Transcript British Experiences in the field of Social Entrepreneurship

British Experiences in the field of
Social Entrepreneurship
John Bromley
Executive Director – National Social
Marketing Centre
A Biography
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Director of the National Social Marketing Centre
Public health background
Works with social enterprises in the health sector
Worked with the British Council on researching
the social enterprise sector in South-east Europe
What are Social Enterprises?
• There is no concrete definition! (-in the UK)
• Huge variety of types/organisational models
• “Social Enterprise Sector”
Characteristics
• Often driven by a social/environmental mission
• They can be “profit making”
• Combine revenue generation with
social/environmental value generating structure
or component
• Many businesses have a social component,
however, for social enterprises this is usually
central to what they do!
Their main purpose
• “generate profit to further social and
environmental goals”
• Charity shops
• Employing disadvantaged people
• Lending to businesses outside formal sector
So are they charities?
• As a rule of thumb their income is derived
from business trading rather than subsidy or
donations.
• Compromise the more businesslike end of the
spectrum of organisations that make up the
“third sector” or “social economy”
In Britain
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Community Enterprises
Credit Unions
Trading arms of charities
Employee-owned businesses
Co-operatives
Housing Associations
Welsh Water.
•Welsh Water single purpose
company has no shareholders
•Any financial surpluses are
retained for the benefit of
customers
•Surpluses increase credit
worthiness and reduce cost of
borrowing
•Customer Dividend - £22.00 from
the bill
Big Issue – “a hand up not a hand out”
Designed to support homeless and
vulnerable people a chance to earn a
legitimate income
Sellers – buy for 75p and sell for £1.50
Confidence and self esteem
Link vendors with vital support
services, housing health and financial
independence
Fifteen – “Inspiring young people”
•Inspire disadvantaged
people to create great
careers in the restaurant
business
•Serve food of the highest
quality
•Apprentices learn the
trade and profits fund the
programme
•Aim to become a “Global”
Social Enterprise
•LEYF is London's largest childcare charity and social
enterprise
•Established in 1903, it now employs over 200 staff across
19 community nurseries and Children’s Centres in three
key London boroughs.
•Thanks to the socially inclusive fee structure, last year
they were able to help more than 1200 children from a
range of backgrounds make a great start in life – parents
pay what they can afford!
The Bread Maker - Aberdeen
21 Apprentices with learning
disabilities
8 staff training and supporting
to provide confectionary,
breads and coffees
Looking to provide skills so
apprentices can take work in
other businesses in the city
In the United Kingdom
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15,000 social enterprises
1.2% of all enterprises in the UK
Employ 450,000 people + 300,000 volunteers
£18 Billion combined annual turnover
84% from trading
Three Common Characteristics
• Enterprise orientation- viable trading
organisations with an operating surplus
• Social/environmental aims and ethical values
• Social Ownership – governance structures
based on participation or trustees, profits
used for the benefit of the “community”
British Council Research into Social
Entrepreneurs
• “I’m not working in the charity sector its
primarily a business with a social conscience”
• Highly motivated, committed and driven
individuals
• Deep and committed relationship with the
sector they are working in
• Often in sectors not traditionally served –
highly innovative and often “risk takers”
“Types of Social Entrepreneur”
• Existing Established businessmen – “giving
something back”
• Individuals with a social conscience
• Agents for Change - environmental/social
sector
• Bottom of the Pyramid “entrepreneurs”
• Background - Health and social care service
sector
Serbia – potential Social entrepreneurs
• Identification of potential/actual social
entrepreneurs operating
• Questions
– Would social enterprise work here and in what
sectors?
– What are the barriers to setting up social enterprises
– What activities could help develop social
entrpreneurs?
Results - attitudes
• Very limited understanding of what social
enterprises are
• The majority of people felt there were few
examples – even people operating social
enterprises didn’t think they were social
entrepreneurs!
• They were very keen on the idea of setting up
social enterprises and saw a need for such
organisations in the region
• Confusion on “social” – “socialist”
What would help?
• Lack of knowledge – a key barrier
• Wide range of information on social enterprises
required
• Getting the Government onboard considered essential
• Legal framework – but not too tight, constraining
growth
• Access to “start-up” up funding (not necessarily from
government)
• Mentoring would be critical
• Practical advice/workshops – “How to” – didn’t want
the theory!
How can the British Council help?
• Didn’t consider that the British Council would be
a natural partner and so therefore wouldn’t
naturally look for help from the organisation
• Assistance would be welcome but needed to be
targeted and accessible
• Practical business information – sound advice,
legal frameworks, finance, HR, market analysis,
mentoring
Conclusion – what we needed at the
National Social Marketing Centre
• Practical information – in one place – “one stop
shop”
• Mentoring – “social entrepreneurs - advice and
support
• Awareness Campaign – what social enterprise is
and what it isn’t.
• Clarification of the legal, administrative and
financial framework
• How to move from where we are now to a “social
enterprise”