bringing strength to social enterprise final
DESCRIPTION
This workshop presented in conjunction with Mark Daniels, Social Traders (VIC), Joanne McNeill, Parramatta City Council (NSW) and Matt Noffs, Street University and Gideon Shoes (NSW) on Tuesday, 24 April 2012 explored social enterprise as a sustainable community building tool and shared information on how they operate sustainably.TRANSCRIPT
Bringing Strength to Social Enterprise
Tuesday, 24 April 2012
Today
This workshop will explore social enterprise as a sustainable community building tool and share information on how they operate. Participants will have the opportunity to discuss ideas with a panel of social enterprise practitioners and hear from colleagues who have established successful social enterprises.
Today’s Speakers
• Joanne McNeill, Parramatta City Council (NSW)– Bringing strength thru concepts
• Mark Daniels, Social Traders (VIC)– Building awareness
• Matt Gideon, Street University & Gideon Shoes (NSW)– What makes a Social Enterprise tick
Liverpool Council Strengthening their Community
Rebekah RichardsCommunity Worker
Bringing strength – today’s agenda
• Bringing strength thru concepts – Joanne McNeill• Building awareness of social enterprises – Mark Daniels• What makes them tick – Matt Noffs • The Entrepreneur’s Pledge – Jodie Mitchell
• Panel discussion
Bringing strength thru concepts
Joanne McNeillCommunity Capacity Building Officer Social Enterprise
Parramatta City Council
. . . what is ?
social enterprises are businesses that trade for a social, environmental or cultural purpose . . .
• generate a substantial portion of their income through trading• reinvest the majority of their profit / surplus (non-distributing)• include an asset lock
Social enterprise is about practice
. . . the difference . . .
. . between a social enterprise, a social entrepreneur and social innovation . . .
broad spectrum . . .
Diverse on three levels:• Form• Purpose• Markets
legal forms . . .
• Cooperatives, Associations and Mutuals• Fair Trade Organisations• Intermediate Labour Market Companies• Charitable Business Ventures • Social Firms• Community Enterprise• Community Development Finance Institutions• Australian Disability Enterprises• Hybrid
• Important consideration – any relationship with parent nonprofit?
purpose . . .
Common motivations
• employment - provide employment, training and support for marginalised groups; two types
• service delivery - create or retain services in response to social or economic needs
• income generation - generate profits to support other community or not for profit activities
. . . social impact . . .
• legitimacy
• greater scrutiny
• clear link between model & change want to see - Theory of Change
• evolving field
• no one approach
• what does success look like
markets . . .
ExampleSalvo’s legal - http://salvos.org.au/salvoslegal/
• full-time, self-sustaining legal practice specialising in property and transactional commercial law
• difference is that fees paid by clients fund the operation of another firm, Salvos Legal Humanitarian - which operates to provide free legal advice and assistance to those most in need without any fee
• first class commercial legal services are provided at a market competitive fee
• aims to use its compassionate dedication, creativity, ingenuity and skill to fight against social injustices
• means each procurement dollar delivers an additional benefit, beyond the service purchased
. . . not business as usual . . .
• blended inputs, blended returns
• different types of markets – eg. BoP, not end user
• different viability scenarios – balance of returns; reserves
• social vs business costs
a strategy – nexus point
not a program … what will you sell, who will pay for it?
not a business … who are the beneficiaries, how will you know?
. . . an AND approach… not about replacing
so ….
Building awareness
Mark DanielsLearning and Development Manager, Social Traders
www.socialtraders.com.au
© Social Traders Limited 2012
What can we cover in 25 mins?
How to test social enterprise ideas.
The role of market
A TALE OF TWO SOCIAL ENTERPRISES
Social Enterprise A Social Enterprise B
Need There is long term unemployment and social issues in a neighbourhood area.
A DES provider is finding it difficult to place people with mental health issues in employment
MISSION
Social Enterprise A Social Enterprise B
Want to create a business that will create opportunities for the community to get training and employment opportunities.
Want to create a tailored business that will create pathways to mainstream employment for people with a mental illness
IDEA GENERATION
Social Enterprise A Social Enterprise B
Lead person identifies that a café would be a great idea because people in the community as it would be a meeting place and provide employment opportunities.
Lead person asks people from business backgrounds the question. What business will allow us to achieve the mission and allow us to run a successful Business long term?
They conclude that a café would be the best because of the growing demand for hospitality staff and the sociable nature of the work.
FROM THOUGHT TO ACTION
Social Enterprise A Social Enterprise B
A café site in a local library becomes available and they apply for the lease. It will be a peppercorn rent and it is in a retail area of town. They win the tender process and begin the businessThey write their business plan after they secure the lease.Then they go hunting for money to operate the business.
They enlist expertise from a former franchise operator to help them to develop a business plan and follow a model of locating in a westfield mall.They scope out opportunities in a growing centre in the SE of Melbourne. They do foot traffic counts, they taste the coffee in every café in the supermarket, they taste and rate the food, record the price and the client group.They identify who there market will be and they seek out the funding to realise their idea.
WHO DO YOU THINK SUCCEEDED AND WHY?
OPPORTUNITIES FOR THE DEVELOPMENT OF BUSINESS
Plugging the leaks
Accessible contracts
Gaps in the market
Commercialising what you do
Value Add
Acquisition
Replicate
ONCE YOU HAVE SOME IDEAS YOU NEED TO SCREEN THEM AND GET AN UNDERSTANDING OF THE MARKET
CUSTOMER ANALYSIS
Customer Group (you may have more than one)
Who are they
How many?
Where are they?
Is this group growing or shrinking?
How much money do they have to spend?
What are the things that affect their purchasing decision?
Who do they buy from at the moment?
How much do they currently pay?
Why would they switch to you?
INCOME - COMPETITORS
• Competitors are anyone or anything that potentially takes revenue away from you
• This includes people providing the same product/service as you as well as substitutes
• What do I need to know about the competitors
COMPETITOR ANALYSIS
Competitor (there will be more than one – do this for each)
Name
What are the key products/services they provide to the customer?
Where are they? (geographically ,web?)
How much do they charge?
Why do people buy from them?
Do they focus on a target market? If so, describe it.
Estimate what percentage of the total market you think they have at the moment
Is their market share growing, shrinking or steady?
How do they attract and win customers?
What are their weaknesses and what can you do better than them
DOES MARKET ANALYSIS EVER END?
INCOME
Page 30
Your estimated volume of customers multiplied by their average payment will give you your estimated income.
# customers ____________ x what each of them will pay $_____________ =$___________ income (weekly/monthly/yearly)
THE PLANNER
THE SOCIAL ENTERPRISE BUILDER
www.socialtraders.com.au
www.socialenterprisefinder.com.au
Thank You
What makes them tick – Matt Noffs
Gideon Shoes & Street University
The social entrepreneur’s pledge
• I am a social entrepreneur.• I am following a dream, pursuing an opportunity, taking charge of my own
destiny.• I am bringing something of value to society, making a job for myself and
for others, and creating wealth that benefits my family, my community, my country, my world.
• I am one of a movement of millions of (social) entrepreneurs and innovators who made Australia great, and who will continue to keep our economy going … and growing and innovative.
• I am what I am because many people have helped me along on this journey.
The Entrepreneur’s Pledge
Therefore:
The social entrepreneur’s pledge
• I will tell my story, sharing my successes and failures, so that others taking the entrepreneurial path can learn.
• I will strive to mentor an aspiring entrepreneur.• I will make my voice heard by those who make policy
decisions that affect me and my business.• I will appreciate and celebrate my accomplishments, and the
accomplishments of all my fellow social entrepreneurs.• I will give back to the society that helped me to be successful.• I will Build a Stronger Australia.
Panel discussion
• Joanne McNeill, Parramatta City Council (NSW)– Bringing strength thru concepts
• Mark Daniels, Social Traders (VIC)– Building awareness
• Matt Gideon, Street University & Gideon Shoes (NSW)– What makes a Social Enterprise tick
Upcoming Development in Sydney
Social Enterprises Sydney• Workshops• Mentoring• Peer2Peer Networks
– Food & Food Service (Paddock to Plate)– Environmental -> reduce, re-use, recycle
• Coaching• Pro Bono Legal Panel