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SOCIAL ENTERPRISE AND HOMELESSNESS

Presented by Mark DanielsSocial Traders

THE POWER OF MARKETS IN ADDRESSING SOCIAL PROBLEMS

 

www.socialtraders.com.au

© Social Traders Limited 2012

WHAT IS A SOCIAL ENTERPRISE?

THE AUSTRALIAN SOCIAL ENTERPRISE SECTOR

Social Traders partnered with the Australian Centre for Philanthropy and Nonprofit Studies (ACPNS) at Queensland University of Technology

Define social enterprise Identify and map the Australian social enterprise sector

•Forms social enterprises take?•Industries they operate in?•How many?•Size?•etc…

WHAT IS A SOCIAL ENTERPRISE?

Social enterprises are organisations that:

a. Are led by an economic, social, cultural, or environmental mission consistent with a public or community benefit;

b. Trade to fulfil their mission;

c. Derive a substantial portion of their income from trade; and

d. Reinvest the majority of their profit/surplus in the fulfilment of their mission

CHARACTERISTICS

•A successful social enterprise is firstly a good business

•All the rules of small business success apply with the added dimension of the social mission

•Live and die based on: •quality of their product or service•understanding their market (customers and competitors)•price•promotion

•Start based on market opportunities.

•They succeed based on wise business heads.

SE’s seek a balance

SOCIAL FINANCIAL

MOTIVATIONS – 3 BUCKETS

Bendigo Community Bank Community ChildcareSovereign HillYackandandah Community Development CoPrickle

Op Shops,‘Excellent Health’Smith Family Textiles

© Social Traders Limited 2012

Employment, training and support

for marginalised groups

Fair RepairsBoystown graffitt removalThe Big Issue

Services in direct response to social or

economic community needs

Income generation for charitable

purposes

ORGANISATIONAL SIZE & INDUSTRY

Small Medium Large0

20

40

60

80

100

120

140

160

180

Education and training

Food retailing

Accommodation

Arts and recreation services

Residential care services

Transport, postal and warehousing services

Financial and insurance services

Professional, scientific and technical services

Building cleaning, pest control and other support services

Agriculture, forestry and fishing

Manufacturing

Construction

0 5 10 15 20 25 30

26.3

4.5

5.9

9.6

4.8

9.8

20

2.4

2.8

9.5

1.9

7.1

1.1

2.2

2.4

7.4

2.4

3.3

4.6

0.2

5

0.700000000000001

1.7

5.9

THE AUSTRALIAN SOCIAL ENTERPRISE SECTOR

Social enterprise is not a new phenomenon –

Foresters Community Finance, Op-shops, Bendigo Community Banks,

Food Co-ops, FCCC, Fair Trade…

The FASES research identified 5000 social enterprises in Australia

The sector is mature, diverse, innovative, sustainable

More than 73% of respondents trading for at least five years

62% for more than ten years

THE STATE OF SOCIAL ENTERPRISE IN AUSTRALIA: BUILDING ON FASES

We now have a social enterprise sector in Australia.

Social enterprise

sector

Capital

Opening markets

Ideas

Capacity building

Social enterprise

sector

Capacity building

THE BUILDER

© Social Traders Limited 2012

http://www.socialtraders.com.au and click on

The Crunch is Social Traders social enterprise development support and investment initiative.

The Crunch provides training, mentoring, networks and support, and the opportunity to pitch for a share of the Social Enterprise Development Fund.

Social enterprise

sectorCapital

Social enterprise

sector

Opening markets

FunctionalSilos

Strategic Social Procurement

A cross-functional approach to driving social value

Strategic Procurement

Corporate Social Responsibility

Organisation

http://www.socialtraders.com.au/social-procurement

www.socialenterprisefinder.com.au

Social enterprise

sectorEntrepreneurs

Social enterprise landscape in Australia

SEDIFs

Social Ventures Australia

Social Traders

School for Social

Entrepreneurs

Leadership development of

individual nascent social entrepreneurs

Financial and/or capacity building support for social enterprise ideas

Existing enterprise improvements in

sustainability, trading capability

and viability

Growth and scaling of existing enterprises

Growth and maturity financed

by commercial investors

SoFA

stage

Supports specific mission or social enterprise forms

Supports all missions and social enterprise forms

Universities – Centre for Social

Impact

Social Innovation research and policy

Social Business Australia

Social Enterprise Sydney

(in Sydney)

Social Innovation in Western Australia (in WA)

© Social Traders Limited 2012

WHERE DOES HOMELESSNESS MEET SOCIAL

ENTERPRISE?

What should a homeless motivated

SE focus on?

health

housing

employment

MOTIVATIONS – 3 BUCKETS

Bendigo Community Bank Community ChildcareSovereign HillYackandandah Community Development CoPrickle

Op Shops,‘Excellent Health’Smith Family Textiles

© Social Traders Limited 2012

Employment, training and support

for marginalised groups

Fair RepairsBoystown graffitt removalThe Big Issue

Services in direct response to social or

economic community needs

Income generation for charitable

purposes

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BAWRUNGA ABORIGINAL MEDICAL SERVICE (BAMS)

An Indigenous owned and managed not-for-profit community cooperative in Bowraville NSW in 1999

Five medical clinics in the Nambucca Valley and NSW Western Region, sustained through bulk billing income

40% of bulk billing income goes to BAMS to cover accommodation and administration and 60% to the doctors

BAMS uses its 40% of income to deliver a range of ‘primary health care’ and community outreach programs utilising funds generated from the clinic business, including early childhood nutrition, substance abuse prevention, healthy lifestyles and youth related projects.

Social mission: To address the need for affordable, accessible, and high quality health and medical services through the provision of culturally appropriate primary health services for the local Indigenous population

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Yarra Community Housing

• The organisation exists to provide housing for people at risk of homelessness.

• Providing affordable housing for those at risk of homelessness is a key role for the homelessness sector. Housing Associations are major social enterprises that are also major buyers.

• Yarra is creating job trough their tendering and tenanting of commercial properties

Social mission: A home for every single person

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Cleanable

Developed and owned by a disability support organisation, WCIG to create the opportunity that the market was unable to create

Works across government, not for profit and private contracts worth over $1.5million

The cleaning business is now profitable and the complimentary businesses developed are becoming sustainable

Their target customer is able to and willing to pay mid-market price

They are employing 60 workers, almost half of which have a disability

Over 80% of income is from trade

Social mission: Provide long term employment and retraining opportunities for individuals excluded from the mainstream labour market as a result of mental illness

www.socialtraders.com.au

© Social Traders Limited 2012

Mark DanielsManager Learning and DevelopmentSocial Traders mark.daniels@socialtraders.com.au0414 241 766www.socialtraders.com.au

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