MissionTo be the voice of Social Enterprise across
Northern Ireland, connecting, supporting,
developing and sustaining vibrant businesses to
create social change.
VisionSocial Enterprise is recognised and valued as a
business model through which society profits.
●
Government definition
• A social enterprise is a business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners.”
• A social enterprise is a community
However they all have three things in common
• Business Focus – surplus from trading
• Social Purpose – local jobs / services
• Social Ownership – not for individual gain
• Profits are invested back into the business
People Profit Planet
The Social Enterprise umbrella covers
• Consumer co-operatives (circa 1840s)• Housing associations (1900s)• Trading arms of charities (1940s)• Credit unions (1960s)• Workers’ co-operatives & employee-owned firms (1960s)• Community businesses & community enterprises (1970s)• Development trusts (1980s)• Social firms (1990s)• Intermediate labour market projects (1990s)• Social businesses (1990s)
Dates in brackets indicate when this type of enterprise first started In the UK
Did you know?The 6th most popular coffee brand in the UK is owned by CaféDirectThe Co-operative is Britain’s biggest farmer with 85,000 acres of land
Diversity of Social Enterprises
• DETI mapping estimates in the region of 470 Social Enterprise
across NI. (Pwc 2012)
• Social Enterprises make up 12% of the Third Sector and contribute
49% of the sectors turnover.
• Social Enterprises employ 40% of those working in the third sector
some 12,200 people and 13,400 volunteers
• 68% of Social Enterprises reported a profit/surplus in 2010/11,
compared to 54% of C&V organisations
• 77% were planning expansion
•Highest density of SE’s emerging in Belfast and
Derry/Londonderry
Northern Ireland
“We already know of the work of social enterprises, charities, community and voluntary organisations in partnering with the public sector to provide services.
They do exceptional work to a very high standard and frequently cost far less than similar but less effective services provided by the public sector. They are a growing part of our economy and are dealing with social issues in ways in which government simply is not able to.
“It is my firm belief that it is time we examined how we could make even greater and better use of this sector in supporting us in government to achieve the outcomes we have agreed are necessary for Northern Ireland.
Minister for Finance Simon Hamilton
Political will
Councils role in
making it work locally
Senior level buy-in and activity linked to local policy and strategy
Creating opportunity through commission and procurement
Encourage and supply chains
Lead in innovative approaches to problems
Consult and broker relationships with SE
Meet and Greets with all Super Councils
How do they differ from Charities?
Charities and SE’s have a lot in common• Independent from Government, not answerable to shareholders or investors• Both aim to create social value
However Social Enterprises take a
• Business approach – focus on earning income from sales not grants
• Legal structures – Non Charities have more flexibility and different options of ownership, entrepreneurial leadership, and ability to access finance.
• Unrestricted Income
Legal Structures
There are many legal structures and selecting the right one is important. It will define how you do business, who is involved and what you with your profits.
Frequently used legal structures include• Company Ltd by Guarantee• Community Interest Companies• Co-operative models
How many legal structures are there?In Principle…..
• Sole Trader or self employed
• A partnership
• A limited Liability Company – share and guarantee
• Franchises
• A limited liability partnership
• A Co-operative (Industrial and provident society)
• A Community Interest Company
Challenges for
Community
Groups
• Concept of profit a Non profit Atmosphere
• The Absence of Business Skills and
Knowledge
• Behaving Like a Business
• Maintaining Competitiveness
• Attracting the right social entrepreneurs
• Leveraging social finance – share capital
3 Essentials
• Have a clear and researched business model
• Be clear what your social aims are
• Make a profit and use it to further your social aims
Top Tips
• Don’t rely on grant alone to sustain you – don't put all your eggs in one basket
• Innovate around new income streams• Increase revenue• Reduce costs• Don't trade on being a SE, trade on quality and
community good• Market what you do with profits • Show the social good
Social Value in Public Expenditure
What do we mean by Social value?
Social Value is about maximising thethe impact of public expenditure to getthe best possible outcomes
Social Value measures more than just Financial transactions and direct purchasing or goods and services
It includes additional benefit tocommunities…
• Health• Happiness• Wellbeing• Inclusion• Empowerment
If £1 is spent on the delivery of goods,
services and outcomes, can that same £1 also
be used at the same time, to also produce a
wider benefit?
Social Value asks the question:
“Instead of paying for failure, which is what we have been doing sometimes, we'd start to pay for success.
We construct contracts in such a way that the company or charity or social enterprise who are delivering for you only get paid when they hit certain measured outcomes," Simon Hamilton.
Social Value and Payment by results
• Grants
• Service Level Agreement’s
• Procurement
• Investment
Income Streams
Grants• Given to a charity/ social enterprise / for a specific project or
purpose.• You won’t need to pay a grant back, but there’s a lot of
competition and funding can be very restricting and at times make it difficult to meet your social purpose.
Service Level Agreement• A service level agreement (SLA) is a contract between
a service provider and the Customer (i.e Health Trust, Council etc) that defines the level of service expected from the service provider.
• SLAs are output-based in that their purpose is specifically to define what the customer will receive.
Income Streams
eTendering is the use of secure, web-based collaborative tools by buyers ands suppliers to conduct the tendering process online
https://e-sourcingni.bravosolution.co.uk
Gov’t Procurement / eTendering
• Improved efficiency (faster response/evaluation and reduced
timescales)
• Reduce tendering costs (no ccourier / printing costs)
• Compliance with EU procedures and procurement best
practice
• Improve tendering visibility and governance (access 24/7)
• Robust audit trails and reporting
• Supplier profiling and response prepopulation
Key Benefits of eTendering
• Local Banks – in particular Ulster Bank are very keen to support Social Enterprises and and recently ran an Investment Readiness Workshop
• Charity Bank - http://www.charitybank.org
• UCIT - http://www.ucitltd.com/ni-home.html
Investment
How the successful ones
do it• Highly Entrepreneurial, Innovative and Responsive
• High-quality care at affordable prices and generating economic and social benefits
• They are rooted in local communities
• Local services responding to local need e.g. shift patterns
• Able to act quickly when they see a problem
• Create jobs in local communities
• Don't DO IT to the communities, DO IT WITH
Where to get support
• Social Enterprise Hubs – 11 hubs across NI
• Unltd if you are a social entrepreneur
• Local Super Councils
• Local Enterprise Agencies
• Rural Development Programme
QUESTIONS ??
Amanda Johnston 07734 286 211
Office: 028 9046 1810
Contact us
Thank Youwww.socialenterpriseni.org