofvoluntarycommitment Expectationsofwhatcanbedelivered–finders,communities

Complianceissues/bureaucracy

Lackofinformationandsupports‘ontheground’

Businessplanning

Needforbusiness-likeapproach ThefollowingcommentssupportthechallengesidentifiedinTable3.0:

‘Itisvitalthatarangeofstart-upsupports,advisoryandmonetary,are

madeavailable,leadingtogrowthandthecreationofeconomicopportunitiesatlocallevel.’

‘AswithallSocialEnterpriseinitiatives,inlinewiththekeychallengesasidentifiedbytheForfásreportonSocialEnterprisesector.NamelykeychallengesidentifiedbySocialEnterpriseswere“Therewillneedtobe

40

anemphasisonprovidingthenecessarysupportsinovercomingthechallengesidentifiedabove.’

‘Theviabilityofsocialenterprisesisverydependentondedicatedvolunteersandgoodteamworkandcommunityspiritinthelocal

community.Mostcommunitygroupscurrentlyrunsometypeofsocialservice/socialenterprises.CommunityGroupsneedbettersupportfromstatutoryagenciesinrelationtoregulationetc.Volunteersrunning

socialenterprisesrequireprofessionaltraininginareasofemploymentlaw/humanresources/legalissues/governance.’

‘KeychallengesidentifiedbySocialEnterpriseswere“management

development,financialmanagementandplanningandhumanresourcemanagement.”Therewillneedtobeanemphasisonprovidingthenecessarysupportsinovercomingthechallengesidentifiedabove.’

‘Capitalfundingforviableprojects,andemploymentsupports.’

Therewasa similarity in thenatureof theexternal challengesencounteredbystart-upandestablishedsocialenterpriseswiththeemphasisonoverregulationand bureaucracywhich is stifling growth and expansion and consumes a largeproportionofthesocialentrepreneurstime.Therangeof internalandexternalchallenges encountered by established social enterprises is displayed in Table4.0.

41

Table4.0:ChallengesencounteredbyestablishedsocialenterprisesInternalChallenges ExternalChallenges

Managementofappropriatestructure,rolesandresponsibilities

Corporategovernance/boardofdirectors

Humanresourcemanagement(multiplementions)

Financialmanagementandaccesstofinancetogrow

Managingsurpluses/Reinvestinginthebusiness

Pressuretoraisewages

Alackofyoungervolunteersanda‘burnout’factorwithexistingvolunteers

Accesstonetworkingopportunities

Strategicplanning

Howtoscaleupandinnovate

Engagingwithrelevantgovernmentfundersandoversightbodies

Governmentsectoralandemploymentpoliciesandgeneralgovernanceregulations

LegislativechangesinareassuchasFeed-inTariffsforRenewableEnergy

Publicprocurementcommunitybenefitsclauseslegislation

Attractingtalentatmanagementandstafflevel

Lackofunderstandingofpolicesandregulationscoveringsocialenterprises

Thefollowingcommentssupporttheabove-mentionedchallengesfortheestablishedsocialenterprise:

‘SignificantchallengeforSocialEnterprisesistosetupandmaintainagoodmanagementstructurewithinthebusiness.Astrongandcapable

managerisoftenthekeytothesuccessofaSocialenterprise.’

‘Tenderingforcontracts,improvedfinancialplanning,scalingupservices,mergersofprojectstoreducelegal,auditandothercosts.

Mergersofboardstocreatesustainablegovernancemodel,trainingformanagers,betterstrategicanddevelopmentalplanning,provisionof

developmentfunding.Managingsurplusesinawaythatusesfundswellandavoidsstatewithdrawalwillbekeyforsuccessfulenterprises,willbeanimportantstepforlong-termsustainability.ProfessionalizationinallaspectsofthebusinesseswillberequiredifSEsaretocompetewith

privatecompanies.’

42

There is consistency about the challenges facing both the start-up andestablished social enterprise, particularly in relation to external environmentalconditions.Theexternalbarriersresonatewithlegalandcomplianceissuesandthechallengesencounteredinsourcingandaccessingfundingtostartandscalethe social enterprise. Internally, for the start-up enterprise, issues arise withvalidating themarketopportunityandstaffing.Consistently,challengesarise inthemanagementandgovernanceofthesocialenterpriseandrecruitmentoftheboardaswellasofstaff.Issuesinrelationtogovernance,establishingaboardofdirectors,managingstaffandplanningaremorepronouncedchallengesforestablishedsocialenterprises.They also experience problems inmeasuring performance, completing returnsanddocumentingperformanceforgovernmentagencies.Aligningandcomparingthechallengesencountered instart-upandestablishedsocialenterprisesprovidesacomprehensiveunderstandingoftherangeofissuesthat require attention and resourcing in government policy. Further, byidentifying and addressing the challenges at the start-up stage, these issuesshould be less challenging as the enterprise develops and scales. Thusinvestmentinreducingtheimpactofthesechallengeswillresultinanincreasednumberofsocialenterprisesscalingmoreeffectively.Thefactthatestablishedsocialenterprisesareexperiencingsimilarchallengestostart-upsdemonstrates that lessonsarenotbeing learnedas towhatworksorbestenablesthedevelopmentofthesector.MultifacetedcontributionofsocialenterprisesIn summary, the results of the empirical study highlight the multifacetedcontribution of the social enterprise sector in Ireland, and demonstrate theirimportance to the economic, social and demographic wellbeing of local andregionaleconomies.The qualitative analysis of ‘good practice’ case studies highlights further andaugments the sometimes less tangible benefits accruing to individuals andcommunities(seeAppendix2foranoverviewofasampleofsuchcases).A number of interconnected issues emerge that require attention in theformulationofsocialenterprisepolicy:• Comingtotermswithwhatsocialenterprisesare–socialenterprisesor

communitygroups?

43

• Underestimationofthecontributionofthesocialenterprisesectorbybothpublicandprivateagenciesandamongthegeneralpublic.

• Theperceptionthat‘earningmoneywithsocialservicesiswrong’.Socialentrepreneursshouldbeencouragedtogrowintoprofitswhilstmaintainingtheirsocialethos;withprofit,thesocialenterprisewillhavelongevityandwilladdvaluetoagreaternumberofbeneficiaries.

• Thedesignandimplementationofsocialimpactevaluationprocessesthatacknowledgeandalignwiththesocialmissionandobjectives.

• Theinterconnectedandofteninseparablesocialandcommercialmotivationsandactivitiesthatcancausetensionandconflict,fromgovernmentpolicyandfundingstakeholderperspectives–theknowledgeandperceptualgapneedstobebridged.

• Legal,regulatoryandgovernancecomplianceissues–thesearedominantexternalbarriersaffectingtheabilityofthesocialenterprisetoscale.

• Competencydeficienciesinmanagement,leadership,humanresourceplanningandfinancialplanning–theseareinternalbarrierstoscalingthesocialenterprise.

• Howthefundingandrevenuestreamsofsocialenterprisescanbeenhancedandbettermanagedbysocialentrepreneurs.

The current landscape of supports and, indeed, the level and depth ofunderstanding of the operational activities of the social enterprise are largelybased on mainstream micro, small and medium enterprise policy. Thedifferentiatingcharacteristicsof thesocialenterprise,especially in theareasoffinancing, governance and performancemeasurement, are not acknowledged.The results of this study, informed by the observations and advice of LocalDevelopmentCompanies,canusefullyinformsocialenterprisepolicyinitiatives.

44

6.0 Creating an Enabling and Supportive Environment for Social Enterprise Activity SocialenterprisesplayimportantrolesintheIrisheconomy.Theyaddresssocial,economic and environmental challenges; increase social cohesion; retain localsocialcapital;encouragetheparticipationandinclusionofmarginalisedcohortsacrossallages,anddemonstrateresilience.Itisimperativethatsocialenterprisebecomesastrongerpolicyvehicle,withtheobjectiveofstimulating,nurturing,enablingandscalingsocialenterpriseactivitytoestablishabalancedpipelineofsocialenterprises.Thedevelopmentofthesepolicies shouldbe informedbya realistic comprehensionofwhatconstitutesasocial enterprise,why they exist andhow theyoperate as part of the broaderpopulationofmicro,smallandmediumenterprises.Governmentpoliciesdesignedtosupportsocialenterpriseshavebeenbasedona minimalist approach, which results in interventions mainly aimed atovercoming specific problems in a piecemeal way. Further, the application ofmicro,smallandmediumfirmpolicieshavebeenimposedonsocialenterprisesin an ad hocmanner, with the stress on business function rather than socialbenefitorimpact.Littleefforthasbeenmadetodeterminethesuitabilityofsuchpolicies, or how they can be modified to suit the characteristics of the socialenterprise,orhowtointegratethetwopolicyagendasasameansofco-learning.Given the experiences and learnings accumulated from implementing micro,smallandmediumfirmpolicy,thereissomepotentialforsynergy,cross-learningandadoption to thesocialenterprisesector,and, inparticular, investigationofsocial enterprise scaling and how it aligns with traditional concepts of firmgrowth. This would benefit both the social enterprise and mainstreammicro,

45

small and medium firm policy design, thereby resulting in more effectiveapplicationoffinitegovernmentresources.Developing a supportive social enterprise sector requires polices that facilitateand enable social enterprises to operatemore openly and activelywith publicinstitutions and private enterprises, as fully entrepreneurial actors. Currently,assistance for the social enterprise sector remains focused on the isolatedinterventionofindividualorganisations.Thosewishingtostartasocialenterpriseor learnaboutsocialenterprisesdonotknowwheretogofor informationandassistance.Social entrepreneurship is relatively under-acknowledged, not fully understoodand reliant on marginal government supports. Advancing the knowledge andpractices relating to socialentrepreneursand theirenterprisesdependson thecollaborative actions of the key stakeholders who directly and indirectly workwith social enterprises, and must combine the efforts of policy, governmentagencies, educators and social entrepreneurs in a number of interconnectedactivities.Thiscollaborationmustbedrivenbyhavingamutualgoalanddeterminationtocreateamoreenablingandsupportiveenvironment inwhichsocialenterprisescanstartandscale.Governmentpolicyshouldtakeatwinapproach,involving:1) Amacrostrategicperspectivefocusingonawarenessandeducation,and

creatingsupportivefinancialandgovernanceenvironments

2) Anoperationalperspectiveinwhichpoliciesfocusoncompetencyandcapabilitydevelopmenttoaccommodatethedistinctneedsofstart-upandestablishedsocialenterprises

The latter will require harnessing and managing financial and non-financialresources, reshaping institutional arrangements, andencouraging collaborationand shared responsibilities in the design and implementation of initiatives tosupportthestart-upandscalingeffortsofsocialentrepreneurs.

46

The following recommendations identify six primary themes that should beaddressedintheformulationofacohesivegovernmentsocialenterprisepolicy:1.Enhanceawarenessof,educationabout,andpromotionandrecognitionofsocialenterpriseactivity2.Establishasupportivefinancialinfrastructurethatacknowledgesandrewardsthemultiplecontributionsofthesocialenterprisesector3.Viewgovernanceandleadershipasapracticeratherthanasetofindependenttasks4.Createanalignmentbetweenevaluationandmonitoringmetrics5.Providecompetencyandcapabilitytrainingforstart-upandscaling-upsocialenterprises6.Enhancenetworking,partnershipandcollaborations,toachievegreatersocialimpactTheseareasareinterlinkedandinsomeinstancestheproposedactionsoverlap.Additionally, implementation of the proposed actions would entail sharedownershipandresponsibilityamongthevariousstakeholders,toachievegreaterefficienciesintheuseofresources.The following section describes the primary actions under each theme andindicatestheorganisationsthatshouldengageintheirimplementation.The first action focuses on promoting increased awareness about socialenterprise and how it contributes to the Irish economy, since this is thefoundationforthesuccessfulacceptanceandimplementationofthesubsequentinitiatives.

47

6.1.Enhanceawarenessof,educationabout,andpromotionandrecognitionofsocialenterpriseactivityThe research findings demonstrate that social enterprise is still a relativelyunfamiliar concept, and that the boundaries between social enterprise activityandthatofmainstreammicro,smallandmediumenterprisesareblurredwithinthepolicy,socialentrepreneur,fundersandgeneralpublicdomains.The creation of an enabling and supportive social enterprise culture requiresincreased awareness and educational initiatives thatwill reduce the confusionand uncertainty about what constitutes a social enterprise. It is necessary toconstructamorerealisticandcomprehensiveunderstandingofthemotivations,characteristicsandbenefitsofsocialenterprisesandtherolestheyplayinlocalandregionaleconomies.Whilst it is important to understand and accommodate the differentiatingcharacteristics of the social enterprise, too much differentiation might diluteboth the depth and the richness of the important entrepreneurial workundertakenbysocialentrepreneurs,andalsounderrepresent theirmanysocialandeconomiccontributions.Thus, in designing awareness initiatives, it is important to be mindful of thevariousaudiencestargetedwhichrequireslightlydifferentmessages,e.g.,policyversus general public versus educators, etc. The challenge is how tomaintainsome common and consistent elements in the communication content whilstadaptingittoaccommodatedifferentaudiences.RecommendedActions• ResourceadedicatedsystemforsocialenterprisesoraChampionEntity

whoseownershipisbestplacedinLocalDevelopmentCompanies(LDCs),giventheirexperiencewithandpositiveimpactonthedevelopmentandbuildingofthesocialenterprisesectortoitscurrentstatedespitelimitedresources.

Essentially,continuedLDCdedicationtoandownershipofthesocialenterpriseagendawillallowLDCstofurtheradvancetheirpromotionalactivitieshighlightingtheimportanceofandneedforsocialenterprises;provideamuch-neededinformationflowbetweengovernmentdepartmentsandexternallywiththebroaderpublic,educationalandresearchdomains,

48

andenabletheLDCstoactasacoordinatorandconduitfortheimplementationofsocialenterprise-relatedactivities–sothattheyarethe‘goto’entityforinformationanddealingsonsocialenterpriseformationanddevelopment.

• ProgressthedevelopmentofaSocialEnterpriseBrand,orbrandingofthesocialenterprisesector.Thisbrand,consistingofvisualsandcontent,wouldcreateanindependentandrecognisableidentityassociatedwiththesocialenterprisesector.Brandstraplineswouldbeusedtocommunicateinamemorablewaythecoreideaofwhatthesocialenterpriseisallabout.

ThecurrentworkcompletedwithSocent.ie(theIrishSocialEnterpriseNetwork)onthistaskshouldbereviewedtodeterminelearningsfromtheprocessasabasisfortakingthenextstepsandsettingatime-frameforthedesign,testingandrolling-outofasocialenterprisesectorbrand.

• CreateaSocialEnterpriseWebsitethatusesthesocialenterprisebrandandstraplines,andthatincludesrelevantinformationonthefollowing;

o thesituationofthesocialenterprisesectorinIreland

o therelevantinitiativesandpublicsupportsavailableatnational,regionalandlocallevel

o atemplateforenteringrequestsrelatedtostartinguporscalingasocialenterprise

o informationon‘whoshouldItalkto?’aboutsocialenterprise

Thissitewouldbethe‘shopwindow’forthesocialenterprisesectorinIreland.Itwouldbeanimportantmechanismtoencourageengagementbetweensocialentrepreneurs,governmentagenciesandeducationalandresearchinstitutions.Itwouldalsoserveasausefulpracticalresearchtool,andameansofobtainingfeedbackfromsocialentrepreneursontheirneedsandforidentifyingtraininganddevelopmentprogrammetopics.

• Developcasestudiesor‘stories’presentingrolemodelsandadvocatesofgood-practicesocialenterprisestogenerateconfidenceandgivelegitimacytosocialenterprisesinlinewithmainstreammicro,smallandmediumenterprises.Theseadvocatesmayalsoactasmentorstonewandaspiringsocialentrepreneurs.

ThereareanumberofsuccessfulsocialenterprisesoperatinginIrelandandsomeLDCshavecasestudiesalreadydeveloped,whicharereadytouploadontothewebsite.Thesecasesalsoexistinvideoformat.

Thecasesshouldbeshort(2-3pages).Typicalcontentwouldinclude:

o theprofileofthesocialentrepreneur

o theirmotivationtostartthesocialenterprise

49

o challengesencounteredinstartingthesocialenterprise

o sourcingresources(financial,people,technical,legal)

o organisationstructureadopted,andchoosingandmanagingtheboardofdirectors

o managinggovernance-relatedissues

o plansanddriverstoscaletheenterprise

o keylearningsand‘wordsofadvice’toeitheraspiringsocialentrepreneursorthesewhowishtoscaleupthesocialenterprise

• IncorporatetheuseoftestimonialsfromsocialentrepreneursatvariousstagesofdevelopmentwhowereassistedbyLDCs,soastoshowcasetheimportanceandbenefitsofengagementwithgovernmentagencies.Thesetestimonialsshouldbeconcise,engagingstatementsthatfocusonthecommonproblemsorissuesfacingsocialentrepreneurs,whatactionstheytooktoaddresstheseproblems,andtheresultsachieved.

• Delivertargetedsocialenterpriseinformationseminarsandworkshopsregionally,consistingofmultiplestakeholdersengagedwiththeprogressionofsocialenterpriseactivity.

Theseeventswouldgenerateknowledgeandawareness,andfacilitatenetworkingandexchangeopportunitiesforsocialentrepreneursandamongststakeholders,serviceproviders,socialfinanceinvestors,educatorsandresearchers.

• Organiseanationalstakeholderconferenceforsocialentrepreneurship,e.g.TheIrelandSocialEnterpriseSummit.Theobjectiveofthisinauguralsummitwouldbetobringtogetherkeypublicandprivatestakeholdergroupstopromote,discussandexploretheopportunities,achievementsandchallengesfacingthesocialenterprisesector.

Theinclusionofrelevantstakeholderswillpromoteknowledgetransferandthedevelopmentofcollaborativerelationships,andgivetangiblerecognitiontotheconceptofsocialenterpriseaspartoftheoverallpopulationofenterprisesinIreland.IncludinginternationalspeakersandattendeeswouldraisetheprofileofIreland’ssocialenterpriseeconomyinaninternationalcontext.

• Participateandcollaborateinmoregeneralmicro,smallandmediumenterpriseevents(runbypublicandprivateorganisations)suchasLocalEnterpriseOffice(LEO)andEnterpriseIreland‘EnterpriseWeeks’toheightentheawarenessofandcontributionofsocialenterpriseactivityandstakeholderinvolvement.

50

• Increaseawarenessofsocialentrepreneursintheeducationalsystem,especiallyinthird-levelinstitutions.Thiscanbeachievedintheshorttermbyintroducingthelanguageofsocialentrepreneurshipintoentrepreneurshipmodulesandprojects.Inadditiontotargetingstudents,promotionalactivitiesmustbeundertakenwitheducatorstoinformthemofsocialenterpriseactivityandwhyitisimportanttoincludetheconceptinentrepreneurship-relatedprogrammes.

The attainment of the above should be accommodated and given tangiblerecognitionby:• EstablishinganationwideSocialEnterpriseSupportCentre,whichcouldbe

locatedaspartoftheIrishLocalDevelopmentNetworkandlinkintotheregionalLocalDevelopmentCompanies.

Thenationwideresourcecentreshouldcontainahelpdesk(virtualandpersonal)andareferralsystemtomatchthesocialenterprisequerytoalocalresourceformoretailoredassistance.

Theaimistojoinuptheresourcesofarangeoforganisationsthatengagewithsocialentrepreneursinamoreformalisedway,togainscaleandsynergybetweenproviders.

ThepromotionalactivitiesidentifiedabovecombinedwiththeworkoftheSocialEnterpriseSupportCentrewillimproveandstreamlineinformationflowsandcontentbetweenthevariouspublicandprivatestakeholders.

• Morestrategically,considerationshouldbegiventothedevelopmentofSocialEnterpriseHubsthatprovideinnovationspacetohelpstart-upsocialenterprisesandprovidescalingenterprisesalsowithcommonresourcesandsupportsadministrativelyandinareassuchasmarketing,governanceandnetworking.Usefullearningsonhowtodevelopthesehubsareavailablefromestablishedenterprisecentresandhubsformainstreamenterprises.

ImplementationofActionsTheaboveinitiativescanberolledoutonaphasedbasis,andwillservetorectifytheinformationdeficitandmythsaboutsocialenterprises.These actions should be spearheaded strategically at government level todemonstrate support and give recognition to the social enterprise sector, andincludetheallocationoffinancialresourcesfortheirimplementation.

51

TheresourcingofthededicatedSocialEnterpriseCentre–whichiscentraltotheeffectiveexecutionoftherecommendedinitiatives–wouldrequiregovernmentapprovalandfunding.LDCsshouldbemorepowerfullypromotedasthe‘goto’entityandasthesocialenterprise champions, and be responsible for managing and coordinatingactivities and resources to ensure synergy. Each LDC should have a dedicatedSocial Enterprise Advisor to provide consistent and professional support toindividualsseekingtostartorscaleupasocialenterprise.

52

6.2EstablishasupportivefinancialinfrastructurethatrewardsthemultiplecontributionsofthesocialenterprisesectorThesurveyfindingsconsistentlypointtothedifficultiesthatsocialentrepreneursencounterinaccessingandsecuringfunding.Theyincludecallsforsimplificationof the current funding frameworks and an improvement in the relatedadministrativeproceduresforapplyingforfunding.Aswithmicro,smallandmediumenterprises,socialenterprisesrequirefinanceat the various stages of development, but it is more challenging for socialenterprises to seek funding from mainstream public and private institutions.Socialentrepreneursoftenrelyheavilyonarangeoffundingsources, includingindividual contributions, foundation grants, member dues, user fees,governmentpaymentsandfundraising.Socialentrepreneurshavefewerchannelsforaccessingfinanceorforgeneratingrevenue streams. Furthermore, the social entrepreneurmust rely continuouslyontherevenuestreamsmentionedaboveastheycannotreadilyswitchproductsormarkets,becausethecapacitytomotivateandattractpeopleandfunding istiedtothespecificsocialproblemorneedbeingaddressed.RecommendedActionsCreating a more supportive financing infrastructure requires reconstruction ofcurrent models. To ensure that this is completed effectively, morecomprehensive evidence is required on the barriers and challenges of currentsupply-side finance options. For instance, itwould be valuable to determine ifthereanelementofcontra-productivityandconflictbetweengainingaccess tofundingandhowitsattainmentmayrestrictfutureaccesstofunding;or,ifprofitismade,isthereadangeroffundingbeingwithdrawn?A further issue worth investigating is whether some social enterprise fundingdoes not follow success or profits, which would militate against developingscaling strategiesas, ifprofitsweremade, then fundingwouldbe restrictedordiscontinued.Researchisrequiredtodetermineiffundingschemestendtopreserveinefficientstructuresratherthanproviding incentivesandassistanceforstructuralchange

53

to the adoption of business models. A linked area of research is obtainingevidenceonthesourcesoffinancethathaveworkedforsocialenterprises;‘goodcase’practicesareimportanttoprovidetherationaleforincreasedfundingandasameansoflearningforsocialentrepreneursonhowbesttoapplyfundingforsuccess.Thesearealsousefulcase-studystoriesandsourcesoftestimonialsforinclusioninpromotionalmaterialandthesocialenterprisewebsite.The primary actions required to develop a more conducive social enterprisefunding infrastructure must address the supply-and-demand-side viewpoints,incorporatingthefollowingtasks:• Changethemindsetsoffunders(publicandprivate)andequallyofthesocial

entrepreneurastowhatrolefundingandfundersshouldplayinstartingandscalingthesocialenterprise.Fundersneedtobemoreinformedaboutsocialenterpriseactivityanditscontributionsbeyondsocialoutputs.

Forinvestorsinsocialenterpriseactivity,thereisaperceptionofgreateruncertaintyduetothefactthatthereisnosinglefactoroutcometomeasure,(suchasprofitorinvestmentreturn),andthequantificationorprecisemeasurementofsocialimpactiscomplicated.Thusinvestorsneedtounderstandsocialimpactanditsvalueinthemarketplaceaswellasthebenefitsofinvestinginsocialenterprises.Theestablishmentofasocialenterprisebrandendorsedbygovernmentwillassistinthissupportforsocialenterprises.

Socialentrepreneursshouldhavetheobjectiveofbecoming‘investorready’asopposedtojust‘grantready’.Thisrequiresaprofessionalisationoftheenterprise.Toachievethis,thesocialentrepreneurmustacceptandcomprehendthatbusinessprinciplescanandshouldapplytoasocialenterprise,withoutcompromisingthesocialpriority.Theawarenessandpromotionalactivitiesanduseof‘goodpractice’casestudiesoffundingsourcesthatprovedeffectivewillassistinchangingtheirmindset.Additionally,thesocialentrepreneurshouldreceivetrainingintheareasoffinancialplanning,financialmanagementandhowtodevelopaninvestor-readysocialenterprise.

• Generatealevelplayingfieldbetweensocialenterprisesandmainstreammicro,smallandmediumenterprisesforaccesstofunding.Todothis,considerationshouldbegiventocompensatingormodifyingpublicfundingcriteriatoensurethatsocialenterprisescanaccessequivalentfinancialresourcesassmallandmedium-sizedenterprises,despitethedifferentgoalstheypursueandtheirdifferentmodesofoperation.

Thesocialandeconomiccontributionsprovidedbysocialenterprisescontributetothepublicinterestandwellbeingofcommunities,whichreducesthefinancialburdenongovernmentfinances.

54

Socialentrepreneursrequireassistanceindevelopingstrategiesthatmaximisesocialimpactwhilealsodeliveringafinancialreturn.Socialentrepreneurshavetodevotemuchtimetocompletingadministrativework.Inparticular,challengesariseindevelopingsubmissionsforfirst-timefunding.Whenobtained,somefundingimposesspendingrestrictionsandvariedexpectationsofaccountability.Thedurationoffundingtendstobeconsiderablyshorterintermforsocialenterprises,withgrantsoftenbeingmadeonanannualbasis,therebycreatingongoingpressureforsocialentrepreneurstogivefundraisingactivitiespriorityoverotheroperationalandmanagementdemands.

• Facilitatechangefromagrantandwagesubsidisationdependencyculturetoonewheresocialenterpriseshaveagreaterincentivetoproduce,trade,generaterevenueandreinvestsurpluses.Thefinancingofworkplacementsorwagesubsidisationcanrestrictlonger-termplanninginthesocialenterprise.

• Identifyandtesthowcontemporaryfundingorsocialfinanceintermediariesarepredisposedorwillingtoprovideloans,guaranteesorquasi-equitytosocialenterprises.Theseintermediariesincludeangelinvestors;theDiaspora;individualinvestors;venturecapitalists;crowdfunding;socialimpactbondsandsocialinvestment,whichworkbestwithgovernmentsupportandinvolvementasco-funders.

Thiscallsforareviewofhowpublic/privatepartnershipsmightbeappliedtothesocialenterprisebusinessmodel.Theinitialtestingoftheemergingfundingoptionsrequireinstitutionalarrangementsbetweengovernmentsandfinancialinstitutionsthroughpolicymeasuresthatpromoteco-investmentwiththeprivatesectorandseeksocialaswellasfinancialreturns,sincesocialenterpriseactivityresultsincostsavingsforgovernment.Moreover,thisco-investmentapproachwouldmeanthatthesocialenterprisewouldreceivebusinessadvicefromtheprivateinvestorandgetassistanceinprofessionalisingthesocialenterprise.

• Createmoreequitableaccessforsocialentrepreneurstosecurepublicprocurementcontracts.Thereisclearlyanabsenceofsocialenterprisessecuringpublicprocurementcontracts,becauseofcapacityconstraints.Thisgaprequiresimmediateattention.Itcanbeaddressedintheshorttermbymodifyingcontractualstipulationsforsocialenterpriseswhilenotdiminishingtheoverallqualityoftheapplicationorabilitytocompletethecontract.Additionally,thereisthepotentialforpublicprocurementcontractstosupportenterpriseswithdedicatedsocialandenvironmentalimpacts.

• Developtailoredpackagesoffinancialassistancetoaccommodateandencouragestart-upsocialenterprises,withaparticularfocusonteamformationandonthefirstthreeyearsofoperation.Teamformationinsocial

55

enterpriseisanimportantmeansofbringingcomplementaryresourcestotheenterpriseandabroadernetworkofcontactstodeveloptheenterprise.

Socialenterprisefundingisasmuchaboutqualityasquantityoffunding.Itisnotenough to increase fundingwithout improving the allocationmechanisms thatensure the funding isput togooduseandcreatesabetteralignmentbetweentheexpectationsofthefundersandtheneedsofsocialentrepreneurs.ImplementationofActionsIt is recommended that a Social Enterprise Funding Steering Group beestablished to prioritise creating a better financing environment for socialenterprises. This group, organised by the LDCs, should include representativesfrom private and public funding institutions, social finance intermediaries andsocialentrepreneurs.Theremitforthisgroupistoinitiateandcoordinateresearchtoobtainevidencetosupportcurrenteffectivefundingmechanisms,includingwhytheywork;howthey can be transferred more broadly to social enterprises; the opportunitiesthat may exist in the emerging funding mechanisms and funding models(discussed above), and how these can be best applied to the social enterprisecontext.This investigation should include consultation with and input from public andprivate funders and social entrepreneurs. This steering group should also takeinto consideration the impact of governance and regulatory issues on finance,fundingsourcesandrevenuestreamsinthesocialenterprise.Given the interfacing role of LDCswith both social entrepreneurs and fundingagencies,theyshouldassumeresponsibilityforthefollowingtasks:• Design,testandsharelearningfromthedevelopmentofnewfinancial

‘instruments’andmodelsdesignedtoaddressthedifferentkindsofbusinessmodelsanddifferentstagesofsocialenterprisedevelopment.

• Worktowardsthedevelopmentofcommongrantapplicationformatsandguidelinesonhowtosuccessfullyobtainfunding.

• Establishstandardisedtoolsforsocialentrepreneurstotrackandcollectinformationrequiredbyfundersandgovernmentorganisations,incollaborationwithrepresentativesofpublicandprivatefundingorganisations.

• Developanddelivertrainingtosocialentrepreneursontopicssuchas:

56

o BecomingInvestor-Ready

o UnderstandingFinancialInformationandConvertingitintoManagementInformation

o PreparationofFinancialStatements

o ManagingCashflow

57

6.3ViewgovernanceandleadershipasapracticeratherthanasetofindependenttasksSocial entrepreneurs need to implement good governance principles andmechanisms, which affect the operations and scaling of the social enterprise.Theresearchfindingsclearlydemonstratethechallengesencounteredbysocialentrepreneurs in understanding and adhering to the bureaucracies ofgovernance. There are difficulties in completing complicated and time-consuming procedures, leading to a heavy administrative burden. As a result,thereisincreasingdemandonLDCpersonneltoassistandundertakegovernancecompletion tasks (act as governance advisors) on behalf of the socialentrepreneur.Thistrendislikelytointensifyunlessactionistaken.RecommendedActionsIssues in relation to governance require attention at a number of levels, asfollows:• Clarifytothesocialentrepreneurwhattheconceptofgovernancemeansfor

thesocialenterprise,toalleviatethefearsandtrepidationsassociatedwithit.Socialentrepreneursneedtounderstandthateffectivegovernanceisnotonlyaboutrules,bureaucracyandthestiflingofprogress.

Educationaboutgovernanceinvolvesinstillinginthemindofthesocialentrepreneurthatgovernanceisapractice,anattitudeandaseriesofcross-functionalactivitieswherebyorganisationsaimtoactwithintegritytomeettheirresponsibilitiestofunders,employeesandbeneficiaries.

Theareaofgovernanceaffectsallaspectsoftheenterprise,thusrequiringskillsinmanagement,leadership,financeandoperations.

• Focusattentiononearly-stageandstart-upsocialenterprisesthatareoftensotakenupwithestablishingapresenceinthemarketthatgovernancearrangementsareneglected,oronlyconsideredwhenconcernsareraisedbyfundersorpublicservicecontractors.

Promotingandembeddingthepracticeofgoodgovernancemanagementattheearlystageoratthestartofthesocialenterprisewillreducetheproblemsrelatingtogovernanceexperiencedbyestablishedsocialentrepreneurs.

• Deviseandimplementenhancedtrainingandmentoringprogrammesongovernancemanagement.Governanceencompassesawidevarietyof

58

managerialandleadershipfunctionsconcerningmissionandvalue-creationaspirations,howtheenterpriseoperates,howrolesaredefined,andriskmanagement,whichareresponsibilitiesoftheboardofdirectors.Therefore,thechairoftheboardorrelevantboardmembersshouldparticipateinthegovernancetrainingprogrammes.

Socialentrepreneurswouldbenefitfromparticipationingovernancetraininginthefollowingareas:

o Sourcing,recruitingandassemblingtheboardofdirectors

o Managing,leadingtheboardofdirectors–functionalandrelationshipmanagement

o Managingconflictintheboard

o Drawinguprulesandproceduresforboardoperationsandmaintenance

• In addition to competency development, the social entrepreneur requires

hands-on assistance and mentoring to manage the board and governancechallenges; deficiencies in governance knowledge will result in reducedcapacity to scale up to meet demand. In particular, assistance with thefollowingtasksofmanagingtheboardofdirectorsisrequired:

o Drawingupguidelinesandinstructionsonthestagesandprocessofrecruitmentoftheboardofdirectors

o Ensuringthattheselectionprocessresultsinthemostappropriateandbeneficialmixofskillsandexpertiseofboardmembers(andnotjustselectingpeoplewhomsocialentrepreneursknow)

o Engaging,motivatingandretainingexperiencedboardmembers

o Evaluatingtheefficiencyandeffectivenessoftheboardandhavetheabilityifnecessaryto‘exit’non-contributingmembers

o Managingtheinterdependenciesbetweenboardandmanagement–thepowerofboardstocontrolmanagementandviceversa

Inscalingsocialenterprises,theboundariesbetweengovernance,managementandoperationaltaskscanbeblurred.Inparticular,therecanbeconsiderablechallengesaroundtheinfluencethatsocialentrepreneurshaveontheboard,duetoalackoftimeorexpertisetoeffectivelysupportandmanagetheirboards.

o Reviewingtheopportunitiesorexamplesofwhereandhowmulti-stakeholderboardshaveworkedeffectivelytobringtogethertheinterestsofdifferentgroupsandgenerategreatersocialcapital

59

Assistanceisrequiredbythesocialentrepreneuronhowtodevelopsub-structures,whererequired;howcantheymanagedinthecontextoftheoverallboard,andtheimplicationsfortheroleofthesocialentrepreneur.

o EstablishaBoardofDirectorsChairsNetworktofacilitatepeerlearningandexchangeofbestpractice,andprovideameansofkeepinguptodatewithgovernanceissues.

ImplementationofActionsThedevelopmentofmorecoordinated,appropriateandachievablegovernancecompliancerequirementsshouldbeatthecoreofsocialenterprisegovernmentpolicy. The attainment of this requires collaboration and input from the LDCs,whichhaveintimatefirsthandexperienceofthefrustrationsandexpectationsofsocialentrepreneursastowhatgovernanceshouldbeabout.Thiscollaborationshouldsuggestwaystosimplifyandharmonisesocialenterprisegovernanceandfundingadministrativeframeworks,toenableeasiergovernancepractices.Consultation with social entrepreneurs at various stages of social enterprisedevelopment iscritical to identify thechallengestheyencounterandgaintheirparticipationinthepilotingofreconfiguredgovernanceproceduresandcriteria.Ultimately, government – in consultation with LDCs, funding institutions andsocial entrepreneurs – needs to strategically authorise and support themodificationofcurrentgovernancepracticestoensurethattherealbenefitsofgovernance are achieved, as opposed to it being a barrier and restriction tosocialenterpriseestablishmentandscaling.

60

6.4CreateanalignmentbetweenevaluationandmonitoringmetricsThere is and will continue to be pressure on social entrepreneurs to produceevidence on their social impact. However, the continued imposition of rigidmeasurement criteria developed for mainstream micro, small and mediumenterprisesconstrainstheabilityofsocialenterprisestopresentthefullstoryofthemultipleimpactsoftheiractivities.The debate about what, how and why to measure continues to stifle theactivities of the social enterprise, and challenge those working with socialenterpriseswhoseektoretro-fitsocialwithcommercialmetrics.Timeiswasted,withoutbenefittoeitherorganisation.It appears thatquantifying social impact is viewedas the ‘holy grail’ of impactmeasurement, but the quest for the perfect set of metrics results in loss ofimportantqualitativeimpactsthatarecongruentwiththeenterprise’smissionorwhyitwasestablished.Being able to articulate accountability to stakeholders through evidencing andmanaging social-value performance is important, but should not rely only onquantitativemetricsastheseare insufficienttoportraythemultiple impactsofthesocialenterprise.The following suggestions present options to move beyond the emphasis onquantitative measures to capture the multiple contributions of the socialenterprise.RecommendedActions• Applydifferentimpactmeasurementtoolsandmetricsforearly-stagesocial

enterprisesversusmoreestablishedones.

• Integratethemonitoring,measurementandtrackingfunctionintothesocialenterprisestrategyprocessesandprocedures,sothatitisnotanadd-on,aperipheryactivity,orcompletedonlywhennecessaryforfundingorassessmentpurposes.

• Developaknowledgebaseofevidencefromproveninternationalbest-practiceperformancemeasurementmethods,andofhowtheycanbeappliedtothecontextofsocialenterprisesinIreland.

61

• Redesignthecurrentconceptofperformancemeasurementtofocusontheprocessofsettingtargetsandachievingoutputs–sothatitisnotjustaboutmeasurementbutabouttrackingandtracing,withoutbeingoverlyprescriptive.Themetricsappliedtothevariousstagesoftheoperationsoftheenterprisemustbemorepracticalandmodularorprogressivetorelatetotherealitiesoftheoperationsandmilestonesofthesocialenterprise.

• Considerandidentifythemostrelevanttimeframeortimescalesforoutcomes,andthenincorporatetheseintothereportingcriteria.Thiswillmeanmeasuringaccordingtowhatisrealisticforeachenterprise.

• Incorporatethesocialenterprisemissionandobjectivesasthebenchmarkagainstwhichperformanceismeasured.Themissionandobjectivesshoulddriveandinformthemostappropriateandrealisticmetricsonwhichtoassessperformance.

Thesemetricsshouldbebuiltintothestrategyoftheenterpriseandprovideameansofongoingmonitoringtoallowsocialentrepreneurstoregularlyreviewhowthemissionisbeingachieved,asameansofidentifyingbottlenecksandareasofunder-orover-performanceandthusallowingthemodificationofenterpriseactivitiesaccordingly.

Thisinformationwillhelpsocialinvestorstoviewtheprogressofthesocialenterpriseandobtainamorein-depthandinformedunderstandingofhowtheirfundingassistednotjusttheenterprisebutthebroaderbeneficiariesandthepublic(whichisrelevanttotheinvestor’scorporatesocialresponsibility).

• Giveevidenceoftheimpacttheenterprisehasonthewidercommunityandcapturesecondaryandfutureoutcomes.Investorsliketoknowthattheirfundinghashelpednotjusttheemployeesofthesocialenterprisebutthebroadercommunity.

ImplementationofActionsLocalDevelopmentCompanieshavearoleineducatingsocialentrepreneursonthe purpose of performancemeasurement, what it entails, how it affects theenterprise as a whole, and its implications for reporting requirements, whichmaydifferifsocialentrepreneursareresponsibletodifferentfundingsourcesorhavedifferentbusinessmodels.Workingalongsideprivateandpublic funders,LDCsarebestpositionedto leadthe identification and design of amore appropriate and realistic performancemeasurement process (and criteria) for social enterprises. Similar to theproposedSocialFinanceSteeringGroup,aTaskForcededicatedtoestablishingabetter performance measurement process for social enterprises should be

62

convened.Thistaskforceorcommittee(withadefinedtime-frameforitswork)should consist of representatives from LDCs, social entrepreneurs, financialinstitutionsandexpertsinperformancemeasurementinthesocialeconomy.A useful approach being advanced in social enterprise performancemeasurement, which could guide the design of a more appropriatemeasurementprocess,isthe‘theoryofchange’,whichfocusesontheoutcomesfor the communities andbeneficiaries of the social enterprise. It identifies therelationships between activities and desired outcomes. Since socialentrepreneursareviewedasimportantagentsofchange,theuseofchangeanditscomponentsinassessingperformanceisappropriatetotheethosofthesocialentrepreneurandhowthesocialenterpriseisstructuredandoperated.Change outcomes include identifiable and deliberate change, in areas such asfinancial savings, service provision or delivery, behavioural change forindividuals,additionalsocialandeconomicbenefits,andsecondarybenefits.Themonitoringprocess shouldbe congruentwith theobjectiveandmissionof theenterprise, using indicators around the outcomes of its services, the expectedchangesinthevariousgroups,thetypeofchange,andtheexpectedtimeframeforthechangetocomeabout.Inturn,thiscanleadtoenterpriselearning,togreaterefficiencyinoperations,toservice/product offerings and to overall enterprise effectiveness. Establishingrelevant andmission-led, change-based (qualitative and quantitative) outcomeindicators is also an effective performance management tool, can informexpansion strategy, and gain stakeholder interest and commitment as well asrecognitioninthewiderpublicandprivatespheres.This approach adopts a process perspective and amoreholistic perspectiveofmeasurement, context, means (process), metrics (qualitative and quantitative,andongoingtracking)acrossthefunctionalareasofthesocialenterprise.Relevant employees in LDCs and in funding institutions require training in thearea ofmeasuring social enterprise impact and how to implement the variousmeasurementmethodsindifferentsocialenterprisecontexts.Funding and performance measurement or impact measurement are primarychallengesfacedbysocialentrepreneurs,andareinterlinked.Decisionsmadeinone area have consequences for other areas. The Social Enterprise FundingSteeringGroupandthePerformanceMeasurementTaskForceshouldthusworkinpartnership toensure that responses identified ineachareaare inharmonyand support eachother toeliminate the currentdisharmonybetween the twoareas.

63

6.5Providecompetencyandcapabilitytrainingforstart-upandscaling-upsocialenterprisesTheavailabilityofsupportivefinancial,regulatoryandgovernanceinfrastructureson their ownwill not enhance the performance of social enterprise activity ifsocial entrepreneurs and their employees are not competent and capable ofusingthemtotheirmaximumpotential.Muchofthetrainingundertakenbysocialentrepreneurs iscompliance-related,covering areas suchas financialmanagement andgovernance, and is favouredoverfunction-specific,strategicandmanagerialprogrammesthatwouldhelptodeliver longer-term productivity gains, in areas such as strategicmanagement,leadership,operationsmanagement,marketingandinnovation.RecommendedActionsItisimportanttoimprovetheflowoftalentintosocialenterprisesanddeveloptheskillsofthosealreadyinthem,andtopreparesocialentrepreneursandtheiremployees for the challenges of start-up, sustainability and scaling of theirenterprises.Inparticular,itiscrucialtodevelopskillsinbalancingthesocialandcommercialaspectsofthesocialenterprise.Thiscanbeachievedbydeliveringtraininginthefollowingareas.• ManagementandLeadership–bridgingthebusinessfunctionstoachieve

socialandcommercialimpact

• PeopleandTeamManagement–managing,motivatingandleadinginternalandexternalstakeholders

• ValidatingtheSocialConcept–thequestionstoaddress

• ApplyingforFunding–bridgingthesocialagendaandthefunderrequirements

• UnderstandingFinance–cashflowmanagement,budgeting,forecastingandfinancialstatements

• StrategyDevelopment–developingstrategicthinkingandbehaviourinthesocialenterprise

• IntegratingSocialandCommercialBusinessModelstoAchieveScale

64

• MonitoringandMeasuringPerformance–beyondasetofmetrics

• WorkingThroughandWithChange–managinginternalandexternalchange,andtheroleofthesocialentrepreneurasachangeagent

• PersonalDevelopment–bridgingthesocialandbusinessmindsettoachievescaling

• GovernanceandBoardofManagementCompetencyDevelopment(asdescribedinthesection6.3)

Theemergingnatureofthesocialenterprisesectormeansthatagenciesinvolvedwith this sector are on a learning curve. It is imperative that service providershaveskillsandcompetenciesintheoverarchingcross-functionalandmanagerialperspective of how social enterprises operate and in governance andperformancemeasurementandfunding.ImplementationofActionsThemorecompetentthesocialentrepreneuris,thebettertheycanavailofthefinancial and other government supports in place, and thus help to ensureefficiencies in government expenditure and the development of a moresustainedsocialenterprisesector.Competencydevelopmentinitiativescanbemanaged,deliveredandcoordinatedthrough LDCs,which currently operate good-practice examples of competencytraining. Some of the standardised training programmes could be deliveredcentrally in the Social Enterprise Centre or in a similar set-up to generateeconomies of scale from investment and to provide broader networking andpeer-learning opportunity for social entrepreneurs.Mentoring is an importantpart of the delivery process, Greater engagement with successful socialentrepreneurs will provide this opportunity. Mentoring by individuals fromfinancing institutions will provide much-needed complementary mentoringopportunitiesforsocialentrepreneurs.LDCsinconjunctionwithothergovernmentagenciesandeducationalinstitutionsshould facilitate peer learning, not only among social entrepreneurs, but alsoamongmembersoftheseniorteamsworkingwiththesocialentrepreneursandamong board members. Building active ‘learning networks’ amongst keystakeholders and social entrepreneurs will generate new knowledge andpracticessupportedbyevidence.Thiswillfosterreflective,criticalpeerlearning,andintegrateknowledgeandpracticetoadvanceunderstandingofthedynamicsand contributions of the social enterprise sector – addressing an area ofweaknessintheIrishcontext.

65

6.6Enhancenetworking,partnershipandcollaborations,toachievegreatersocialimpactSocial entrepreneurs face limited resources, fewer opportunities to sourcefinance and increasing competition from other social and non-social entities.Theyneed,therefore,tofocusonbuildinganetworkofcontactsandresourcesthat enable the pursuit of greater impact, new insights and increasedsustainability.Networking across enterprise boundaries to create social value is a powerfulscaling strategy because the creation of social value is not limited within theenterpriseboundaries.Thesocialenterprisecanbeconceptualisedasavehiclefor creating social value, either directly or through facilitating the creation ofsocial value with and by others. Therefore, the social entrepreneur must becompetent to source, manage and sustain external relationships andcollaborations,andadopttheroleof‘networker’and‘collaborator’toattaintheresourcesrequiredbytheenterprise.The notion of collaborations and partnerships by social entrepreneurs is lessevident in the Irish context. Their application as a scaling strategy meritsexploration to determine if possibilities for public/private partnerships orprivate-onlypartnershipsexist,andhowtheycanbestoperate.Thefollowingaresuggestionsonpossiblecollaborativearrangements forsocialenterprises,andafocusedplanfornetworking.RecommendedActions• Evaluateandtestpartnershipoptionsasameansofcompensatingforthe

deficienciesofthesocialenterpriseinskills,resources,accesstomarketopportunitiesorasasourceofinnovation.Theoptionsinclude:

o Skillspartnerships:Onepartysharestheirskillsandexpertisewiththeother,eitherthroughstructuredpro-bonoorlow-bonoengagement,throughskills-basedvolunteering,orthroughinformalmentoring,coachingoradvising.Socialenterprisesbenefitfromtheexperienceandinsightofpartnerskillsandexpertiseinareaswheretheyrequireskillsastheyworktoscaletheirbusinesses.

o Channelpartnerships:Socialenterprisesidentifypartnerstoserveassalesorsupplychannelsorbecomeinvolvedinsomeaspectofthevalue

66

chainofactivities.Thebenefitsofsuchchannelpartnershipforthesocialenterprisecanincludeincreasedsalesandenhancedquality,greateraccesstomarketsandincreasedefficienciesofroute-to-marketstrategies.

o Venturepartnerships:Socialenterprisesandpublicand/orprivateenterprisesenterbusinessarrangements,whichmayrequireaforfeitingofsomeequitybythesocialentrepreneur.Thistypeofrelationshipcanassistindevelopingnewproductsandservicesandmodifiedornewbusinessmodelsthroughinvestmentsorjoint-venturearrangements.

• Educatesocialentrepreneursontheimplicationsofpartnership

arrangements;forinstance,theacceptanceofchangedbusinessmodelsandthedecisiontopartnerforatemporaryoralongerperiodshouldbeguidedbyavalidationofthefollowingquestions:

o Whataretheobjectivesoftheproposedcollaboration?Isthereaclearbusinesscaseforit?Isitaproactiveasopposedtoreactivedecision?

o Whatarethedriversforpartneringforallinterestedparties?Whatisthemixofsocialversuscommercialdrivers?

o Arethepartners’needsandgoalsforthepartnershipdefinedandtransparent?

o Dothepartnershavethecapacitytorealisethebusinesscase?

o Whataretheproposedoperatingandfundingstructures?Howdotheyfittheobjectiveandapproachofthepartnershipaswellastheenterpriseculturesofthepartners?

o Whatwillthemanagementandreportingstructurescontain?Whataretheirimplicationsfortherole,controlandinputofthesocialentrepreneur?

o Dothepartnershavearelationshipofmutualrespect?

o Whatistheexitstrategygoverningthepartnership?

• DeviseaNetworkingStrategyforSocialEntrepreneursandforserviceproviders.Thisstrategywouldstartwithevaluationofwhatformalandinformalnetworkingeventshavetakenplace,whatwastheirobjectives(ifany),whatwastheoutcomeorresultsfromtheevents,andwasthereafollow-upforthesocialentrepreneurandtheorganiser.Thelearningsfromthisevaluationleadtocriticalreflectionandformafoundationonwhichtobuildamorefocusedanddedicatednetworkingstrategytoachieveresults

67

andensurethattheresourcesallocatedbyLDCsandentrepreneursaremosteffectivelyleveraged.

NetworkingeventsandworkshopscanbearrangedbyLDCsforsharingexperiencesandformutuallearningaboutinitiativesthathaveworkedandwhy,andthosethathavebeenlesseffectiveandwhy.Theyarealsoameansofidentifyingopportunitiesforgreatersharingofresources(trainingmaterial,documenttemplates,casestudies)tomaximiseresources,andasasourceoflearning.Networkingeventsrequireastrongfocus.Eachplannedeventshouldhaveaclearobjective,definedoutcomesandafollow-upplan.

• EstablishfocusedmentorpanelstocomplementtheexpertiseavailablefromLDCstaff.Membersofthementorpanelshouldbeindividualswithexperienceandexpertiseinthefunctionalaspectsofmanagingasocialenterprise,withparticularemphasisongovernance,financialplanningandmanagement,managementandleadership,andhumanresourcemanagement.LDCstaffcanmatchtheneedsofthesocialenterprisewiththerelevantmentorexpertise.

Inadditiontoone-to-onementorconsultations,LDCscouldarrangementorpanelmeetingswheresocialentrepreneursintheearlystagesofdevelopment,seekingfundingorplanningtoscaleupcanpresenttothepanelandobtainintegratedcross-functionalfeedback(asopposedtofunction-specificfeedback).

Plannednetworking,partnershipsandcollaborationsworkeffectivelyformicro,small and medium enterprises. Similar principles can be applied to the socialenterpriseasameansofovercomingscareresources.Thesocialmissionshouldnot be viewed as a barrier to forming business relationships that addressdifferentpartnerneeds.ConclusionTheabovepolicyrecommendationsaddresstheexternalandinternalchallengescurrentlyaffectingtheestablishmentandscalingpotentialofsocialenterprises.These recommendations indicate the overarching infrastructure of enablingsupportandresourcesrequired.The action plans address and accommodate the operational andmanagementchallenges, which are primarily related to the skills and competencies of thesocial entrepreneur, their staff and members of the board of directors. Theactionsbridgethegapbetweenthesupplysideofpolicyandthedemandsideofthesocialentrepreneurandtheirenterpriseneeds.

68

Policy initiatives shouldcombinea top-downprocessofprioritygoal-settingbygovernment and the allocation of resources to key areas with a bottom-upprocessof resourcingand facilitatingorganisations suchas theLDCsandsocialentrepreneursthemselvesto leveragetheoptimumbenefitsof theirenterprisetolocalandregionaleconomies.

69

7.0 Concluding Comments The social enterprise phenomenon and practice in Ireland is growing asmorepeopleviewsocialentrepreneurshipasanalternativebusinessformationoption.However,thepotentialforsocialenterprisestoserveasaseriousalternativetodoingmainstreambusinesswill remain unfulfilled unless government allocatesresources to create a supportive and enabling environment, while internallybuilding business knowledge and competencies in social entrepreneurs, theiremployeesandboardsofdirectors.Theresultsofthisstudyclearlydemonstratethemultifacetedbenefitsthatsocialenterprisesbringtolocalandregionaleconomies.Itisimportanttomakethesebenefits available to more people. Policy must capitalise on and leverage thebest practices of social enterprise activity, which has been enabled by LocalDevelopment Companies, to expand current social enterprises and encouragemorepeopletostartasocialenterprise. Ifpolicydoesnot intervene inamoreproactive manner to meet the needs of social enterprises, the resourcesexpendedtodateonthissectorwillbewastedandthesocialenterprisesectorwillunderperform.Theroleofgovernmentistoactasendorser,facilitatorandresourceallocatortogovernment institutions that work directly and indirectly with socialentrepreneurs, funding institutions and social entrepreneurs, to achieve thecommonobjectiveofbuildingamorerobustsocialenterprisesector.Collectiveimplementation will achieve collective impact, creating a positive and invitingenvironment that enables social entrepreneurs to become catalysts for moresustainedeconomicandsocialtransition.

70

7.1Keepingtheconversationgoing–areasforcontinuedresearchSuccesswillrequirebuildingastrongcommunityofpracticeandknowledge,aswell as improving the ecosystem that supports social entrepreneurs. Thus it isimportanttoengagewitheducationalandresearchinstitutionstobuildthebodyofpracticalandappliedknowledgeinthearea,creatingaco-learningexperiencewithandfromthecommunityofpractice.Theresultsofthisresearchgiveinsightsintothedominantissuesthatchallengesocialentrepreneurs,policymakersandresearchers inadvancingthepolicyandpractice domains. A number of topics merit more advanced investigation,including:• Theuseofasameansofcapturingtheperformanceofthesocialenterprise

andunderstandofwhereitcanbesuedinmeasurementdilemmaentrenchingthisspace

• Applicationofcontemporaryfundingmodelstothesocialenterprisesector

• Thesocialenterprisephenomenon–theperceptions,mythsandrealities

• Investigationofthenotionofsocialenterprisescalingandhowitalignswithtraditionalconceptsoffirmgrowth

• Evaluationofdifferentbusinessmodelsandorganisationalstructuresforapplicationtosocialenterprises

71

References BacqaandJanssena,F. (2011) ‘Themultiple facesofsocialentrepreneurship:A

reviewofdefinitionalissuesbasedongeographicalandthematiccriteria’,Entrepreneurship & Regional Development: An International Journal,Volume23(5-6).

Bornstein,D.andDavies,S.(2010)Socialentrepreneurship:Whateveryoneneedstoknow,OxfordUniversityPress,www.oup.com/us.

Doyle,G.andLalor,T.(2012a)SocialEnterpriseinIreland–APeople’sEconomy?OakTreePress,Cork.

Forfás (2013) Social Enterprise in Ireland: Sectoral Opportunities and PolicyIssues,Forfás,Dublin.

Hartigan,P.(2006)‘It’sAboutPeople,NotProfits’,BusinessStrategyReview,Vol.17(4):42-45.

IrishLocalDevelopmentNetwork(ILDN)(2014)‘SupportingtheSocialEnterpriseSector in Ireland’, Submission to Mr Cormac Clancy, Department ofEnvironment, Community and Local Government and Chair of theInterdepartmentalGrouponSocialEnterprise.

Klewitz, J., Zeyen, A. and Hansen, E.G. (2012) ‘Intermediaries driving eco-innovation in SMEs: a qualitative investigation’, European Journal ofInnovationManagement,15(4):442-467.

Santos. M. (2012) A positive theory of social entrepreneurship, Journal ofBusinessEthics,December,111,(3):335-351.

Vasi, I.B. (2009)Newheroes,oldtheories?Towardasociologicalperspectiveonsocial entrepreneurship. In: An introduction to social entrepreneurship:Voices,preconditions,contexts,R.Ziegler (ed.),155-73.CheltenhamandNorthampton:EdwardElgar.

Zeyen,A.,Beckmann,M.,Mueller,S.,Dees,J.G.,Khanin,D.,Kruger,N.,Murphy,P.J., Santos, F., Scarlata,M.,Walske, J. andZacharakis,A. (2013) ‘SocialEntrepreneurship and Broader Theories: Shedding New Light on the“BiggerPicture”’,JournalofSocialEntrepreneurship,4,(1):88-103.

Ziegler,R. (2010) ‘Innovations inDoingandBeing:Capability InnovationsattheIntersection of Schumpeterian Political Economy and HumanDevelopment’,JournalofSocialEntrepreneurship,1(2):255-272.

72

Appendix 1: Copy of questionnaire ProfilingthenumberandcontributionofSocialEnterprisestotheEconomyIntroductionThis survey is being undertaken to identify the diversity of social enterpriseactivityacrosstheregionsofIrelandtoprovideamoreinformedunderstandingofthesocial,economic,andfinancialvalueandcontributionsofsocialenterprisesector. The resultant information will heighten the awareness off and thecontributionthatsocialenterprisesbringtotheirlocalcommunitiesanThe definition applied in this study for a for social enterprise is as follows ‘anenterprise that trades for a social/societal purpose, where at least part of itsincome is earned from its trading activity, is separate from government andwherethesurplusisprimarilyreinvestedinthesocialobjective’Forfás(2013)In order to achieve this objective we are seeking your assistance in thecompletion of the attached questionnaire. Your responses should concentrateonly on Social Enterprises that your LDC has or is supporting and not on allsocialenterprisesinyourregion.The research isbeingundertakenby Irish LocalDevelopmentNetworkand theKemmyBusiness School,University of Limerick. Wewould greatly appreciateyour cooperation in the completionof thequestionnairewhich is contained inthe link below as this research is an important mechanism for all LocalDevelopment Companies to heighten the awareness of and the significantcontributionoftheSocialEnterpriseSectortoregionalcommunities.If youwould like toobtainmoredetailoranyassistancewhencompleting thissurvey,pleasecontactinsertcontact(emailandtelephone)detailsConfidentiality

73

Any information that you provide in this survey will be treated in strictestconfidence.Alldatagatheredthroughthesurveywillbeaggregatedtoprovideanoverallpictureofsocialenterprisesintheregion.Nooneorganisationwillbeidentifiedinanyreportwithouttheexpresspermissionoftheorganisation.Yourparticipationinthissurveyisverymuchappreciated.

74

Section One – Local Development Company Profile and Services provided toSocialEnterprises:Q1.NameofLocalDevelopmentCompany:____________________________________Q2.RespondentNameandRole:____________________________________Q3.Describe in the tablesbelowtherangeofdirectand in-direct supports youprovidespecificallyforSocialEnterprises(a) Describe the range of direct supports you provide specially for SocialEnterprisesDirectSupporttype DirectSupportDescriptionSpecificskillstraining–pleasedescribetypeoftrainingprovided

Preenterprisetrainingprogrammes-(pleaseprovidealistprogrammenames)

Enterprisesupportservicesinrelationtoadviceforbusinessideadevelopment,businessplans,accessingfunding

Supportingtheestablishmentofcommunityandsocialenterprises

Businessnetworking

Grantassistanceforbusinessstart-upandexpansion

Communityandvoluntaryworkplacements

Marketingforsocialenterprises

OnlineandICTforsocialenterprises

75

Humanresourcessupports/accessingskilledlabour

ManagementCompetencytrainingprogrammes

Guidanceonprocurementandhowtoaccesstopubliccontracts

StrategyandplanningforSocialEnterprises

AccesstoFinanceincludinggrantaid,loansandphilanthropicdonations

Otherservices,pleasespecifyanddescribetheservices

(b) Describe the range of in-direct supports you provide specifically for SocialEnterprisesTypeofIndirectSupports DescriptionofsupportGuidanceonestablishingBoardofDirectors

RoleandobligationsonBoardofDirectors

Provisionofinformation/workshopsonthenewGovernanceCodefortheIrishCommunity,VoluntaryandCharity

Training/Adviceonlegalissuesofrunningasocialenterprise

Training/AdviceonSelf-governanceandethicalissues

76

Training/AdviceondefiningrolesanddutiesforBoardofDirectors,staffandvolunteers

Training/Adviceonriskmanagement

Otherindirectsupports(pleasespecifyanddescribethem)

(c)CanyoupleaseindicateifyourLDCprovidesormanagesthefollowinglaboursupportschemesforusespecificallyforindividualsocialenterpriseandifsohowtheyareallocated?TypeofScheme HowitisusedforSocialEnterprisesCommunityEmploymentscheme

TÚS

RuralsocialScheme

JobInitiative

JobBridge

CommunityServicesProgramme

OtherScheme,pleasespecifywhichones

77

Q4.Oftheabovelistedservicescanyoupleaseindicatethefivemostfrequentlyusedservicesbyyoursocialenterprises?1___________________________________________________________________2___________________________________________________________________3___________________________________________________________________4___________________________________________________________________5____________________________________________________________________Note: a separate page is attached to allow you to provide a listing of thoseenterprises and their location and age – we would appreciate it if you couldcompletethisQ5.CanyouprovideanestimateoftheresourcesyourLDCusesinitsprovisionof direct and in-direct supports to the Social Enterprises engaged with on amonthlybasis?

• Hours spent by LDC staff in assisting and providing services to SocialEnterprises_________

• Financialresources___________• Numberoftrainingprogrammes______________

78

SectionTwo–ProfilingSocialEnterprisesinyourregionQ6.HowmanySocialEnterpriseentitiesand individualSocialEnterprisesand inwhatcapacitydoesyourLocalDevelopmentCompanydealwith:(a)SocialEnterpriseLegalEntities____________(b)IndividualSocialEnterprises(notlegalentities)____________(c)Thenumberof individual socialenterprisesyouprovidedirectand in-directsupportstoSupports NumberofindividualSocialEnterprisesDirectSupports IndirectSupports

79

Q7.Onanaggregatebasispleaseprovidethefollowinginformationonthetotalnumberofsocialenterprisesyouengagewith.

• BusinessSectorsrepresentedbytheenterprisesBusinessSectoroperatesin Numberof

enterprisesNumberofpeopleengagedwitheachsectorandtheirstatusofemployment

Childcare

Healthandsocialcare

Media/arts/heritage

Rental/accommodation/housing

Environmentalservices

Sportsandleisure

Educationandtraining

FoodandDrink

Transport

BusinessAdvice

Other,pleasespecify

80

• Describe the primary customer or user profiles who benefit from theservices/productsprovidedbythesocialenterprises

Individualcustomerprofileusersofyourservicesorproducts

Business, Public Sector Organisation orothercommercialorbusinessbasedusersforyourservicesorproducts

• The regional spread of customers the social enterprises provide

product/servicesto

81

SectionThree–ContributionandImpactofSocialEnterprisesOn an aggregate basis indicate the overall employment, financial and socialimpactofindividualsocialenterprisesinyourremitQ8. Economic Impact of Social Enterprises -Employment Creation - Howmanypeoplewereengagedinsocialenterprisesduringtheyear2014and2015Employmentstatus Total numbers engaged for all

individualsocialenterprisesNumber of full-time employees(non-labourmarketscheme)

Number of part-time employees(non-labourmarketscheme)

NumberofJIemployees NumberofCEemployees NumberofJobBridgeemployees NumberofTUSstaff NumberofVolunteers Q9. Financial Impact of Social Enterprises - What was the breakdown of thesourcesof incomederivedby individual social enterprises for the years 2014 -2015?SourceofIncome Contribution of all individual social

enterprises% of income earned from traded activity(e.g.salestocustomers)

%of incomefromthirdparties (e.g. fromstate agencies) to deliver specifiedservices/goods

%ofincomefromgrantaid % of income from private donations/philanthropicsources

%ofincomefromloans %ofincomefromfundraising % of income from other sources (pleasespecifysource)

82

Q10.Canyoudescribethefourmostsignificantsocialenterprisetypeorbusinesssectorsthatcontributemostinemploymentandorfinancialterms?SocialEnterpriseType/BusinessSector Their contribution employment and

financially1st

2nd

3rd

4th

Q11.SocialImpactofSocialEnterprisesPleaseindicatewhatyouconsideraretheprimarysocialcontributionsandaddedvalueprovidedbytheindividualsocialenterprisesyoudealwith.Socialimpact– Describethetypeofsocialimpact–give

exampleswherepossibleCreateopportunitiesfordisadvantagedgroups

Provideenhancedlocalsocialwellbeingandsenseofinclusionformarginalisedgroups

Enableolderpeopletoplayanactivepartintheircommunities,

Empoweryoungpeopletoachievetheircareerpotential,

promotehealthyeatingandwellbeinginchildrenandyoungadults

Generatesemploymentopportunitieswhichwouldnototherwisebeavailable

providefoodandcateringservicesnotmadeavailableotherwise

Othersocialimpacts(pleaseprovidealistofthoseandcommentontheirimportance

83

Q12. What is the process of evaluation adopted by your organisation inevaluatingtheperformanceofthesocialenterprises,pleasedescribeQ13. In relation to theManagement andGovernance of the Social Enterprisesyoudealwithcanyoupleasedescribe?Therole,ifanythatLDCstaffwith:

• choosingBoardMembersfortheSocialEnterprise________________________________________________________________________________________________________________________________________________

• EngagementwiththechairoftheBoardofDirectors____________________________________________________________________________________________________________________________________________________________________

• ParticipationormembershipofSocialEnterpriseManagementCommittee____________________________________________________________________________________________________________________________________________________________________

84

SectionFour–Benefits,OpportunitiesandChallengesfortheSocialEnterpriseSectorQ14.What are the primary benefits (social, economic, financial) that a vibrantsocialenterprisesectorcontributestoyourregionSocialBenefits:______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________EconomicBenefits:______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Monetary/FinancialBenefits:______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Q15 (a) From your experience, what are the problem areas that provideopportunitiesforsocialenterprisestooffersolutionstooverthenext2years______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Q16(b)Howcantheseenterprisesbedevelopedasviableandsustainablesocialenterprises_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

85

Q17. What were the key success outcomes and benefits emerging from theSocial Enterprises you have a relationship with? Please indicate examples ofsuccessfulsocialenterprisesanddescribetheprimarysuccesscharacteristicsofthesesocialenterprises________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Q18.Whatchallengesdoyouenvisagewill impacton theprogressionof socialenterprises at various stages of development in your region over the next 2years?StartUpSocialEnterprisesChallengesinternaltotheenterprise Challengesexternaltotheenterprise

EstablishedSocialEnterprisesChallengesinternaltotheenterprise Challengesexternaltotheenterprise

86

Q.19Pleaseprovidesuggestionsonhowcansocialenterprisesbesupportedtoachieve growth and to meet their objectives in the following aspects of theirenterpriseCapacityBuildingatthefollowinglevels:(1) BoardofDirectors(2) Managementandleadershipskills(3) Employeelevel

Financial Sustainability of the socialenterprise

Governance /management of the socialenterprise

Business Planning and growing theenterprise

Organisational structure and businessmodels

Attachment1-ListofSocialEnterprisesSocialEnterpriseName

Location-Address/area

Typeofproduct/serviceorBusinessSector

Ageofenterprise(approx.)

87

Appendix 2: Examples of good-practice social enterprise activity The followingmini cases present an overview of some of themany successfulandimpactfulsocialenterprisestoriesemergingintheresults.McAuleyDayCareCentreCare&RepairService,CharlevilleKevinMcSweeney,acommunityactivist inCharleville,Co.Cork,becameawarethattherewasaneedforafree/low-costsmallrepairsandvisitationserviceforolder community members to help them live more comfortably and safely.Havingabackground in thebuilding tradeandbeing semi-retired,hewasalsoconscious that, with the downturn in the economy, a number of skilledtradespersons might have time on their hands, along with volunteers in thecommunitywhowerewillingtogetinvolved.Census2006figuresforCharlevilleshowedthattherewasapotentialofalmost600 clients over 65 years of age who could benefit from such a service. Thecensusfiguresalsoshowedthat147peopleover65inCharlevillehadadisability.ActivitiesKevinMcSweeneybroughthisideatothecommunitydevelopmentofficerattheCharlevilleoutreachofficeofBallyhouraDevelopmentLtd.MrMcSweeneyhadidentified a core group of skilled tradespersons who had spare time on theirhandsandwouldbewillingtohelpout,aswellasareasinthecommunitywithhigher densities of older people residing there. Staff members of BallyhouraDevelopment (community and enterprise) helped Mr McSweeney to identifywhatmodelwouldbestsuittherolloutofavisitationandsmallrepairsproject,fromsimilarservicedemarcation, toclient identification, tostakeholderbuy-in,to operations and roll-out of the service. It was soon realised that should aservicebeputinplace,itwouldneedthesupportofotheragenciestoreachitsfullpotential.

88

One such support agency identified was Age Action Ireland, one of Ireland’sleading charity and advocacy bodies for older people, which works againstdiscrimination, helps to promote positive ageing, and aims to improve policiesand services for all older people. Age Action Ireland’s Care and RepairProgrammewassetuponapilotbasisinNovember2006toassistolderpeopleto carryout small repairsand improvements to theirhomes,enabling themtoliveindependentlyinthecommunityinincreasedcomfortandsafety.TheserviceisavailableinDublin,Cork,GalwayandLimerickcitiesandovertwentylocationsacross Ireland. The vision of the Age Action Care and Repair Programme is toenableolderandvulnerablepeopletoremainintheirownhomes,intheirowncommunities, living as independently as possible, by improving their housingconditionsandlevelofcomfortandsecurity.Exploratory meetings were arranged between Age Action Ireland, MrMcSweeney’slocalvolunteersteeringgroupandBallyhouraDevelopmenttogaina better understanding of the Care & Repair model and to identify a wayforward. It was agreed that this model would be suitable for the needs inCharleville.PublicmeetingswereheldinCharlevillebytheSteeringGroup,supportedbyAgeActionIrelandandBallyhouraDevelopment,tooutlinethemodelandservicetothestakeholders,includingpotentialclientsandvolunteers,andotheragencies.Once agreement had been reached that the Age Action Ireland Care& Repairmodelwas theway forward,a franchiseagreementwassignedbyCharleville’sMcAuley Day Care Centre as the anchor group and the local Steering Groupbecamethegroup/committeeresponsiblefortheroll-outoftheoperation.Ballyhoura Development assisted with putting a project workplan in place. Itincludedelementsofoperations,promotion,referrals,recordingandmonitoring.Fifteen volunteers (whose interests, availability and skills were logged in adatabase)undertookinductiontrainingprovidedbyAgeActionIreland,coveringissues such as best-practice engagement with clients, scope of service,awareness of issues affecting older persons, such as general health andwellbeing,security,etc.Anawareness-raisingandpromotionplanwasprepared to targetolderpeopleandthewidercommunity(fliers,pressreleases,posters,etc),andmeetingswereheldwithotherstakeholderssuchaslocaldoctors,publichealthnursesandthepostal service to outline the remit of the services provided. A credit unionaccount in the name of the project (with clear rules on account control) wasestablished and a 12-month community fundraising plan with agreed events(church-gatecollection,flagday,etc)wasdefinedbytheSteeringGroup.

89

AgeAction Ireland assistedwith the development and design of the recordingand referral documentation to be used at the project base at the CharlevilleoutreachofficeofBallyhouraDevelopment.Administrative support is providedthroughtwoCommunitySupportWorkersattachedtothelocalFÁSCommunityEmploymentscheme,whoavailedoftrainingfromAgeActionIreland.BallyhouraDevelopmentprovidesatelephonenumber,063-30535,whichisusedbyclientsandthepublictologajoborgainmoreinformationabouttheproject.Through the Local and Community Development Programme, BallyhouraDevelopment supported the group to arrange insurances and indemnities tocovertheactivitiesoftheproject.TheCharlevilleMcAuleyDayCareCentreCareandRepair servicewasofficiallylaunched on 1st October 2010, offering two main services to communitymembersagedover65years:(1) Repair: Local volunteers carry out small repairs and other low-levelmaintenancejobsinhomesandgardens.(2)Care–homevisitingorbefriendingofaclientbylocalvolunteers,toprovidesocialcontactforolderpeoplewhoareatriskofisolationintheirownhomes.ManagingthechallengesandopportunitiesAttheoutset,thecommunitydevelopmentworkerfounditusefultoworkwiththe client (and consequently the Steering Group)whowas proposing that theprojectexamineotherservicesprovided locallyand identifyanygaps inserviceprovision.Thisalsogaveserviceproviders,suchasGPs,publichealthnursesandgardaí, the opportunity to become familiarwith the personnel involved in theplanned project. These stakeholders also supported the project by circulatingflyersandpressreleasesthroughouttheCharlevillearea.Operationally, tasks and client details are recorded by Community SupportWorkers and referred to the lead volunteer, who identifies two suitablevolunteers forthe job.Theclient is thencontactedtoconfirmthebesttimetocall to complete the service.A job-completion sheet is returned to theprojectbase to enable Age Action Ireland to monitor numbers and provide ongoingsupportandtraining,ifrequired.Theidentificationofabaseofvolunteerswithskillstoofferandtimeavailabletoprovide serviceswas very important.Currently, 15 volunteers areactive in theproject. Itwas felt that thiswas sufficient in the early stage to ensure that allvolunteerswereinvolvedquicklyinclientcalloutstomaintaincontinuedinterest.

90

Administrativesupport for theproject throughCommunitySupportWorkersofthelocalFÁSCEscheme,andabaseattheBallyhouraDevelopmentLtdofficesinCharleville, enables a constant presence and ongoing support for clients,volunteersandSteeringGroupmembers.Advice and guidance from Ballyhoura Development Ltd, as well as fundingsourced through the Local and Community Development Programme, ensuredthat the project had adequate supports in place to deliver a comprehensivepackagetoitsclientsintheCharlevillecommunity.EnterpriseoutcomesandsuccessTheMcAuleyDayCareCentreCare&RepairServiceheld its firstAGMon17thOctober 2011. Theproject’s chairperson reported that it had a very successfulfirst year of operation. The project now consists of four services: (1) SmallRepairs,(2)Visitation,(3)TradesReferral,and(4)QuoteCheck.Todate,76clientshaveusedthefreeservice.Ofthese,nineareregularclientswithvarioussmalltaskstocomplete,and17involvedaily/weeklyvisitations.Thetotalnumberofjobsforthefirstyearwas769,makingitoneofthebusiestCare&Repairservicesinthecountry.The project has retained its volunteer base, although a waiting list is held ofpotential candidates if andwhen the need arises. Age Action Ireland providesinductiontrainingandGardaClearanceonbehalfoftheproject.Solidrelationshipsandpartnershipshavedeveloped,inparticularwiththelocalCommunity Garda and Charleville Neighbourhood Watch in relation tohousehold security and monitored alarms. Personal information packs (PIPs)have been sourced through a local pharmacy and distributed to existing andpotential clients of the service, giving the committee member a tangible‘introduction’toclients.TheSteeringGrouparenowlookingatavailingofbasicIT training through the Rural Development Programme, for its clients andvolunteerstofurtherdevelopmodelsofsocialinteraction.ConclusionMany older people can live and work independently in their own homes, butreachastagewheresometasksbecomedifficult.Forsome,climbingaladdertoput up a lightbulb, tightening a leaking tap or fixing a curtain-railmay be toodifficult.Forothers,a regularcheck-in isenough togive themthecomfortandpeaceofmindtoenablethemtocontinuelivingsafelywithintheircommunity.Volunteersofthisservicearehappytoprovidehelpinghandstocarryoutthese

91

smalljobsandconductregularvisits.Althoughthismayseemasmallthinginthescaleofdifficultiesinsocietytoday,itcanmakeallthedifferencetothelifeofanolderperson.TheMcAuleyDayCareCentreCare&RepairServicecomplementsother socialinclusionwork done locally, andhas provided local volunteers, through simplemeansand locallydevelopedpartnerships, theopportunity tocombat isolationandmakevulnerablecitizensfeelsaferandmoresecureintheirownhomes.StJohn’sChurchCulturalCentre,CoLimerickIn 2006BallyhouraDevelopment Ltd tookpart in a transnational project titled‘TheVillagesofTradition’.Inpracticalterms,thissoughttoestablishtheuniqueselling points of rural villages across Europe and marketing them to a wideraudience. Key linkages were made with the Westerkwartier region of theNetherlandsanditslearningsweretransferredtotheBallyhouraandBlackwaterregions.OneoftheruralvillagesthattookpartfromanearlystagewasKnockainey,CoLimerick, a villagewith a small population, nomainstay retail or business, andserved mainly by its local town of Hospital. What Knockainey possessed,however,wasacoregroupofcommittedpeoplewithan interest inpreservinglocal heritage and in particular a deconsecrated Church of Ireland church, StJohn’s.Thebuildinghasafocalpositioninthecommunitybutwasoutofuseforalmost10yearsduetoadecliningcongregation.Earlyon,thegroupidentifiedasaresourcethisbuilding,itsstory,itsheritagespanninghundredsofyearsanditspotentialtorepresentanewstoryforthevillage,anewbeginning.ActivitiesPre-development: The group took some crucial steps, along with BallyhouraDevelopmentLtd,beforeanycapitalworkwasundertaken.Throughallstages,alead role was taken by Ballyhoura Development to ensure that all stepsweretakencorrectlyandallrelevantcontactsmade.TheprojectlinkedwiththewiderVillagesofTraditionnetwork,workingwiththefacilitator of the network to identify ‘Knockainey’s project’, and established avoluntary group, the Knockainey Historical & Conservation Society. The groupsecuredaleaseonStJohn’sChurchfromtheChurchofIreland’sRepresentativeChurchBodyin2006.

92

Theplanwas touse thechurchasamusicalvenue,artscentre,andvenue forperformersofahighstandard,thusdoingjusticetoauniquesettingwithsuperbacoustics.Onthisbasisandforthisusetheleasewassecured.Key contacts were identified andmade early on: the County Council HeritageOfficer and LimerickCountyCouncil ConservationOfficer. These contactswerecrucialasthechurchisalistedbuilding,butalsofromaprofessionalstandpoint.ThetwocontactsarestillinvolvedintheStJohn’sproject.WithsupportfrombothBallyhouraDevelopmentandLimerickCountyCouncil,StJohn’s was refurbished throughout 2007 (specialist painting, and thereplacementorrenovationofpews,doors,windowsandflooringinaccordancewiththeListedBuildingsActandunderconstantsupervisionbytheConservationOfficer).The steps achieved in 2006 and 2007 led to the foundations of the CulturalCentreasitstandstoday.2007–2011Once the renovations were complete, a sub-section of the voluntary groupsoughtperformerstodevelopaconcertprogrammethroughouttheyear.AkeycontactestablishedatthispointwastheArtsOfficerforLimerickCountyCouncilwho to this day has appointed and used this venue as an outsource forperformersinCoLimerick.The group, with support from Ballyhoura Development, undertook anotherproject: the refurbishment of the Sexton’s House at the front of St John’s tocreateacommunityspace(aswellastoiletsandachangingareaforperformers).Thepreparatorywork, includingplanninganddrawingupabusinessplan,wassupported by Ballyhoura Development Ltd and the Ballyhoura Developmentmentor programme, and done in anticipation of the RDP programme in 2009,meaningthatthegroupwerereadytomakeanapplicationfortheprojectwhenitbegantorolloutatthebeginningof2009.Challenges,opportunitiesandprogressThe group is formed of members with various skillsets. Three core membersidentified people in the community with relevant skills, including electrician,builders, solicitors and accountants. The group of 2011 still has the coremembersidentifiedin2007.

93

Keycontactswereestablishedfromthebeginningandthisprovedinvaluableastheprojectprogressed.The success of the St John’s project was a catalyst for other groups to form,including a Community Council and Tidy Towns Committee. The project hasbecome amodel for other communities in the Ballyhoura areawith a derelictChurchofIrelandchurch,andwhoareexamininghowtousethebuildingforthecommunity.Outcomesandsuccess(asof2011)StJohn’shascompletedaheatingupgradeandisnowplanningitsconcertsforwinter2011andspring2012.Thefocusofthegroupistohosthigh-profileactstodrawattentiontoauniquevenue.The graveyard has been surveyed and a sign erected for people conductinggenealogy research. The Sexton’s House is being used as a community office(part-time)forthestartofanewprojectlinkingwithIrelandReachingOut.The success in reusing the church buildings proved fundamental in stimulatingotherprojectsandmorevolunteerism inasmall rural location.Theprojecthasgiven the community groups in Knockaineymore capacity to help themselvesandgivetheirmembersabetterqualityoflife.BallyhouraDevelopment–aWorld-ClassRecreationInitiativeBallyhouraDevelopmentLtd isa ruraldevelopmentcompanyoperating ineastLimerick and north Cork. The company identified quality infrastructure forrecreationacrosstheruralcountrysideasakeystrategyforeconomicandsocialdevelopment.Since 1989 the company has worked in partnership with local landowners,communitiesandagencies todevelopa rangeof recreation infrastructure.TheBallyhouraWay,awalkingrouteof90km,hasbeensuccessfullyfollowedbythedevelopmentofabroadrangeofshortway-markedwalkingloops,fellrunning,orienteeringcourses,naturewalks,equestriantrailsand4x4trails.TraildevelopmentstrategyStudies to identify opportunities within the area identified the BallyhouraMountains as having world-class potential for outdoor recreation. In 2003 anintegratedTourismCluster Study forBallyhoura led to thedevelopmentof the

94

BallyhouraRecreationInitiative.Mountainbikingwasidentifiedasakeyactivityto attract increased visits and generate economic, environmental and socialbenefitsforresidents.Since 2004, a partnership animated by Ballyhoura Development with Coillte,BallyhouraFáilte,CorkandLimerickCountyCouncils,ShannonDevelopmentandFáilte Irelandhasdesignedandbuiltaworld-classmountain-biketrailcentre inBallyhoura Forest. The centre offers 97 kilometres of mountain-biking trailsservicedbycar-parking,toilets,showersandbikewashfacilities.Atotalof€1.3millionwasinvestedintheinitialinfrastructuredevelopment.InternationallearningThedevelopmentofmountainbike trails in theBallyhouraForestwas the firstsuchdevelopmentinIreland.ThepartnerslearntfromWelshexperienceintraildesignandconstruction,andfromhowcommunitiesadaptedtoservicingvisitorsto the trails. This provided in-depth understanding of the opportunities andchallenges inmountain bike (MTB) design and opening upworking forests forsuchactivity.Oncompletionofthetraildevelopment,localentrepreneursvisitedScotlandtoexperience servicedelivery to theMTBmarket. The learning resulted inabikehireandguidingbusinessbeingsetup.OngoingmarketingandsupportBallyhouraFáilte,theruraltourismgrouppromotingthearea,withthesupportof Ballyhoura Development and Fáilte Ireland, continues to develop, promoteandattracteventstothetrails.Communityengagementhasalsobeencentraltothe successof the trail,withnewlyestablishedmountainbike clubs,newMTBsale, rental and tutor businesses, and accredited educational courses – allcombiningtocreateinnovativeeventsandincreasevisitornumbers.

95

Outcomesandsuccess(asof2013)In 2011 the Single Speed World Championships attracted 650 people fromoverseas,leadingtoanestimated€1.5millionindirectandindirectspendingfortheIrisheconomy.In2013theBallyhouraMountainBikeTrailswereestimatedto attract more than 50,000 visitors. These visitors deliver economic impactsacrossavarietyof localservicesandfacilities,byspendingonthetrails,eventsandfestivals.TheBallyhouraTrailshaveappliedandbeensuccessfulinattractingthe2014EliteEuropeanChampionships.The economic and social impact of the trails is continuing to develop, offeringyear-roundopportunitiestoexistingandnewbusinessesacrosstheruralareatogrow.CareBright–SocialEnterpriseProvidingServicesandJobsMany of the social enterprises are created in response tomarket failures anddeveloped as solutions to local issues. A review of the European CommissionWhite Paper on Growth, Competitiveness and Employment in 1994 promptedtheboardofBallyhouraDevelopment Ltd topilot thedevelopmentof a homecareservice.Thiswasundertakeninresponsetotwoissues:thelackofservicesinruralareas,andthedifficultyinfindingjobslocally,especiallyinremoteruralareas.CareBrightwasestablishedin1998withtheaimof:• Findinginnovativesolutionstocreateemployment

• Improvingthequalityoflifeforthelessadvantaged

• Developingarangeofservicesforolderpeopleandadultswithdisabilities

• Buildingapartnershipframeworkamongstatutory,non-statutoryandvoluntarybodiestoidentifyanddeliveressentialservicestoolderpeople

The aims reflect the needs identified in the area, which suffers from youthmigration and an ageing population. Limitedhomecare serviceswere availablelocally.Thegapsinserviceprovisionwerebestaddressedbyacommunity-basedorganisationrespondingtolocalknowledgeandusingskillsthatwerepreviouslyunder-employed. This had the dual result of enhancing services to vulnerabletargetgroupsandincreasingemploymentopportunities.

96

CareBright provides care for the elderly, people with disabilities, post-surgerypatients,peoplewhorequirespecialisedservicesorgeneralsupportinthehomethroughout rural Limerick, north Cork andwest Tipperary. The service enablesolderpeopletoliveindependentlyathomedespitetheirmedicalcondition,andthus have a good quality of life in their latter years. CareBright also provideschiropodyservicestotheelderlyandaccreditedtrainingtoFETACLevel5CareoftheElderly.CareBright is founded on the principle of participation, partnership and thedevelopment of strategic alliances to achieve goals. This ensures coordinatedand integrated service delivery, and taking a client-centred approach tomaximiseresourceswhileavoidingduplication.Asthecompanyhasevolved,thepartnerships have played a key role in the development of the service,identifyingneedsandprovidingfinancialresourcestoaddressthem.CareBright has put in place exceptional resources of highly trained careprofessionalstodeliverqualityservices,andhasmaintaineditsfocusandvisionsinceitsfoundation.OutcomesandsuccessCurrently,CareBrightemploy250carers(180full-timeequivalents)managedandsupportedbyateamofsixCareManagers,allqualifiednurseswithmanyyears’experience.TheCareManagersworkcloselywithcarers,clients,families,publichealthandcommunitynurses,physiotherapists,occupationaltherapists,GPsandothermembersofthemulti-disciplinaryteam,toensureperson-centredcare isdelivered in thehome.Mostof thecarerscomefromruralareas,and inmanycases may not have alternative employment opportunities. CareBright clearlydemonstratesthepotentialforsocialeconomybusinessestoprovideservicesinremoteruralareasandprovidevaluedjobs.

97

AnTairseach–OrganicFarm&EcologyCentre,Wicklow(TextprovidedbyAnTairseach)TheaimofAnTairseachistopromoteaholisticandsustainablewayoflife.Weoffer a variety of courses including the New Cosmology and its effect on ourunderstanding of ourselves as participants in the community of life on PlanetEarth. We also provide extensive 10 Week Residential Programmes, whichincludebecomingfamiliarwithourevolutionover14billionyearsasdiscoveredby contemporary science. We explore its implications for understanding ourplace in the universe and look at the theological implications of this newcosmology.After10weekshere’swhatsomeofourparticipantshadtosay:• “TheNewCosmologyhasbeenverychallenging–myimageofGodhasbeen

transformed.”–Yolande,SriLanka

• “Whatwasmostchallengingwasthestruggletointegratethenewstoryintomyeverydaylivingandministry.”–Paul,Dublin

• “ThecoursecausedmetointernalisemanythingsofwhichIwasintellectuallyaware,butnot‘processed’.”–Bill,Australia

Website:www.ecocentrewicklow.ie

The Irish Local Development Network TheIrishLocalDevelopmentNetwork(ILDN)istherepresentativebodyofthe48LocalDevelopmentCompaniesinIreland.TheaimoftheorganisationistoengagewithkeyDepartmentandStatebodiesonpolicyandprogrammemattersastheyaffectourmembercompaniesand,byextension,thecommunitiesthattheyserve.TheNetworkpromotesexchangeofbestpracticeandencouragescollectiveprojectsthatreaffirmtheimportanceofthepartnership,community-ledlocaldevelopmentapproachthatiscoretohoweachcompanyoperates.TheNetworkworksonastructuredbasisindefiningitsprioritiesandworkplanthroughanationalBoardof14,consistingofChairpersonsandCEOselectedfromthesixILDNregions.Thoseregionsare:East,Dublin,Mid-West,West,BorderandSouth.

Eachregionmeetsonasix-weeklybasisandtheirelectedrepresentativessitontheILDNBoardtoprogresspolicyandprogrammeprioritiesrelevanttotheirregion.Inaddition,theNetworkhasthreecorecommitteestoprogressprogrammeissuesspecifictothefollowingthemesrelevanttoLDCoperations:• Employment&Enterprise• SocialInclusion• RuralDevelopment–LEADERUnderthesethemes,specificprogrammesandDepartmentsareengagedwithonanongoingbasis.Asaresult,thesecommitteesarethe‘goto’referencepointforkeyfundingDepartmentsandStatebodies.

FormoreinformationonILDN,gotowww.ildn.ie