Developing Social Enterprise
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Nic Jones Developing Social Enterprise @NavigatorNic navigatornic.co.uk
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This presentation was delivered as an introduction to social enterprise and business model generation at the University of Sheffield. Information in the presentation was gathered from organisations across the social enterprise sector, including UnLtd, Regen School, The Social Investment Business, The Young Foundation and Venturesome. The Business Model Canvas is based on the work of Alexander Osterwalder. See http://alexosterwalder.com/ for more information.
Transcript of Developing Social Enterprise
Nic Jones
Developing Social Enterprise
@NavigatorNic navigatornic.co.uk
Aim:
• To increase awareness and understanding of social enterprise business models and to enable the design + implementation of new socially-minded project ideas.
You will learn:
• The 6 stages of project cycle management• How to begin to use 2 tools of business model design• How to practically apply these ideas • How to communicate your business model
Assessment:
Based on 1 page business model for the assessment
Developing Social Enterprise
• Business Model Definitions
• Structure (canvas)
• Prototyping / Modelling
• Group Discussion: Global & Local Problems
• Problem Tree ideas generation
• Theory of Change
• Case studies
Identify Design Communicate
• Pitching
• Voting
• Communicating
Introduction
“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.” (Social Enterprise: Strategy for Success, DTI, July 2002)
“Social enterprises are businesses set up to tackle a social or environmental need.” (SCEDU – 2009)
“Social enterprises are businesses which exist to address social or environmental need.
Rather than maximising profit for shareholders or owners, profits are reinvested into the community or back into the business. It’s this which makes social enterprise the most exciting and inspiring business movement in the world.”
(SEL- 2009)
Definition
Profit+
+ Impact
-
-
Traditional business
Traditional charity
Social Enterprise
• Can be distinguished from private businesses in the way they use their profits for social gain
• Merge mission and money
• Operate across all employment sectors
• Are diverse – include local, mutual organisations (co-operatives) and large-scale organisations
• Entrepreneurial, calculated risk-taking
• Bring excluded groups into the labour market
• Contribute to socially inclusive wealth creation (e.g. by retaining wealth)
• Enable individuals and communities to work towards regenerating their local neighbourhoods
• Help to develop active citizenship
Characteristics
PUBLICBecoming
more
independent
VOLUNTARY
Becoming more enterprising
PRIVATE
Becoming more
social
Sector merging
http://www.youtube.com/watch?v=dMOxfW5bLK8&feature=related
Venturesome (https://www.cafonline.org/charity-finance--fundraising/banking-and-investments/loans-and-capital.aspx)
Charity owned
Trading arm of Charity
Community owned
Co-opsDevelopment Trusts
Owned by private business
Actis Acts(foundations)
Owned by public sector
Public services
Owned by Entrepreneur(s)(as not for profit)
The spectrum of SE
http://www.youtube.com/watch?v=ikCrx1K7Weg&feature=youtube_gdata
• Big Society• Recent rapid emergence due to social and environmental need (50% growth since
2000) . Now over 62,000 in the UK. • Combined turnover (£27bn). 5% of all businesses. 8.4 billion to economy. 1% GDP
Policy and importance
• Most recent sector-led survey:2011 Social Enterprise UK “Fightback Britain – A report on the State of Social Enterprise Survey ” showed• 14% of all social enterprises are start-ups, less than two years old –
more than three times the proportion of start ups among mainstream small businesses
• Median annual turnover of social enterprises has grown from £175,000 in the 2009 survey to £240,000
• 39% of all social enterprises work in the 20% of most deprived communities in the UK compared to 13% of standard businesses
• 74% of social enterprises actively involve their beneficiaries in decisions about their business
• 86% of leadership teams boast at least one female director, 27% of leadership teams have directors from BME communities and 7% have directors under the age of 24
Policy and further reading• Social enterprise action plan Scaling new heights 2006
• Voluntary Action in the 21st Century 2008
• Financing Civil Society (Venturesome 2009)
• Big Society Not Big Government 2010
Case studies
InternationalGrameen bank
LocalJamie’s Farm
IDENTIFICATION
APPROVAL
DESIGN
IMPLEM
ENTATION
APPRAISALEVAL
UATI
ON
The Project Cycle
Problem Tree &Intelligence
Stakeholder Analysis
Contextual Analysis
Business Plan
Managing &
Monitoring Ri
sk A
naly
sis
Logica
l Fra
mew
ork
Revi
ew &
Diss
emin
atio
n
IDENTIFICATION
APPROVAL
DESIGN
IMPLEM
ENTATION
APPRAISALEVAL
UATI
ON
The Project Cycle
Problem Tree &Intelligence
Stakeholder Analysis
Contextual Analysis
Business Plan
Managing &
Monitoring Ri
sk A
naly
sis
Logica
l Fra
mew
ork
Revi
ew &
Diss
emin
atio
n
1. Social problem(s)
2. Thematic grouping
3. The Problem Tree
= Your mission
Identification
causes
effects
Theory of change
Note: Social Change Model framework adapted from David Kantor
“As an organisation,
we . . .”
Mission Social Change Model
“One day . . .”
Vision
Theory ofthe Problem
Theory of Change
Theory of Action
What the organisation intends to do; its reasonfor being
The ‘engine of change’ that bridges mission and vision
Captures an organisation’s views about the problems it is trying to solve, levers necessary to cause desired changes and the organisation’s unique model for creating these changes
The future state the organization wants to create
Mission, vision and the social change model
Social Change Model framework adapted from David Kantor
1. Identify ultimate goal What problem are we addressing?Who are the intended beneficiaries? What can we do to solve this part of the problem for our beneficiaries?What does success look like?
2. Identify the direct pre-conditions to achieving this goal? (Context)What needs to happen in order for this goal to become a reality?
3. Think through assumptions associated with your goal The pre-conditions – ie the reasons you think your approach will work.
4.Mapping and connecting outcomesThe purpose of the map is to tell a story
5. Indicators
Theory of change
A diverse range of Sis attracted to
the Hub
The Hub provides access to the right infrastructure for
innovation
The Hub cultivates the right culture for
innovation
Alternative viewpoints and multiple stimuli
Networks are visible and accessible
Resources are accessible
Specialised skills and knowledge are
made available
Better testing and prototyping
More diverse skill-sets applied
to more ideas
Better market definition /
assessment
Enhanced credibility
“Pe
op
le a
nd
ide
as
co
llide
an
d re
alis
e im
ag
ina
tive
in
itiativ
es
for a
rad
ica
lly b
ette
r wo
rld”
Enhanced Innovation
(collaborators, customers, suppliers)
• Space
• Talent
• Knowledge
• Investment
SI’s leverage the networks
SI’s derive real value
• Welcoming, hospitable, convivial
• Collaborative design
• Choosing right mix of SI’s
• Matchmaking
• Diversity
• Community and belonging
• Collective intelligence and memory
Optimism, encouragement,
confidence
Work in progress - For illustration only
The Hub Theory of Action Model
Note: SI = Social Innovator
IDENTIFICATION
APPROVAL
DESIGN
IMPLEM
ENTATION
APPRAISALEVAL
UATI
ON
The Project Cycle
Problem Tree &Intelligence
Stakeholder Analysis
Contextual Analysis
Business Plan
Managing &
Monitoring Ri
sk A
naly
sis
Logica
l Fra
mew
ork
Revi
ew &
Diss
emin
atio
n
IDENTIFICATION
APPROVAL
DESIGN
IMPLEM
ENTATION
APPRAISALEVAL
UATI
ON
The Project Cycle
Problem Tree &Intelligence
Stakeholder Analysis
Contextual Analysis
Business Plan
Managing &
Monitoring Ri
sk A
naly
sis
Logica
l Fra
mew
ork
Revi
ew &
Diss
emin
atio
n
1. Mission – Your ‘value proposition’
2. Your entrepreneurial solution... – The Business Model
Design
• Hierarchy of AIMSVision Mission
In Activities OutputsOutcomes
Impact
Traditional Business plan
Business model discussion
Business model generation
Business model canvas: Alex Osterwalder: http://alexosterwalder.com/
Value PropositionCustomer Segment /
Beneficiaries Partnerships
Relationship
DistributionResources
Activities
Costs Revenue Stream
Partnerships Key Activities Core Offer(Value Proposition)
Customer Relationships Customer Segment / Beneficiaries
Key Resources Distribution Channels(Route to market)
Costs Revenue
Affordable Loans EntrepreneursBangladesh Government
Grameen Bank
1:1
Peer Lending
Brand
Reputation
Platform
Fund management
Risk Management
Fund management % interest
1. Corporate Waste
2. Consumer products
1. High profile Corporate
Clients2. Aware
consumer
Virgin
Eurostar
Worn Again
1:1 with corporate
clients
Web
Uniform manufacturers
Web
Brand Name People
Web platform
Design process
Manage manufacturing
Sourcing product line. Manufacturing Consultancy Product Sales
Charity
Donor
Beneficiaries
Dependant on charity – often
CSR
Old Fundraising Model
1:1
Aid Agency / Local partners
Brand
People
Oversee activities
Marketing
Direct Market. Cost of delivery Donations
Value PropositionCustomer Segment /
Beneficiaries Partnerships
Relationship
DistributionResources
Activities
Costs Revenue Stream
ApplePartnerships Key Activities Core Offer
(Value Proposition)Customer Relationships Customer Segment /
Beneficiaries
Key Resources Distribution Channels(Route to market)
Costs Revenue
This presentation was based on information gathered from organisations across the social enterprise sector including:UnLtd, The Social Investment Business, Regen School, The Young Foundation and Venturesome.
The Business Model Canvas is inspired by the work of Alex Osterwalder. Please see http://alexosterwalder.com/ for more details
Credits
