Transcript Document

Social Enterprise
The Business Perspective
Strategic communications and creative
services to promote brands, behaviours
and buy-in
Social & Local is a Community Interest Company. We share our profits and
our knowledge to encourage entrepreneurship.
A community interest company
We’re passionate about combining
commercial return on investment with a
genuine social return
A community interest company
So far, so good
Social Fund Value
£25,000
A community interest company
How did this come about?
October 2010
MD
Global Communications Agency
Earning £130K per annum
Delivering £1million gross income from Government clients
A community interest company
January 2011
“the new government has made it clear that there will be a 50% cut
in advertising spending which is expected to continue into the
future”
Services no longer required
Earning £0K per annum
£30K redundancy payment
“Now, how can I use 36 years experience and
talent to good effect in this new world”
A community interest company
Developing a compelling brand proposition.
Operating profit at marketing services shops more than halved to 5.4 per cent
during the first half of 2011, according to the Marketing Agencies Association.
On a more positive note, there was ample evidence of a dynamism and entrepreneurial spirit that
bodes well for the industry's future.
The underlying picture is that the transparency created by the internet is pushing major brands towards
social responsibility, as demand by their customers and staff. The challenge for social entrepreneurs is to
come up with social benefit models that make a social impact and at the same time create an inspirational
connection with the brands and their key audiences
Children's charities hardest hit by austerity measures
The future is bleak for 64,000 charities that work with children and young people in England and
depended on state grants
The CIC office was opened in July 2005 to create a legal
structure for businesses designed to benefit communities.
CICs are not 'not-for-profit' organisations like charities. Like
any other business, CICs aim to make a profit and pay all
their employees salaries, but unlike ordinary businesses, the
profits won't automatically go to the company's owners or
shareholders - the idea is that they go to the community the
company has been set up to benefit.
A community interest company
Vision: We will be recognised as thought
leaders in social entrepreneurship by proving a
mainstream agency can be both profitable and
make a tangible contribution to society
Mission: Use our skills and experience to
deliver high performance marketing
communications that make the most of our
clients’ resources and help them achieve more.
OUR BUSINESS VISION & ACTIVITIES
So some thoughts and tips
How’s our world shaping up?
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Social enterprises are businesses which exist to address social or environmental
need. Rather than maximising profit for shareholders or owners, profits are
reinvested into the community or back into the business. It’s this which makes
social enterprise the most exciting and inspiring business movement in the
world.
The 2005 Annual Survey of Small Businesses UK found that there are 55,000
social enterprises in the UK with a combined turnover of £27 billion. Social
enterprises account for 5% of all businesses with employees, and contribute
£8.4 billion per year to the UK economy.
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The UK could be home to 232,000 social enterprises and not the official figure
of 62,000, new research shows. Delta Research 2011.
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The Community Interest Company is a bespoke legal structure designed for
social enterprises with a built-in asset lock. However a social enterprise can
also be a Company Limited by Guarantee, a Company Limited by Shares, or
an Industrial or Provident Society. Many also take charitable status.
A community interest company
How’s our world shaping up
1578 CIC’s (1296 - 2009/10)
But………..393 dissolved.
Couldn’t get business
Unable to survive on income
Never got started….
A community interest company
What does it take to succeed
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Social: Relating to human society and its organisation
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Enterprise: A project or undertaking that is especially difficult or
requires effort
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Business: Where goods and services are exchanged for one
another or for money
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Profit: A financial gain, esp. the difference between the amount
earned and the amount spent in buying, operating, or producing
something.
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Venture: A risky or daring journey or undertaking
A community interest company
1. It’s not about what you want to sell
It’s entirely about what the
market wants to buy.
You may love what you do and feel you do it well, but if what you
do does not have a market value or is a product or service that the
market don’t want or need you will fail.
So….do your homework, examine your markets, develop a
compelling and differentiating proposition.
A community interest company
2. Balance the scales
Voluntary Sector Professional
Collaborative
Patient
Measured
Structured
Motivated by organisational goals
Entrepreneur
Strong willed
Authoritative
Intuitive
Creative
Self-Motivated
You need to have a balance of behaviours in your business.
You need to acknowledge and respect the differences.
Your ultimate goal is shared (albeit from different perspectives).
A community interest company
3. Be prepared to take a risk
Building a social business is about
everything but protecting your income
or job.
You will need to accept risk. There may be risk to your
salary, your life pattern, your stress levels. But your
determination and belief will win the day. And just
think what you can achieve!
A community interest company
Where does the SE Mark fit in?
What is the Social Enterprise Mark?
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The Social Enterprise Mark validates and differentiates your
business as a genuine social enterprise from private sector
competition through the robust, independent assessment
process.
The Social Enterprise Mark is the only way to prove your social
enterprise truly operates as one. The Mark is the only guarantee
which proves profits are spent on social purposes.
It is a young organisation, but one with real commitment to
driving excellence and supporting success within the social
business sector.
A community interest company
Why is it different?
Mark of Excellence
(Accredited against
firm criteria)
Promotes &
champions
Social
Businesses
Support and help
the Social
Enterprise
Movement
Membership org / open to all
A community interest company
Why we applied for it?
Some concerns about the reputation of social business
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Organisations using the CIC model to drive their business but deliberately
minimising profits
The well intentioned - who felt that the social business model might in itself
rescue them from closure or redundancy – take the problem away
A much higher proportion of failure of social businesses – CIC’s than business
per se (business per se 0.15%-0.26%; Community Interest Companies 20%)
We want to be part of something that offers real benefits and
says something compelling to our customers.
A community interest company
A case in point
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To move from our individual membership to corporate
membership.
Of 1500 true Agencies in the UK, only 300 are members of the IPA
Only 100 more are being targeted (including Social & Local)
To achieve this mark of excellence that is understood by our
prospects and which demonstrates that we are credible,
professional, good business managers, we need to turnover
£500K and prove we have the skills to deliver the job at the
highest level. Watch this space.
A community interest company
A community interest company
Stephanie Drakes
CEO
“Social & Local was a bit of a nirvana moment for me. I guess at heart I am an
entrepreneur and the opportunity to become a social entrepreneur just made
perfect sense in the times in which we find ourselves. It feels of the moment and
it feels right. The big challenge was how to combine what I loved doing and
have done for so long in the advertising and marketing world with a better,
more fulfilling way of organising a business. Social & Local is the result. I really
hope you will find us interesting. Just give me a call”.
I’ve well over 30 years’ experience in designing and delivering Social and Local Marketing, CSR and
Brand Strategies, working for a wide range of private, public and not for profit clients including: BT,
Boots, Dairy Crest, Royal Mail, Foreign & Commonwealth Office, Department for Education, Home
Office, The Counties of Devon and Lincolnshire, the Cities of Derby and Leicester and the Universities
of Nottingham and Bucks.
I love developing strategy, advising clients about the realities of engaging real people, and getting
support and buy- in from partners and stakeholders in the campaigns I work on. I know I have a real
commercial streak, which my clients appreciate - most of whom have been attached at the hip for at
least 5 years and some poor souls for 20.
Prior to Social & Local, I was Head of Public sector and MD of 23red in the regions. And before I set up
and sold two previous integrated communications agencies in London and the UK regions.
A community interest company