Derwentside Homes

Supporting Social Enterprise

Keith Tallintire– Director of Resources

Ellen Foxton – Managing Director EDP

Phillip Curran Business Development Manager

About Us

• Own and manage 6,900 homes

• Independent Company limited

by guarantee

• Large Scale Voluntary transfer in 2006

• Registered Social provider / not for profit organisation / registered with charity commission

• Prince Bishop Homes subsidiary set up in 2008

What is a social

enterprise? ‘A social enterprise is a business with

primarily social objectives whose

surpluses are principally reinvested for

that purpose in the business or in the

community, rather than being driven by the

need to maximise profit for shareholders

and owners.’

(Department of Trade & Industry, 2002)

Big Issue, Jamie’s 15, The Eden

Project, Housing Associations.

What do social

enterprises do?

To put it very simply,

social enterprises make

social good happen by

selling people goods or

services they want to

buy at prices they are

willing to pay and

making enough money

doing that to keep

going.

History

The pioneers of social enterprise can be traced as far back to the 1840s, at least in Rochdale, where a worker’s co-operative was set up to provide high quality affordable food in response to factory conditions that were considered to be exploitive.

In the UK, a resurgence of social enterprise started in the late 1990s with the coming together of different traditions, including co-operatives, community enterprises, enterprising voluntary organisations and other forms of social business.

Where do we fit in?

Good reasons to start

a social enterprise

You’ve spotted a social problem and you’ve got an idea for a sustainable business that could tackle

that problem.

You have identified a business opportunity which will do something socially and will generate a

sustainable income.

A service has been withdrawn by the sector and you think you’d be able to provide a better and/or

more sustainable service by starting an independent business.

Bad reasons to start

a social enterprise

You’ve heard that social enterprise is

the next big thing.

Your department has had its funding cut and

you need to generate some more income.

You cannot get a grant to pay for a service so

you think you will try to sell it instead.

More bad reasons to

set up a social enterprise Your department is being

abolished and

your line manager has told you to

set up a social enterprise.

The ‘development funding’ your organisation has received includes a target to ‘set up at least one

social enterprise.’

You’re not earning very much money working in the public sector/voluntary sector and would like to

earn more.

Legal Structures

• Social enterprises use a

variety of legal forms

• Legal form often used to secure social objectives

• Some use Industrial and Provident Society (co-operatives and community benefit societies)

• Others use limited liability company (limited by guarantee or by shares)

• CIC

Statistics According to figures from

the government’s annual small business survey:

• There are 68,000 social

enterprises in the UK.

• Contributing £24bn to the UK output.

• Social enterprises account for 5% of all businesses.

• Employ 800,000 people.

• 15% of Social Enterprises are in the East of England.

Compa

nies

Cha

ritie

s

Social E

nter..

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500,000

1,000,000

1,500,000

2,000,000

Our View • We identify social problems and have an

idea for a sustainable business to solve

that problem.

• Not core business therefore:

- Separate legal entity and board, with different skills

– Separate trade accounts (has to be viable)

– Value for Money costs less to deliver services

– Ability to access grants and other funding

– It’s own brand (reputation)

– Greater flexibility

– Very different culture to core business.

Why should Housing

Organisations be involved?

Social Enterprises help to improve the

social, environmental and economic

landscape through:

• Job Creation

• Improved sense of neighbourhood and

community

• Improved services

• Money savings

• Financial Inclusion

Our Social

Enterprise • Social Housing

Enterprise Durham

• Enterprise Durham

Partnership

• The Smarterbuys Store

Loads of SHEDs

SHED Services

• Decorating

• Estate Maintenance

• Gardening

• Training

A tenants perspective

“I’m in touch with a

lot of older people

living on their own

and they have

difficulty getting jobs

done… SHED is

available for all

these kinds of work

and at a reasonable

cost too.” Jean Fullerton Derwentside Homes Tenant

SHED Outcomes

Turnover £189,417

Operating Profit £9,232

People into full time employment 35

Achieving NVQ’s 24

Full time apprenticeships 25

Case

Study

“Provide a job for every

eligible tenant who is

unemployed”

Training Employment

Re-useable

furniture

Low cost white goods/furniture

EDP

EDP – Training

Training local unemployed residents offering:

• Work Experience-confidence building-supported environment

• Vocational Training and up-skilling

for employed beneficiaries

• Customised pre-employment

Programmes to include financial and housing support to sustain tenancies

• Community Development-partnerships are crucial

• Addressing Poverty-work with credit unions/provision of low cost goods

Skills gained during subsidised

employment:

• Repair and refurbish second hand furniture

and white goods

• Safe moving and handling operations ,

furniture assembly

• Care and repair in the community

• Entrepreneurial skills and support

• Sales and customer service

Employment Case Study • Sean Mitcheson, Darren Smith and Daniel Carr all

gained full time work with local businesses after completing apprenticeships with EDP which employs residents who have been out of work for six months or more.

• The scheme gives companies without the resources to organise training programmes themselves or with concerns over employing apprentices, the support and guidance they need to take trainees on, many for the first time. The scheme benefits everyone involved with businesses able to find the right apprentices quickly and have them trained in an area of their choice. Apprentices gain a recognised qualification, as well as hands-on experience. Together Derwentside Homes, New College Durham and EDP manage the apprentices and provide the accreditation for the apprenticeship frameworks.

• Sean, 23, from Consett now works full time as a Metallurgical Technician at SGS MIS Testing Ltd in Consett, a company that tests materials’ strength, pressures and corrosion levels. He said: “The apprenticeship has been a worthwhile experience and I feel a valued member of the testing team. I’ve been given the chance to learn specialist skills and progress my career, gaining a full-time position in a successful, local company.”

EDP – White Goods

& Furniture

EDP OUTCOMES 2013/14

No. people received employment training 657

No. people into employment 195

Work place traing courses delivered 100

Apprentices created 20

Managing a

Social

Enterprise

Ellen Foxton Managing Director EDP

Issues

• Partnerships are crucial - don’t re-invent the

wheel- history of previous success

• Knowledge and understanding of the sectors

• Knowledge of relevant legislation

• Do it for the right reasons

• Acceptance of cultural change

• Potential Support for both organisations

• Need for investment

• If you’re lucky you might make money !!!!

The Future

• Paid work experience, on the job training, and acquisition of accredited qualifications delivered by EDP whilst learning new skills has made a significant contribution to tackling the problems of joblessness locally.

• Enterprise Durham Partnership is now rolling out this pioneering model to other areas of the north east.

• It is also an opportunity to grow and diversify Derwentside Homes.

The Future

The EDP model is

scale able.

Looking to work with

new partners.

Business Case

£88,000

Our Customers Tell Us

A Quick Question

If this sofa is worth £250 how much would it cost to buy on Credit from Buy as You View?

Example: Ascot Black Leather/Leather Match 2 Seater Sofa viewed online 28/04/2014

£300 £450 £600 £800 £1000 £1584.96

Showroom

Franchise Growth

Existing franchisees:

Derwentside Homes (Durham), Bolton

at Home (Bolton), City South, New

Charter Homes, Northwards Housing

(all Manchester), Incommunities

(Bradford), Salix (Salford), Livin

(Sedgefield), Sovereign (Oxford),

Yarlington (Somerset)

Ongoing talks:

Liverpool Mutual Homes (Liverpool),

Gentoo (Sunderland), Thirteen Group

(Teesside), Home Group (UK wide),

Thenue Housing (Glasgow), Oaktree

Housing (Greenock), Equity Housing

(Stockport), Together Group (Halifax)

QUESTIONS?