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Social Enterprises as a mechanism to deliver AONB projects
Tim CrabtreeWessex Community Assets
&Cardiff University
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Wessex Community Assets
Small not for profit organisa>on which supports the development of community and co-‐opera>ve enterprises:• Renewable energy• Sustainable food• Affordable housing• Cultural sector• Workspace
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Wessex Reinvestment Trust group
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Wessex Reinvestment Trust group
Established in 2001, the group has 4 separate structures:
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Wessex Reinvestment Trust group
Established in 2001, the group has 4 separate structures:
• Wessex Reinvestment Trust, a registered charity.
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Wessex Reinvestment Trust group
Established in 2001, the group has 4 separate structures:
• Wessex Reinvestment Trust, a registered charity.• WRT Core Company Limited, which provides home improvement lending.
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Wessex Reinvestment Trust group
Established in 2001, the group has 4 separate structures:
• Wessex Reinvestment Trust, a registered charity.• WRT Core Company Limited, which provides home improvement lending.
• Wessex Community Assets, which supports community asset development.
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Wessex Reinvestment Trust group
Established in 2001, the group has 4 separate structures:
• Wessex Reinvestment Trust, a registered charity.• WRT Core Company Limited, which provides home improvement lending.
• Wessex Community Assets, which supports community asset development.
• Wessex Reinvestment Society, has provided business loans.
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Examples of Wessex Reinvestment Trust group ac>vi>es 2010 -‐ 2012
Wessex Core Company:
Home Improvement Lending
Business advice , e.g.
The Real Food Store, Exeter
The Community Farm, Bristol
North Dorset Food Incubator &
Training Network
Business advice , e.g.
Bridport Energy Services Ltd:
Zero carbon food produc>on
Partnership with SW Protected
Landscapes Forum:Social Forestry
Business advice , e.g.
Lyme Regis Development Trust
Red Brick Building Centre, Glastonbury
Enterprise St. Michael’s, Bridport
Housing Food Renewable Energy
Workspace & Community
Assets
Somerset, Devon & Dorset
Community Land Trust Project
Housing
Wessex Community Assets
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What is social enterprise?
Social enterprise can be thought of as:• a par>cular type of organisa.on (i.e. a business with a primary social or environmental aim, which returns any surplus to the community which it serves)
or as:• an ac.vity carried out alongside the exis>ng programmes of community and voluntary sector organisa>ons (i.e. trading ac>vity which either meets the primary purpose of the organisa>on or creates surpluses to fund services for the community).
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Common characterisGcs of social enterprise
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Maximum public benefit
Maximum private benefit
Charity Share company
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Maximum public benefit
Maximum private benefit
Charity Share company
The “grey area” in the middle of the spectrum
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Maximum public benefit
Maximum private benefit
Charity Share company
The “grey area” in the middle of the spectrum
is where social economy organisaGons operate
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No trading revenue
Trading revenue &
grants
Potentially sustainable:
50%+ trading
revenue
Breakeven – all
revenue from trading
Profitable – surplus not distributed
Profit distributing – socially driven/ mutual
Profit maximising
ChariGes/vol orgs Revenue generaGng social enterprises
Socially driven business
“Trad-‐iGonal” business
High social return High financial return
Waitrose
Co-‐op Group
Whole Food
Markets
Green & Blacks (Cadburys)
Rachels Dairy
Local Food Links
Dorset Farmers’ Markets
Somerset Local Food Direct
West Dorset Food & Land Trust
Dorset Food & Health Trust
Somerset Community Food Projects Network
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Is “social enterprise” relevant to
• AONB’s have core teams delivering statutory du>es – conserving and enhancing protected landscapes.
• Most AONB teams have also developed the capacity to secure addi>onal resources and deliver projects, e.g.– Woodland management– Access / recrea>on– Grassland management
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So – AONB teams already have 2 key resources which support delivery of
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So – AONB teams already have 2 key resources which support delivery of
People
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So – AONB teams already have 2 key resources which support delivery of
Grant Finance
People
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So – AONB teams already have 2 key resources which support delivery of
Grant Finance
People Local
communiGes
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So – AONB teams already have 2 key resources which support delivery of
Grant Finance
People Local
communiGesCi>zens
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So – AONB teams already have 2 key resources which support delivery of
Grant Finance
People Local
communiGesCi>zens
Core funcGons&
projects
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Some AONB’s have established (or are
• To secure grant funding & dona>ons not available to LA-‐hosted AONB teams
• To use such funds to deliver addi>onal projects• To receive transferred assets from public bodies or bequests
• To acquire assets, using grants and loans• To engage with the community• To undertake “primary purpose” trading ac>vity
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AONB Team in Local
Authority
Local AONB Trust
Social enterprise acGvity n
Social enterprise acGvity 2
Social enterprise acGvity 1
+ +
Possible way forward
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Projects&
Services
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AONB Team
Projects&
Services
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AONB Team AONB Trust
Projects&
Services
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AONB Team AONB Trust
Local communiGes
Projects&
Services
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AONB Team AONB Trust
Local communiGes
Projects&
Services
Social enterprise acGvity
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AONB Team AONB Trust
Local communiGes
Projects&
Services
Social enterprise acGvity
Direct trading
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AONB Team AONB Trust
Local communiGes
Projects&
Services
Social enterprise acGvity
Direct trading
Subsidiary
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AONB Team AONB Trust
Local communiGes
Projects&
Services
Social enterprise acGvity
Direct trading
Subsidiary
Lease assets
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AONB Team AONB Trust
Local communiGes
Projects&
Services
Social enterprise acGvity
Direct trading
Subsidiary
Lease assets
Support IPS
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AONB Team AONB Trust
Local communiGes
Projects&
Services
Social enterprise acGvity
Direct trading
Subsidiary
Lease assets
Support IPS
Joint venture
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Example of trust undertaking project delivery and primary purpose trading
West Dorset Food and Land Trust– Charity, established 1998
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The local food sector in West Dorset:Mapping exercise resul>ng in Directory
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The local food sector in West Dorset:Mapping exercise resul>ng in Directory
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Asset based development
• West Dorset Food & Land Trust a member of the Development Trusts Associa>on (now Locality)
• Assets can generate income – e.g. building rentals or land tenancies
• Decision to develop managed workspace – a “Local Food Centre”
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Bridport Centre for Local Food
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ChariGes are restricted in the range of trading that they can undertake so
may establish subsidiaries
Local Food Links– Trading company, established as subsidiary of West Dorset Food and Land Trust in 1999
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Other examples of Trusts se[ng up
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The Isle of Eigg Heritage Trust
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Eigg Electric
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Lyme Regis Development Trust
•St. Michael’s Business Centre
•Wessex secured £100,000 grant from ChangeUp, provided £13,000 loan and nego>ated £35,000 Programme Related Investment from Community Founda>on for Bournemouth, Dorset & Poole
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Lyme Regis Development Trust
• New assets:– Youth café with flat– Youth centre– Monmouth house – flats
• Supports project ac>vity, e.g.– Fossil Fes>val
• Developing proposals for £8 million Field Studies Centre with Natural History Museum
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Trusts do not have to run operations themselves or
through subsidiaries
• Trusts can use their assets to support social economy activity– At a discounted rent, where the enterprise
delivers against the Trust’s objects– At a market rent.
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Local Food Links Ltd• Restructured into a Community Benefit
Society (a form of Industrial & Provident Society), with membership open to parents, schools, wider community
• Previously, Local Food Links only had one member – the Trust
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Local Food Links: ethical sourcing
• Meat – Genesis Farmers• Milk – Coombe Farm• Yogurt – Yeo Valley• Butter – Denhay Farms & Coombe Farm• Cheese – Denhay & Coombe Farm• Flour – Edward Gallia, Cerne Abbas• Eggs – Vurlands Farm• Vegetables in season – Bothen Hill Organic,
Washingpool Farm, Somerset Organic Link• Fruit in season – Elwell Farm• Bread – Leakers, Punch & Judy Bakery• Food service – Essential Trading
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Local Food Links – current status
• Two hub kitchens – one leased from West Dorset Food & Land Trust, one from Dorset County Council
• 25 staff• 24 schools, 3 nurseries, 1 day centre, 8
lunch clubs• 1200 meals per day• Turnover: over £500,000 p.a.
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£1 million raised from community shares
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Fordhall Community
Land IniGaGve:
owns land and public access facili>es
Fordhall Farm Ltd: life>me tenancy
Land
Rent
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The Earth Trust• Set up as the Northmoor Trust for Countryside
Conservation in 1967, with a large endowment from Sir Martin and Audrey Wood
• Now own 1,200 acres of farmland, woodland, nature reserves, research plantation and wetland
• Also: management of three community meadows, Thrupp Lake at Radley,
• 30 staff, 100 regular volunteers • 750 regular supporters• Around 30,000 people each year take part in Trust
activities annually
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Cultivate
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Trusts can link with Community Benefit Societies
which then run social enterprises
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Tablehurst & Plaw Hatch
• Founded in 1995 following a community-‐led campaign that raised over £150,000 to purchase the stock and business assets of Tablehurst Farm from Emerson College.
• Now 400 members of the IPS, each paying £100 for their share.
• The land – 800 acres – is owned by a Trust.• The Trust leases the land to the IPS.• The IPS has 2 subsidiary trading businesses
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Tablehurst & Plaw Hatch Community Farm
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West Oxford Community Renewables
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IPS CHARITY
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Amount Subscribed Number of Subscribers
Totals at each Subscription Level
£100 157£15,700
£200 47£9,400
£500 36£18,000
£1000 21£21,000
£20,0002
£40,000
REAL FOOD EXETER: Analysis of the share register on closure at 30 September 2010
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The Community Farm• In November 2010, the Community Farm
launched their community share offer inviting members of the public to invest in a 22 acre horticulture operation.
• By the end of March 2011, 409 people had invested £126,000 in the Community Farm.
• This investment has enabled The Farm to take over the established veg box scheme, organic growing and wholesale business of the Better Food Company.
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£1,600,000 raised
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Community share societies
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Members improve competitive advantage
Members roles How these roles improve competitive advantage
Investor Lower cost of capital; greater acceptance of risk
Customer Greater loyalty; accept higher prices & dividend
Service user Demonstrates support to funders; better feedback
Activist More engagement; better feedback; better targeting
Volunteer Lower labour costs; access to specialist skills
Suppliers Greater loyalty; lower input prices
Workers Greater loyalty; lower input prices; better feedback
Directors Access to specialist skills; lower input prices
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Community Supported Forestry
• WCA working with SW Protected Landscapes Forum to explore the potential for community engagement in woodland management.
• Would involve elements of the CSA and Care Farming approaches
• West Dorset Woodfuel Co-op to be establshed as IPS.
• In the long term could be share issue to purchase woodland – Tamar AONB exploring pilot
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Local Food: Different forms of support
• Sector specific support, e.g. CSA’s• Specialist Enterprise Support• Advice on governance / legal structures
Also:• Dissemina>on / sharing learning• Social franchising or licensing• Spin offs
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Primary ProducGon Processing DistribuGon Retail/Food
Service
Consum
pGon
Enterprise Support
Food Mapping
Governance & Legal Structures
Local Food Systems
Local Shops
Food Co-‐ops
Home Produced Food
Farmers’ Markets
CSA’sCSA’s Supply & DistribuGon
The Making Local Food Work programme
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In-‐direct investment via intermediary organisaGons: the example of Making Local Food Work
Social Capital
Human Capital
Physical Capital
NaturalCapital
Investment:
Grant from Big Lo]ery
Reshapedfood opera>ons
Reshapedfood services
FinancialCapital
Plunket: community retail
Making Local Food WorkProgramme
SUSTAIN Food co-‐ops
SUSTAIN Food hubs
Soil Associa>on: CSA
Co-‐ops UK: Governance
Soil Associa>on: Buying groups
FARMA: Farmers’ Markets
Country Markets: Country Markets
CPRE: Food Webs
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Other infrastructure support models
Locality• 423 members in England• Combined income of £325 million -‐ £172 million earned income
• £660 million assets• 5,500 staff• 20,000 volunteers
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AONB TeamIn
Local authority
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AONB TeamIn
Local authority TRUST
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AONB TeamIn
Local authority TRUST
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Primary producGon Processing DistribuGon RetailProjects
& Services Social enterprise acGvity
AONB TeamIn
Local authority TRUST
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Local communiGes& ConsumersCi>zens
Primary producGon Processing DistribuGon RetailProjects
& Services Social enterprise acGvity
AONB TeamIn
Local authority TRUST
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Local communiGes& ConsumersCi>zens
Primary producGon Processing DistribuGon RetailProjects
& Services Social enterprise acGvity
AONB TeamIn
Local authority TRUST
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Local communiGes& ConsumersCi>zens
Primary producGon Processing DistribuGon RetailProjects
& Services Social enterprise acGvity
People
AONB TeamIn
Local authority TRUST
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People
Local communiGes& ConsumersCi>zens
Primary producGon Processing DistribuGon RetailProjects
& Services Social enterprise acGvity
People
AONB TeamIn
Local authority TRUST
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Land & natural resources
People
Local communiGes& ConsumersCi>zens
Primary producGon Processing DistribuGon RetailProjects
& Services Social enterprise acGvity
People
AONB TeamIn
Local authority TRUST
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Land & natural resources
Buildings & equipment
People
Local communiGes& ConsumersCi>zens
Primary producGon Processing DistribuGon RetailProjects
& Services Social enterprise acGvity
People
AONB TeamIn
Local authority TRUST
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Land & natural resources
Buildings & equipment
People
Local communiGes& ConsumersCi>zens
Primary producGon Processing DistribuGon RetailProjects
& Services Social enterprise acGvity
People
AONB TeamIn
Local authority TRUST
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Land & natural resources
Buildings & equipment
Grant Finance
People
Local communiGes& ConsumersCi>zens
Primary producGon Processing DistribuGon RetailProjects
& Services Social enterprise acGvity
Trading income
People
AONB TeamIn
Local authority TRUST
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Land & natural resourcesBuildings & equipment
Grant Finance
People
Primary producGon Processing DistribuGon Retail
Local communiGesConsumersCi>zens
Loan Finance Equity Finance
Investors
Projects&
Services Social enterprise acGvity
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Some conclusions
• Trusts can be established as core asset holding vehicle
• Can carry out primary purpose trading• Can establish trading subsidiary• Can lease assets to small businesses, coops or social economy organisa>ons
• Can explore joint ventures or partnerships, e.g. with a Community Benefit Society that engages the local community as investors, consumers and volunteers