Transcript Creativity - University of Sheffield Enterprise

Dave Thornett
Social Enterprise
www.sheffield.ac.uk/enterprise
The term Social Enterprise describes an ethical framework rather than
being an industrial classification such as manufacturing and so there
are social enterprises operating in the fields of health, retail, energy,
leisure, construction, ICT, sport and many others, alongside private
and public sector organisations.
The Government definition of 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
profits for shareholders and owners”
www.sheffield.ac.uk/enterprise
Creating Social Change
1844: As a result of exploitative factory owners and shopkeepers who
charged extortionate prices, 28 working men in Rochdale scraped together
£28 to open their own shop – so heralding the beginning of the modern coop movement.
1980s: ‘Community development’ became well established with a range of
government grants and initiatives.
Recent years: growth of community enterprise, where businesses have
evolved in poor and disadvantaged areas with the specific aim of improving
the economic fortunes of their neighbourhoods. The voluntary sector, too,
has become more innovative and enterprising.
1990s: ‘Social Enterprise’ had become familiar in the UK. This signalled the
shift from grant dependency to income generation. In October 2001 the
government launched the Social Enterprise Unit to champion social
enterprise and spread good practice.
www.sheffield.ac.uk/enterprise
Social Enterprise Stats
Approx, 55,000 social enterprises
Employing 500,000 people
Combined turnover of £27 billion
Contribute almost 1% of GDP
(Social enterprise coalition 2006)
www.sheffield.ac.uk/enterprise
Legal Structure
Overlay (additional characteristic
to basic legal structure)
Badge
Company Ltd by Guarantee
Charity
Social Enterprise
Company Ltd by Shares
Community Interest Company
(CIC)
Social Firm
Industrial and Provident Society
Development Trust
Cooperative Company Ltd by
Guarantee
Charitable Incorporated
Organisation (coming soon!)
www.sheffield.ac.uk/enterprise
Form Follows Function
IPS for Community Share Issues (Settle Hydro, George and Dragon Hudswell)
Company Limited by Shares for Commercial Joint Venture
Company Limited by Guarantee for Trading Subsidiary
www.sheffield.ac.uk/enterprise
Whatever the theme or formal legal structure they take social
enterprises are bound by common principles such as:
• Social mission is interwoven in the fabric of the business rather than being
an add-on. For example his may manifest itself in a fair trade relationship,
the provision of important services not otherwise available or job creation.
• Social ownership and interest should drive the business model rather than
simply profitability for private shareholders. There are some legal models
that allow private shareholding, but dividends and returns are capped to
ensure the community benefit remains dominant over private profit.
www.sheffield.ac.uk/enterprise
National Policy Framework
The Think Smart…Think Voluntary Sector document produced by OGC and
the Home Office in June 2004
Right to Request
Community Investment Tax Relief
Community Interest Companies
Asset Transfer
Social Enterprise Investment Fund
www.sheffield.ac.uk/enterprise
Rise of the Social Entrepreneur
Jeff Skoll
E-bay to Skoll Foundation
Muhammad Yunus
Banker and economist to Grameen Bank
Dr. Larry Brilliant
Google to Urgent Threat Foundation (via eradicating smallpox)
www.sheffield.ac.uk/enterprise
Case Studies1
SOAR Build
Motivation
Employment, local control, income, quality
Ownership
Share capital private/social joint venture
Impact
Jobs Created, input to HMR, links to private sector
Future
Link to mainstream employment programmes, geographic expansion
www.sheffield.ac.uk/enterprise
Case Studies 2
Bay Broadband
Motivation
Internet access for the village
Ownership
Mutually owned by local people
Impact
Cheap broadband, real connectivity, reinvestment
Future
Regional network, sell model on, invest in new services
www.sheffield.ac.uk/enterprise
Case Study 3
Fresh Pastures
Motivation
Employment, drive from local authority
Ownership
Share capital community interest company
Impact
Employment for people with disabilities (25% workforce) business turning over £5m in year
3. Strong SROI
Future
Increase employment, supply to new areas, support local dairies
www.sheffield.ac.uk/enterprise
www.sheffield.ac.uk/enterprise
www.sheffield.ac.uk/enterprise
www.sheffield.ac.uk/enterprise
www.sheffield.ac.uk/enterprise
www.sheffield.ac.uk/enterprise
Social Investment Houses
Yorkshire Key Fund
Charity Bank
Social Enterprise Investment Fund
Community Builders
Adventure Capital Fund
Unity Trust Bank
Triodos Bank
www.sheffield.ac.uk/enterprise
www.sheffield.ac.uk/enterprise
Companies House www.companieshouse.gov.uk
Co-operatives UK www.cooperatives-uk.coop
Governance Hub www.governancehub.org.uk
CICs www.cicregulator.gov.uk
Charity Commission
www.charities-commission.gov.uk
Social Enterprise Coalition
www.socialenterprise.org.uk
Social Enterprise Yorkshire and Humber
www.seyh.org.uk
Business Link Yorkshire
www.businesslinkyorkshire.co.uk
www.sheffield.ac.uk/enterprise