1. Social enterprise: key concepts Joanne McNeillCommunity Capacity Building Officer Social Enterprise City of Sydney Council Wednesday, 28 March 2012

2. . . . 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 lockSocial enterprise is about practice

3. . . . the difference . . .community enterprises . . . . . . are usually place-based, PLACE Partners in Learning & Community Enterprise, TAFE identify strongly as the agent of the people by whom and for whom they have been established Community Enterprise Hub, Mt Druitt

4. . . . the difference . . .. . between a social enterprise, a social entrepreneur and social innovation . . .

5. broad spectrum . . . Diverse on three levels: Form Purpose Markets

6. 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?

7. 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

8. . . . types . . . External social enterprise Business activities are wholly distinct from organisations social aim or mission. Often established to fund social services, activities and operating costs. Business activities are external to operations, but support the social programs through supplementary funding. Integrated social enterprise Social aim or mission overlaps with business activities, and may include an overlap of costs and sharing of assets. Often established to create a funding mechanism in order to support the organisations operation and social mission. Enterprise often enhances organisations mission and enables it to achieve greater social impact. Embedded social enterprise Social aim or mission is wholly entrenched in business activities of venture mission and enterprise activities are the same, business activities are embedded within organisations function and social program and is fundamentally central to mission. Social enterprise typology, Virtue Ventures www.virtueventures.com

9. . . . 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

10. markets . . .ExampleSalvos 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

11. . . . 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

12. so .a strategy nexus pointnot 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

13. recent developments . . .Federal activity: Innovation Fund and Jobs Fund Social Enterprise Development & Investment Fund (SEDIF) Social Enterprise Finance Australia (SEFA) & Social Enterprise SolutionsNSW State Government: Community Builders Fund Some social procurement interestCouncils in Sydney area: Parramatta City Council program Social Enterprises Sydney Social Procurement Action Group

14. development support . . . Is critical, and difficult Needs effective specialist approach Not a funding stream or program, not an SME Infrastructure tier limited in Australia Social Enterprises Sydney Initial focus on Sydney West and Central Coast regions Network model Establishing membership base www.socialenterprises.com.au

15. further info . . . http://www.parracity.nsw.gov.au/work/economic_development/social_enterprise: Churchill Fellowship report: How the public sector can support social enterprise development VIC DPCD: Social Procurement - A Guide for Victorian Local Government Social Enterprises Sydney www.socialenterprises.com.au Social Traders and the FASES report http://www.socialtraders.com.au/finding-australias-social-enterprise-sector-fases School for Social Entrepreneurs www.sse.org.au Social Enterprise Finance Australia (SEFA) www.sefa.org.au Social Enterprise Solutions www.foresters.org.au/socialenterprisesolutions/