social enterprises as a mechanism to deliver aonb projects

Social Enterprises as a mechanism to deliver AONB projects

Tim CrabtreeWessex Community Assets

&Cardiff University

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

Wessex Reinvestment Trust group


Established in 2001, the group has 4 separate structures:



• Wessex Reinvestment Trust, a registered charity.



• Wessex Reinvestment Trust, a registered charity.• WRT Core Company Limited, which provides home improvement lending.




• Wessex Community Assets, which supports community asset development.




• Wessex Community Assets, which supports community asset development.

• Wessex Reinvestment Society, has provided business loans.

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


Bridport Energy Services Ltd:

Zero carbon food produc>on

Partnership with SW Protected

Landscapes Forum:Social Forestry


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

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).

Common characterisGcs of social enterprise

Maximum public benefit

Maximum private benefit

Charity Share company




The “grey area” in the middle of the spectrum




The “grey area” in the middle of the spectrum

is where social economy organisaGons operate

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

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

So – AONB teams already have 2 key resources which support delivery of


People


Grant Finance

People


Grant Finance

People Local

communiGes


Grant Finance

People Local

communiGesCi>zens


Grant Finance

People Local

communiGesCi>zens

Core funcGons&

projects

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

AONB Team in Local

Authority

Local AONB Trust

Social enterprise acGvity n

Social enterprise acGvity 2

Social enterprise acGvity 1

+ +

Possible way forward

Projects&

Services

AONB Team

Projects&

Services

AONB Team AONB Trust

Projects&

Services


Local communiGes

Projects&

Services


Local communiGes

Projects&

Services

Social enterprise acGvity


Local communiGes

Projects&

Services


Direct trading


Local communiGes

Projects&

Services


Direct trading

Subsidiary


Local communiGes

Projects&

Services


Direct trading

Subsidiary

Lease assets


Local communiGes

Projects&

Services


Direct trading

Subsidiary

Lease assets

Support IPS


Local communiGes

Projects&

Services


Direct trading

Subsidiary

Lease assets

Support IPS

Joint venture

Example of trust undertaking project delivery and primary purpose trading

West Dorset Food and Land Trust– Charity, established 1998

The local food sector in West Dorset:Mapping exercise resul>ng in Directory

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”

Bridport Centre for Local Food

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

Other examples of Trusts se[ng up

The Isle of Eigg Heritage Trust

Eigg Electric


•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


• 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

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.

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

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

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.

£1 million raised from community shares

Fordhall Community

Land IniGaGve:

owns land and public access facili>es

Fordhall Farm Ltd: life>me tenancy

Land

Rent

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

Cultivate

Trusts can link with Community Benefit Societies

which then run social enterprises

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

Tablehurst & Plaw Hatch Community Farm

West Oxford Community Renewables

IPS CHARITY

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

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.

£1,600,000 raised

Community share societies

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

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

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

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

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

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

AONB TeamIn

Local authority

AONB TeamIn

Local authority TRUST

Primary producGon Processing DistribuGon RetailProjects

& Services Social enterprise acGvity

AONB TeamIn


Local communiGes& ConsumersCi>zens



AONB TeamIn





People

AONB TeamIn


People




People

AONB TeamIn


Land & natural resources

People




People

AONB TeamIn



Buildings & equipment

People




People

AONB TeamIn



Buildings & equipment

Grant Finance

People




Trading income

People

AONB TeamIn


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

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

Contact:

Tim Crabtree>[email protected]

www.wessexca.co.uk

mailto:[email protected]

mailto:[email protected]

http://www.wessexca.co.uk/

http://www.wessexca.co.uk/

social enterprises as a mechanism to deliver aonb projects

Technology

wessex community assetssmall

development of community

wessex reinvestment

local social local authority

social enterprises

social enterprise relevant

core teams

community asset development