Some things commercial business can learn from social enterprise

1. Beyond Profit:
Lessons from Social
Enterprise

2. A story about a man and $27
"looking for the
most timid."

3. Simply a good brand or a great model?
"Shameless
Exploitation in
Pursuit of the
Common Good".

4. Towards a definition:
Conditions necessary
Entrepreneurial context
Sub-optimal equilibrium
Entrepreneurial characteristics
New equilibrium
The pursuit of “mission-related impact.”
Social Entrepreneurship: The Case for Definition, Stanford Social Innovation
Review Spring 2007Roger L. Martin & Sally Osberg

5. The importance of definition..
“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, p1))

7. Some Stats, Trends and Big Society

8. Income spectrum
The sector overview

9. The Sector: Some facts
 62,000 Social Enterprises in the UK 1
 Civil Society was estimated to have contributed £147 Billion to the
economy in 2007/082
 £77bn contribution by social enterprise activity3
 78.6% ave growth 4
 56% increased TO (20% reduced TO) vs SME’s where 28% increased
(48% reduced) 5
1. 2009 Annual Survey of Small Businesses (ASBS)
2. Singh, A. ‘The Civil Effect’ (2010)
3. The UK Civil Society Almanac
4. RBS SE100 Data Report 2010
5. IFF Research, 2009, BERR SME Business Barometer February 2009, Department for
Business,Enterprise and Regulatory Reforms (BERR)

10. The Sector Size
3% 7%
4%
11%
16% <£10K
£10k-£50K
£50K-£100K
£100K-£250K
20% £250K-£1M
16% £1M-£5M
£5M-£10M
£10M +
23%
Source: State of social enterprise survey 2009 Social enterprise coalition

11. The Sector overview
Sector size
Source: State of social enterprise survey 2009 Social enterprise coalition

12. A societal shift?
Trends
Embedded Random Acts of
Generosity Kindness
Status Fixes – Generation G
Generosity,
Connectivity, Green
www.trendwatching.com

13. The route cause

14. Changing trends
Trends
In 2006, ‘strong financial performance’ was the third most important factor for US
consumers in determining corporate reputation. By 2010,‘transparent and honest
practices’ and ‘company I can trust’ were the two most important. (Source: Edelman
Trust Barometer, 2010.)
71% of people buy brands from companies whose values are similar to their own.
(Source: Young & Rubicam, August 2010.)
“87% of UK consumers expect companies to consider societal interests equal to
business interests, while 78% of Indian, 77% of Chinese and 80% of Brazilian
consumers prefer brands that support good causes”. (Source: Edelman, November
2010.)
www.trendwatching.com

15. • Empowering individuals
and communities
• Encouraging social
responsibility
• Creating an enabling and
accountable state
East End Prints

16. What can we learn?
What can we learn?

17. 1 The importance of purpose
Purpose
and
passion
What are
Economic
you best
engine
at?
Source: Jim Collins: Good to great

18. 1 The importance of Purpose
• Involving young people at the front end
of the creative process
• Key proposition is Co-Creation
• Applying youth marketing, to one of
the most enduring of challenges,
helping young people to fulfil their
potential •Annual turnover: £2 million
•Doubled in size in 2010
•100% traded income
•25% of profits into bursaries
• Clients include: Google, Coke,
PlayStation, BBC, Home Office, O2
and C4

19. 1 The best place to work?

20. 1 What is your purpose?
Focus on what you stand for not what you do
1. Be inspiring to those inside the company.
2. Be something that could be as valid 100 years from now as it is
today.
3. It should help you think expansively about what you could do but
aren't doing.
4. Help you decide what not to do.
5. Authentic to your company/brand. Companies that fail on this count
are often the ones that really don't stand for anything and never will.

21. 2 Innovation & creativity
• Deep understanding of target audience
• Social entrepreneurs observe, experience, question,
challenge
• Relentless determination to change driven by purpose
• Skilled at re-directing, using and regenerating under-
used, abandoned, redundant or derelict human and
physical resources
• Work in creative partnership with multiple organisations

22. 2 Innovation & creativity
• FoodWorks brings together young
volunteers, surplus food and an idle
kitchen space to create nutritious
meals for people affected by food
poverty in the community.
• Triple donation model has allows
nutritious meals at a low cost.

23. 2 Innovation is learned skill
“Close to 80% of innovation thinking is learned and
acquired... it's like exercising your muscles -- if you
engage in the actions you build the skills” Hal Gregersen
Skills include:
• Associating, questioning, observing,
experimenting and discovering.

24. 3 things you can do to be more
2 innovative
• Identify a problem and write nothing but questions about
it for 10 minutes a day for 30 days
• Identify a business, customer, supplier, or client, and
spend a day or two observing
• Set aside 30 minutes a week to talk with a contact you
wouldn't normally talk to

25. 3 Ownership & employee participation
Efficiencies through ownership
• Employees have a stake in the outcome
• Workers come from the community itself
• Employees are often the benefactors
• Input is directly related to output

26. 3 Ownership and participation
• 1 farmer...8000
landlords
• £800K community
shares

27. 4 Organisational alignment
Purpose
People
Activity
Impact
Measures

28. 4 Sustainable communities

29. 4 Measurement & Social Return
• 86% of social enterprises report on impact of activities 1
• Evaluation is thought of at the earliest stage
– What do we want to do and how will we measure it?
• Anticipatory rather than retrospective evaluation
• Real time evaluation
1. RBS SE100 Data Report 2010

30. 4 Social enterprise in Public services
Commercial outcome
•£23.3m Turn Over
• Ave growth 20-25% per year for past 5
years
• 99% on time
Measurement of social impact
• 117 long term unemployed into work
• +26% increase in passenger journeys
to disadvantaged groups
• +64% increase in journeys for
passenger groups
Commercial success is enabling community impact

31. Challenges for Social Enterprise
• Access to finance
• Business support
• Capability building
• Bridging the credibility gap
• Sustainability
• Partnerships (private and public sector)

32. What of the future?
• Government’s reforms open up public services to more
diverse sources and methods of delivery
• Increased competition between sectors
• Skill sets between the sectors become more similar and
an increasing number of people may switch sectors
• Increased consumer demand to embed societal
sustainability in organisations
Source: http://www.3s4.org.uk/drivers

33. Business brains for social gains

34. Who we are:
Our values and other things
We are an innovative, dynamic business development agency
specialising in the social sector. We help make social businesses
happen, by bringing commercial practices and skills from the private
sector.
Like the people we partner with, we are passionate about social
change and we are disciplined in developing sustainable business.
When you combine passion with disciplined thinking and action you
can affect real change.
We believe every person and organisation can benefit from a set of
principles which defines what they do and how they do it. Below we
set out the principles that we live by, in business and personally:
• Anything can be done
• Don’t let adversity stand in the way of a good decision
• Say it as it is
• Be more passionate about clients' success than they are
• Be human, be kind, be empathetic
• Don’t do it if you don’t believe in it - not for all the money in the
world
www.provadisgroup.com • Be demanding
Business brains for social gains

35. Tamsin Fielden: Managing Director
Tamsin Fielden is an energetic, skilled sales and marketing
professional with 16+ years experience in consumer, healthcare and
third sector organisations. She has worked for the likes of Unilever,
Colgate Palmolive, Raleigh International, Manchester Business
School, Bristol Meyers Squibb.
A passion for social change and innovation led Tamsin to establish
Provadis in 2009, to help make social businesses happen. She works
with social enterprises, community groups and charities to help them
access commercial skill-sets through a hybrid training/consultancy
model that builds capacity in people quickly.
She works with start-up through to small/medium sized social
businesses with aspirations for growth and commercial organisations
aiming to deliver social value. She has delivered programmes in youth
and community engagement, employability, mental health and
tamsin@provadisgroup.com delivered a Social Enterprise action learning conference in partnership
0161 980 1371 with Manchester Business School and Social Solutions Academy in
2010.
07940 923 102
www.provadisgroup.com Her expertise includes visioning and strategic positioning; marketing
strategy, action planning; team development and facilitation; marketing
communication; project management, implementation and evaluation.
Her experience ranges from leading global product portfolios of over
$300m, with budgets in excess of £1m to project managing community
school builds in Africa.
Business brains for social gains