Bringing Strength to Social Enterprise

Tuesday, 24 April 2012

Today

This workshop will explore social enterprise as a sustainable community building tool and share information on how they operate. Participants will have the opportunity to discuss ideas with a panel of social enterprise practitioners and hear from colleagues who have established successful social enterprises.

Today’s Speakers

• Joanne McNeill, Parramatta City Council (NSW)– Bringing strength thru concepts

• Mark Daniels, Social Traders (VIC)– Building awareness

• Matt Gideon, Street University & Gideon Shoes (NSW)– What makes a Social Enterprise tick

Liverpool Council Strengthening their Community

Rebekah RichardsCommunity Worker

Bringing strength – today’s agenda

• Bringing strength thru concepts – Joanne McNeill• Building awareness of social enterprises – Mark Daniels• What makes them tick – Matt Noffs • The Entrepreneur’s Pledge – Jodie Mitchell

• Panel discussion

Bringing strength thru concepts

Joanne McNeillCommunity Capacity Building Officer Social Enterprise

Parramatta City Council

. . . what is ?

social enterprises are businesses that trade for a social, environmental or cultural purpose . . .

• generate a substantial portion of their income through trading• reinvest the majority of their profit / surplus (non-distributing)• include an asset lock

Social enterprise is about practice

. . . the difference . . .

. . between a social enterprise, a social entrepreneur and social innovation . . .

broad spectrum . . .

Diverse on three levels:• Form• Purpose• Markets

legal forms . . .

• Cooperatives, Associations and Mutuals• Fair Trade Organisations• Intermediate Labour Market Companies• Charitable Business Ventures • Social Firms• Community Enterprise• Community Development Finance Institutions• Australian Disability Enterprises• Hybrid

• Important consideration – any relationship with parent nonprofit?

purpose . . .

Common motivations

• employment - provide employment, training and support for marginalised groups; two types

• service delivery - create or retain services in response to social or economic needs

• income generation - generate profits to support other community or not for profit activities

. . . social impact . . .

• legitimacy

• greater scrutiny

• clear link between model & change want to see - Theory of Change

• evolving field

• no one approach

• what does success look like

markets . . .

ExampleSalvo’s legal - http://salvos.org.au/salvoslegal/

• full-time, self-sustaining legal practice specialising in property and transactional commercial law 

• difference is that fees paid by clients fund the operation of another firm, Salvos Legal Humanitarian - which operates to provide free legal advice and assistance to those most in need without any fee

• first class commercial legal services are provided at a market competitive fee

• aims to use its compassionate dedication, creativity, ingenuity and skill to fight against social injustices

• means each procurement dollar delivers an additional benefit, beyond the service purchased

. . . not business as usual . . .

• blended inputs, blended returns

• different types of markets – eg. BoP, not end user

• different viability scenarios – balance of returns; reserves

• social vs business costs

a strategy – nexus point

not a program … what will you sell, who will pay for it?

not a business … who are the beneficiaries, how will you know?

. . . an AND approach… not about replacing

so ….

Building awareness

Mark DanielsLearning and Development Manager, Social Traders

www.socialtraders.com.au

© Social Traders Limited 2012

What can we cover in 25 mins?

How to test social enterprise ideas.

The role of market

A TALE OF TWO SOCIAL ENTERPRISES

Social Enterprise A Social Enterprise B

Need There is long term unemployment and social issues in a neighbourhood area.

A DES provider is finding it difficult to place people with mental health issues in employment

MISSION

Social Enterprise A Social Enterprise B

Want to create a business that will create opportunities for the community to get training and employment opportunities.

Want to create a tailored business that will create pathways to mainstream employment for people with a mental illness

IDEA GENERATION

Social Enterprise A Social Enterprise B

Lead person identifies that a café would be a great idea because people in the community as it would be a meeting place and provide employment opportunities.

Lead person asks people from business backgrounds the question. What business will allow us to achieve the mission and allow us to run a successful Business long term?

They conclude that a café would be the best because of the growing demand for hospitality staff and the sociable nature of the work.

FROM THOUGHT TO ACTION

Social Enterprise A Social Enterprise B

A café site in a local library becomes available and they apply for the lease. It will be a peppercorn rent and it is in a retail area of town. They win the tender process and begin the businessThey write their business plan after they secure the lease.Then they go hunting for money to operate the business.

They enlist expertise from a former franchise operator to help them to develop a business plan and follow a model of locating in a westfield mall.They scope out opportunities in a growing centre in the SE of Melbourne. They do foot traffic counts, they taste the coffee in every café in the supermarket, they taste and rate the food, record the price and the client group.They identify who there market will be and they seek out the funding to realise their idea.

WHO DO YOU THINK SUCCEEDED AND WHY?

OPPORTUNITIES FOR THE DEVELOPMENT OF BUSINESS

Plugging the leaks

Accessible contracts

Gaps in the market

Commercialising what you do

Value Add

Acquisition

Replicate

ONCE YOU HAVE SOME IDEAS YOU NEED TO SCREEN THEM AND GET AN UNDERSTANDING OF THE MARKET

CUSTOMER ANALYSIS

Customer Group (you may have more than one)

Who are they

How many?

Where are they?

Is this group growing or shrinking?

How much money do they have to spend?

What are the things that affect their purchasing decision?

Who do they buy from at the moment?

How much do they currently pay?

Why would they switch to you?

INCOME - COMPETITORS

• Competitors are anyone or anything that potentially takes revenue away from you

• This includes people providing the same product/service as you as well as substitutes

• What do I need to know about the competitors

COMPETITOR ANALYSIS

Competitor (there will be more than one – do this for each)

Name

What are the key products/services they provide to the customer?

Where are they? (geographically ,web?)

How much do they charge?

Why do people buy from them?

Do they focus on a target market? If so, describe it.

Estimate what percentage of the total market you think they have at the moment

Is their market share growing, shrinking or steady?

How do they attract and win customers?

What are their weaknesses and what can you do better than them

DOES MARKET ANALYSIS EVER END?

INCOME

Page 30

Your estimated volume of customers multiplied by their average payment will give you your estimated income.

# customers ____________ x what each of them will pay $_____________ =$___________ income (weekly/monthly/yearly)

THE PLANNER

THE SOCIAL ENTERPRISE BUILDER

www.socialtraders.com.au

www.socialenterprisefinder.com.au

Thank You

Mark.daniels@socialtraders.com.auwww.socialtraders.com.au

What makes them tick – Matt Noffs

Gideon Shoes & Street University

The social entrepreneur’s pledge

• I am a social entrepreneur.• I am following a dream, pursuing an opportunity, taking charge of my own

destiny.• I am bringing something of value to society, making a job for myself and

for others, and creating wealth that benefits my family, my community, my country, my world.

• I am one of a movement of millions of (social) entrepreneurs and innovators who made Australia great, and who will continue to keep our economy going … and growing and innovative.

• I am what I am because many people have helped me along on this journey.

The Entrepreneur’s Pledge

Therefore:

The social entrepreneur’s pledge

• I will tell my story, sharing my successes and failures, so that others taking the entrepreneurial path can learn.

• I will strive to mentor an aspiring entrepreneur.• I will make my voice heard by those who make policy

decisions that affect me and my business.• I will appreciate and celebrate my accomplishments, and the

accomplishments of all my fellow social entrepreneurs.• I will give back to the society that helped me to be successful.• I will Build a Stronger Australia.

BREAK for lunch

Panel discussion

• Joanne McNeill, Parramatta City Council (NSW)– Bringing strength thru concepts

• Mark Daniels, Social Traders (VIC)– Building awareness

• Matt Gideon, Street University & Gideon Shoes (NSW)– What makes a Social Enterprise tick

Upcoming Development in Sydney

Social Enterprises Sydney• Workshops• Mentoring• Peer2Peer Networks

– Food & Food Service (Paddock to Plate)– Environmental -> reduce, re-use, recycle

• Coaching• Pro Bono Legal Panel

Thank you