Module 5 social enterprise - a key integration and progression tool

Having come through Modules 1-3, you should be coming to this module enthused and inspired, bursting with ideas of how you can improve your Interface Community. In this module we will look at social entrepreneurship in more detail as a key integration and progression tool.

1. Module 5: SOCIAL ENTERPRISE - a key integration and progression tool "The European Commission support for the production of this publication does not constitute an endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsi­ble for any use which may be made of the information contained therein."

2. Who is this module for? This module can be used by anyone (person or organisation) who is passionate about doing something to change or address interface challenges in their communities, towns, cities or regions and want to harness the power of social enterprise to do so. About this Module Having come through Modules 1-3, you should be coming to this module enthused and inspired, bursting with ideas of how you can improve your Interface Community. In this module we will look at social entrepreneurship in more detail as a key integration and progression tool.

3. Learning Focus of Module 5 What is Social Enterprise? Learn from Inspiring Social Enterprises Planning a New Social Enterprise Getting started with Idea Generation Identify the Right Approach for your Community/Interface Area Business Models in Social Entrepreneurship Support for and Funding your Social Enterprise

4. Practical Learning Focus This module includes individual and group work exercises, the icon guide to same is …. Exercise Exercise Icon Group Discussions Written Exercise or Quiz Video Downloadable Resources for extra reading

5. Social Enterprise is one of the most powerful tools to contribute to social inclusion. Social inclusion relates to the ability, of an individual or group of individuals, to participate in the social and economic lives of their communities and to have their contributions acknowledged. It also involves access to tools - such as enterprise and education - that enable participation and a set of shared rights, values and responsibilities that bind people together in a cohesive society. The UK Department of Trade & Industry definition of social enterprise is: businesses with primarily social objectives whose surpluses are principally reinvested for that propose in the business or in the community, rather than being driven by the need to maximize profit for shareholders and owners " ” What is Social Enterprise ?

6. A Social Enterprise is a profit-making business set up to tackle a social or environmental need to and to retain and reinvest profits back into the cause which motivates it. A simple definition is the ‘ design and implementation of better ways of meeting social needs*.’ Typically strive for transformational improvements ,not incremental gains. Social Enterprises tend to innovate and experiment more than traditional models of business because they are usually designed to fill a gap in existing services that cannot or will not be delivered by the public and private sectors. They are often designed to reach socially excluded people by providing volunteer, training and employment opportunities. * definition used by Centre of Social Innovation in New Zealand.

7. A Social Enterprise is Socially run local businesses in a neighbourhood can: contribute to a sense of local identity help to develop the self-confidence of local people – very important in Interface Areas.

8. What is at the heart of Social Enterprise? Taking more time to define and redefine the problem – giving( and taking) space to think and explore all possibilities. Wider view of evidence – combining quantitative and qualitative research to give depth and rationale to key issues. Looking for solutions in AND beyond formal services - concentrating on meeting the needs identified in the research phase, whatever form that might take. Seeing users as contributors not problems - consulting users in the research phase and potentially involving them in the development of new solutions .

9. What is at the heart of Social Enterprise ? Societal Change is creating problems with the emergence of new or exacerbation of old divides that go beyond physical and psychological interfaces: Altered economic relationships Gap between winners and losers Economic decline generates adversities Digital divide New sources of labour displace old sources New ways of thinking can displace adherents of old ways  

10. The Social Business Model vs. Traditional Business Source: https://www.ericsson.com/en/networked-society/trends-and-insights/networked-society-insights/social-business?gclid=CMS5gobswtQCFdS4GwodeZQCxg TRADITIONAL BUSINESS MODEL SOCIAL BUSINESS MODEL Value Proposition Revenue Model Network Relations Social Impact Model Financial Sustainability Model Community Engagement

11. Why is it a Powerful Tool? Some key features of social enterprise are:- Social enterprise is about enterprise . It is a model of enterprise that focuses on delivering social returns using business principles and reinvests any surpluses it makes into furthering it social goals rather than its profits being claimed by any one individual or group of stakeholders Social enterprise is now outstripping conventional SMEs in terms of growth and resilience Social enterprise is attracting students and graduates to consider it as a viable path fuelled by both the rise of youth employment but also a growing social divide Social enterprise is about local heroes . They are grounded in the community, provide goods and services local people, they are run by people from the community.

12. Why is it a Powerful Tool? Social enterprise is about innovation . They identify social needs that are not adequately addressed (if at all) and devise innovative solutions. They often look at what is being delivered and devise better ways to meet the need. Social enterprise and innovation starts with people, rather than services. It starts by seeing the world through their eyes, recognising the resources and capacities they can offer, and also the nature of the needs, hopes and desires they have.

13. Where it starts? The pathway to social innovation begins with the desire to make things better. In order to improve things there has to be innovation . Innovation begins with consideration of how a problem is framed. Entrepreneurship can be fixated on finance and if it is absent, they can feel stuck. Whereas social innovation is innovative because it looks at the nature of the problem and its potential solution in different, new ways. Typically, it taps into new resources, it is often frugal, working with what people can bring to the table themselves. Although governments (especially UK) is investing more and more in social enterprise, it often emerges from ‘in between’ spaces – community champions, new partnerships, third sector and community organisations..

14. Opportunity for Social Enterprise of population SCOTLAND Being aware of social enterprise At a national level, we can learn from Scotland, a country that has embraced the social economy and now has a thriving social enterprise culture with 71% of the population being aware of social enterprise. There are over 3,000 social enterprises, most of them profitable, employing over 100,000 with a combined annual turnover of stg £3.1 billion! 71%

15. Opportunity for Social Enterprise in Ireland The social enterprise sector is significantly underdeveloped in Ireland at present. It is estimated that social enterprises in Ireland generate some €240 million in revenue, spend €230 million in Ireland and employ over 9,300 people directly and support a further 5,100 indirectly. €240 IN REVENUE SOCIAL ENTERPRISES IN IRELAND GENERATE MILLION €230 SPEND MILLION 9,300 EMPLOYED

16. Learn from Inspiring Social Enterprises

17. Inner City Enterprise (ICE), Dublin - Ireland Inner City Enterprise (ICE) is a not-for-profit charity established to advise and assist unemployed people in Dublin’s inner city to set up their own businesses or create their own self-employment. Over the last 6 years, ICE dealt with over 1,800 clients and established over 800 new businesses. ICE looks likely to assist a further 215 new start-ups in 2017. ICE provides a range of supports including: in depth, individual business advice and supports to both pre-enterprise and new startups . Financial supports - ICE provides financial support in the form of loan finance from €1,000 – €5,000 at 5% of interest, over a 3-year period to commercially viable new enterprises for the following: Capital Expenditure, Working Capital and Business Premises. ICE are also a recognised conduit for MicroFinance Ireland , who are providers of loan finance of between €1,000-€25,000.

18. EXERCISE 1: WATCH Inner City Enterprise VIDEO Refer to Module Learner Workbook. Inner City Enterprise (ICE), Dublin - Ireland “Not only are they able to build themselves but they are able to build a community around them.” https://www.youtube.com/watch?v=ES33YS7I_Ks

19. Case Study: Downpatrick Social Enterprise Hub The Social Enterprise Hub Programme is a project managed by Invest NI and Department for Communities. It is aimed at assisting aspiring entrepreneurs to explore and develop social business ideas . The services delivered within the hubs include the following: Opportunity for aspiring social entrepreneurs to hot desk or test trade out of the hub premises Meeting / training / conference room available for hub member’s use One to one meetings to assist participants in defining, exploring and developing their business ideas Delivery of Social Spark Sessions aimed at assisting attendees to further develop existing business ideas and generate new ideas through the use of design thinking approaches Organisation and delivery of workshops tailored to the participants needs which include sales and marketing, leadership and finance.

20. Case Study: Downpatrick Social Enterprise Hub One to one mentoring sessions with individuals / groups to assist them with product / service development, business planning, sourcing finance / funding, company set up, strategic planning Opportunity for participants to meet and hear from successful local social entrepreneurs Signposting and referral system to other sources of business / financial support Networking events to allow aspiring entrepreneurs to meet others and develop linkages Area of research interest: The hub is interested in new approaches and ideas with respect to running businesses with a social mission.

21. The Irish Prison Service The Irish Prison Service published ‘A NEW WAY FORWARD’ SOCIAL ENTERPRISE STRATEGY 2017-2019. Why? People with education and training, who are in work, are less likely to offend. In recognition of the positive impact that securing employment plays in reducing re-offending rates and creating safer communities Social enterprise’ initiatives are a way of increasing employment rates of people with criminal convictions. EXERCISE 2: Download and Review ‘A NEW WAY FORWARD’ Refer to Module Learner Workbook. www.irishprisons.ie/wp-content/uploads/documents_pdf/The-Dept-of-Justice-SE-strategy-Web.pdf

22. eDUNDALK - LOUTH, IRELAND According to Census figures, Dundalk has one of the largest African Populations in the Ireland. eDundalk is a Social Enterprise launched in 2014 with a vision to see African Diaspora represented at leadership positions across all sectors. Their aim is to promote employability, entrepreneurship, social inclusion, development education, integration and tourism.

23. eDUNDALK - challenges As a Diaspora, it can be difficult to access mainstream employment opportunities irrespective of your ‘imported’ qualifications and experience. According to ESIRI and Equality Authority in Irish Independent (2013). "Black Africans have the highest rate of unemployment and the lowest rate of employment; this group also reports the highest rates of discrimination both in the workplace and when looking for work." eDundalk is passionate about helping to build sustainable economic development for African Diaspora in Ireland.

24. Food Cloud – www.foodcloud.com Founded in 2013 FoodCloud is a social enterprise that connects businesses with surplus food to local charities and community groups in Ireland through a technology platform. It matches those with too much food with those who have too little. They believe in building a culture where everyone has the chance to celebrate good food and learn about its benefits & believe communities built on shared food can be rediscovered.

25. Food Cloud – www.foodcloud.com EXERCISE 3: WATCH Food cloud profile VIDEO Refer to Module Learner Workbook. Iseult Ward and Aoibheann O'Brien explain how FoodCloud and FoodCloud Hubs are working together to maximise the surplus food redistributed to charities in Ireland. Click to Watch: https://www.youtube.com/watch?v=QAh1j6OTA9s

26. Planning a new Social Enterprise - Getting started with an Idea Generation - Identify the Right Approach for your enterprise

27. What are your community’s unique identity and shared values? What are it’s pain points ? What problem needs to be solved? In Module 2, Effecting Change in your Community , our exercise looks at What you Want to Achieve . If you have not completed same as yet, it is now time! Answering the following questions will help you identify what you want to achieve in your Interface Community. What community problem/goal to be addressed? Specific behaviours of whom that need to change List the improvements in community-level outcomes that should result What would success would look like? How will the community be different if the intervention is successful? What will change by how much and by when? Getting Started with Idea Generation EXERCISE 4: Idea Generation – Planning Projects in your Community Refer to Module Learner Workbook.

28. At the heart of any successful business lies a problem – businesses solve problems for people. A social enterprise also has to look at the social problem that it is trying to address and ensure that the business idea can address both problems. Some social enterprises are started for similar reasons to traditional, commercial businesses – either a lack of supply, or unmet demand for a particular product or service. They respond to market opportunity. You can also identify openings by speaking to local residents or business people and considering local economic data. Turn to an industry expert or someone who has worked in the industry to identify gaps and opportunities as well as doing your own market analysis. For example – no shop in your community ? Idea Generation

29. Business Models in Social Entrepreneurship Some of the most common frameworks we see successful social enterprises using are: Cross Compensation - one groups of customers pays for the service. Profits from this are used to subsidize the service for another, underserved group. Fee for Service - Beneficiaries pay directly for the good or services provided by the social enterprise. Employment & skills training - The core purpose is to provide wages, skills development, and job training to the beneficiaries: the employees. Market Intermediary - The social enterprise acts as an intermediary, or distributor, to an expanded market.  The beneficiaries are the suppliers of the product and/or service that is being distributed to an international market.

30. Business Models in Social Entrepreneurship Market Connector - The social enterprise facilitates trade relationships between beneficiaries and new markets. Independent supporter - The social enterprise delivers a product or service to an external market that is separate from the beneficiary and social impact generated. Funds are used to support social programmes to the beneficiary. Cooperative - A for profit or non - profit business that is owned by its members who also use its services, providing virtually any type of goods or services . But deciding which business model would work best for your circumstances is a challenge.

31. 4 Social Enterprise Ideas IDEA 1: Establish a Community Shop (fee for service business model) Create a food market that sells food to low income communities at a discounted price. The business model could work on the basis that discounted food is donated (or purchased very cheaply) from food suppliers and other supermarkets, who cannot sell the food themselves for a variety of reasons such as approaching expiry dates, dented cans, and product mislabelling. In the UK, The Company Shop stops good food going to waste. Founded by John Marren over 40 years ago, they are now the UK’s largest redistributor of surplus products.  Visit: https://www.companyshop.co.uk/

32. Click to watch: https://youtu.be/pV0vDqh-6CQ EXERCISE 5 : WATCH THE COMMUNITY SHOP VIDEO Refer to Module Learner Workbook. The Company Shop – Case Study

33. We love how they share their impact. Check out https://www.companyshop.co.uk/media/2563/community-shop-impact-report-digital.pdf

34. 4 Social Enterprise Ideas IDEA 2: Establish a Socially Conscious Online Marketplace (Market Connector business model) Help underserved artisans sell their products to the world by building a platform that makes it easy for them. Artisans can either manage their online store directly, or the platform can act merely as a listing service that connects the artisans face-to-face with buyers. Revenue is created by either charging listing fees directly to the artisan, via a commission on goods sold, or built-in as a premium fee to the buyer. Profit generated can be used to fund social services that directly affect the artisan communities.

35. TOMS Marketplace gives other social entrepreneurs a platform to help them succeed. Click to watch: https://www.youtube.com/watch?v=Q95SQlS9x2o EXERCISE 6: TOMS MARKETPLACE VIDEO Refer to Module Learner Workbook. Toms Marketplace – Case Study

36. 4 Social Enterprise Ideas IDEA 3: Food for Philanthropy (Independent support business model) Create a food company that provides an already needed/wanted product and use the profits to support philanthropic work. The company is easily scalable and can focus on just one product line/charity, or can be easily scaled to provide multiple food products and support a variety of charities.

37. 4 Social Enterprise Ideas Food for Philanthropy (Independent support business model) Find out more about Newman’s Own: www.newmansown.com/food/ & http://newmansownfoundation.org/ “ What could be better than to hold your hand out to people who are less fortunate than you are?” - Paul Newman Mission: Newman’s Own Foundation uses the power of giving to help transform lives and nourish the common good. “100% of Profits to Charity” has been running for close to 35 years, and as of May 2017, has donated over $490 million to thousands of deserving organizations around the world.

38. 4 Social Enterprise Ideas Food for Philanthropy (Independent support business model) Watch documentary: https://www.youtube.com/watch?v=V8o-TRbFuwM&t=631s EXERCISE 7: Give It All Away: Newman's Own Recipe for Success Documentary Refer to Module Learner Workbook.

39. 4 Social Enterprise Ideas 4) Barnsley Community Build ( Employment & skills training business model) Barnsley Community Build delivers training and employment in the construction industry to those at risk or unlikely to achieve anything meaningful without support, including young people not in work or education http://www.bcbtraining.co.uk/

40. More Inspiration: SPITALFIELDS COMMUNITY , LONDON Lying in the heart of the East End, Spitalifields is an area known for its spirit and strong sense of community. Historically, it has played host to a transient community – primarily for new immigrants. I t celebrates and embraces cultural diversity and as a result it has evolved into one of London’s favourite and most vibrant areas for creative entrepreneur s .

41. Rich Mix, Community Arts Centre, Spitalfields Rich Mix is a charity providing access to culture for all in East London RICH MIX, IN SPITALFIELDS, EAST LONDON, with its history as an area of settlement for groups new to Britain, is a hub for real artists from a diverse array of countries performance spaces where we work with both emerging and established artists, and support them to deliver and develop their artistic practice. Rich Mix aims is to be a place where the communities of the world, who are the citizens of East London and beyond, can come together to experience and make world class art and feel that it’s a place where they belong. We are committed to delivering excellent art to increasing and increasingly diverse audiences.

42. Learn about who Rich Mix collaborate and work with Learn about the facilities they provide and their creative hub tenants Learn how Rich Mix are attracting partners and support Rich Mix website: www.richmix.org.uk EXERCISE 8: Explore the Rich Mix Case Study in further detail Refer to Module Learner Workbook.

43. Support for and Funding your Social Enterprise Module 2 goes into significant detail on How to Source Funding to Make a Difference and Accessing Supports – here are some supports specific to social enterprise.

44. Help to get started: Link with a national Social Enterprise network For example - Social Enterprise Ireland Network is the largest and inclusive knowledge network for Social Enterprises in Ireland. They help social enterprises, social entrepreneurs and social innovators in getting their idea off the ground and providing the supports to grow. Their aim is to: Be an open and inclusive network for social enterprise social entrepreneurs and social innovators Provide and direct people to supports and training Help shape public policy Provide visibility and a channel for telling the stories of each enterprise, innovator, and entrepreneur A safe space for developing social enterprises, entrepreneurs and innovators http://www.socent.ie/

45. Social Innovation Fund Ireland provides growth capital and support to the best social innovations in Ireland, helping them to scale and maximise their impact .  Their assessment guide is interesting… What SOLUTION do you have to a CRITICAL SOCIAL ISSUE? INNOVATION – How is it different/better than everything else out there ? MEASURABLE IMPACT – What can you show & describe? GROWTH – Is it ready to grow? Are you willing to grow it to other communities? What would it take? Could it create JOBS ? How could it be SUSTAINABLE ? Social Innovation Fund - Ireland http://www.socialinnovation.ie/

46. Example funding from Social Innovation Fund, Ireland Animate is a €220,000 fund that provides grants and supports to early stage projects or organisations that have come up with clever ideas to address health and social issues in their community. In 2017 the  Animate  Fund has two elements, the first will seek out early stage innovations that have smart responses to general community issues such as poverty, educational disadvantage etc. The second element will have a specific focus on community health with the new Healthy Community Awards. WHAT KIND OF PROJECT IS THE FUND LOOKING FOR? Projects that impact upon the lives of their participants & their local communities. Applicants for the Healthy Community Awards should be focused on improving  Health outcomes (including, Physical Health, Mental Health,  Addiction etc) http://www.socialinnovation.ie/animate-2017/

47. Community Finance Ireland Community Finance (Ireland), is a Charity which provides loans exclusively to other third sector organisations such as community groups, charities, sports clubs and social enterprises in the Republic of Ireland. Since 2001, as part of the wider UCIT Group, we’ve committed in excess of €70 million to over 360 organisations across the island of Ireland. The map right, shows their “Impact Map” of the projects they have supported across the country: click map to view projects in more detail. https://www.communityfinance.ie/

48. Social Enterprise Grant Scheme – Pilot Scheme, Dublin, Ireland In Dublin city, an Social Enterprise Grant Scheme being piloted by Inner City Enterprise (ICE), and drawn down under the Local Enterprise Office (LEO), Dublin is quickly becoming a best practice approach. Each year the grant scheme has €50,000 at its disposal and is being set up to provide a small number of flexible grants for Social Enterprises, either at start-up or development phase. This pilot scheme is proof of difference and power that good collaboration can effect in local communities.