Transcript Creativity - Involve Yorkshire & Humber

Social Enterprise
Creating Social Change
The term Social Enterprise describes an ethical framework rather than
an industrial classification such as manufacturing, 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.
An Evolving Movement
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 co-op movement.
1980s: ‘Community development’ became well established with a range of
government grants and initiatives.
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.
2010:
Big Society?
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
Cooperative Company Ltd
by Guarantee
Charitable Incorporated
Organisation)
Development Trust
Form Follows Function
Legal Structures as Vehicles for Delivery
IPS for Community Share Issues
•Settle Hydro
•George and Dragon Hudswell
Company Limited by Shares for Commercial Joint Venture or raising capital
•Café Direct
•Divine Chocolate
Company Limited by Guarantee for Trading Subsidiary
•Darnall Post Office
•The Quadrant
Whatever the theme or formal legal structure they take social
enterprises are bound by common principles:
•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 or 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.
•National Policy Framework
The Community Right to Bid aims to keep valued land and
buildings in community use by giving local people the chance to bid
to buy them, if and when they come onto the market.
•The Right to Challenge enables communities to challenge to take
over local services that they think they can run differently and better
and
•The Community Right to Build is a new way for communities to
choose for themselves where and when to build homes, shops,
facilities and businesses – putting power back into the hands of
local people.
National Policy Framework
• The Public Services (Social Value Act) introduced in February 2012 now requires public bodies to
consider how the services they commission and procure might improve the economic, social and
environmental wellbeing of the area.
• The Big Venture Challenge supports “ambitious social entrepreneurs with access to finance, business
support and powerful connections to help them scale their ventures.”The challenge is a 12 month
programme designed to help organisations raise external investment (debt or equity) of between
£50,000 to £250,000.
• The Nesta Impact Fund aims to support the development of the impact investment market. It
concentrates on “high potential early stage social innovations” that address major social needs and
produce positive social outcomes and can be scaled up or possibly replicated.
Zest
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•
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Is a social enterprise based in an inner city neighbourhood in Sheffield. They deliver
public services and have a key role in local economic development. Our main areas
of delivery are:
The One Stop Shop for Employment, Training and Enterprise
The Zest Healthy Living Centre; comprising a public library, swimming pool, gym,
café, offices and meeting spaces.
Zest turns over around £4 million this year and employs 80 staff.
Motivation
Whole household needs approach for local people
Ownership
Company Limited by Guarantee and charity with local membership
Impact
Job creation, health improvement, sports development, protecting local services
Future
More of the same
Case Studies1
SOAR Build
SOAR Build is one of a series of initiatives managed by SOAR Enterprises,
a commercial joint venture between community regeneration experts
Keepmoat Ltd and the Southey and Owlerton Area Regeneration
Partnership. SOAR Build focuses on raising construction skill levels and
increasing the future employability of excluded groups across the city of
Sheffield.
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
Case Studies 2
Bay Broadband
The Bay Broadband Co-operative is a 'not for profit' Social Enterprise Cooperative, set up originally to bring High Speed Broadband to a rural village
which had no other means of Broadband connection.
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
Hot Topics
Community Share Issue – creating new finance for social change
Hydro Electricity
Pubs
Farms
Torrs Hydro, Derbyshire
George and Dragon
Fordhall, Shropshire
Cooperatives - mutual action
Telecommunications
Sport
Retail
Finance
The Phone Coop
FC United of Manchester
Coop Stores
Yorkshire Building Society
Hot Topics
Social Investment
The Key Fund
Charity Bank
Social Investment Business
Unity Trust Bank
Triodos Bank
Big Society Capital