British Experiences in the field of Social Entrepreneurship

John BromleyExecutive Director – National Social

Marketing Centre

A Biography

• 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

• 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

• 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”