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Bringing Strength to Social Enterprise

           Tuesday, 24 April 2012
Today

This workshop will explore social enterprise as a sustainable
community building tool and share information on how they
operate. Participants will have the opportunity to discuss ideas
with a panel of social enterprise practitioners and hear from
colleagues who have established successful social enterprises.
Today’s Speakers

• Joanne McNeill, Parramatta City Council (NSW)
   – Bringing strength thru concepts
• Mark Daniels, Social Traders (VIC)
   – Building awareness
• Matt Gideon, Street University & Gideon Shoes (NSW)
   – What makes a Social Enterprise tick
Liverpool Council
Strengthening their Community
         Rebekah Richards
        Community Worker
Bringing strength – today’s agenda

•   Bringing strength thru concepts – Joanne McNeill
•   Building awareness of social enterprises – Mark Daniels
•   What makes them tick – Matt Noffs
•   The Entrepreneur’s Pledge – Jodie Mitchell

• Panel discussion
Bringing strength thru concepts
                 Joanne McNeill
Community Capacity Building Officer Social Enterprise
            Parramatta City Council
. . . what is ?

social enterprises are businesses that trade for a
  social, environmental or cultural purpose . . .
• generate a substantial portion of their income through trading
• reinvest the majority of their profit / surplus (non-distributing)
• include an asset lock


Social enterprise is about practice
. . . the difference . . .

. . between a social enterprise, a social
   entrepreneur and social innovation . . .
broad spectrum . . .

Diverse on three levels:
• Form
• Purpose
• Markets
legal forms . . .

•   Cooperatives, Associations and Mutuals
•   Fair Trade Organisations
•   Intermediate Labour Market Companies
•   Charitable Business Ventures
•   Social Firms
•   Community Enterprise
•   Community Development Finance Institutions
•   Australian Disability Enterprises
•   Hybrid

•   Important consideration – any relationship with parent nonprofit?
purpose . . .


Common motivations
• employment - provide employment, training and
  support for marginalised groups; two types
• service delivery - create or retain services in
  response to social or economic needs
• income generation - generate profits to support
  other community or not for profit activities
. . . social impact . . .

• legitimacy
• greater scrutiny
• clear link between model & change want
  to see - Theory of Change
• evolving field
• no one approach
• what does success look like
markets . . .

Example
Salvo’s legal - http://salvos.org.au/salvoslegal/

•   full-time, self-sustaining legal practice specialising in property and
    transactional commercial law
•   difference is that fees paid by clients fund the operation of another
    firm, Salvos Legal Humanitarian - which operates to provide free
    legal advice and assistance to those most in need without any fee
•   first class commercial legal services are provided at a market
    competitive fee
•   aims to use its compassionate dedication, creativity, ingenuity and
    skill to fight against social injustices
•   means each procurement dollar delivers an additional benefit,
    beyond the service purchased
. . . not business as usual . . .

• blended inputs, blended returns
• different types of markets – eg. BoP, not
  end user
• different viability scenarios – balance of
  returns; reserves
• social vs business costs
so ….

a strategy – nexus point

not a program … what will you sell, who
 will pay for it?
not a business … who are the
 beneficiaries, how will you know?

. . . an AND approach… not about replacing
Building awareness

                  Mark Daniels
Learning and Development Manager, Social Traders
www.socialtraders.com.au




                           © Social Traders Limited 2012
What can we cover in 25 mins?


   How to test social enterprise ideas.
   The role of market
A TALE OF TWO SOCIAL ENTERPRISES


       Social Enterprise A         Social Enterprise B

Need   There is long term          A DES provider is finding it
       unemployment and social     difficult to place people with
       issues in a neighbourhood   mental health issues in
       area.                       employment
MISSION


Social Enterprise A                 Social Enterprise B

Want to create a business that      Want to create a tailored
will create opportunities for the   business that will create
community to get training and       pathways to mainstream
employment opportunities.           employment for people with a
                                    mental illness
IDEA GENERATION


Social Enterprise A             Social Enterprise B

Lead person identifies that a   Lead person asks people from
café would be a great idea      business backgrounds the
because people in the           question. What business will
community as it would be a      allow us to achieve the mission
meeting place and provide       and allow us to run a successful
employment opportunities.       Business long term?

                                They conclude that a café would
                                be the best because of the
                                growing demand for hospitality
                                staff and the sociable nature of
                                the work.
FROM THOUGHT TO ACTION


Social Enterprise A                         Social Enterprise B

A café site in a local library becomes      They enlist expertise from a former
available and they apply for the lease.     franchise operator to help them to
It will be a peppercorn rent and it is in   develop a business plan and follow a
a retail area of town.                      model of locating in a westfield mall.
They win the tender process and begin       They scope out opportunities in a
the business                                growing centre in the SE of Melbourne.
They write their business plan after        They do foot traffic counts, they taste
they secure the lease.                      the coffee in every café in the
Then they go hunting for money to           supermarket, they taste and rate the
operate the business.                       food, record the price and the client
                                            group.
                                            They identify who there market will be
                                            and they seek out the funding to realise
                                            their idea.
WHO DO YOU THINK SUCCEEDED AND WHY?
OPPORTUNITIES FOR THE DEVELOPMENT OF BUSINESS


  Plugging the leaks
  Accessible contracts
  Gaps in the market
  Commercialising what you do
  Value Add
  Acquisition
  Replicate
ONCE YOU HAVE SOME IDEAS YOU NEED TO SCREEN THEM AND
GET AN UNDERSTANDING OF THE MARKET
CUSTOMER ANALYSIS


                                        Customer Group (you may have more than
                                                         one)
Who are they
How many?
Where are they?
Is this group growing or shrinking?
How much money do they have to
spend?
What are the things that affect their
purchasing decision?
Who do they buy from at the
moment?
How much do they currently pay?
Why would they switch to you?
INCOME - COMPETITORS



• Competitors are anyone or anything that potentially takes
  revenue away from you
• This includes people providing the same product/service as
  you as well as substitutes
• What do I need to know about the competitors
COMPETITOR ANALYSIS
                                              Competitor (there will be more than one – do this for
                                                                      each)
Name

What are the key products/services they
provide to the customer?
Where are they? (geographically ,web?)

How much do they charge?

Why do people buy from them?

Do they focus on a target market? If so,
describe it.
Estimate what percentage of the total
market you think they have at the moment
Is their market share growing, shrinking or
steady?
How do they attract and win customers?

What are their weaknesses and what can
you do better than them
DOES MARKET ANALYSIS EVER END?
INCOME




Your estimated volume of customers multiplied by their average payment will give
you your estimated income.


# customers ____________
x
what each of them will pay $_____________
 =
$___________ income (weekly/monthly/yearly)




                                                              Page 30
THE PLANNER
THE SOCIAL ENTERPRISE BUILDER




  www.socialtraders.com.au
www.socialenterprisefinder.com.au
Thank You


Mark.daniels@socialtraders.com.au
www.socialtraders.com.au
What makes them tick – Matt Noffs

      Gideon Shoes & Street University
The social entrepreneur’s pledge

• I am a social entrepreneur.
• I am following a dream, pursuing an opportunity, taking charge of my own
  destiny.
• I am bringing something of value to society, making a job for myself and
  for others, and creating wealth that benefits my family, my community,
  my country, my world.
• I am one of a movement of millions of (social) entrepreneurs and
  innovators who made Australia great, and who will continue to keep our
  economy going … and growing and innovative.
• I am what I am because many people have helped me along on this
  journey.
The Entrepreneur’s Pledge



Therefore:
The social entrepreneur’s pledge

• I will tell my story, sharing my successes and failures, so that
  others taking the entrepreneurial path can learn.
• I will strive to mentor an aspiring entrepreneur.
• I will make my voice heard by those who make policy
  decisions that affect me and my business.
• I will appreciate and celebrate my accomplishments, and the
  accomplishments of all my fellow social entrepreneurs.
• I will give back to the society that helped me to be successful.
• I will Build a Stronger Australia.
BREAK for lunch
Panel discussion

• Joanne McNeill, Parramatta City Council (NSW)
   – Bringing strength thru concepts
• Mark Daniels, Social Traders (VIC)
   – Building awareness
• Matt Gideon, Street University & Gideon Shoes (NSW)
   – What makes a Social Enterprise tick
Upcoming Development in Sydney

Social Enterprises Sydney
• Workshops
• Mentoring
• Peer2Peer Networks
   – Food & Food Service (Paddock to Plate)
   – Environmental -> reduce, re-use, recycle
• Coaching
• Pro Bono Legal Panel
Thank you

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Bringing strength to social enterprise final

  • 1. Bringing Strength to Social Enterprise Tuesday, 24 April 2012
  • 2. Today This workshop will explore social enterprise as a sustainable community building tool and share information on how they operate. Participants will have the opportunity to discuss ideas with a panel of social enterprise practitioners and hear from colleagues who have established successful social enterprises.
  • 3. Today’s Speakers • Joanne McNeill, Parramatta City Council (NSW) – Bringing strength thru concepts • Mark Daniels, Social Traders (VIC) – Building awareness • Matt Gideon, Street University & Gideon Shoes (NSW) – What makes a Social Enterprise tick
  • 4. Liverpool Council Strengthening their Community Rebekah Richards Community Worker
  • 5. Bringing strength – today’s agenda • Bringing strength thru concepts – Joanne McNeill • Building awareness of social enterprises – Mark Daniels • What makes them tick – Matt Noffs • The Entrepreneur’s Pledge – Jodie Mitchell • Panel discussion
  • 6. Bringing strength thru concepts Joanne McNeill Community Capacity Building Officer Social Enterprise Parramatta City Council
  • 7. . . . what is ? social enterprises are businesses that trade for a social, environmental or cultural purpose . . . • generate a substantial portion of their income through trading • reinvest the majority of their profit / surplus (non-distributing) • include an asset lock Social enterprise is about practice
  • 8. . . . the difference . . . . . between a social enterprise, a social entrepreneur and social innovation . . .
  • 9. broad spectrum . . . Diverse on three levels: • Form • Purpose • Markets
  • 10. legal forms . . . • Cooperatives, Associations and Mutuals • Fair Trade Organisations • Intermediate Labour Market Companies • Charitable Business Ventures • Social Firms • Community Enterprise • Community Development Finance Institutions • Australian Disability Enterprises • Hybrid • Important consideration – any relationship with parent nonprofit?
  • 11. purpose . . . Common motivations • employment - provide employment, training and support for marginalised groups; two types • service delivery - create or retain services in response to social or economic needs • income generation - generate profits to support other community or not for profit activities
  • 12. . . . social impact . . . • legitimacy • greater scrutiny • clear link between model & change want to see - Theory of Change • evolving field • no one approach • what does success look like
  • 13. markets . . . Example Salvo’s legal - http://salvos.org.au/salvoslegal/ • full-time, self-sustaining legal practice specialising in property and transactional commercial law • difference is that fees paid by clients fund the operation of another firm, Salvos Legal Humanitarian - which operates to provide free legal advice and assistance to those most in need without any fee • first class commercial legal services are provided at a market competitive fee • aims to use its compassionate dedication, creativity, ingenuity and skill to fight against social injustices • means each procurement dollar delivers an additional benefit, beyond the service purchased
  • 14. . . . not business as usual . . . • blended inputs, blended returns • different types of markets – eg. BoP, not end user • different viability scenarios – balance of returns; reserves • social vs business costs
  • 15. so …. a strategy – nexus point not a program … what will you sell, who will pay for it? not a business … who are the beneficiaries, how will you know? . . . an AND approach… not about replacing
  • 16. Building awareness Mark Daniels Learning and Development Manager, Social Traders
  • 17. www.socialtraders.com.au © Social Traders Limited 2012
  • 18. What can we cover in 25 mins? How to test social enterprise ideas. The role of market
  • 19. A TALE OF TWO SOCIAL ENTERPRISES Social Enterprise A Social Enterprise B Need There is long term A DES provider is finding it unemployment and social difficult to place people with issues in a neighbourhood mental health issues in area. employment
  • 20. MISSION Social Enterprise A Social Enterprise B Want to create a business that Want to create a tailored will create opportunities for the business that will create community to get training and pathways to mainstream employment opportunities. employment for people with a mental illness
  • 21. IDEA GENERATION Social Enterprise A Social Enterprise B Lead person identifies that a Lead person asks people from café would be a great idea business backgrounds the because people in the question. What business will community as it would be a allow us to achieve the mission meeting place and provide and allow us to run a successful employment opportunities. Business long term? They conclude that a café would be the best because of the growing demand for hospitality staff and the sociable nature of the work.
  • 22. FROM THOUGHT TO ACTION Social Enterprise A Social Enterprise B A café site in a local library becomes They enlist expertise from a former available and they apply for the lease. franchise operator to help them to It will be a peppercorn rent and it is in develop a business plan and follow a a retail area of town. model of locating in a westfield mall. They win the tender process and begin They scope out opportunities in a the business growing centre in the SE of Melbourne. They write their business plan after They do foot traffic counts, they taste they secure the lease. the coffee in every café in the Then they go hunting for money to supermarket, they taste and rate the operate the business. food, record the price and the client group. They identify who there market will be and they seek out the funding to realise their idea.
  • 23. WHO DO YOU THINK SUCCEEDED AND WHY?
  • 24. OPPORTUNITIES FOR THE DEVELOPMENT OF BUSINESS Plugging the leaks Accessible contracts Gaps in the market Commercialising what you do Value Add Acquisition Replicate
  • 25. ONCE YOU HAVE SOME IDEAS YOU NEED TO SCREEN THEM AND GET AN UNDERSTANDING OF THE MARKET
  • 26. CUSTOMER ANALYSIS Customer Group (you may have more than one) Who are they How many? Where are they? Is this group growing or shrinking? How much money do they have to spend? What are the things that affect their purchasing decision? Who do they buy from at the moment? How much do they currently pay? Why would they switch to you?
  • 27. INCOME - COMPETITORS • Competitors are anyone or anything that potentially takes revenue away from you • This includes people providing the same product/service as you as well as substitutes • What do I need to know about the competitors
  • 28. COMPETITOR ANALYSIS Competitor (there will be more than one – do this for each) Name What are the key products/services they provide to the customer? Where are they? (geographically ,web?) How much do they charge? Why do people buy from them? Do they focus on a target market? If so, describe it. Estimate what percentage of the total market you think they have at the moment Is their market share growing, shrinking or steady? How do they attract and win customers? What are their weaknesses and what can you do better than them
  • 29. DOES MARKET ANALYSIS EVER END?
  • 30. INCOME Your estimated volume of customers multiplied by their average payment will give you your estimated income. # customers ____________ x what each of them will pay $_____________ = $___________ income (weekly/monthly/yearly) Page 30
  • 32. THE SOCIAL ENTERPRISE BUILDER www.socialtraders.com.au
  • 35. What makes them tick – Matt Noffs Gideon Shoes & Street University
  • 36. The social entrepreneur’s pledge • I am a social entrepreneur. • I am following a dream, pursuing an opportunity, taking charge of my own destiny. • I am bringing something of value to society, making a job for myself and for others, and creating wealth that benefits my family, my community, my country, my world. • I am one of a movement of millions of (social) entrepreneurs and innovators who made Australia great, and who will continue to keep our economy going … and growing and innovative. • I am what I am because many people have helped me along on this journey.
  • 38. The social entrepreneur’s pledge • I will tell my story, sharing my successes and failures, so that others taking the entrepreneurial path can learn. • I will strive to mentor an aspiring entrepreneur. • I will make my voice heard by those who make policy decisions that affect me and my business. • I will appreciate and celebrate my accomplishments, and the accomplishments of all my fellow social entrepreneurs. • I will give back to the society that helped me to be successful. • I will Build a Stronger Australia.
  • 40. Panel discussion • Joanne McNeill, Parramatta City Council (NSW) – Bringing strength thru concepts • Mark Daniels, Social Traders (VIC) – Building awareness • Matt Gideon, Street University & Gideon Shoes (NSW) – What makes a Social Enterprise tick
  • 41. Upcoming Development in Sydney Social Enterprises Sydney • Workshops • Mentoring • Peer2Peer Networks – Food & Food Service (Paddock to Plate) – Environmental -> reduce, re-use, recycle • Coaching • Pro Bono Legal Panel

Notas do Editor

  1. Customers are people or organisations who will buy your products or services. An enterprise cannot survive without customers, because it is through sales of goods and services that an enterprise generates most of its income. One of the most important things about business planning is to have an intimate understanding of your customer. In the following worksheet, identify your potential customers. Consider specific customer segments that you might want to target. Later, in the pre-feasibility study and business planning sections, you will use market research to test the hypotheses you have developed about your customers.
  2. All businesses face competition. Even if you do not have any direct competitors within your industry, you might want to think more broadly about businesses or organisations that are competing for your customers’ time, attention and money, such as those offering substitute goods and services. You may be the only cafe in town, but you still have to compete with cinemas, bars, cafes in neighbouring towns and other businesses for the discretionary income of your customers. They are not competitors if they are not competing for the same customers and the same dollars. Where to find your competitors: Start with the Yellow Pages or Yellowpages.com to identify local competitors. Conduct a web search on the product/service that you offer – you might discover regional or international competitors. If your customers are governments or institutions, you might also think about what else they spend money on. If your idea is for a retail business, visit some other locations or just take a walk down the street. Speak to your potential customers. They will be able to tell you a lot about what they buy now and who from
  3. Think of your total income as all the money that will be generated through sale of products and services, and from donations and grants. Your estimate of income from trading activity combines the total goods or hours of service you expect to sell and the price you think people are prepared to pay. Keep in mind that most people over-estimate the number of units they can sell at this stage, so being conservative is important. Ensuring that you are realistic could avoid difficulties down the track. Again, it is a good idea to check with similar businesses. Start by estimating the number of hours of service, or quantity of goods, you think you will be able to sell each week. Then multiply this by the number of weeks per year in which you think you will be able to sell that amount