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SOCIAL ENTERPRISE AND HOMELESSNESS _ Presented by Mark Daniels Social Traders THE POWER OF MARKETS IN ADDRESSING SOCIAL PROBLEMS www.socialtraders.com.au © Social Traders Limited 2012 WHAT IS A SOCIAL ENTERPRISE? THE AUSTRALIAN SOCIAL ENTERPRISE SECTOR Social Traders partnered with the Australian Centre for Philanthropy and Nonprofit Studies (ACPNS) at Queensland University of Technology Define social enterprise Identify and map the Australian social enterprise sector • Forms social enterprises take? • Industries they operate in? • How many? • Size? • etc… WHAT IS A SOCIAL ENTERPRISE? Social enterprises are organisations that: a. Are led by an economic, social, cultural, or environmental mission consistent with a public or community benefit; b. Trade to fulfil their mission; c. Derive a substantial portion of their income from trade; and d. Reinvest the majority of their profit/surplus in the fulfilment of their mission CHARACTERISTICS • A successful social enterprise is firstly a good business • All the rules of small business success apply with the added dimension of the social mission • Live and die based on: • • • • quality of their product or service understanding their market (customers and competitors) price promotion • Start based on market opportunities. • They succeed based on wise business heads. SE’s seek a balance SOCIAL FINANCIAL MOTIVATIONS – 3 BUCKETS Employment, training and support for marginalised groups Fair Repairs Boystown graffitt removal The Big Issue Services in direct response to social or economic community needs Bendigo Community Bank Community Childcare Sovereign Hill Yackandandah Community Development Co Prickle Income generation for charitable purposes Op Shops, ‘Excellent Health’ Smith Family Textiles © Social Traders Limited 2012 ORGANISATIONAL SIZE & INDUSTRY 180 Personal and other services 5.9 Construction 1.7 Electricity, gas, water and waste… 0.7 Manufacturing 160 Mining 140 5 0.2 Agriculture, forestry and fishing 4.6 Other administrative and support… Building cleaning, pest control… 120 3.3 2.4 Employment services 7.4 Professional, scientific and… Rental, hiring and real estate… 100 Financial and insurance services 2.4 2.2 1.1 Information, media and… Transport, postal and… 80 7.1 1.9 Social assistance services 60 9.5 Residential care services 2.8 Hospitals, medical and other… 2.4 Arts and recreation services 20 Food and beverage services 40 9.8 Accommodation 4.8 Other retail trade 20 9.6 Food retailing 5.9 Wholesale trade 4.5 Education and training 0 Small Medium Large 26.3 0 5 10 15 20 25 30 THE AUSTRALIAN SOCIAL ENTERPRISE SECTOR Social enterprise is not a new phenomenon – Foresters Community Finance, Op-shops, Bendigo Community Banks, Food Co-ops, FCCC, Fair Trade… The FASES research identified 5000 social enterprises in Australia The sector is mature, diverse, innovative, sustainable More than 73% of respondents trading for at least five years 62% for more than ten years THE STATE OF SOCIAL ENTERPRISE IN AUSTRALIA: BUILDING ON FASES We now have a social enterprise sector in Australia. Capital Social Opening enterprise markets building sector Capacity Ideas Social enterprise sector Capacity building THE BUILDER http://www.socialtraders.com.au and click on © Social Traders Limited 2012 The Crunch is Social Traders social enterprise development support and investment initiative. The Crunch provides training, mentoring, networks and support, and the opportunity to pitch for a share of the Social Enterprise Development Fund. Social enterprise sector Capital Social Opening enterprise markets sector A cross-functional approach to driving social value Organisation Strategic Procurement Functional Silos Strategic Social Procurement Corporate Social Responsibility http://www.socialtraders.com.au/social-procurement www.socialenterprisefinder.com.au Social enterprise sector Entrepreneurs Social enterprise landscape in Australia Supports all missions and social enterprise forms Universities – Centre for Social Impact School for Social Entrepreneurs Supports specific mission or social enterprise forms Social Innovation in Western Australia (in WA) SEDIFs Social Traders Social Enterprise Sydney (in Sydney) Social Ventures Australia Social Business Australia SoFA stage Social Innovation research and policy Leadership development of individual nascent social entrepreneurs Financial and/or capacity building support for social enterprise ideas Existing enterprise improvements in sustainability, trading capability and viability Growth and scaling of existing enterprises Growth and maturity financed by commercial investors © Social Traders Limited 2012 WHERE DOES HOMELESSNESS MEET SOCIAL ENTERPRISE? What should a homeless motivated SE focus on? health housing employment MOTIVATIONS – 3 BUCKETS Employment, training and support for marginalised groups Fair Repairs Boystown graffitt removal The Big Issue Services in direct response to social or economic community needs Bendigo Community Bank Community Childcare Sovereign Hill Yackandandah Community Development Co Prickle Income generation for charitable purposes Op Shops, ‘Excellent Health’ Smith Family Textiles © Social Traders Limited 2012 BAWRUNGA ABORIGINAL MEDICAL SERVICE (BAMS) An Indigenous owned and managed notfor-profit community cooperative in Bowraville NSW in 1999 Five medical clinics in the Nambucca Valley and NSW Western Region, sustained through bulk billing income 40% of bulk billing income goes to BAMS to cover accommodation and administration and 60% to the doctors Social mission: To address the need for affordable, accessible, and high quality health and medical services through the provision of culturally appropriate primary health services for the local Indigenous population BAMS uses its 40% of income to deliver a range of ‘primary health care’ and community outreach programs utilising funds generated from the clinic business, including early childhood nutrition, substance abuse prevention, healthy lifestyles and youth related projects. 28 Yarra Community Housing • The organisation exists to provide housing for people at risk of homelessness. • Providing affordable housing for those at risk of homelessness is a key role for the homelessness sector. Housing Associations are major social enterprises that are also major buyers. • Yarra is creating job trough their tendering and tenanting of commercial properties Social mission: A home for every single person 29 Cleanable Developed and owned by a disability support organisation, WCIG to create the opportunity that the market was unable to create Works across government, not for profit and private contracts worth over $1.5million Social mission: Provide long term employment and retraining opportunities for individuals excluded from the mainstream labour market as a result of mental illness The cleaning business is now profitable and the complimentary businesses developed are becoming sustainable Their target customer is able to and willing to pay mid-market price They are employing 60 workers, almost half of which have a disability Over 80% of income is from trade 30 www.socialtraders.com.au © Social Traders Limited 2012 Mark Daniels Manager Learning and Development Social Traders [email protected] 0414 241 766 www.socialtraders.com.au 32