WHAT MAKES SOCIAL ENTERPRISE WORK

Presented by Mark Arnold

PRESENTATION OUTLINE

Who We AreDefinitions of social enterpriseSpectrum of enterprisesDifferences in the various models and how that will affect the bottom lineSteps and stages to maximizing successChallenges Opportunities / benefits

DEFINITIONS

There are several definitions found in the literature

1) Combines the heart and commitment of the voluntary world, the scale and support of government and the discipline and dynamic nature of the business sector.

2) An organization or venture that advances its social mission through entrepreneurial earned-income strategies

DEFINITIONS (CONT’D)

3) Social entrepreneurship is an innovative, social value-creating activity that can occur within or across the non-profit, business or government sector.

4) A social enterprise sells goods or provides services in the market for the purpose of creating a blended return on investment, financial and social and profits are returned to the business or to a social purpose, rather than maximizing profits to shareholders.

ADVANTAGES TO COMMUNITY ECONOMIC DEVELOPMENT INITIATIVES

Community economic development initiatives provide local jobs.

CED projects may have efficacy in terms of policy development at all levels of government.

Often CED provides jobs to people who may not otherwise have the opportunity to work.

Provides sector development, cooperative models and social enterprises are all examples of CED.

Encourages the private and public sector to work together. Provides awareness of challenges from both sectors. Provides both a social and financial return on investment.

THE S.E. SCALE

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WHY DID OCH & FSO GET INTO SOCIAL BUSINESS?

No sustainable funding. OCH wanted to provide leadership in illustrating a

“best practice” model of service delivery nationally. Why is social enterprise considered “best practice”. Wanted to have the ability to provide youth with

“real jobs”. Wanted the business sector to look at OCH

differently. Wanted to provide a good example of corporate

social responsibility. Wanted to prove that business and social can work

well together.

STEPS AND STAGES TO MAXIMIZING CHANCES OF SUCCESS

1. Does it support our mission?2. Does it fit in with our values?3. Does it fit in with our strategic

plan?4. Do we have the capacity and

infrastructure? 5. Can we invest money up front?

STEPS AND STAGES (CONT’D)

6. Do we have the talent / the right skills?

7. Is there a demand in the market place?

8. Is the Board on board?9. Do we have outcome financial and

social measures in place?10. Entrepreneurial view within the

organization.

STEPS AND STAGES (CONT’D)

11. Business and social work staff to operate the enterprise.

12. Solid business plan that has financial and social milestones annually.

13. Private sector partners that are interested in supporting the enterprise in some way.

14. Build human resources for the business side into the applications.

15. Population that will be employed-assess employability levels and skills (may vary depending on clients).

STEPS AND STAGES (CONT’D)

16. Know you value proposition and ensure your marketing strategy adopts that proposition.

17. Diversify your customer base and have strategies to break into other markets.

18. Stay out of politics.19. Flexibility.The final word –PLANNING, PLANNING AND MORE PLANNING

SOCIAL ENTERPRISE –“IT IS NOT A BED OF ROSES”.Challenges: Time factor. Lack of business expertise. Creating a business culture. Culture clash / mission drift. Juggling investment in agency vs. re-

investment in the business. Rescuing clients as there is a deadline to

produce and the clients don’t show up, don’t do a good enough job, don’t remember how to do the job…

SOCIAL ENTERPRISE – “IT IS NOT A BED OF ROSES”.

Challenges: (cont’d) Demonstrating “success” /

sustainability in a short time period. The population you employ or serve

may slow down growth. Finding enough money for start-up,

maintenance and growth phases. Demonstration of value on social

return.

SOCIAL ENTERPRISE – THE OPPORTUNITIES A marketing advantage in current

climate. The staff employed in the enterprise

having an understanding of how corporate social responsibility can assist in marketing your product or service.

Understanding that the enterprise has a unique selling point - 2nd and 3rd bottom lines.

Client population getting jobs.

SOCIAL ENTERPRISE – THE OPPORTUNITIES (CONT’D) Business skills are transferred to

other parts of your agency or organization.

Free P.R. Can further the mission Attract a different type of volunteer

PROOF THAT IT DOES WORK

Bottleworks BeadWorks FSEAP Ottawa

INTRODUCTION TO BOTTLEWORKS• Commercial recycling

and bottle pick up service.

• Partnerships (BIA’s, Beau’s).

• Role of the youth.• Business outcomes:

$41,250 by the end of first year, projections of $50,000 by the end of 2010 and $55,000 by the end of 2011.

SOCIAL OUTCOMES FOR BOTTLEWORKS In 2009, 30 youth worked full time for BottleWorks. Of the 30 youth, 10 found safe, affordable housing,

15 found jobs of their own, and 4 returned to further their education.

The qualitative outcomes are difficult to measure in that they are things like: significant increase in self esteem; ability to communicate more effectively; harm reduction; improvement in physical and mental health.

WHY IS THIS BUSINESS MODEL WORKING IN OUR COMMUNITY

There was a demand in the marketplace for the business.

Beau’s, our private sector partner had a need for our services.

The community was looking for a way to support homeless youth without making $ donations.

The downtown core needed a “good news” story about homelessness.

The community wants BottleWorks to succeed.

SOCIAL OUTCOMES FOR BEADWORKS More than 120+ youth have worked on a

casual basis in BeadWorks. Of those 120, 20 have found jobs of their

own, 8 have gone back to school, 3 of whom have started their own businesses.

The qualitative outcomes are things like: health and wellness due to the ability to gain access to a creative outlet; increase in self esteem when a piece of their jewelry sells; decrease in harm; increase in meaningful activities other than BeadWorks; and an increase in socialization.

WHAT MAKES BOTTLEWORKS AND BEADWORKS SUCCESSFUL? Both enterprises support our vision and mission. OCH has the capacity to deliver social enterprises. OCH has the expertise. OCH has the right social and business skill sets. There is a demand in the marketplace for BottleWorks. There is a social demand for BeadWorks. The Board of Directors at OCH is supportive. OCH has both the financial and social indicators in place to

measure success.

WHAT MAKES BOTTLEWORKS AND BEADWORKS SUCCESSFUL? (CONT’D)

OCH has an entrepreneurial view. Solid business plans for both enterprises that are updated

annually. Private sector partners that are interested in supporting both

businesses. Population that OCH serves has the motivation and ability to

work. The ability to diversify our products and services for an

emerging / changing market. Flexibility.

WHY DO ENTERPRISES SUPPORT OUR OVERALL MISSION?

OCH provides programs designed to assist youth in becoming contributing members of our community.

Jobs and education prevent homeless youth from becoming homeless adults.

Providing youth with the ability to earn money gives them the ability to find safe, affordable housing.

Social enterprises provide homeless youth with jobs and social supports at the same time.

They provide homeless youth with the ability to address challenges that have prevented them from keeping a job and finishing school.

… WHO WE ARE fseap services are owned and

provided by a network of 50 Family Service partner agencies across Canada with historic roots in each community

We provide services to over half a million employees and their families in 1,000 locations across Canada across every sector

… WHO WE ARE (CONT’D)

We have over 30 years experience providing EAP services in Canada

We believe that real change happens face-to-face and that good counselling is important

We are accredited by the international social service accreditor COA

Our revenue directly supports counselling programs in your community