This presentation was delivered as an introduction to social enterprise and business model generation at the University of Sheffield.
Information in the presentation was gathered from organisations across the social enterprise sector, including UnLtd, Regen School, The Social Investment Business, The Young Foundation and Venturesome.
The Business Model Canvas is based on the work of Alexander Osterwalder. See http://alexosterwalder.com/ for more information.
1. Nic Jones
Developing Social Enterprise
@NavigatorNic
navigatornic.co.uk
2. Developing Social Enterprise
Aim:
• To increase awareness and understanding of social enterprise business models and to
enable the design + implementation of new socially-minded project ideas.
You will learn:
• The 6 stages of project cycle management
• How to begin to use 2 tools of business model design
• How to practically apply these ideas
• How to communicate your business model
Assessment:
Based on 1 page business model for the assessment
3. Introduction
Identify Design Communicate
• Group Discussion: • Business Model • Pitching
Global & Local Definitions
Problems • Voting
• Structure (canvas)
• Problem Tree ideas • Communicating
generation • Prototyping /
Modelling
• Theory of Change
• Case studies
4.
5. Definition
“A social enterprise is a business with primarily social objectives whose surpluses
are principally reinvested for that purpose in the business or in the
community, rather than being driven by the need to maximise profit for
shareholders and owners.” (Social Enterprise: Strategy for
Success, DTI, July 2002)
“Social enterprises are businesses set up to tackle a social or environmental need.”
(SCEDU – 2009)
“Social enterprises are businesses which exist to address social or environmental
need.
Rather than maximising profit for shareholders or owners, profits are reinvested
into the community or back into the business. It’s this which makes social enterprise
the most exciting and inspiring business movement in the world.”
(SEL- 2009)
6. Profit
+
Traditional business
Social Enterprise
- + Impact
Traditional charity
-
7. Characteristics
• Can be distinguished from private businesses in the way they use their profits for social
gain
• Merge mission and money
• Operate across all employment sectors
• Are diverse – include local, mutual organisations (co-operatives) and large-scale
organisations
• Entrepreneurial, calculated risk-taking
• Bring excluded groups into the labour market
• Contribute to socially inclusive wealth creation (e.g. by retaining wealth)
• Enable individuals and communities to work towards regenerating their local
neighbourhoods
• Help to develop active citizenship
8. Sector merging
PUBLIC
PRIVATE
Becoming
Becoming
more
more
independent
social
VOLUNTARY
Becoming more
enterprising
11. The spectrum of SE
Charity owned Community Owned by Owned by Owned by
owned public sector Entrepreneur(s) private business
(as not for profit)
Trading arm of Co-ops Public services Actis Acts
Charity Development (foundations)
Trusts
13. Policy and importance
• Big Society
• Recent rapid emergence due to social and environmental need (50% growth since
2000) . Now over 62,000 in the UK.
• Combined turnover (£27bn). 5% of all businesses. 8.4 billion to economy. 1% GDP
• Most recent sector-led survey:
2011 Social Enterprise UK “Fightback Britain – A report on the State of
Social Enterprise Survey ” showed
• 14% of all social enterprises are start-ups, less than two years old –
more than three times the proportion of start ups among
mainstream small businesses
• Median annual turnover of social enterprises has grown from
£175,000 in the 2009 survey to £240,000
• 39% of all social enterprises work in the 20% of most deprived
communities in the UK compared to 13% of standard businesses
• 74% of social enterprises actively involve their beneficiaries in
decisions about their business
• 86% of leadership teams boast at least one female director, 27% of
leadership teams have directors from BME communities and 7%
have directors under the age of 24
14. Policy and further reading
• Social enterprise action plan Scaling new heights 2006
• Voluntary Action in the 21st Century 2008
• Financing Civil Society (Venturesome 2009)
• Big Society Not Big Government 2010
15. Case studies
International
Grameen bank
National
Worn Again
Local
Jamie’s Farm
19. AL
AL
AIS ysis
AIS llysis
N
PR SIG rk
P a s
s wo
AP er A a y
AP er An allysi
DE me is
Fra ys
ld An
ld An al Anal
ho al
ho al
ke tu
ke tu gic
Sta ntex
Sta ntex
Lo Risk
Co
Co
Project
IDENTIFICATION
Problem Tree &
Cycle
APPROVAL
Business Plan
Intelligence
na The
tio
n
g&
g&
mi & g in g
gi g
se ew na r n
na rin N
Ma TIO
TIO
a
N
Dis o
o
TIO nt
nit
vi
Mo
Mo TA
TA
Re
UA
AL EN
EN
EM
EM
EV
PL
PL
IM
IM
22. Theory of change
Mission, vision and the social change model
Mission Social Change Model Vision
“One day . . .”
Theory of
the Problem
“As an
organisation,
we . . .” Theory of Theory of
Action Change
What the The ‘engine of change’ that bridges The future state the
organisation intends mission and vision organization wants
to do; its reason Captures an organisation’s views about to create
for being the problems it is trying to solve, levers
necessary to cause desired changes
and the organisation’s unique model for
creating these changes
Note: Social Change Model framework adapted from David Kantor
Social Change Model framework adapted from David Kantor
23. Theory of change
1. Identify ultimate goal
What problem are we addressing?
Who are the intended beneficiaries?
What can we do to solve this part of the problem for our beneficiaries?
What does success look like?
2. Identify the direct pre-conditions to achieving this
goal? (Context)
What needs to happen in order for this goal to become a reality?
3. Think through assumptions associated with your goal
The pre-conditions – ie the reasons you think your approach will work.
4.Mapping and connecting outcomes
The purpose of the map is to tell a story
5. Indicators
24. Work in progress - For illustration only
SI’s leverage the SI’s derive real
The Hub Theory of Action Model networks value
Alternative
“People and ideas collide and realise imaginative
viewpoints and
The Hub provides multiple stimuli
access to the right
initiatives for a radically better world”
infrastructure for Better testing
innovation and prototyping
Networks are
• Space visible and
• Talent accessible
More diverse
• Knowledge skill-sets applied
A diverse • Investment to more ideas
range of Sis
Resources are Enhanced
attracted to
accessible Innovation
the Hub
Better market
definition /
Note: SI = Social
assessment
Innovator (collaborators,
Specialised skills customers, suppliers)
and knowledge are
made available
The Hub cultivates
the right culture for Enhanced
innovation credibility
Optimism,
• Welcoming, hospitable, convivial encouragement,
confidence
• Collaborative design
• Choosing right mix of SI’s
• Matchmaking
• Diversity
• Community and belonging
• Collective intelligence and memory
25. AL
AL
AIS ysis
AIS llysis
N
PR SIG rk
P a s
s wo
AP er A a y
AP er An allysi
DE me is
Fra ys
ld An
ld An al Anal
ho al
ho al
ke tu
ke tu gic
Sta ntex
Sta ntex
Lo Risk
Co
Co
Project
IDENTIFICATION
Problem Tree &
Cycle
APPROVAL
Business Plan
Intelligence
na The
tio
n
g&
g&
mi & g in g
gi g
se ew na r n
na rin N
Ma TIO
TIO
a
N
Dis o
o
TIO nt
nit
vi
Mo
Mo TA
TA
Re
UA
AL EN
EN
EM
EM
EV
PL
PL
IM
IM
26. Design
1. Mission – Your ‘value proposition’
2. Your entrepreneurial solution... – The Business Model
32. Grameen Bank
Fund
management
1:1
Risk
Management
Bangladesh
Affordable Loans Entrepreneurs
Government
Brand
Reputation Peer Lending
Platform
Fund management % interest
33. Worn Again
Design process
1:1 with
corporate
Manage
clients
manufacturing
Web
1. High profile
1. Corporate
Virgin Corporate
Waste
Clients
2. Consumer
Eurostar 2. Aware
products
consumer
Brand Name Uniform
People manufacturers
Web platform Web
Sourcing product line. Manufacturing Consultancy Product Sales
34. Old Fundraising Model
Oversee
activities
1:1
Marketing
Donor
Dependant on
charity – often Charity
CSR
Beneficiaries
Brand
Aid Agency /
Local partners
People
Direct Market. Cost of delivery Donations
35. Activities Relationship
Customer
Partnerships Value Proposition Segment /
Beneficiaries
Resources Distribution
Costs Revenue Stream
36. Apple
Partnerships Key Activities Core Offer Customer Relationships Customer Segment /
(Value Proposition) Beneficiaries
Key Resources Distribution Channels
(Route to market)
Costs Revenue
37.
38. Credits
This presentation was based on information gathered from
organisations across the social enterprise sector including:
UnLtd, The Social Investment Business, Regen School, The
Young Foundation and Venturesome.
The Business Model Canvas is inspired by the work of Alex
Osterwalder. Please see http://alexosterwalder.com/ for
more details