Social enterprise - Simon Cox

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1 Can the development of a social enterprise component within community organisations increase their financial sustainability? A research project submitted to the School of Spatial Planning and Transport Engineering by Simon Cox College of Engineering and Built Environment Dublin Institute of Technology In partial fulfilment of the requirements of the Masters of Science in Community and Local Development 2 nd December 2013 Supervisor: Dr. Deiric Ó Broin

Transcript of Social enterprise - Simon Cox

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Can the development of a social enterprise component within

community organisations increase their financial sustainability?

A research project submitted to the School of Spatial Planning and Transport Engineering

by

Simon Cox

College of Engineering and Built Environment

Dublin Institute of Technology

In partial fulfilment of the requirements of the

Masters of Science in Community and Local Development

2nd

December 2013

Supervisor: Dr. Deiric Ó Broin

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Declaration

I certify that this thesis which I now submit for examination for the award of MSc.

Community and Local Development, is entirely my own work and has not been taken from

the work of others save and to the extent that such work has been cited and acknowledged

within the text of my work.

This thesis was prepared according to the regulations for postgraduate study by research of

the Dublin Insitute of Technology and has not been submitted in whole or in part for an

award in any other Insitute or University.

The work reported on in this thesis conforms to the principles and requirements of the

Institutes guidelines for ethics in research.

The Institute has permission to keep, to lend or to copy this thesis in whole or in part on

condition that any such use of the material of the thesis be duly acknowledged.

Signature Date .

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Abstract

Can the development of a social enterprise component within community organisations

increase their financial sustainability? The question entails investigating the community

sector and identifying the social enterprises function within the community sector. During

the research there were three linked areas to investigate.

An understanding of social entrepenurship and social enterprises and investigate

the hypotheses that social enterprises come in two different forms (pure social

enterprises and social enterprises that deliver public services).

Identify case studies of social enterprises and analyse how they function and

operate in order to draw recommendations for future social enterprises.

Draw conculsions on the future of the social enterprises function within

community organisations and how the social enterprise function can increase its

financial sustainability.

There were a number of conclusions drawn from this study.

The difference between social enterprises (two types); Small scale organisations

such as Restaurant 1014 can generate an income stream for organisations such as

CASA, whereas social enterprises delivering public services are a distinct.

The recommendation of franchising Restaurant 1014, thereby creating a social

enterprise “brand”.

Employing a ‘Social Enterprise Development Officer’ within the Carmichael

Centre would create a framework to enable community organisations to become

sustainable through their social enterprise function.

Finally, it was identified that charities wishing to create social enterprises must

establish separate identities.

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Acknowledgements

With my initial dissertation proposals involving the social enterprise concept, I came

across the DIT “Students learning with communities” programme. The programme

involves students working with community partners (local groups, not-for-profit

organisations, etc) to develop real-life projects. Learning comes alive for the students as

they work on these projects with real clients, applying their specialist subject skills. The

Programme for “Students Learning with Communities” ultimately aims to energise

participants to work for social change. I was extremely interested in participating in the

programme. When I came across the Carmichael Centres research question I immediately

got in contact with the organisation.

I have worked closely with the Carmichael Centre and with their knowledgeable Training

and Development officer, Caroline Egan. The result is this piece of research on the

relationship between community organisations and social enterprises.

I would like to take this opportunity to thank all my friends and family for their support

whilst writing the dissertation.

I would like to thank my classmates, they really are a fantastic bunch of people and have

been apleasure to work with.

I would also like to thank our Programme Chair, Dr. Deiric Ó Broin, who has always been

extremly helpful throughout my time in D.I.T.

“If I have the belief that I can do it, I shall surely acquire the capacity to do it even if I may

not have it at the beginning.” – Mahatma Gandhi

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Table of Contents

Chapter One - Introduction

Page

1.1What is a Social Enterprise?

1.2 Social economy

1.3 Problem statement

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Chapter Two - Literature review

2.1 History of social entrepreneurship - academic overview

2.2 The social entrepreneur

2.3 The defining characteristics of social entrepreneurs

2.4 What is the difference between entrepreneurship and social entrepreneurship?

2.5 Social entrepreneurship: not just charity

2.6 Innovation – a tool to better society

2.7 Social enterprise progression

2.8 Big society and social enterprise in the UK

2.9 Breakthrough in Ireland first mention in the programme for government

2.10 Social enterprise reports

2.11 Benefits of social enterprise

2.12 Social enterprises economic benefit

2.13 Does a business need to be a social enterprise to have a positive social

impact?

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Chapter Three - Research methodology

3.1 What is research?

3.2 Interviews

3.3 Structured interview

3.4 Qualitative interviews

3.5 Research interviews

3.6 Questionnaire

3.7 Analysing data

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Chapter Four - Interviews and the potential for social

enterprise sustainability

4.1Restaurant 1014

4.2 Swan Centre

4.3 Case studies of social enterprise franchises

4.4 Fruit to Suit

4.5 Green Gyms

4.6 GLL social enterprise gym

4.7 Social enterprise mark

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4.8 Social enterprise officers within community organisations

4.9 Pobal

4.10 Interviewees

4.11 Background of interviewees

4.12 Understanding of social enterprises

4.13 Is social enterprise on the agenda

4.14 Two different forms (pure social enterprises and delivering public services)?

4.15 Resistance within the community sector of the the social enterprise concept?

4.16 Idelogical?

4.17 Can social enterprises be replicated?

Chapter Five - Conclusions and recommendations

5.1 Two different social enterprise streams

5.2 Separate identities

5.3 Franchise social enterprise brand

5.4 Social enterprise development officer

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Bibliography / References and Appendices

Bibliography / References

Appendices

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List of Figures

Figure 1: Social Economy Chart

Figure 2: Third Sector

Figure 3: The Social Entrepreneur

Figure 4: Report on Social Enterprise Clann Credo

Figure 5: Planet Report

Figure 6: Planet Report

Figure 7: Five Phase Research Cycle

Figure 8: Social Enterprise Income Report

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CHAPTER ONE - INTRODUCTION

This chapter will aim to give the reader an understanding of what a social enterprise is by

firstly defining social enterprises and the social economy and secondly by laying out the

problem statement for the research.

1.1 What is a Social Enterprise?

Social enterprises can be defined by legal form as some are established as charities while

others are limited companies. Social enterprises cover a diverse range of services including

childcare, eldercare, care for people with disabilities, information, transport, recycling and

environmental services, housing, sports and leisure facilities, arts, culture and heritage

projects, education and training, media services and social and youth support. Whilst

undertaking this research study the following are two of the clearest and most definable

definitions the research came across.

“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.” DTI,(2002), p. 7.

“Social enterprises are organisations or businesses that are driven primarily by

social and/or environmental motives and engage in trading to pursue these

objectives. Ownership of the enterprise is within a community, or amongst

people with a shared interest; surpluses generated by the enterprise are

reinvested to further their social objectives. Social enterprise has a strong job

creation focus to help local people and communities. "We don’t employ people

to contract pack or make rosettes. We contract pack and make rosettes to

employ people.” SETF/DEP, (2011), p. 2

Some of the key identifiable features the researcher has found of social enterprises are as

follows -

They are autonomous organisations established for social purposes.

They are driven by social objectives and a strong desire to benefit the local

community.

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They have identifiable structures and a clear decision-making process.

All surplus profits are reinvested back into the enterprise.

There is a strong focus on providing local employment.

They engage in trading activity – goods and/or services.

The Social enterprise sector is comprised of organisations that are independent of the

State, but may receive funding from the State, and may also contribute to the delivery of

public services.

It can also be stated that the key features of a social enterprise are;

• “They are autonomous organisations established by local citizens.

• They are driven by social objectives and a desire to benefit the local

community.

• The engage in continuous productive activity – goods and/or services.

• They have participative structures and decision-making.

• They reinvest any profits back into their enterprise.

• They provide local employment.” Clarke and Eustace, (2003), p.3

In its submission to the government in 2005, PLANET articulated a definition of social

enterprise. PLANET argued that a social enterprise is one that has:

• “An explicit aim to benefit the community.

• Continuous activity producing goods and/or offering services.

• A high degree of autonomy, i.e. not managed by public authorities or other

organisations.

• A significant level of economic risk.

• Hires a minimum amount of paid workers.

• Is launched by a group of citizens.

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• Decision-making power is not based on capital ownership, e.g. by having

one man, one vote or voting that is strictly limited to a defined percentage

of votes.

• A participatory nature which involves people affected by the activity, e.g.

consumers, workers.

• Limited or no distribution of profits.” Clarke and Eustace, (2003), p.7.

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1.2 Social Economy

For the purpose of this research we will also define the social economy. The social

economy can be defined as:

“The set of private, formally-organised enterprises, with autonomy of decision

and freedom of membership, created to meet their members needs through the

market by producing goods and providing services, insurance and finance,

where decision making and any distribution of profits or surpluses among the

members are not directly linked to the capital or fees contributed by each

member, each of whom has one vote or at all events take place through

democratic and participative decision making process. The social economy

also includes private, formally organised organisations with autonomy of

decision and freedom of membership that produce non-market services for

households and whose surpluses if any, cannot be appropriated by the

economic agents that create control or finance them.” Chaves and Monzon,

(2012), p.22.

The social economy may also be sometimes referred to as the third sector. Social

enterprises are part of what is called the Third Sector.

“The Third Sector is comprised of organisations that are independent of the

State, but may receive funding from the State, and may also contribute to the

delivery of public services. They have primarily social objectives.” Clarke and

Eustace, (2009), p. 7.

Community organisations and social enterprises form part of the social economy. The

following diagram shows the three systems of the economy.

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Figure 1

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1.3 Problem Statement

The research will investigate the current profile of social enterprises in Ireland establishing

if social enterprise can increase the sustainability of community organisations. Social

entrepreneurship, is quickly becoming the new ‘buzz word’ within the Irish community

sector. However, what does it mean for the sector as a whole and will the concept make a

significant impact in the future? In the US, “venture philanthropy funded by the socially

conscious super rich has spawned a new breed of high-growth social ventures, infused

with the ethos of Silicon Valley” Leadbeater,(2007), p.87. Social entrepreneurship can

have a huge influence in growing a dynamic and innovative economy in Ireland and thus

enabling social value maximisation. The social enterprise sector remains relatively

underdeveloped in Ireland and has not grown to anything like the levels seen in the UK or

with are European counterparts. Social enterprise needs to be considered an integral part of

a country’s economic and social infrastructure, the UK recognises it as a distinct sector and

the British Cabinet includes a Minister for Social Enterprise and the Office of the Third

Sector.1

The Office of the Third Sector was a division within the Cabinet Office dedicated to

leading and co-ordinating work across government that relates to the sector. It was

renamed Office for Civil Society following the 2010 general election.

In the United States of America President Obama announced the creation of the Social

Innovation Fund in the United States to “identify the most promising, results-oriented non-

profit programmes and expand their reach throughout the country.” The Whitehouse,

(2012).

Now in Ireland the government accepts the situation needs to be addressed, with Social

Enterprise appearing in the programme for government for the first time ever in 2011.

“Social Enterprise - The Government will promote the development of a

vibrant and effective social enterprise sector. We will instruct agencies to view

social enterprises as important stakeholders in rejuvenating local economies.

We will continue support for social innovation projects for young people

1 Purser (2009), p.8.

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trough education, community, and voluntary structures." Department of the

Taoiseach, (2011), p.13.

Minister of State for Research and Innovation, Seán Sherlock TD, has been tasked by the

Taoiseach with leading efforts across Government to develop the social enterprise sector

following the publication of a Forfás report showing that the sector has the capacity to

double employment with the creation of an additional 25,000 jobs by 2020.2

In the current economic crisis, financial pressures are exacerbating existing social

problems such as poverty and unemployment. According to J. Gregory Dees, social

entrepreneurship is necessary to mitigate the financial repercussions on the most

vulnerable in society.

“As government, business, and household budgets tighten, costly

environmental protection and clean-up efforts are in jeopardy because many

social and environmental issues are time sensitive. Failure to recognize the

importance of social entrepreneurship and provide adequate support for such

efforts during this downturn would be a serious mistake.” Dees, (1998), p.5

Times of economic difficulty offer societies the opportunity to innovate and change. Irish

society has the opportunity to reinvent how citizens can affect the decision making process

and strengthen participative democratic society. Low economic growth and high

unemployment have given rise to a sense of national anger and loss of faith in the political

system. This new political and economic landscape has given a platform from which new

ideas on civil society have entered the national debate. Social entrepreneurship can be seen

as a tool towards social change in these challenging times.

In Ireland, there have been some measures taken to help the sector such as the Social

Economy Programme and, more recently, the Social Finance Foundation3. There is,

however, still no coherent framework or strategy in place for the social enterprise sector.

In many countries, the Third Sector forms a significant and growing element of Gross

Domestic Product (4% to 7% across the EU) Bacchiega and Borzaga, (2002). As a result,

2 Forfás publishes report on Social Enterprise under Action Plan for Jobs

29th

July 2013 3 In July 2006, the Government approved the implementation of the Social Finance Initiative http://www.sff.ie/

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some countries, such as Britain, have developed national policies and strategies to support

the growth and development of the Sector. These include The Office for Civil Society

Social Enterprise Business Support Improvement Programme, which ran from 2007-2011.

It aimed to achieve improvements in the quality of business support for social enterprises

and to increase the uptake of that support by social enterprises.

Figure 2

The Social Enterprise Action Plan for Wales (2009)

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CHAPTER TWO - LITERATURE REVIEW

The literature review will aim to give an overview of social enterprises and social

entrepreneurs. We will do this firstly by looking at the academic history of social

enterprises and social entrepreneurship and then looking at the defining characteristics of

social entrepreneurs. Following this we will discuss the social enterprise sector in both

Ireland and the U.K.

2.1 History of Social Entrepreneurship - Academic overview.

Some of the origins of social enterprise functions within organisations can be seen with the

idea of using “cause related” marketing first seen with Jerry Welsh, Executive Vice

President, Worldwide Marketing and Communications, American Express, “Welsh is

recognized as the father of cause-related marketing, a concept he developed and service-

marked during his years at American Express. The first project was the company’s 1983

campaign to restore the Statue of Liberty: American Express donated one cent to the effort

each time customers used American Express cards or traveller’s cheques. The program

raised $1.7 million, the number of new cardholders rose by 45 percent and use of the cards

and checks grew by 28 percent.” The Institute for Social Entrepreneurs, (2008), p.14.

“Should Not-for-Profits Go into Business?” Harvard Business Review by Edward Skloot

was the first ever-accepted article by the Harvard Business Review and the first article

about nonprofits ever published by the magazine.

The Harvard Business School Social Enterprise Initiative launched by John C. Whitehead

where he made a $10 million donation to the initiative. This lead to the first formal

academic program in the field and the first course about “Entrepreneurship in the Social

Sector” (developed by Dees).

“The university network for social entrepreneur founders: Ashoka, Skoll

Centre for Social Entrepreneurship, Social Enterprise Knowledge Network,

European Research Network (EMES) The University Network for Social

Entrepreneurship works with professors and researchers, practitioners, and

students to develop social entrepreneurship as a vocation and carry its

principles into other disciplines and sectors Designed to be a resource hub and

an action-oriented discussion forum to expand social entrepreneurship

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education and participation around the world.” The Institute for Social

Entrepreneurs, (2008), p.26

2.2 The Social Entrepreneur

The social entrepreneur harnesses entrepreneurship skills to do social good. According to

J.Gregory Dees, social entrepreneurship “combines the passion of a social mission with an

image of business-like discipline, innovation, and determination commonly associated

with, for instance, the high-tech pioneers of Silicon Valley” Dees, (1998), p.79. The social

entrepreneur’s philanthropic energies are channelled into business ventures, creating value

in business so that consumers are willing to pay for the goods and services and by doing so

the social entrepreneur earns a profit that is invested in the social ventures. According to

Martin and Osberg, “the Social Entrepreneur aims for value in the form of large-scale,

transformational benefit that accrues either to a significant segment of society or to society

at large.” Martin and Osberg,( 2007), p.34

The social entrepreneur targets its programs at the “underserved, neglected, or highly

disadvantaged population that lacks the financial means or political clout to achieve the

transformative benefit on its own.” Martin and Osberg, (2007), p.38

While relatively small in Ireland, the sector is still of significance and has considerable

potential for development.

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2.3 The Defining Characteristics of Social Entrepreneurs

Now we will look at the concept of a social entrepreneur as it can often be the case that an

individual or a group of individuals can be the driving force behind a social enterprise.

Social entrepreneurs can have the following definable characteristics:

“Social entrepreneurs are:

Social Catalysts – They are visionaries who create fundamental social changes

by reforming social systems and creating sustainable improvements.

According to J.Gregory Dees, “though they may act locally, their actions have

the potential to stimulate global improvements in their chosen arenas, whether

that is education, health care, economic development, the environment, the

arts, or any other social field.”

Socially aware – Social improvement, as opposed to the creation of profit,

should be the ultimate goal of the social entrepreneurs. The success of their

endeavours is measured by their social impact, not by the amount of profits

generated.

Opportunity-seeking – They pursue their goals relentlessly, seeing every

obstacle as an opportunity to develop and fine-tune their business models.

Innovative – They are creative, willing to think outside the box and ready to

apply ideas to new situations. They understand that not every innovation will

be a success, and they see failures as learning opportunities even as they strive

for success.

Resourceful – Their visions are not limited by the resources that they have.

Besides optimizing the use of existing resources, they actively expand their

resource pool through collaboration with others.

Accountable – Social entrepreneurs are accountable to their beneficiaries, and

they often ask themselves, “Am I creating value for the people I am serving?

Do I understand their needs?” This is because social entrepreneurs want to

know that they are actually making an impact. They are also accountable to

investors who want to know that their contributions are indeed stimulating

social improvements as promised by the social entrepreneurs.” Dees, (2009),

p. 4 – 5)

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Although this is not a definitive list of characteristics, it is a solid guideline to go by to

identifying a social entrepreneur.

Figure 3

2.4 What is the difference between entrepreneurship and social

entrepreneurship?

The social entrepreneur’s final objective is social impact. For the social entrepreneur

wealth creation is simply a means to an end. The social entrepreneur participates in profit-

seeking business ventures if only to use the profits generated to create social gain for the

whole community.

There are also the entrepreneurs that focus on both the business aspect of things and the

social aspect of things.

Social Catalysts

Socially aware

Innovative The Social

Entrepreneur

Accountable

The Government

will promote the

development of a

vibrant and

effective social

enterprise

sector. We will

instruct agencies

to view social

enterprises as

important

stakeholders in

rejuvenating

local economies.

We will continue

support for

social innovation

projects for

young people

trough

education,

community and

voluntary

structures." - G o

v e r n m e n t f o

r N a t i o n a l

R e c o v e r y 2 0

1 1 - 2 0 1 6

Opportunity-seeking Resourceful

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2.5 Social Entrepreneurship: Not Just Charity

Social Entrepreneurship should not be confused with charity. While charity reflects the

benefactor’s compassion for humankind and is measured in terms of the generosity of

donations to the less fortunate, social entrepreneurship reflects more than the good

intentions of its practitioners who are not merely driven by compassion, but are also

compelled by a desire for social change. A non-profit that practices social entrepreneurship

does not rely heavily on donor funds or government funding because it creates social

programmes that are meant to be self-sustaining. Social entrepreneurs manage donor

contributions in an effective manner, investing in social ventures that can then generate

their own revenues to sustain themselves.

Fulton emphasizes the need for people to value the social impact that their donations are

actually having:

“In society, I’d like to see more value placed on social impact and success than

on good intentions or effective marketing or the severity of the need you’re

claiming to serve. I’d like to see a fundamental change in ethics or culture

around that. We still have the lingering effect of a culture of charity, which

honours people for their sacrifice—how much they give and the purity of their

motives. The word charity comes from the word “caritas,” which is Latin for

love or compassion. We’re rewarding people for demonstrating their love of

humankind, but we’re not often looking to see whether it has the intended

impact. So I’d love to see an ethics change, so that we honour people for the

impact they’ve had directly, or indirectly in choosing to support programs and

organizations and individuals that have had impact, not just for how much they

give or how generous they are.” Fulton, (2009), p.8.

Moreover, social entrepreneurs have to identify opportunities that have the potential to

change the world. In the words of Martin J Fisher and Kevin Starr, the authors of Real

Good, Not Feel Good:

“We can no longer afford to spend scarce funds on things that simply feel

good. Instead we need to support initiatives that do real good, and that have the

potential to generate large-scale and lasting solutions to the world’s biggest

problems.” Fisher, (2009), p.44.

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2.6 Innovation – A Tool to Better Society

The social entrepreneur affects a paradigm shift in the whole of society, Davis uses a quote

from Drayton to illustrate this point.

“There are many creative, altruistic, ethically good people with innovative

ideas. However, only one in many thousands of such good people also has the

entrepreneurial quality necessary to engineer large-scale systemic social

change. Entrepreneurial quality also does not mean the ability to lead, to

administer, or to get things done; there are millions of people who can do these

things. Instead, it refers to someone who has a very special trait -- someone

who, in the core of her/his personality, absolutely must change an important

pattern across his/her whole society. Exceedingly few people have this driving

motivation. Most scholars and artists come to rest when they express an idea;

many managers relax when they solve the problem of only their company or

institution; and most professionals are happy when they satisfy a client. It is

only the entrepreneur who literally cannot stop until he or she has changed the

whole society.” Davis, (2002), p.6.

Davis gives an interesting insight into the mindset of the social entrepreneur, pointing out

that the individuals driving force must be something larger than satisfy a client, etc.

2.7 Social Enterprise progression

In 1997 the social enterprise sector reached a major milestone within the United Kingdom

when Prime Minister, Tony Blair endorsed social enterprises. In his first major speech as

Prime Minister in June 1997, he spoke of the importance of social enterprise to his new

administration. According to his Chief Adviser on Social Policy, Geoff Mulgan, “Mr. Blair

regarded social enterprise as an essential part of the drive towards a more flexible,

adaptable State, more in touch with real communities, and better able to make the most of

limited resources” The Institute for Social Entrepreneurs, (2008), p.30. During the next

decade, the Blair Administration fostered a wide range of programmes designed to

advance the social enterprise movement.

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Prime Minister Tony Blair then went on to create a Social Enterprise Unit within the UK’s

Department of Trade and Industry, which is headed by Patricia Hewitt.

“Barbara Phillips is named first director of the Social Enterprise Unit Jerr

Boschee becomes an advisor to the unit and during the next four years delivers

seminars, workshops and consulting sessions in all nine regions of England

plus Wales, Scotland and Northern Ireland” Evolution of the social enterprise

industry.” The Institute for Social Entrepreneurs, (2008), p.49.

This progress hopefully shows what is achievable in Ireland going forward into the future.

High profile recognition at government would considerably raise the profile of the social

sector.

2.8 Big society and social enterprise in the U.K

The research will now look the social enterprise situation in the U.K, over viewing how

their current models work. In opposition, David Cameron's quest for an ideology led him

to vision for ‘The Big Society’ in the U.K. His vision was for the British people to find the

resources and enterprise to improve their life, rather than relying on the state. As a slogan,

it proved a hard sell on to the British public but now that Cameron is Prime Minister, ‘The

Big Society’ and social enterprises are now integral components of public policy. It has its

own Minister, Mr Nick Hurd, and a suite of rooms next to Downing Street in the new

Office for Civil Society.

There are three key parts to the Big Society agenda set out on the government’s website.

“Community empowerment: giving local councils and

neighbourhoods more power to take decisions and shape their area.

Our planning reforms lead by DCLG, will replace the old top-down

planning system with real power for neighbourhoods to decide the

future of their area.

Opening up public services: our public service reforms will enable

charities, social enterprises, private companies, and employee-owned

co-operatives to compete to offer people high quality services.

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The welfare to work programme, lead by the Department for Work and

Pensions will enable a wide range of organisations to help get Britain

off welfare and into work.

Social action: encouraging and enabling people to play a more active

part in society. National Citizen Service, Community Organisers, and

Community First will encourage people to get involved in their

communities.”

Information from www.gov.uk website.

The Office for Civil Society, part of the Cabinet Office in the UK government works

across government departments to translate the Big Society agenda into practical policies

and provides support to voluntary and community organisations. The office also delivers a

number of programme’s to help increase UK citizens participation in society.

It is hoped that this will also give communities more power. They will also be granted

more power to reform the planning system to afford neighbourhoods more of a say in

determining the shape of the places in which they live. Local people will have more power

to save local facilities and services threatened with closure, whilst also giving them the

right to bid to take over government run services. This will really enhance public

participation and give individuals a real sense of ownership. Measures are also being put in

place to encourage volunteering, including launching a national ‘Big Society Day’ and

making regular community involvement a key element of civil service staff appraisals.

On the face of it this sounds like a great vision for the future of civil society but many

argue ‘The Big Society’ is a con and has drawn criticism from people who think it is either

meaningless, or a mask for cutting public services. There is a large section left of the

political spectrum in the U.K that are totally against this ideology and it remains to be seen

if this will ever be given consensus across society.

We have also seen an import social enterprise bill being put forward in the UK proving it

is now an integral part of public policy. It is hoped in Ireland going forward a similar bill

could strengthen the social enterprise sector.

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“Public Services (Social Enterprise and Social Value) Bill 2010-11

Summary of the Bill

The Bill aims to strengthen the social enterprise business sector and make the

concept of 'social value' more relevant and important in the placement and

provision of public services.

Key areas

places a duty on the Secretary of State to publish a 'national social enterprise

strategy' to encourage engagement in social enterprise

amends Section 4 of the Local Government Act 2000 so that local authorities

are required to include in their sustainable community strategy proposals for

promoting engagement with social enterprise in their area. They must also

include a statement of the measures suggested to enable social enterprise to

participate in implementing these proposals

requires local authorities, when entering into public procurement contracts, to

give greater consideration to economic, social or environmental wellbeing

during the pre-procurement stage.” U.K Public services, (2010), p.1.

There is quite a large amount of activity going on in the area in the U.K and it is hoped

Ireland can follow suit in order to raise the profile of the sector on the national stage in the

future.

2.9 Breakthrough in Ireland first mention in the programme for

government.

In 2011, Social Enterprises finally made the break though onto the national stage in Ireland

by being part of the programme for government.

“Social Enterprise - The Government will promote the development of a

vibrant and effective social enterprise sector. We will instruct agencies to view

social enterprises as important stakeholders in rejuvenating local economies.

We will continue support for social innovation projects for young people

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trough education, community and voluntary structures." Department of the

Taoiseach, (2011), p.13.

This can be seen as a considerable milestone in the Republic of Ireland as it significantly

raises the profile of the sector.

2.10 Social enterprise reports

There have been numerous reports on social enterprise. A recurring theme seems to be

raising the profile of the sector.

“Awareness rising is central to building the social enterprise sector in the

Dublin region. A stronger social enterprise sector would have a greater

capacity to lobby the state for a range of supports to consolidate and develop

the sector. Perhaps, the most significant constraint in building the sector is the

number of “not for profit“ organisations that do not perceive themselves as

being social enterprises. The advantage of strengthening the sector is that it

would increase the likelihood of a strong network in the Dublin region being

established.” Doyle, (2009), p.13.

Figure 4

Doyle, (2009)

In raising the profile of the sector it is hope social enterprise can become a central

component of government policy.

2.11 Benefits of social enterprise.

The Report of the Social Enterprise Task Force an Initiative of Clann Credo and Dublin

Employment Pact outlines the fallowing benefits of social enterprises.

26

“The Many Benefits of Social Enterprise

1. Filling 'service gaps' by delivering services provided by neither the private nor

public sectors Accessible Community Transport Southside (ACTS) provides

door to door, demand responsive, accessible transport for people with

disabilities and mobility difficulties across south and west Dublin. It operates

seven days a week, 15 hours a day (7am-10pm) and also provides an out-of-

hours service. ACTS transports people to work, training centres, and day care.

In off peak times, the company helps people get to medical or dental

appointments, shopping or social events.” The Task Force on Social

Enterprise, (2010), p.8.

Filling service gaps that may not be met by the public or private sector is at the core of a

social enterprise.

2. “Social enterprise is flexible and responsive to local needs Limerick

Enterprise Development Partners (LEDP) was established in response to

the 1999 closure of the Krups factory in Roxboro, with the aim of retaining

employment in the local area. Its activities cover employment regeneration,

education, training, and supports for community enterprise and micro-

enterprise start-ups, social finance provision and community development.

LEDP has developed considerable commercial activity to underpin its

social agenda. It is self-sufficient and has achieved this through rental of

units to commercial enterprises. It reinvests any surpluses it makes in the

development of new projects and support for local communities through

grant aid, primarily for education and training projects.” The Task Force on

Social Enterprise,(2010), p.8.

The fact social enterprises can be flexible in terms of their delivery is key.

3. “Helping people get back to work and get active in their community

Speedpak, based in Coolock on Dublin’s Northside, was set up to get long-

term unemployed people and the socially excluded (e.g. ex-offenders,

recovering drug users) back to work. It believes the best way to achieve

this is by immersing people in a working environment. It has two main

commercial operations: the first manufactures and supplies rosettes, while

27

the other provides a contract packing service to business. Employees

receive mentoring support, on-the-job training, and assistance with

personal development. Over 500 people have worked with and been

supported by Speedpak to get back into the world of work. This is much

more constructive and cost effective than having people out of work and

dependent on social welfare. In 2010, Speedpak received an Arthur

Guinness Fund Award for its work. See Appendix A for more details.”

The Task Force on Social Enterprise, (2010), p. 8.

Social enterprises target the minorities in society i.e the unemployed. At the heart of social

enterprises is social change.

4. “Addressing community needs in innovative ways Clondalkin Community

Recycling Initiative (CCRI) was set up to address the issue of illegal

dumping of electrical goods. It collects and recycles electrical and

electronic waste and operates a kerbside collection service. It also goes into

the homes of older people to collect waste items. It has developed

innovative, new uses for waste drums from washing machines and tumble

dryers, even using them as garden plant holders! This has opened up a

whole new avenue for the enterprise. It is currently examining the

feasibility of restoring some electrical goods for re-use, such as lawn-

mowers.” The Task Force on Social Enterprise, (2010), p.8.

Social enterprises have the opportunity to innovate where public may not have this

opportunity.

5. “Delivering on the Green agenda Camara takes old PCs and refurbishes

them by utilising open source software, before shipping them to schools

and colleges across Africa. The Ballybay Wetland Centre engages in

environmental education and awareness and eco-tourism. Heat and Energy

Action Tallaght (HEAT) specialises in wall and attic insulation and has

successfully bid for local authority contracts to carry out this work.

Sunflower Recycling was set up to provide employment in Dublin’s inner

city by collecting and processing recyclable waste from offices and

community groups. It also set up Busy Bees to collect, recycle and re-sell

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used furniture, thereby diverting it from landfill 15.” The Task Force on

Social Enterprise, (2010), p.8.

Social enterprises can also be beneficial to sectors such as eco tourism, thus increasing

their social benefit output.

6. “Delivering State and philanthropic investment, supporting urban and rural

regeneration. Lisdoonan is a small village in County Monaghan. Some

years ago, a development company was set up to help develop local

amenities, such as a community hall, bar and recreational facilities. The

venture has grown over the past 15 years, developing social housing for the

elderly, affordable housing for young couples, a community shop and

improving the general environment of the village. The community has also

grown as a result: 15 years ago it had 600 inhabitants, now there are over

1,200.5.” The Task Force on Social Enterprise, (2010), p.8.

There is huge potential for social enterprises to grow and with the right team the

possibilities are endless.

“Sharing ideas and experience Richard O'Shea - the 2010 BT Young Scientist

of the Year - invented an affordable biomass cooking stove for use in the

developing world. And true to the spirit of social enterprise and the concept of

Ashoka - sharing your idea for the benefit of others - he is literally giving his

invention away. Richard now plans to train people in how to build his stove

from local materials, rather than putting it into commercial production.” The

Task Force on Social Enterprise, (2010), p. 8.

Collaboration is also key to the success of social enterprises.

8. “Building Social Capital and Community Spirit With a population of some

5,000, Tipperary Town enjoys a strong social enterprise culture resulting in a

wide range of community run organisations providing important local services.

These include:

• Moorhaven Garden Centre, set up to provide training, work experience and

employment for people with disabilities.” The Task Force on Social Enterprise,

(2010), p. 8.

29

Social capital is one of the most important knock on effects of social enterprises. This can

be invaluable for the communities and the individuals within them. This report outlines the

substantial benefits a social enterprise can bring to individual communities and the wider

economy.

2.12 Social enterprises economic benefit

PLANET – the Partnership Network is the representative voice for area-based Partnerships

(‘Partnerships’) in Ireland. PLANET is a co-operative that is an independent network

financed entirely by its members. The Partnerships work to promote social inclusion

through the development of disadvantaged areas and communities. In a study by them;

Exploring Social Enterprises in nine areas in Ireland executive summary, Prepared By Ann

Clarke & Anne Eustace Eustace Patterson Limited September 2009. The report found in a

survey of 106 social enterprises a total income for these organisations for 2008 of €41.2

million. Total expenditure amounted to €38.5million yielding an overall surplus of €2.7

million.

Figure 5

Just over one-third of the income generated in 2008 came from traded activity. The

balance was generated through delivery of State programmes such as childcare and

Community Employment, and public grants. Small amounts of fund-raising, private

donations and bank loans were used to supplement the main sources of income.

30

Figure 6

Organisations used surpluses to reinvest in the existing business or to develop new social

enterprises. Three-quarters of these organisations either made a surplus in 2008 or broke-

even. For those that made a loss, the scale of these losses was relatively modest. This low-

risk profile partly reflects the risk adverse nature of social enterprises, the prudent

management of finances and the criteria that organisations must satisfy when in receipt of

public funding. Clarke and Eustace, (2009).

2.13 Does a business need to be a social enterprise to have a positive

social impact?

The following article in the Guardian newspaper challenges the assumption that a business

has to be a social enterprise to have a positive social impact.

“It is frustrating to me that the social benefit of successful business ventures is

often overshadowed by so-called "social enterprises" when it comes to their

positive impact on, and key role in, society.

My business, the LNT Group, is recognised as one of the fastest growing

companies in the UK. The five core businesses within the group operate across

a range of sectors including construction, care homes, software, cars, and

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chemicals. We create employment for 2,000 people and are passionate about

providing great offers for customers, be that race cars or living in our care

homes.

For 25 years, I have been working with and within communities across

primarily the north of England. We are creating a further 1,000 new jobs this

year.

I ensure that all profits go back into the group to improve each of the

businesses on both social and environmental levels, though a share of the

profits does go directly to staff in the form of dividend payments on shares I

have gifted to each of them.

Lawrence Tomlinson is a social entrepreneur, Sunday Times Rich Lister and

chairman of LNT Group. He puts forward a compelling argument on the

positive social impacts of his business.

Why therefore is it so important that a business carries the "social enterprise

mark" to demonstrate its positive impact on society when it's plain to see that

many of us are already doing this without qualifying in the "tickbox" system

laid out by social enterprise experts? Has the criterion become that irrelevant?

The fact is, businesses are more aware of the social and green challenges we're

faced with today, and a very large proportion of us are already making the

changes happen.” Tomlinson, Guardian Professional, (2011)

As stated earlier in this piece of work social enterprises can be an indistinguishable

concept at times, thus this article in The Guardian raises an import point about the sector.

The Channel 4's chief executive, David Abraham, also recently explained why he thinks

Channel 4 is a social enterprise.

“Some may feel that public ownership status precludes us from being a social

enterprise, as clearly Channel 4 is not entirely "autonomous from the state"

(one of the components of social enterprise according to Social Enterprise

UK). But if you look at all the other elements commonly associated with social

enterprise, I think there is little to differentiate us. Social Enterprise UK define

these organisations as a "business that trades for a social and/or environmental

32

purpose" and which has a "clear sense of its social mission". It will bring in

"most or all of its income through selling goods or services". And it will

reinvest these to further its social mission.” David Abraham, chief executive of

Channel 4, The Guardien Newspaper, (2013)

The researcher has found there is a growing debate as more and more organisations are

identifying themselves as social enterprises due to their social mission. With community

organisations, looking to establish social enterprise functions this debate is quite relevant

as it will have a knock on effect to the social enterprise sector as a whole.

33

CHAPTER THREE - RESEARCH METHODOLOGY

This chapter will lay out the research methodology under taken. Firstly discussing what is

research, then going on to discuss the interview structure and process.

3.1 What is research?

A number of academics agree that research is the discovery of new information

whilst also analysing and identifying current information.

“Extensive use of cross-referencing, examples of well known researchers and

how research is reported in the news, examples of student research and case

studies that have been recognized the iterative nature of the research process.”

Saunders, (2009), p.32.

Author Martin Davies describes research as

“Research is a process of gathering data in a strictly organized manner. The

end product of the data gathering process may vary along a continuum from

simple description to reflection and interpretation. The emphasis is a structured

investigation, exploration or discovery. In some contexts, theoretical constructs

mean that the process is far from simple.” Davies, (2007), p.13.

Qualitative data is extremely varied in nature. It includes virtually any information that can

be gathered that is not numerical in nature. Qualitative data can be described, as

“Quantitative data in raw form conveys little meaning to most people. These data,

therefore, needs to be processed to make them useful, that is, to turn them into information.

Quantitative analysis techniques such as graphs, charts and statistics allow us to do this:

helping to explore, present, describe and examine relationships and trends.”

Saunders,(2009), p.414

This dissertation uses Qualitative Research “The diversity of what is called qualitative

research, because of its relevance to different disciplines and professions, challenges

anyone to arrive at a succinct definition” Yin, (2011), p.7. This fits in well with the

researchers view of the dissertation research being far from an exact science.

34

However, Qualitative Research can have five distinct features according to Yin,

“1. Studying the meaning of people’s lives, under real-world conditions

2. Representing the views and perspectives of the people (labelled throughout

this book, as the participants) in a study.

3. Covering the contextual conditions within which people live

4. Contributing insights into existing or emerging concepts that may help to

explain human social behaviour.

5. Striving to use multiple sources of evidence rather than relying on a single

source alone.” Yin, (2011), p. 8.

During this research, the primary use of research methodology will be that of qualitative

research.

“The strength of qualitative research is its ability to provide complex textual

descriptions of how people experience a given research issue. It provides

information about the human side of an issue-that is contradictory behaviours,

beliefs, opinions, emotions and relationships of individuals. Qualitative

methods are also effective in identifying intangible factors, such as social

norms and socioeconomic status” Yeshiva University Fatherhood

Project,(2002) p.1.

3.2 Interviews

The main source of primary research used within this dissertation was open-ended

interviews. The researcher set out to interview stakeholders directly involved within the

Social entrepreneurship sector or community organisations. In addition, there were

interviews with individuals on the political spectrum and in the Dublin City Council. The

reason these interviews were selected is that each interviewee has a direct influence in the

issue of social entrepreneurship in Ireland. These key decision makers will act as major

players in the future of social entrepreneurship within Ireland.

35

Interviews can take many different forms but most academics generally agree that they fall

into two separate forms: structured interviews and qualitative interviews. We will now

define both structured and qualitative interviews.

3.3 Structured Interviews

It can be noted that

“All interviews involve an interaction between an interviewer and a

participant or interviewee). Structured interviews carefully script this

interaction. First, the researcher will use a formal questionnaire that lists every

question to be asked. Second the researcher will formally adopt the same

consistent behaviour and demeanour when interviewing every participant.”

Yin, (2011), p. 113.

Yin also notes, “When people use the term interviewing, they usually refer to structured

interviews” Yin, (2011), p. 113.

3.4 Qualitative Interviews

This type of interview is said to differ in two ways from structured interviews.

“First, the relationship between the researcher and the participant is not strictly

scripted. There is no questionnaire containing the complete list of the questions

to be posed to a participant. The researcher will have a mental framework of

study questions, but the specifically verbalized questions as posed to any given

participants will differ according to the context and setting of the interview.

Second, the qualitative researcher does not try to adopt any uniform behaviour

or demeanour for every interview. Rather, the qualitative interview fallows a

conversational mode, and the interview itself will lead to a social relationship

of sorts, with the quality of the relationship individualized to every

participant.” Yin, (2011), p. 134.

36

3.5 Research interviews

The researcher set out for his interviews to encompass both a structured interview with a

set questionnaire as well as a qualitative interview.

In preparation for the interviews, the researcher drew up a standard set of questions, which

were put to each interviewee. However, the researcher made a conscious decision to make

the interviews open ended and informal. As the area of social entrepreneurship is far from

an exact science the researcher felt that the informal interview style would yield the best

findings. The researcher felt this decision was justified as the most insightful findings in

the interview were from “off the cuff” remarks made by the interviewees. With the

research question being “Can the development of a social enterprise component within

community organisations increase their financial sustainability?” The researcher was

looking for a certain level of original thinking from the interviewees. All interviews were

conducted within 30 minites (with the exception of Ava Battles which was 45 mintes in

length. After the set question were answered the researcher left some time over to have

some informal conversation on the social enterprise sector, in which some personal insight

of the interviewees was gauged

The following is the list of interviewees:

Gerry Breen, Councillor and former Lord Mayor of Dublin

Ava Battles, Chief Executive Officer at the Carmichael Centre

Caroline Egan, Training and Development Officer at the Carmichael Centre

Clodagh Kilmurry, General Manager at the Swan Centre Rathmines

Cody O’ Reilly, Dublin City Council

They were all put the same standard questions compiled for the interview process. With

the exceptions, being outlined in my interview findings.

37

3.6 Questionnaire

When compiling the questionnaire, it was important to be aware that the interviewer

should not limit the interviewee with certain kinds of questions that could limit their

answers, otherwise known as ‘closed ended questions’.

Universal set of questions

Q 1. What is your own personal understanding of a Social Enterprise?

Q 2. Is it something that crops up within your organisation / line of work?

Q 3. Would you agree with the hypotheses that social enterprise come in two different forms (pure

social enterprises and delivering public service)?

Q 4. Is there resistance within the community sector for the social enterprise concept?

Q 5. Is the soulution to cut backs within the community sector social enterprises?

Q6. Is this been seen in the UK with the roll out of the governments “Big society” programme?

Q7. Is the concept of social enterprise idealogical?

Q8. Can social enterprises be replicated? i.e the creation of a socail enterprise franchise?

Q9. Looking forward to the future do you envisige the social enterprise sector playing a key role in

the irish community sector?

38

3.7 Analysing data

When analysing qualitative data one of the most important processes is the rigor in which

it is analyzed.

“The rigor derives by exercising three precautions:

1. Checking and rechecking the accuracy of your data.

2. Making your analysis as thorough and complete as possible rather than cutting

corners and

3. Continually acknowledging the unwanted biases imposed by your own values

when you are analyzing your data.” Yin, (2011), p 177.

Also keeping note of relevant methodological memo is strongly recommended during the

research process Yin (2011)

Figure 7

The analysis begins with Compiling. This is the sorting of field notes amassed from data

collection. The finished compilation might be considered a database. The second phase

Disassembling deals with the breaking down of the data. The procedure may be repeated

many times. The next phase is the Reassembling procedure. This follows on from the

Compiling

Disassembling

Reassembling

Interpreting

Concluding

39

previous phase. The fourth phase Interpreting involves reassembling the data to create a

new narrative. This may include tables and graphics. The fifth and final is Concluding. The

conclusion should be related to the interpreting phase.

The writing up of a research composition must accurately report a study’s findings in a

compelling manner. The objective is to communicate the research to the audience of

readers. Qualitative research has the ability to reach a particularly diverse variety of

audiences. To effectively communicate to the target audience the researcher must be

careful in selecting modes that will depict the message they want to portray.

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CHAPTER FOUR - INTERVIEWS AND THE POTENTIAL

FOR SOCIAL ENTERPRISE SUSTAINABILLITY

This chapter of the research study looks at case studies relating to the social enterprises

sector and existing social enterprises. It is hope that this section will explore the social

enterprise function within the community sector and find conclusions and

recommendations that can be drawn. Both ‘pure’ social enterprises and social enterprises

delivering public services will be looked at. Also the concepts of social enterprise mark,

social enterprise franchise and social enterprise development officers will be looked at.

Social Enterprise functions within community organisations

4.1 Restaurant 1014

Restaurant 1014 is the social enterprise function of CASA. Since opening 4 years ago this

neighbourhood restaurant located in Clontarf has been a success. Restaurant 1014 is a

classic upmarket bistro. It is wholly owned by CASA (Caring and Sharing Association)

which is an Irish Charity. CASA was founded in 1981 and is active throughout the

country, providing social outlets, friendship and one to one care for people with

disabilities. Restaurant 1014 is a separate limited company from CASA with all the profits

going back into the charity. This is seen as an effective model for charities to generate their

own revenue, thus achieving sustainability.

41

4.2 Swan Centre

The Swan Centre is an excellent example of how public services can be delivered privately

by a social enterprise. This model is being used by city and town councils across the

country.

“Dublin City Sports & Leisure Services Limited is a newly formed “not for

profit” company established and wholly owned by Dublin City Council with

the ethos of providing a public service for Dublin City Council. As a limited

company Dublin City Sports & Leisure Services Limited must at all times

remain solvent while incorporating sound business principles and promoting

good governance in the public interest. The objective of the company is to

manage and operate sports and leisure facilities for Dublin City Council and to

distribute any surplus generated for the provision of sports and leisure services

in the city. In the first instance the company will manage Rathmines Leisure

Centre by agreement for three years with a review after 18 months.”

Information from the public jobs website:

www.publicjobscaf.ie/publicjobs/en/star/goToJobDetails.do?...id

It is up for debate if this model is actually a social enterprise. It can be argued that the

delivery of public services though this model deliveries a more efficient model for public

services, thus saving the tax payer.

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4.3 Case Studies - Social enterprise franchise

The idea of social enterprise franchising is a concept that has not yet been explored in

Ireland. These case studies will investigate the concept and try to draw some conclusions

and recommendation for the future of social enterprises in Ireland.

A Social enterprise franchise can be defined as;

“The replication of a proven social enterprise model with clear social or

environmental benefit embedded within the business objectives, run according

to the parameters prescribed by the parent organisation with compliance

agreements in place.” Mavra, (2011), p.4

Whilst Social Licensing can be defined as;

“The permission to replicate a social enterprise model, with the ‘parent’ social

enterprise still defining the ethos and activities, but with less prescribed

boundaries than a franchise and fewer obligations on the part of the licensee

than would be required of a franchisee.” Mavra, (2011, p.4

Let us now look at two excellent examples of social enterprise franchises in the UK. The

Growing social enterprise: research into social replication A report from the Social

Enterprise Coalition, Author: Dr Lidija Mavra, 2011, outlines two case study franchises

models for us.

4.4 Fruit to Suit

Fruit to Suit was established six years ago, it was founded by a teacher identifying the need

for healthy snacks in school tuck shops. She began by trialling healthy snacks and found

them to be hugely popular with the children, She then set up a healthy tuck shop and from

there the idea of a franchise came about. Whilst working on the tuck shop she also

developed business and enterprise training for school pupils themselves, so that they can

take over the management and running of the tuck shops, with a supervising adult (i.e. the

franchisee) to help.

There are now numerous franchises across the UK. The model is based on the schools

owning the tuck shops themselves, Fruit to Suit’s franchisees supply the materials, ie the

healthy snacks, and the business and enterprise training. Fruit to Suit is a social enterprise

43

and a registered CIC, although it is unclear if the legal format of the franchisees, and

whether they can be defined as individual social enterprises. Fruit to Suits could also be

seen as part of the education sector given the business and enterprise training they offer.

“In the future, the founder hopes to widen the scope of the franchises by

boosting the business and enterprise-training element; currently this is done

with primary school pupils and she hopes to move this into secondary schools,

with the first one upcoming. She commented that this is a core, unique element

of Fruit to Suit as essentially children are taught to run operational businesses

– a model she has not seen so far.

The respondent also commented that having these financial objectives in mind

will not compromise their social goals – crucially, the balance will be

maintained as long as they have the right franchisees on board.

The social impact of Fruit to Suit has not yet been measured but they are

developing a questionnaire for parents to establish if/how many children are

asking parents at home for the healthy products that Fruit to Suit provides in

school. This will be one way of assessing how children’s awareness and uptake

of healthy food has progressed.” Mavra, (2011), p.26.

School enterprise functions within the Irish education system may become a topical issue

in the near future as cut backs reduce the financial sustainability of schools and colleges.

44

4.5 Green Gyms

Green gyms is a concept that has been expanded all over the UK. Their model has been

successful and thus it can replicated. Run under the name of of the BTCV (British Trust

for Conservation Volunteers), a national charity with a trading arm, Green Gyms were

conceived 11 years ago by BTCV in conjunction with Dr William Bird, who recognised

the benefits of people exercising outdoors by doing conservation work. Interested

volunteers can approach BTCV for help with setting one up. Here is an outline of Green

gyms and its function.

“Today, there are Green Gyms across the UK, operating in many different

open spaces where local people can be connected to nature through physical

activity, eg in urban parks, in clearing and rejuvenating land on housing

estates, maintaining allotments, etc.

The community groups take the form of ‘mini-social enterprises’, although

they tend to be unincorporated and are all volunteer-led, with income below

the registration threshold of £6,000. The volunteers vary widely in terms of

personal circumstance, health condition, age, employment status, nationality,

etc. The main idea behind the community groups is that they should be self-

sustaining, with trained leaders and committee members to coordinate

activities.

The respondent felt that the licensing model of Green Gyms complements the

core activities of BTCV and maintains their sustainability while also ensuring

that the internal capacity for running the franchise model is not overburdened.

Financial sustainability is very much down to the groups themselves as they

need to generate sufficient income to cover their running costs.” Mavra,(2011),

p.28.

Financial sustainability is at the core of green gyms mission and is an excellent model for

Irish community organisations.

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4.6 GLL social enterprise gym

Another excellent example of a social enterprise franchises is the GLL gym in London.

There social enterprise model and mission statement is outlined on the company’s website.

“Not just another leisure company, but a charitable social enterprise that exists

for the benefit of the community.

We are a values-based organisation and we recognise our responsibility

towards our customers, employees and the environment, within the

communities we serve. Any financial surpluses we generate are reinvested to

provide long-term benefits for our customers, employees and the communities

where we operate.

Our aims: We aim to encourage community involvement and to promote

healthy living. We work to increase levels of physical activity by delivering

sport and health programmes that reach all sectors of the community. We aim

to ensure financial viability of GLL, meet our charitable objectives, increase

employee participation, maintain and expand our services and endeavour to

continually exceed our customers’ expectations.” Source from GLL Website:

http://www.gll.org/b2b

The Social Enterprise ensured that the 2012 Olympic Games offered a long-lasting and

relevant sporting legacy to Londoners. This coupled with the work within the GLL Sport

Foundation, set up to support athletes with future Olympic and Paralympic aspirations,

ensured the social enterprise will leave a legacy behind.

Ownership and Empowerment GLL is guided by a board of trustees, which is appointed on

an annual basis at the general meeting. The board has representation from a number of

stakeholders including customers, council, and the workforce. This stakeholder mix has

helped create empowerment, and ownership at all levels within the organisation.

46

4.7 Social Enterprise mark

The social enterprise mark in the UK, gives the social enterprise sector a “brand” for

which to develop the sector with. Here is a brief outline of their vision.

“Our vision

A world in which there is commitment to social enterprise as a means to

achieve positive social and environmental change.

About us

The Social Enterprise Mark Company is itself a social enterprise. The Mark

Comany aspires to be a Mark holder itself, and as a start-up, we will be

applying for it in the next 12 months.

Social enterprises are emerging as an ambitious business sector, and their

contribution to the UK is real and growing. Recent data (State of Social

Enterprise Survey, Social Enterprise Coalition 2009) shows that despite the

recession, social enterprises are twice as confident of future growth as typical

small to medium enterprises (48% of social enterprises as opposed to 24%).

Additionally, since the economic downturn began, 56% have increased their

turnover from the previous year whilst less than 20% have seen it go down.

This is a considerably better performance than SMEs in the UK, where only

28% increased their turnover and 43% saw it go down.

The Social Enterprise Mark will not only transform the social enterprise

movement, but will establish social enterprise as the business of choice for

everyone.” Information from Source at Social enterprise mark website:

http://www.socialenterprisemark.org.uk/the-mark/about-us/

The social enterprise brand mark is something that must be considered being put into use

across Ireland as it has many advantages for raising the profile of the sector across the

country.

The conclusions and recommendations draw from this research on social enterprise brands

and franchises will be discussed in the final chapter of the study.

47

4.8 Social Enterprise Officers within community organisations

Social enterprise officers can be seen within many community organisations. Such as

‘community enterprise’ in Scotland. It is a social enterprise with a mission is to help

people gain the capacity and confidence to improve their community through enterprise.

They provide personalised support to individuals and groups. Each member of the team

has an area of specialist knowledge such as accounting, fundraising, marketing and impact

measurement

The researcher recently uncovered an advertisement for a vacancy for a social enterprise

development officer,

“Vacancy for Graduate Social Enterprise Development Officer

We are looking for a Graduate Social Enterprise Development Officer to join

our dynamic team.

Read about the job and get application details here.

Community Enterprise

passionate about supporting community based organisations to thrive through

enterprise

Job Description

Job Title: Graduate Social Enterprise Development Officer (SEDO)

Job Purpose: To deliver development support and capacity building to third

sector organisations to assist them to become sustainable.

Accountable to: Executive Director, though work is managed by a Project

Manager

Grade of Job: We have a senior team of people who are developing social

enterprises and want to recruit someone to support them. This person will join

a team of development staff but will not lead on projects. Though full of

passion for social justice, and bringing a strong skill set to the organisation, we

are aware that they will need to gain experience and will need to be nurtured

and supported. As a result they will be working in a supportive environment,

48

increasing their skills and experience, and there may be promotional

opportunities in the future.

Main duties:

The successful candidate will be expected to:

contribute to the achievement of Community Enterprises overall organisational

objectives and targets. These are centred around initiatives that support the

trading activities of organisations with a social purpose

work as a member of a small team to undertake a programme of support

activities for existing and emerging social enterprises. These organisations can

range from established social businesses to smaller voluntary sector

organisations concerned about their sustainability. We also offer some support

to social entrepreneurs and new and emerging enterprises

work as a member of a small team to undertake a programme of support

activities for existing and emerging social enterprises. These organisations can

range from established social businesses to smaller voluntary sector

organisations concerned about their sustainability. We also offer some support

to social entrepreneurs and new and emerging enterprises

organise and participate in the delivery of a programme of business support

and/or training appropriate to organisations

manage support programmes appropriately whether they are based on free

support or on a paid-for contractual relationship

prepare regular reports and statistics on activities for Project Manager

be a confident and comfortable writer and, with support, write business plans,

feasibility studies, funding and investment proposals and so on

such other tasks as may be required which are consistent with the duties and

responsibilities of the post.” Information from Community Enterprise website,

http://communityenterprise.co.uk/vacancy-for-graduate-social

This position is becoming more common within community organisations and is a

significant step in the right direction on the path to financial sustainability for community

organisations. The social enterprise officer can concentrate on the revenue function of the

49

community organisation thus greatly increasing the community organisations social

impact.

4.9 Pobal

The Community Services Programme known as Pobal started in 2006 it was formally

known as the Social Economy Programme. This, along with the credit union, is the largest

network of social enterprises in Ireland. The objectives of the Programme are to support

voluntary and community organisations to provide essential services and businesses to

their communities with services designed to the following:

• Alleviate disadvantage

• Promote sustainable social and economic development

• Provide employment for those most distant from the labour market

• Strengthen local ownership through participation in decision-making

There is also a large focus on securing employment opportunities for local people within

their communities. Service providers are required to provide employment opportunities for

people from designated disadvantaged groups.

It is a mandatory requirement of the programme that at least 70% of employee’s in CSP-

supported worker posts are hired from these target groups:

• People with disabilities

• Those that are long-term unemployed

• Members of the Traveller community

• People who are recovering from drug misuse

• Ex-prisoners

• People transferring from community employment and job initiative schemes

The following services can be delivered under the programme:

Strand 1 - Management of Community Halls and Facilities

Strand 2 - Delivering Community Services

Strand 3 - Community Enterprises providing employment for people from

marginalised groups and communities

50

Some examples of the services can include, community laundries, community radio and

publications, house maintenance and homecare for elderly and disabled people,

management of community facilities and sports/leisure centres, community childcare,

disabled and rural transport, rural tourism, heritage centres, recycling and environmental

works.

The programme also provides funding to these Social Enterprises. The Pobal website states

the following characteristics which can be seen within Pobal Social Enterprises:

“Democratic management structures; while there are a wide variety of

management structures, in general the ethos is that people have the

fundamental authority and control rather than money being the key

driver

Trading as a means of achieving social objectives; few service

providers have trading as their key objective - they have primarily

social objectives and simply use a trading approach as a strategy which

will help secure the fulfilment of the social objectives. This often

means that service providers take on trading activities which are not

particularly attractive to the private or public sectors

Community ownership of assets and profits; assets and profits cannot

be owned by or distributed to individuals. Any assets or gains are held

in trust by the members of the service providers for the community and

can only be used for the benefit of that community. This is reflected in

the service provider’s memorandum and articles of associations, or

rules in the case of co-operatives

Employment targeted at people experiencing social exclusion; there is

some emphasis on adressing social disadvantage through employment

policies

Beneficiaries of the services may not pay the market rates for goods or

services; these can usually be supplied at cost or below cost due to the

availability of the CSP support or other public funding

Mix of funding sources; funding can be secured from a variety of

51

sources including fundraising, grant aid, charitable donations, gifts in

kind and earned income

Capacity to build trust with client groups; service providers may have

particular expertise in working with and often empowering people who

are disadvantaged

Resourcing local communities; resources are drawn from or offered for

wider community use. Funding is awarded on the basis of a business

plan for the majority of the social enterprises, with smaller grants being

awarded on the basis of a less comprehensive work plan. The business

plans are required to demonstrate that funded organisations are viable

businesses and that the services supported by CSP are not solely

dependent on grant funding.” Source from Pobal website:

www.pobal.ie/

Having such a large framework for community social enterprises is a huge advantage for

the sector in Ireland. The expansion of such a network in the future could also play a key

role in taking some of the 400,000+ unemployed individuals off the live register.

52

4.10 Interviews

This section will discuss the interviews which the researcher carried out. It also discusses

each interviewee’s background and goes into detail on questions put to them.

The main source of primary research used within this dissertation was open-ended

interviews. The researcher interviewed stakeholders directly involved within the Social

entrepreneurship sector or community organisations. There were also interviews with

individuals on the political spectrum and in the Dublin city council. The reason these

interviews were selected is that each interviewee has a direct influence in the social

enterprise sector in Ireland. These key decision makers will act as major players in the

future of Social Enterprises within Ireland.

In the researchers preparation for interviews, a universal set of questions was drawn up. A

conscious decision was made to have the interviews open ended and informal. As the area

of social entrepreneurship is far from an exact science, the researcher felt this informal

interview style would yield the best findings. This decision was justified as the most

insightful findings in the interview process were predominantly “off the cuff” remarks

made by the interviewees. By structuring the research question as “How can community

organisations transform into social enterprises whilst remaining true their mission and

service provision”, the researcher was looking for a certain level of original thinking from

the interviewees. The following is a list of interviewees;

Gerry Breen, Councillor and former lord mayor of Dublin

Ava Battles, Chief Executive Officer at the Carmichael Centre

Caroline Egan, Training and development officer at the Carmichael Centre

Clodagh Kilmurry, General Manager at the Swan Centre Rathmines

Cody O’ Reilly, Dublin city council

They were all put the same standard questions in the interview process, with exceptions, as

outlined in my interview findings.

All interviews were conducted within 30 minutes (with the exception of Ava Battles

interview which took 45 minutes. After the set question were answered the researcher left

some time over to have some informal conversation on the social enterprise sector, in

which some personal insight of the interviewees was gauged.

53

4.11 Background of interviewees

Gerry Breen, Councillor, and former Lord Mayor of Dublin. Gerry is also Director

of Dublin City Sports & Leisure Services Limited (which owns the Swan Centre in

Rathmines). He was also Director of Dublin City Enterprise Board( 1999-2009).

With his Business background and a key player within the Dublin City Councils

business and political networks, the researcher viewed Gerry as an ideal individual

to interview regarding the social enterprise sector.

Ava Battles, Chief Executive Officer at the Carmichael Centre. Ava has led the

Carmichael Centre in creating and implementing successful strategies to meet

client/customer needs and ensure the continued ability of the Centre to provide

support and guidance to their members and user groups. Ava has delivered on the

Board’s Strategy and assisted in the development and implementation of future

strategy. She had invaluable insight on the social enterprise sector.

Caroline Egan, Training and development officer at the Carmichael Centre. As the

Training and Development Manager for Carmichael Centre, Groups Caroline focus

is on developing and delivering customised training and organisational supports for

groups engaged in organisational capacity building and governance

development. Caroline Holds a Master degree in Business Studies from NUI

Galway and her research interests include the management of voluntary

organisations and community entrepreneurship. Caroline also has a keen interest in

the social enterprise sector and was an individual whose input was important to this

study.

Clodagh Kilmurry, General Manager at the Swan Centre Rathmines. Clodagh was

previously Manager of WestWood gym in Clontarf and has an excellent insight

into the process of privately running a public facility as a social enterprise with the

Swan centre Rathmines.

Cody O’Reilly, Sport and Recreation Officer in the Dublin City Council. The

council has a key role to play in the delivering of public services and Cody has

tremendous insight into this process, as well as insight into the governing processes

and having an educational background in local governance.

54

4.12 Understanding of social enterprises

The researcher commenced each interview by putting the question “What is your own

personal understanding of a Social Enterprise?” It is clear there are no solid definition of

social enterprises and each individuals understanding differs. Caroline Egan answered

with: “It is an enterprise that sets out to benefit social causes” (Caroline Egan, Training

and development officer at the Carmichael Centre) Caroline answered assuredly and

seemed clear in her understanding. Ava Battles answered with “An organisation trying to

give something back that is sustainable”. (Ava Battles, Chief Executive Officer at the

Carmichael Centre). When the researcher put the question to Gerry Breen he responded

with “Business is business”, he went on to explain how within a community context

people look for “consensus” and it is part of their identity to look for consensus within the

decision-making process “Business needs quick decisions”. He then insightfully explained

to the researcher that the concept of social enterprises might inadvertently be “Forcing a

culture on them there not comfortable with” (Gerry Breen, Councillor and former lord

mayor of Dublin). This is very true as at the heart of social enterprises are business

principles. Cody O’Reilly in the Dublin city council answered with “We (Dublin City

Council) are essentially a social enterprise, we just call it a public service” “We do things

for the greater good” (Cody O’Reily, Dublin City Council). This response appeared very

interesting as the Swan centre in Rathmines, which is owned by Dublin City Council

would meet most of the criteria the researcher set out in the introduction for a social

enterprise.

Some of the key identifiable features the researcher found within social enterprises are as

follows -

1. They are autonomous organisations established for social purposes.

2. They are driven by social objectives and a strong desire to benefit the local

community.

3. They have identifiable structures and a clear decision-making process.

4. All surplus profits are reinvested back into the enterprise.

5. There is a strong focus on providing local employment.

6. They engage in trading activity – goods and/or services.

55

4.13 Is social enterprise on the agenda?

The researcher was very interested to see if social enterprise was a concept that arose

within the interviewee’s line of work, as it seems to be the buzzword within the

community sector at the moment. Caroline Egan responded with “It has become part of our

agenda and is now a model of funding” also adding “For the first time it is in the

programme for government” (Caroline Egan, Training and development officer at the

Carmichael Centre). Ava Battles answered with “We are a charity” “Charity or not, we

have to run it like a business” (Ava Battles, Chief Executive Officer at the Carmichael

Centre). Ava believes that community organisations must be run as business in order to the

delivery the social benefits they desire. Ava went on to mention, “Due to HSE cuts the

concept is becoming more prominent.” (Ava Battles, Chief Executive Officer at the

Carmichael Centre). Cody O’Reilly in the Dublin City Council stated that one of the

reasons behind setting up the Swan centre in Rathmines as a private limited company was

due to “A total embargo on recruitment within the council” “If the centre was run by the

city council we would not have been able to open it in the first place as we couldn’t hire

any staff”. (Cody O’Reilly, Dublin City Council). It seems that the private public service

model for the Swan centre was in fact forced upon them rather than the council actively

seeking to open a social enterprise gym.

4.14 Two different forms (pure social enterprises and delivering public

services)?

The researcher put the question to the interviewees “Would you agree with the hypotheses

that social enterprise come in two different forms (pure social enterprises and social

enterprises delivering public servive)? When the researcher discussed the Swan Centre

with Gerry Breen, he did not see it as a social enterprise “Not a social enterprise but the

private sector delivering public services under government criteria”. (Gerry Breen,

Councillor and former lord mayor of Dublin). This was quite interesting, as the Swan

centre would meet most of the criteria set out early in the study. Ava said, “Yes I would

agree with that statement” (Ava Battles, Chief Executive Officer at the Carmichael

Centre). With Caroline Egan taking the same stance. Adding “When we’re talking about a

social enterprise like the 1014 restaurant it has customers from the general public, with

56

public services it is not customers it is the beneficiaries of the public service being

delivered by the social enterprise”(Caroline Egan, Training and development officer at the

Carmichael Centre). This was an interesting comment as there is a clear distinction

between the ‘Customers’ and ‘beneficiaries’ in regard to social enterprises.

4.15 Resistance within the community sector of the the social enterprise

concept?

From my backround research there seems to be a clear undertone of resistance within the

community sector. The researcher wanted to put this to the interviewees to see if this was

justified. Caroline Egan responed with “Yes there is a certain level of resistance in the

sector” adding “The sector can’t change over night” ”(Caroline Egan, Training and

development officer at the Carmichael Centre). She went on to explain that with “Business

jargon” being used “people in the sector are not comfortable with it” (Caroline Egan,

Training and development officer at the Carmichael Centre). This seems to be a recurring

issue. It seems the community sector may not be comfortable with business principals. Ava

Battles stated, “People are in two camps”(Ava Battles, Chief Executive Officer at the

Carmichael Centre) making the point that some individuals are in favour of social

enterprises and some against. Cody O’Reily in the Dublin City Council stated that “Using

a business mentality in delivering public services was something not everyone was

comfortable with” (Cody O’Reily, Dublin city council) Gerry mentioned one of the main

obstacles of social entrepreneurship within community organisations “There is difficulty

translating” (Gerry Breen, Councillor and former lord mayor of Dublin) . Meaning there is

difficulty applying business principles within community organisations. He went onto

explain “It’s the culture of the organisation” and “The nature of business is you need to

make quick decisions” community organisations “look for consensus” (Gerry Breen,

Councillor and former lord mayor of Dublin). He explained there is “No business ethic”.

(Gerry Breen, Councillor and former lord mayor of Dublin). These are reoccurring themes

within research study.

57

4.16 Idelogical?

The idea of delivering public services privately through social enterprises seems to be

quite ideological. This then raises the question that the concept of social enterprises maybe

inherently ideological. The researcher put this to the interviewees. Ava Battles responded

that she thought there would always be “elements of people that think the state should have

sole responsibility for public services” (Ava Battles, Chief Executive Officer at the

Carmichael Centre). The fact that social entrepreneurship encourages organisations and

individuals to generate their own revenue is an issue. Gerry Breen explained that when

delivering public services the best practice was to “Lay down the criteria and let the

government oversee it” (Gerry Breen, Councillor and former lord mayor of Dublin) he

cited the Swan Centre as an excellent example of this and noted that the centres costs

would be “30%”(Gerry Breen, Councillor and former lord mayor of Dublin) less than a

city council run facility.

However one of the most interesting responses was that of Cody O’Reilly in the Dublin

City Council. He remarked, “One of the main reasons a private limited company was set

up to run the Swan Centre was the embargo on recruitment in the city council. It would not

have been able to open had it been run by the Council” (Cody O’Reilly, Dublin City

Council). This shift in private delivery of public services is becoming more and more

common within the city and county councils. With elements of the public not agreeing

with this process.

4.17 Can social enterprises be replicated?

The researcher was interested to find out if the interviewees thought social enterprises

could be replicated, as one of the aims of the study is to investigate can community

organisations transform into social enterprises. The creation of a social enterprise franchise

could be the answer to this and as such I was looking to gauge the interviewess opinons on

the issue. Ava responed by stating she thought the “Duplication process was definatly a

possibility” (Ava Battles, Chief Executive Officer at the Carmichael Centre) and that the

“Big sister” model was something the Carmicheal centre was looking at” (Ava Battles,

Chief Executive Officer at the Carmichael Centre).

58

Caroline Egan stated that the “the 1014 restaurant model can be replicated” however “the

current Carmicheal Centre model does incorporate the sale of goods and services”

(Caroline Egan, Training and Development Officer at the Carmichael Centre). Caroline

was making the point that the centre would have to set up a separate identity for the

purpose of the sale of goods and services. This may be a model going into the future for

community organisations. Caroline went on to say that “it may have to be done on a

individual basis for community organisation” (Caroline Egan, Training and development

officer at the Carmichael Centre) meaning that community organisations may have to set

up their own commercial identity.

The interview results gave the researcher a clearer sense of the social enterprise sector and

enabled him to make some clear conclusions and recommendations in the next section.

Each interview set out to deal with the hypotheses laid out earlier in the study. The

researcher will now move on and discuss the recommendations and conclusions drawn as a

result of the research process.

59

CHAPTER FIVE - CONCLUSIONS AND

RECOMMENDATIONS

Whilst undertaking this dissertation topic, the researcher had a number of hypotheses to

prove. He has since been satisfied that hypotheses have been fully investigated. While the

recommendations have also been steered at the progression of the Carmichael Centre.

5.1 Two different Social enterprise streams

Yes, the development of a social enterprise component within community organisations

can increase their financial sustainabillity, but only on a small-scale basis. i.e Restaurant

1014. However, this study has found that at the heart of social enterprises there lays an

ideological undertone, which is that public services can be delivered privately by social

enterprises under government criteria. The former Lord Mayor of Dublin and current city

councillor Gerry Breen backed up this belief by stating, “Public services can be delivered

effectively by private organisations, whilst the government lays down the criteria and over

sees the running of it” (Gerry Breen, Councillor and former lord mayor of Dublin). This is

becoming a reality in the UK with the role out of the ‘big society’ which has been

discussed earlier.

The conclusion is that social enterprise is in fact a two-headed animal, in that it cannot be

defined as one or the other. Small-scale organisations such as restaurant 1014 can be an

extremely useful income stream for organisations such as CASA whereas a social

enterprise delivering public services falls under a completely different bracket. There has

been a shift towards this in recent years with the example of the Swan Leisure Centre,

which has been studied earlier in the case study chapter. This aspect of social enterprise is

the one that has the greatest scope for making a difference to society.

It was evident from my discussions with community organisations and enterprises that

there are many different interpretations of what constitutes a social enterprise. There was

however, consensus that a social enterprise used any surpluses it generated to further its

social aims. There was also agreement that an appropriate balance needed to be struck

between the ‘social’ and ‘enterprise’ aspects of the business.

Organisations can transform but it is dependent on what kind social enterprise they wish to

develop into. For smaller organisations within the Carmichael Centre, small-scale trade

60

activity will generate much needed revenue. Whereas public services being delivered by

private limited companies to be run as social enterprises as seen with the Swan Centre can

deliver savings across the public sector whilst improving the service. Gerry Breen noted

that up to “30% savings on running costs” (Gerry Breen, Councillor and former lord mayor

of Dublin) were made compared with what it would have cost the council to the run

facilities within the Swan centre.

As discussed in the literature review a 2009 study showed that just over one-third of the

income generated by social enterprises in 2008 came from traded activity. The balance was

generated through delivery of State programmes such as childcare and Community

Employment, and public grants. Small amounts of fund-raising, private donations and

bank loans were used to supplement the main sources of income.

Figure 8

Source: Exploring social enterprise in nine areas in Ireland executive summary Prepared

By Ann Clarke & Anne Eustace Eustace Patterson Limited September 2009.

Income generated by social enterprises

Grants or government purchase of services

Traded activity

Private donations

Loans

Funraising

61

This chart is an excellent illustration of how social enterprises can be broken into two

separate categories. Social enterprises delivering public services and social enterprises

engaging in trading activity in order to generate revenue for their organisation.

5.2 Separate Identities

Addressing the question, Can the development of a social enterprise component within

community organisations increase their financial sustainabillity? It is clear that small scale

community organisation, such as the ones found within the Carmicheal Center, need to

focus on creating a revenue stream from some form of trading activity. The CASA group

has impressivly undertaken this with the 1014 resturant and this has proven to be a huge

success. Charities within the Carmichael centre should form separate business identities

(private limited companies) to create social enterprises, just as the CASA have

successfully demonstrated. The separate business identity for the social enterprise can be

run as a business whilst the profit from this can be invested in the charity organisation to

help them pursue their social aims. As discussed earlier in the study the two separate

identities model is working extremely well for CASA and 1014.

5.3 Franchise social enterprise brand

Another recommendation drawn was the idea to franchise the Restaurant 1014 as a social

enterprise brand to be used under the Carmichael Centre for the purpose of generating

revenue for other charity organisations. As the research, study has shown this ‘brand’

franchise model has successfully been used in the UK with ‘Fruit to Suit’ and ‘Green

gyms’. There is no reason why it cannot be successfully used in Ireland and the

Carmichael Centre has an unique opportunity to utilise this.

62

5.4 Social enterprise development officer

Another recommendation for The Carmichael Centre would be to employ a ‘social

enterprise development officer’ to explore possible social enterprise opportunities with the

charity organisations within the centre. The employment of a social enterprise officer

would be of enormous help to charities on the road to financial sustainability. Their role

and functions could include;

Developing a portfolio of social enterprise and microfinance, including securing

new funding streams and developing/refining concepts.

Developing and apply enterprise development best practices and approaches into

new social enterprises.

Assist in developing and preparing business plans, briefings, and public relations

material for community organisations developing social enterprises.

Represent the Centre at designated social enterprise meetings and at conferences.

Support entrepreneurial approaches in implementing innovative business concepts

within the community sector.

Update the strategic planning process through annual business plans (outlining

financial projections) based on performance analysis of social enterprises.

Monitor and report on the microfinance and social enterprises marketplaces.

Liaise on a regular and ongoing basis with charity organisations, agencies, and

commercial partners.

This would put into action the idea of increasing the sustainability of community

organisation.

The researcher is satisfied that the conclusions and recommendation have shed light on the

question “Can the development of a social enterprise component within community

organisations increase their financial sustainability?”. The research showed that social

enterprises at times can be hard to distinguish. However the seperate indenities model

within community organisations can be of help if these organisations wish to pursue

financial sustainabillity. Also the the research concluded that the social franchises model

and employing a social enterprise officer would be useful tools to community

organisations.

63

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APPENDICES

Pearce (2003), p.6.

68

The Social Enterprise Action Plan for Wales, (2009), p.13.

69

Doyle, (2009), p.7.

Social Catalysts

The Social

Entrepreneur

Socially aware

Innovative

Opportunity-seeking Resourceful

Accountable

The Government

will promote the

development of a

vibrant and

effective social

enterprise

sector. We will

instruct agencies

to view social

enterprises as

important

stakeholders in

rejuvenating

local economies.

We will continue

support for

social innovation

projects for

young people

trough

education,

community and

voluntary

structures." - G o

v e r n m e n t f o

r N a t i o n a l

R e c o v e r y 2 0

1 1 - 2 0 1 6

70

Compiling

Disassembling

Reassembling

Interpreting

Concluding

71

Source: Exploring social enterprise in nine areas in Ireland executive summary Prepared

By Ann Clarke & Anne Eustace Eustace Patterson Limited September 2009.

Income generated by social enterprises

Grants or government purchase of services

Traded activity

Private donations

Loans

Funraising