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The presentation was a workshop at Evolve 2014: the annual event for the voluntary sector in London on Monday 16 June 2014. The presentation was chaired by Craig Carey from Social Enterprise UK and looks what a social enterprise is and how to earn sustainable income. Find out more about the Evolve Conference from NCVO: http://www.ncvo.org.uk/training-and-events/evolve-conference
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s AM6: Earning income: How to develop a more sustainable mix
Craig Carey, Programme Manager, Social Enterprise UKKathryn Uche, Chief Executive, CAYSH Jeremy Hime, Business Development Manager, CAYSH
Social Enterprise UK
• Established in 2002 as the national body for social enterprise (as a coalition)
• Membership organisation: nearly 700 members; reach to over 12,000 through founding partners
• Bring together all the different forms of social enterprise under one umbrella
• Main purposes:• Supporting social enterprises to thrive• Developing the evidence base for social enterprise• Influencing policy and political agendas (with govt)• Showcasing the benefits of social enterprise• Broker, facilitator, market builder
What is Social Enterprise?
Social enterprises are businesses driven by a social purpose. They:
1. Have a social mission set out in their governing documents
2. Are independent businesses that earn more than half of their income through trading
3. Reinvest or give away at least half our profits towards our social purpose
4. Are controlled or owned in the interests of the social mission
5. Are accountable and transparent in the way they operate and about the impact they have
Often have an asset lock and use a range of different legal structures.
Social Enterprise in the UK – state of play
• c. 70,000 social enterprises in the UK (5% of all businesses)
• Contributing c.£20 billion to the UK economy and employing over 1 million people.
• Operate in almost every sector: from health and social care, to renewable energy, transport, retail and housing
• There are many routes to becoming a social enterprise including: spinning out of parts of the public sector entrepreneur-led organisations charities becoming more business-orientated
What is Social Enterprise NOT?
• A fast and easy route to quick £ / silver bullet
• A change of legal structure
• Fundraising
• Suitable for ALL charities / charitable activities
• Going over to the dark side (off mission)
Why the social enterprise model?
Added social value / greater impact
Social Investment
Innovation Reinvest profits for social purpose
Engaging stakeholdersCultural fit
Accountable + sustainable modelEffective use of
resources
Access harder to reach groups
Two main approaches
> Setting up a trading arm to sit alongside the charity
> Changing the whole charity into a social enterprise
What to consider?
> Know why are you doing it
> Discuss with your stakeholders
> Legal structure & business model
> Write the business plan
> Don’t be afraid of the ‘P’ word – PROFIT!
> Remember the culture trumps structure!
> Work out - who really are your customers and how are you going to reach them? Is there a market demand?
> Mix up your trading activity – different products/services, customers & types of income
> Don’t forget the expenses column
> Delivering new services – don’t deviate from what you are good at!
> Get the pricing right (vs. perceived value)!
> Measure your impact & quality – creating social value
> It takes time and money to do – NO shortcuts!
> Be persistent – not an easy journey!
Purpose of the business plan
To give you and other stakeholders confidence that –
> You are going in the right direction
> There is a market need
> The finances add up
> You have the right people doing it
Otherwise it will not succeed!!
Magnificent Business Plan - 8Ms!
1. Mission
2. (Understand) Market
3. Money
4. Measurement
5. (Wo)manpower
6. Marketing
7. Mitigation (Risk)
8. Masterplan
London Early Years FoundationSector: Children Nurseries
CEO: June O’Sullivan http://www.leyf.org.uk
Model: Former charity started 1903 now a social enterprise
Overview: The London Early Year's Foundation (LEYF) is the UK’s most well-known and respected childcare social enterprise, providing day care and parenting support to a diverse mix of families in 25 community, workplace and Children’s Centre nurseries across six London boroughs.
How we help children: Through our unique curriculum, we focus on each child’s cognitive, social, emotional and physical development. The quality of our learning environments and excellence in childcare is recognised through parental feedback as well as external assessment.
Street Leaguehttp://www.streetleague.co.uk
The organisation: Originally founded as an organisation working with homeless people in 2001, we now work with 16 to 25-year-olds who are not in employment, education and training (NEET). What they do: Street League is one of the most exciting, dynamic and fastest-growing charities in the UK. We specialise in changing the lives of young people from disadvantaged backgrounds through the power of football.
Structured football and education 'Academy' programme, with two hours (over 8 weeks) in the classroom and two hours on the pitch each day. It also offers nationally-recognised qualifications.
Scaling up: Multiple franchise model now with 10 locations
Further reading resources
Get Legal http://www.getlegal.org.uk/
CIC Regulator http://www.bis.gov.uk/cicregulator/
Charity Commission http://www.charity-commission.gov.uk/
SEUK website http://www.socialenterprise.org.uk/
NCVO website http://www.ncvo.org.uk/
Any questions?
In Partnership with:
www.socialenterprise.org.uk
Workshop – AM6
Social Enterprise for Charities
Earning income: how to develop a more sustainable mix
Objective
• To give a realistic and engaging account of why and how CAYSH transitioned from a charity to a social enterprise model
Contents
• Who we are• The Idea• Why Social Enterprise?• Main Challenges• Growth of the Service• Top Tips• Contact Us
Who we are
Kathryn Uche
Chief Executive CAYSH
Jeremy Hime
Business Development Manager
CAYSH Enterprise CIC
• Who we are• What we do• Where we work• How long we’ve been doing it
We now operate in every South London borough
The Idea• A changing environment• Rising needs of service users• 2010 Spending Review
The Idea
• Charity expansion – into new borough• Existing security services expensive and not
fit for purpose• Recognised gap in the market• Confidence in the belief that we could do it
better!
The Idea
• Value for money
• Quality of service
• Training and expertise
• Values and principles
The Idea
• New contract acted as an incubator to the idea
• Supportive Local Authorities
• Over reliance on Supporting People income
CAYSH Concierge Services
CAYSH Concierge Services provides a unique approach to security provision in supported
housing that protects the interests of vulnerable people first and foremost whilst
delivering reduced costs and reduced incidents for commissioners and the local community.
CAYSH Concierge Services
Why Social Enterprise?
• Potential surplus
• Culture
• Governance
• Guidance - SEUK
Challenges
• Fear
• Cultural change
• Buy in
• Resistance
Challenges
• Staying strategic whilst being operational
• Turning blue sky to reality
• Getting the finances right
• Balancing business and charity approach
Keeping Residents Safe
2013 2014 600k 1.5m
11 Staff 50+ Staff
150 SUs 350 SUs
Concierge Service Growth
• Financial• Personnel• Customers / location• Systems • Business strategy and vision• Reputation• Confidence
• Get help!• Build the team – from Trainee to Trustee • Have a plan B • Stay focused • Don’t give up• Good communication• Do not be afraid to make mistakes
Top Tips
Advice for any charity leaders considering a social enterprise route
Launched culture of enterprise
New office – new opportunities
Maintain vision and confidence
The next idea…
Many of life’s failures are experienced by people who did not
realize how close they were to success when they gave up.
Thomas Edison
Contact us
Kathryn Uche
Chief Executive CAYSH
Jeremy Hime
Business Development Manager
CAYSH Enterprise CIC
Evolve 2014
