Exploring Social EnterpriseEuropean Learning Network11th February 2005

Allison Ogden-NewtonChief Executive

• Social enterprise is about using the production and sale of goods and services to achieve a social aim

• Social enterprise is a verb and not a noun• Describes a new kind of entrepreneurial and

public benefit activity

The Basics

social enterprise spectrum

Voluntary and community

sector

Sustainable organisations

Grant-free trading

organisations

Private Production Process

Goods or servicesSold to market:Economic profit

Raw Materials

Inputs Production process

Outputs:Goods or services

Profit distribution:flows out in the form of shareholder

dividends or to company owners

Profits used for charitable causes:Fulfillment of CSR (corporate social

responsibility)

Labour

Social Enterprise Production Process

Goods and ServicesSold to market:Economic profitSocial ProfitEnvironmental Profit

Economic profit flowsBack into the social enterprise and to ethical investors

Social and EnvironmentalProfits flow to Community

Labour:(Employee/Client)

Raw Materials:From environmental sources

Can include:Democratic governanceOr training for employee/Client base

InputsProduction

process

Outputs:Goods or services

*Green indicatespotential placeswhere social andenvironmentalmotives affectproduction

London landscape• Estimated there are 5000 social enterprises in London• London has the highest level of social entrepreneurial start up

activity compared to any other UK region• 8.5% of London residents between 18 and 64 are engaged in

social entrepreneurship• More women are involved in social enterprise than conventional

entrepreneurial activity• Women are using social enterprise as an entry route into

enterprise activity, 68% of clients served through SEL’s business support in 2004 were women

• Representatives of ethnic minorities are more likely to be social entrepreneurs than their white counterparts

• London is home to benchmark social enterprises

London’s Social Enterprise Journey

• 1998 – SEL’s creation driven by local government agenda with support from co-op movement

– SEL works at national level on policy development and runs regeneration programmes at local level

• 2001 – SEL sets up London Social Economy Taskforce – with major partners (DTA, SFUK, NCVO, CO-OPS UK, ALG, LDA) to set

and co-ordinate a regional agenda for SE development• 2002 – DTI sets up a dedicated Social Enterprise Unit

– with a remit to monitor and influence national enterprise and regeneration agendas

• 20023 – Social Enterprise Coalition created to co-ordinate and promote all social enterprise activity in the UK

– SEL focus moves to work in two areas; grass roots development and innovative programme design

How social enterprise is taking place in London

1. Improving local public service delivery- community transport, recycling, leisure and childcare provision

2. Empowering communities- through the transfer of public assets to community ownership, including development trusts and area based regeneration programmes

3. Addressing market failure- meeting needs in markets where neither the public nor private sectors are able to deliver- examples include providing financial services to a low-income client base through credit unions and community development finance institutions, and provided affordable managed workspace to smaller enterprises

4. Enabling the voluntary sector to improve sustainability – providing an option for increased independence through entrepreneurialism. Examples include The Daycare Trust, The Media Trust and SEL

5. Empowering consumers- by offering a choice in products and services produced by fair trade and ethical standards- from chocolate, coffee and tea to clothing and cosmetics

6. Supporting voluntary and community organisations through the use of earned income strategies

7. Empowering workers through cooperative and democratically run governance structures, creating full-time employment for hard to reach or disadvantaged workers by building bridges to the mainstream labour market through social firms and the intermediate labour market model

Tower Hamlets Community Credit Union

Tower Hamlets Community Credit Union has over 2000 members who previously had difficulty accessing financial services due to branch closure and poor credit ratings. The credit union now serves its members from an ex-Abbey National shop front.

Coin Street Community Builders

Coin Street Community Builders (CSCB) is a development trust and social enterprise set up by and for local residents on the South Bank. Responsible for regenerating the area, its figurehead is the OXO Tower development.

What is SEL?

• An NGO working across London to support the growth and scaling up of social enterprise

• Our work includes:– Pre and Start up Business Advice– Signposting – Membership Services– Training– Policy and research, the bigger picture

Set up in March 2003 with LDA backing

SEL in best position to centralise social enterprise community after large scale

mapping exercise 2001

Over 100 delegates at inaugural event July 03

Membership Services

• Peer led learning• To share best practice• To identify the business community• To establish two way communication –

decision makers/community• To develop partnerships and relevant

consortia

Ethos

• Inclusion on shopsocialenterprise.com• Quarterly networking events • Regular email updates to keep up to the

minute on relevant issues ‘Update’• Indepth network journal• Option to join co-operative purchasing

scheme• Access to business support

Benefits to members

• Coherent voice – efficient communication

• Essential part of national network, SEC

• Concentrated source of expertiseFor social enterprises

For umbrella organisations and funders

For business support agencies

For academics and consultants

For International networks

Benefits to sector

• Over 200 members – inc small community based and high profile (Fifteen)

• Extended to non-London members• Includes individuals• Creates a sub-regional framework

Uptake

ECT Group

Having set up as a voluntary sector organisation providing community transport to elderly and disabled people in Ealing, ECT group is now a multi-stakeholder social enterprise that turns over in excess of £20 million per year from kerbside recycling services and other activities.

                      

Poptel Technology

Poptel technology is an experienced web design and development worker’s co-operative who chooses to work largely, but not exclusively, with organisations in the Social Economy, Public and Voluntary Sectors.

Sari (UK) Ltd

An innovative social enterprise that sells its products several of London’s trendy fashion outlets, Sari (UK) Ltd recycles old saris into high fashion items such as the Lu-Lu evening bag. Not only that but it gifts all it’s profits to the international development charity SENSE International.

St Luke’s Communications Ltd

St Luke’s Communications Ltd is the world’s only co-operative advertising agency. Based in central London, St Luke’s work for British Telecom, Clarks shoes and the Teacher Training Agency.

An E-commerce website where social enterprises can advertise and sell their goods

and services

A Social Enterprise Partnership (London Region) Initiative

An on-line community of social enterprises where ideas are shared and partnerships are made

1 A Aberdeen Studios22-24 Highbury Grove

London N5 2EA

T: 020 7704 7490F: 020 7704 7499E: Info@sel.org.ukI: www.sel.org.ukI: www.shopsocialenterprise.com