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SOCIALENTERPRISEAOTEAROAINSIGHTSANDOPPORTUNITIES
December2015
“Tekaiaterangaira,hekōrero.
Whatisthefoodofchiefs,itisdialogue,hekōrero.’’
PaperpreparedbyAnnetteCulpan
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BACKGROUND
Earlylastyear,IvisitedIndia,tolookatsocialenterpriseorganisationsandintermediaries.The
experiencewasinspiringandpromptedreflection.HowmightIbringmyuniqueexperience,
skillsandnetworkstosupportsocialenterpriseinAotearoa?Thisquestioningwastheseedfor
thispaper,whichisanindependentthinkpieceexploringthepotentialofsocialenterprisein
NewZealand.
Iaminterestedinsustainableapproachestotackletheissuesofourtime-leveragingthe
wisdomandvaluesofindigenousmodelsandothernewervehicles.Socialenterprisesutilise
businessmodelsandtoolstodeliversocialorenvironmentalimpact.Ithinkofsocialenterprise
as‘businessforgood’.Thevehicleisamoresustainablealternativetotraditionalcharitable
approaches,whicharetypicallydependentongrantincome.
WearefacingsomemassiveissuesgloballyandinourbeautifulhomeofAotearoa.Issuessuch
aschildpoverty,inequalityandclimatechange.Ifwearetoseeashift-andwemustseea
shift–thenwemustbehavedifferently.Moresustainableapproachestotackleoursignificant
challengesmustbeconsidered,investedinandimplemented.Weneedtobebraveandtake
action.Thatmeansbringinginthebestofwhatiscurrentlyworkingandtryingsomenew
approaches.Beingokaywithfailingsomeofthetime.Capturinglearningalongtheway.
Celebratingsuccess.Andmostimportantlypushingforwardforsystemicchange.
Ibelieveintherichnessofbringingtogetherdiversemindsandseeingwhatweavestogether.
Betweenmid2014andearly2015,Iinterviewed25leadersnationallyacrossphilanthropy,
socialenterprise,intermediariesandgovernment.IspokewithCEO’sofsocialenterprises,
changemakers,leadersinphilanthropyandintermediaryorganisations(capacitybuildersand
financiers).TheseinterviewsexploredthecurrentstateofsocialenterpriseinAotearoa;
strengths;responsefromtraditionalbusiness;acceptanceoftheKiwipsyche;andwhatmakes
thecontextinAotearoaunique.Further,theinterviewsexploredtheopportunitiesto
strengthensocialenterpriseinthiscountry;theuntappedpotentialandrealmofpossibility;
risksandthreats;wheresupportexists;gapsinsupport;andtheinvestmentopportunity.
Theinsightsthatemergedfromtheseinterviewsarerichandreflecttheindividualand
collectivewisdomofthoseinterviewedandtheuniquecontexthere.Iamgratefultoevery
oneoftheleadersIspokewith.EveryoneIinterviewedwasthoughtfulandgenerous.
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Ineachsectionofthispaper,themostdominantthemeswiththehighestnumberofmentions
arepresentedfirst.Basedontheinsightsfromthispaper,Ihavedevelopedaseriesof
recommendations.Theserecommendationsareastartingpointandmayassistinpositioning
thesocialenterprisesectortomorestronglythriveinourbeautifulcountryofAotearoa.
Kitearohametewhakawhetai,
Withloveandthanks,
AnnetteCulpan
https://twitter.com/AnnetteCulpan1
annetteculpan.wordpress.com
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ACKNOWLEDGEMENTS
Thankyoutothe25leaderswhogavetheirtimegenerouslythroughtheinterviewprocessand
sharedtheirdiverseperspectives,insightsandwisdom.
AfraAbdeen,changemaker
AlexHannant,CEOĀkinaFoundation
AlisonTaylor,HeadoftheCentreforSocialImpact
AmandaJudd,DirectorandDesignerLovenotes
BillyMatheson,PrincipleAdvisorofSocialEntrepreneurship,AucklandCouncil1
DebbieDavisandNgahauDavis,TeamLeaders,TeManaONgapuhiKowhaoRau
ElizabethGoodwin,ManagerSKIPandDirectorofLifehack,MinistryofSocialDevelopment
GlenSaunders,ExecutiveChairPrometheus2
GuyRyan,CEOInspiringStoriesTrust,FestivalfortheFuture,theFutureFund
HannahSmith,MASTERSinSocialEntrepreneurship
JenniferGill,CEOFoundationNorth3
JohnMcCarthy,ManagerTindallFoundation
JoshuaVial,FounderofEnspiralFoundation
JulietArnott,FoundationandDirectorRekindle
KateFrykberg,ChairofPhilanthropyNewZealand
LaniEvans,ChairofThank-youCharitableTrustandManagerVodafoneNewZealand
Foundation
LizGibbs,CEOPhilanthropyNewZealand
LouiseMarra,Director,SpiritedLeadership
1BillyMathesonhasmovedonfromAucklandCouncil2Betweeninterviewsandfinaldraftingofthispaper,PrometheusFinancehasgoneintoreceivership3 ASBCommunityTrusthasrebrandedasFoundationNorth
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MalcolmCameron,founderMalcamTrust
MikeFiszer,AssociateProVice-ChancellorExecutiveEducationandEnterprise,Massey
University
ReneaMackie,Co-CreatoroftheKohknowcoInnovationFrameworkandandFacilitatorAo
TawhitiUnlimitedDiscoverySchool
RickyHoughton,CEOHeKorowaiTrust
SilviaZuur,CEOofChalkleandDirectorofEnspiralFoundation
TrevorGray,SpecialProjectsManagerTindallFoundation
SpecialacknowledgementtoAlisonSykoraforgenerouslysub-editingthisthinkpiece,Ben
Birksforhisinsightful(andstrategic)peerreviewandDavidCarringtonforhisinputregarding
SocialImpactInvesting.ThankyoutoHaimonaWaititiforreviewingfromaMāoriperspective-
Ialwayslearnheapsfromyou.Thankyoutoalltheotherswhokindlyreviewedandshared
theirwisdomKateFrykberg,TrevorGray,JoelUmaliandJamieNewth.ThankyoutoJohn
Maddenforadviceonlay-outandallthecrewwhocontributedbeautiful(!)images.
AcknowledgementtotheVodafoneNewZealandFoundation,whocontributedpaidvolunteer
leaveforthepreparationofaspectsofthispaper(howcoolisthat,thatanorganisationvalues
volunteeringsomuch,theypayyouforit!).ThankyoutoRosieWalfordandRichardAlderson
wholedmyJourneytoIndiawhichinadvertentlyseededtheconceptforthispaperandto
SteveFergussonmyencouragingKiwijourneybuddy(andinspiringbusinessmind).Thankyou
tomyfamilyandeveryonewhohasencouragedmealongtheway-especiallymymumand
dad–foryoursteadfastencouragementandbeingmyfirstteachersonsocialjustice.
Finally,acknowledgementtoallofthesocialenterprisepioneersinthiscountry,whohaveled
thewayandcarvedauniquepathforAotearoa.
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CONTENTS
Definitionsandlanguage P7
EXECUTIVESUMMARY P9
1.ThecurrentstateofsocialenterpriseinAotearoa P11
2.StrengthsofsocialenterpriseinAotearoa P18
3.ResponsivenessoftraditionalNewZealandbusiness P23
4.NewZealandcultureandpsyche P28
5.WhatisuniqueaboutsocialenterpriseinAotearoa P30
6.Learningareasandopportunitiestostrengthen P33
7.Untappedpotentialforgreatestimpact P40
8.Risksandthreats P47
9.Pastsupport P54
10.Currentsupport P59
11.Gapsinsupport P63
12.Thefundingandinvestmentopportunity P68
13.Particularareasorprojectstoconsiderforfunding P73
Insightsandrecommendations P80
Abouttheauthor P84
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DEFINITIONSANDLANGUAGEI’veincludedafewdefinitionsbelowthatmaybehelfpulasyou
readthispaper(notetherearelotsofdefinitionsfortheseterms,
I’vejustincludedsomethatIfeelareclearandsimple).
Socialenterprise
SocialEnterpriseUKdescribesocialenterpriseas,‘businessesthatarechangingtheworldfor
thebetter’.Andexplain,‘Socialenterprisesarebusinessesthattradetotacklesocialproblems,
improvecommunities,people’slifechances,ortheenvironment.Theymaketheirmoney
fromsellinggoodsandservicesintheopenmarket,buttheyreinvesttheirprofitsbackintothe
businessorthelocalcommunity.Andsowhentheyprofit,societyprofits’.
SeetheSocialEnterpriseUKwebsiteformore.Ilikethatthissitekeepsthingssimple.
SocialImpactInvesting
DavidCarrington(UKbasedsocialimpactinvestmentleader)describedSocialImpactInvesting
(SII)onhisrecenttriptoAotearoa,‘WhatdoImeanwhenIusethetermSocialImpact
Investing?…Forme,it’swhatitsaysonthetin:theinvestmentoffundsinanenterprisewith
thedeliberateintentionthatthosefundswillhelptosecureaclear,positiveandmeasurable
socialoutcome,apublicbenefit,whilealsogeneratingafinancialreturntotheinvestor,
enablingthefundstoberecycledandusedagaintosupportfurtheractivities.’
KateFrykberginher2012paper,‘SocialEnterprise&SocialFinanceinAotearoaNewZealand’
talksaboutaspectrumoffinancialtoolsincludingresponsibleinvestment,missionrelated
equitiesandbonds,socialloans,grantstosocialenterprisesandtraditionalgrants.
Socialprocurement
SocialTraders(Australia)explainsocialprocurementontheirwebsite,‘Buyingfromasocial
enterpriseisoneoftheeasiestandmosteffectivewaysofgeneratingsocialvaluethatcan
helpbreakthecycleofdisadvantageandstrengthens…communities.Thestrategicpowerof
socialprocurementmeansthateverytimegoodsandservicesareboughtfromasocial
enterprisethepotentialforpositivesocialchangeisalsocreated.’Theyalso‘connectbuyers
fromcorporate,governmentandconsumerstosocialenterprises’.
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Ecosystem
Ecosystemisatermusedthroughoutthispaper.TheStandfordSocialInnovationReview
explaintheimportanceofecosystemapproachesandunderstandingthebroadenvironment
forsocialentrepreneursinthisarticle‘CultivateYourEcosystem’.
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EXECUTIVESUMMARY
ThecurrentstateofsocialenterpriseinAoteraoawasdescribedasatimeofincreasing
interest;earlystageandlackinginfrastructure;governmenthavingakeyroletoplayinsetting
theconditions;therewasseentobean‘oldguard’and‘newguard’;andawarenessofsocial
enterpriseislimited.
StrengthsofthesectorweredescribedasMāorisocialenterprise(seenasalignedtoMāori
valuesandthecriticalroleofkaitiaki/guardians);Kiwiingenuity;smallsizeenabling
connectionandAotearoahavingvariousexamplesofsuccessfulsocialenterprises.
Thoseinterviewedwereaskedhowresponsive/understandingtraditionalNewZealand
businesswastosocialenterprise.Therewasasensefrommanythatunderstandingand
supportofsocialenterprisefromlocalbusiness(includingcorporatesandSME’s)wasminimal,
somefeltthatshiftswerebeginningandothersgaveexampleswhereasupportiverelationship
existed.Intervieweestalkedaboutthedichotomousrelationshipbetweenbeingseenas
‘either’charity‘or’business-withlittleunderstandingofthespacesinbetweensuchas
cooperatives(astrengthinNZ),socialpurposeenterprisesandsociallyresponsiblebusinesses.
IntervieweeswereaskediftheNewZealandcultureandpsycheisacceptingofsocial
enterprise.MāorivaluesandenterprisewasseenasalignedtosocialenterpriseandKiwi’s
generallyweredescribedasnaturallyentrepreneurial.Somerespondentscommentedona
cultureoftallpoppiesthatisunhelpfulandcandetractfromsuccess.Further,oldmodelsand
mindsetswereseenasholdingsocialenterprisebackinthiscountry.
UniqueaspectsofsocialenterpriseinAotearoaweredescribedasthesectorbeing
undevelopedandhavinghighpotential;manyintervieweescitedMāoricultureandtheMāori
economyasauniqueaspectaswasthesmallsizeandconnectednessofAotearoa.
OpportunitiestostrengthensocialenterpriseinAotearoaincludedaccesstofundingand
socialimpactinvesting,capacitybuildingandinvestinglongtermintheecosystem,celebrating
localsuccessstoriestoincreaseawarenessandtheimportanceofbuildingbusinessknowledge
andcapabilityifsocialenterprisesaretobesuccessful.Afurtheropportunitywithsignificant
potentialwassocialprocurement.
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Theuntappedpotentialforgreatestimpactwasdescribedasthepotentialofcommunity
ownedassetsandsupportinglocalinitiatives;youthasasignificantforcetotackleissues;the
potentialintheworldofTeAoMāori;potentialforincreasedimpactonkeyissuesfacing
Aotearoa;crossdisciplinaryapproachesandcollaborationwithbusiness.
RisksandthreatsfacingsocialenterpriseinAotearoaidentifiedwerethelackofanecosystem
andlongtermthinking;lackofinvestment;riskadversityandlowfailuretolerance;a
perceptionthatsocialenterpriseis‘easy’;andalackofbusinessskills.
PastsupportforsocialenterpriseinAotearoawasdescribedascomingfromphilanthropy
(TindallFoundationreceivemostmentions),somesupportcomingfromindividuals,
intermediaryorganisations(suchasEnspiralandĀkina)andviagovernment.Currentsupports
weredescribedasprimarilythroughintermediaryorganisations;withsomesupportthrough
governmentandphilanthropy.
Supportgapsidentifiedwerefundingandaccesstocapital;capabilityandsupporttogrowthis;
limitedsupportiveinfrastructure;lackofawareness;andbusinessprocurement.Insupportof
socialenterprise,funderswereencouragedtowardsincreasinglyinnovativeandflexiblestyles
ofworking;lookingatsocialimpactinvestmentapproaches(suchassocialloans)and
supportingcapabilityandsectordevelopment.
Investinginthesupportiveinfrastructurewasidentifiedasapriorityareaandsignificant
opportunitywasseenininvestinginlocalprojects,communitydevelopmentandyouth.
Finally,aseriesofinsightsandrecommendationsaredocumentedbasedonthethemes
documentedinthispaper.Opportunityexistsacrossarangeofareas.
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1.ThecurrentstateofsocialenterpriseinAotearoaThoseinterviewedwereaskedtodescribethecurrentstateof
socialenterpriseinAotearoa.Intervieweesdescribedthe
currentstateasatimeofincreasinginterestandinvestment;
beingearlystageindevelopment(laggingbehindother
marketswashighlightedasriskingNewZealand’s
competitiveness)andlackinginfrastructuresupport;governmentwereseenashavingan
importantroleinsettingtheconditionstoenablesocialenterprisetothrive;therewasseento
bean‘oldguard’and‘newguard’;definitionsregardingsocialenterprisevariedandawareness
ofwhatsocialenterpriseiswaslow.
Interest,legitimacyandinvestmentisontherisebutstilla‘waytogo’
Therewasacknowledgementfrommanyinterviewedthatitisatimeofpotencyand
increasinginterestinsocialenterprise;atimeofreorganisation;andwhileinvestmentisonthe
risethereisa‘waytogo.’
‘Theinterestismuchhighernowthanithasbeenoverthelastcoupleofyears.’
‘Kindofpotent.Anunrealisedpotency…it’slikeweareonacuspthatcouldgiveway.It’s
buildingup…Iseethesystemtalkingaboutitalot.BythesystemImeanthegovernment
system…‘
‘NowwehaveĀkina,PrometheusandothersliketheGuyRyan’sanditfeelslikeweareata
pointofre-organisationwhichisgood.’
‘Therearelotsofreallygoodconversationaboutithappeningatthemoment.Itisslowlybeing
recognisedasarealformofbusiness.Thoseconversationsarelendinglegitimacytothework
thatpeoplearedoing.’
‘…re-emergenceisthemainthingthatcomestomind.Itfeelssimilartothetimeinthe90’s
whenIwasinvolvedinasocialenterpriseinthefarnorth,settingitup,therewasaglobal
movement,peoplecomingfromoverseas...Nowitfeelslikeacohortofyoungpeoplecoming
throughwhojustwanttodogood…’
‘Weseemtohaveaclimatethatisgrowingamongsttheentrepreneurialworld,theclimateis
right.’
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‘I’dsaythatitwasanemergentsector…’
‘Inthelast18monthstherehasbeenasignificantincreaseininvestmentbutwehaveawayto
go.’
Earlystageandinfrastructuredevelopment
Intervieweesdescribedthesocialenterprisesectorhereasearlystageandlackingan
ecosystem,nationalbody,infrastructure,investmentandacademicsupport.Further,itwas
highlightedthatifNewZealandlagsbehindothercountriesthatwillreducecompetitiveness.
‘Weareearlystageandwedon’thaveallthepiecesoftheeco-systeminplace.’
‘InNewZealandwearemissingacoherentnationalbodyoragotoplace.Alsoabeliefinthe
socialenterprisesectorforfundingtobeflowingin.’
‘Thereisanabsenceofstructuredsupportorinfrastructure…alotcouldchangequitequickly
withtherightkindofinputsandsupports.’
‘…thereisn’treallytheinfrastructureandtheinvestmentinfrastructure…’
‘Therearealotofpeoplecomingupwithsocialenterpriseideas,buttheyarefindingit
difficulttomonetisethings.Findingitdifficulttomakethemfinanciallysustainable.’
‘….thereisalotofgroundlevelactivity.Lotsofinterestingpeopledoinginterestingthings,
butstrugglingtogetpastthoseearlyprototypingphases.’
‘Wearemissingsomecriticalelements;alackofacademicdevelopmentinthisspace…’
‘Ifoursocialenterpriselacksbehindeveryoneelse,itreducesourcompetitiveness.Ifwedon’t
haveworldleadingsocialenterprisesthenwewon’thaveworldleadingbusinesses.That
wouldputoureconomicfutureinjeopardy.’
Theroleofgovernment
Intervieweessawgovernmentashavinganimportantroleinsettingtheconditionstoenable
socialenterprisetothriveinAotearoa.Opportunitiesincludereviewingthelegalformofsocial
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enterprise;provisionofincentivesincludingtaxbreaks(lookingtointernationalmarketsfor
guidance);andincreasinginvestment.OneintervieweecommentedthattheMinistryof
Business,InnovationandEmploymentshouldhavealeadrole.
‘Ifgovernmentisseriousaboutsocialenterprisetheyshouldbeputtingthingsinplacetohelp
it,alongthelinesofScotland,CanadaandtheUnitedKingdom.Specialistlegalstructuresfor
example.Thecurrentgovernmentlookslikeitwantssocialenterprisetoflourishsoitcanpass
servicesontothem,butitneedstoallowthoseenterprisestofitintoaspacethatbestsuits
themratherthansqueezethemintoastructurethatdoesn’twork.Ireckonthecurrentlegal
structuresheredonotsupportsocialenterprise.Therearebetterstructuresoverseasthatwe
couldandshouldhaveinNewZealand.’
‘Scotlandhasalotmoreofanamenablepolicyframeworkfromgovernment,wehaveawayto
gohere.InScotlandthereareincentives.’
‘ThereisnolegalstructureforsocialenterprisehereinNewZealand,thatisanopportunityto
strengthen.Thereareabunchofuswhoallidentifyassocialenterprisesbutwearesetup
legallyasbusinesses.’
‘Fromagovernmentperspectiveweareprettyfarbehindtherestoftheworld.Thestructural
understandingandsupportinNewZealandisverylimited,forexamplethereisnolegalform
forsocialenterprise.Therearepeopleonthegroundwhoaredoingstuff,butifthestructures
werethere,thatwouldmaketheirlivessomucheasier.’
‘…alackofgovernmentinvestment(we’veseenchangerecently)…‘
‘Therearenotaxbreaks.’
‘ItwastheMinisterfortheCommunitywhocameoutinsupportofsocialenterprise;itshould
havereallybeentheMinistryofBusiness(MB).’
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Ataleoftwoperspectives
SocialenterpriseinAotearoawasdescribedashavingan‘oldguard’(longstandingwell
establishedsocialenterprisesandsectorchampions)and‘newguard’(newstartupsandmore
recentlyestablishedsupportingintermediaryorganisations).Whilesomesocialenterprisesin
NewZealandhavebeenoperatingsuccessfullyfordecades,thereisanewwaveofsocial
enterprises(inparticulartechfocused)andthesectorasawholeisatanearlyphaseinits
development.Further,oneintervieweecommentedthattherewerethreecommunitiesnot
necessarilyseeingeachother–thestartupcommunity,enterprisingarmsofnotforprofits
andMāorisocialenterprise.
‘…therearelotsoflayersright,socialenterprisesthathavebeengoingfor50or100yearsand
arewellestablished.Thentherearethoseinthestart-upphaseparticularlyintechrelated
fields(likeus).’
‘Thereistheoldguard…newguardthing(Enspiraletc).’
‘…inthissocialenterprisespace,wearetalkingaboutitasifitisanewdiscovery.Thereare
peopleouttherewhohavebeendoingthisforyearsandyearsandyears,andthey’venever
calleditthat…‘
‘Itfeelsinsomewayslikewearequitenearthebeginning,intermsofthepotentialimpact
beingnurturedandgrowntoitsfullpotential.Butontheotherhandtherearesomeexisting
socialenterprisesthathavebeenaroundalongtime,thataredoingwonderfulthings.…
SomethinglikeKilmarnockEnterprisesinChristchurchorCargillEnterprisesinDunedin-that
supportmainlypeoplewithintellectualimpairmenttoworkinrewardingandhighqualitywork
experiences.’
‘Therearethreedifferentcommunitiesthatarenotnecessarilyseeingeachother.Thereisthe
startupcommunity(Enspiral,Ākina,etc)mostofthoseareentrepreneurialandhaveagood
socialconscience.Thereare…notforprofitssuchastheSalvationArmyopshops…comingat
itfromanotherway.ThenthereisthethirdlenswhichisMāorienterprise.Youcouldprobably
sayMāorienterpriseisusuallysocialenterpriseasitusuallyhasthegoodoftheiwi-current
generationsandfuturegenerations-atitsheart.WhatyoucanseeinsomethinglikeWhale
WatchisaverysmartenterprisewhichhasentirelyturnedthecommunityofKaikoura
around.’
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CargillEnterprisesisthetradingarmoftheDisabledCitizensSocietyinOtago
‘…weareaveryearlystage,thatmainlytiestothelackofsignificantinvestmentincreatingthe
sector,whichhashappenedinmostotherwesterndevelopednations.Theproblemwiththat
storyiswealsohavequitealongandrichhistoryofsocialentrepreneurs…Thosearethetwo
storiestotellandtheyarealittlebitcontradictory.’
Awarenessandunderstandingofsocialenterpriseislimited
Anumberofpeopleinterviewedcommentedonthelowawarenessandlackofvisibilityof
socialenterprisewithinAotearoa(onepersonfeltAotearoamaybeonacuspof
understanding).Inaddition,therearedifferingviewsregardingdefinitionandsomesocial
enterprisesdonotrefertothemselvesassuch.Raisingawarenesswasidentifiedasapriority.
‘Thereisalotofstuffhappeningonthegroundthatisnotseen.Howdowemakeitmore
visible?’
‘Weareatthecuspofarobustunderstandingofsocialenterprisehereandthatitisdifferent
totraditionalcharityandtraditionalbusiness.’
‘Therearemanythingsthatcallthemselvessocialenterprisesthatarenot.Ifyouwanttoknow
ifsomethingisasocialenterprise,talktoabusinesspersonandtheywillthinkitisacharity,
talktoacharityandtheywillthinkitisabusiness.’
‘Socialenterprisedependsonwhoyoutalkto.Ithasalotofdifferentstrands,people’sviews
onitvaryalot.Ifyouweretoaskmewhatitmeans,essentiallyitmeansoursolutionsaren’t
goingtocomeoutofWellingtonorthroughbenefits.’
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‘Isometimesquestionifcharitiesdevelopingarevenuestreamandbusinessesdonatingfor
socialgoodissocialenterprise.Formetheanswerismoredeep-rooted.Whywasthebusiness
founded?Chalklewasfoundedduetosocialimpact.Formeasocialenterpriseisfounded
uponsocialimpactvalues.’
Fire-allclassesusingchalkle.com
‘Thereisacontinuum.Thereisadifferencebetweenasocialenterpriseandabusinessthat
doescorporatesocialresponsibility(andabusinessthatdoesn’t).Iseesomedebatebetween
socialenterpriseandsocialbusiness.Maybethereisroomtomoveallbusinesses,towhere
theyallhavesocialgoodaspartoftheiraimsandobjectives.’
‘Northlandisoneofthoseareasthatishighdeprivation.Thewholeideaofsocialenterprise
isn’tnecessarilythelanguage,it’sdifficulttoworkwithifyouusethatterm.Alotofthingswe
didwerearoundgenerosity,tosurvive,andthat’scultural,mahitahi.Wecomefromthe
perspectivenotjustofwhereweliveinourlocation.It’sbeenaroundworkingwithwhowe
know,creatingthenetworks,creatingtherelationships.Wewouldn’tusethetermsocial
entrepreneurs,thatisthekorero,butweworkfromabaseofcommunitybasedneed…’
‘IfIwastosetapriority,Iwouldmakeitthateveryoneknewwhatsocialentrepreneurship
was.Theneveryonewouldhaveastartingpoint.Youwouldseetherealpotentialandwhat
canbeachievedhereinAotearoa.’
‘Theideahastobesocialisedthrougheducationandawarenessraising.’
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Lessdevelopedthanoverseas
SocialenterpriseherewasdescribedaslessdevelopedthanothercountriessuchasScotland
andIreland.
‘Socialenterprisehereisnotaswelldevelopedasinmanyplacesoverseas…intermsofwhat
youseesayintheUK,weareabout15yearsbehind.’
‘…comparedtowhereitmightbeinScotlandprobablytenorfifteenyearsago,Irelandten
yearsago...InScotlandyou’vealsogottheSocialEnterpriseAcademywhichsupportshigh
endleadershipandmanagementandinfrastructure…thissectorisnowthelargestemployer
…itgetsquitealotofspaceintheScottishparliament.’
Thecurrentsystemisnotworking
Therewereviewsthatthecurrentsystemisnotworkingandsocialenterpriseisan
opportunitytoconnecttheumbilicalcordbacktocommunityandwhānau.
‘…atthegovernmentlevel,paymentforservicesisn’tmakingmuchchange.Thesepeopleare
lookingatabusinessenterpriseapproachtosolvesomeoftheseproblems.Thosethingsare
combiningtoanewappetiteforsocialenterprise…’
‘Socialenterpriseisreallyconnectingtheumbilicalcordbacktocommunityandbackto
whānau…WhathashappenedistheStatehastakentheplaceoffamily.WhenIgrewup,ifmy
mumanddadwereintrouble(Ididn’tknowtheywereintroubleofcourse),mycousinsand
auntiesanduncleswouldcomeoverandhelpout.WhathappenedisWINZtooktheplaceof
family.Todaywhenafamilygetsintrouble,insteadofgoingtofamily,theygotoWINZ.What
socialenterprisedoesisitreconnectstheumbilicalcordbacktowhānau.’
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2.StrengthsofsocialenterpriseinAotearoaThoseinterviewedwereaskedtodescribethestrengthsofsocialentepriseinAotearoa.
StrengthsincludedMāorisocialenterprise(seenasalignedtoMāorivaluesandtheimportant
roleofkaitiaki/guardians);Kiwiingenuityandinnovation;thesmallsizeofthesectorenabling
connectionand;numerousexistingexamplesofsuccessfulsocialenterprisesinthiscountry.
FurtherstrengthsincludeNewZealand’svastnaturalresourcebase,havingaccessto
internationalexpertiseandacommunityofpeoplewhoarejust‘gettingonanddoingit’.
Māorisocialenterprise
Māorisocialenterprisewasdescribedashavingastrongandlonghistorythatalignednaturally
toMāorivalues,culture,theroleofkaitiakitanga/guardianshipandtakingalongterm
perspective.CloserelationshipbetweenMāoriandnon-Māoriandaccesstoculturewascited
asastrength,aswasthecollectivenatureofPacifica.Oneparticipantcommentedonthe
enormityofsocialissuesfacingMāoriandtheimportanceofsocialenterpriseforthis
community.
Oneofmyreviewers,whocomesfromaMāoriperspective,commentedthat‘whileMāori
valuesarebetteralignedwithsocialenterprise,therearestillcorebusinessvaluesthatarein
conflictwithMāorivalues.ThekeyforMāoriistotryandworkourwherethebalanceisand
howdoyounotcompromiseonthekeyMāorivaluesorworkitsotheycangotogether.Thisis
hardbecauseMāoriidentitywithinpeoplecanvarygreatly’.
‘…weweredoingsocialenterprisebeforeitwascalledthat.Naturallyit’showwethinkabout
thingsintermsofbeinganyway.Everyoneistryingtofigureouthowwecandevelopthisand
getalivingfromitandsupportallthethingsinourcommunity.It’showwearebuilt.Itcomes
naturallytousas.Thisstuffisold.’
‘MāorisocialenterpriseisarealstrengthhereinAotearoaandalotofMāorihave
connectednesstothesocialneeds.Theyhaveexperienceditfirsthand…’
‘IthinkthereissomethinguniqueaboutthevaluesembodiedinMāoriculture.Around
kaitiakitangaandintergenerationalresponsibility.Atriple(quadruple)bottomlinebusiness
propositionalignswellwiththesevalues.’
‘Māorihavealwayshadanenterprisingcomponenttowhattheydo.’
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‘MyimpressionisthatMāoricultureandtheinfluenceinNewZealandisarealstrengthin
termsoftheimpactthathas,intermsofbusinessesthataremoreintegrated.Thatnatural
longtermperspectiveandwhatishappeninginthecommunityisarealstrength.’
‘IthinkthatweareclosertoourindigenouspeoplehereinNewZealandandbecauseweare
closerwehaveaccesstoitandthatisahugestrength.’
‘BecauseofthenatureoftheNewZealandpopulationandourrelationshipwithiwiandthe
collectivenatureofPacifica,theideaofcollectivityisdeeplyingrained...SomethinglikeWhale
Watch,whichlinkedbeautifullyintotheNgaiTahusettlement,thegroundisfertilefor
enterpriseswhichcomeupoutofcommunity…’
Kiwiingenuityandinnovation
OtherstrengthsweredescribedasKiwis‘giveitago’mojo;beinggoodatinnovation;havinga
smallbusinessmindset;justgettingonwithitandhavinga‘doityourselfculturehereinNew
Zealand.’
Bikemaintenance-allclassesusingchalkle.com
‘Thereisa‘giveitago’mojohereinNewZealand.’
‘Ithinkculturallywearegoodatinnovationandthatisabigstrength.’
‘InNewZealand,thestrengthsarethefactthatitisemergent,Kiwishavearealcando
attitude,thattherearesomeusefulearlystageexamplestocheckout.’
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‘Ithinkinnovation…GoodoldKiwiingenuityisquitestrongwiththingslikeLoomio…People
thinkingoutsideofthebox.’
‘Ourstrengthsareoursmallbusinessmindset.Justgettingonanddoingit…andwehave
networksandcommunitiesofpeoplewhoarejustgettingonwithit-thatisreallypowerfulfor
thesectortograbsomeinspirationfrom.’
‘ThereisadoityourselfculturehereinNewZealand.’
Thecontexthereissmallandinsomewaysconnected
ThesocialenterprisecommunityinNewZealandwasdescribedassmall;supportive;andin
somewaysconnected.Althoughtheopportunityexistsforstrongerconnections,especiallyin
theoverlappingofnetworks.
‘Thestrengthsareweareasmallernationsoweareconnected…alotofpeopleknoweach
other.’
‘…wearearelativelysmallcommunity.Startingamovementforsocialenterpriseisprobably
reasonablyeasytodoacrosssmallnetworks.’
‘Ialsothinkstrengthissomethingaroundthesupportiveness,theabilitytoeasilyadoptstuff.I
feelthatinmyexperienceanyway,peopleareso,‘that’sgreatthatyouaredoingwhatyouare
doing,ofcoursewe’llsignup’.Peoplearewillingtogivestuffatry.’
‘…Ithinkthetechsectorisreallywellconnectedtoeachother,thesocialservicessectorhas
somegoodconnections(aswellassomestrongbarriers),andtherearelotsofverystrong
networkswithinthecountry.Thosenetworksdon’talwaysoverlapenough.’
Aotearoahassomegreatexamplesoflocalsuccess
AfurtherstrengthwasthatAotearoahassomegreatexamplesofsuccessfulsocialenterprises,
someofthosementionedincludedtheNewZealandHousingFoundation;Loomio;CBEC
(CommunityBusinessandEnvironmentCentre);People’sCoffee;Hospice;4Trades;andthe
ColvilleStoreCoromandel.
21
TheNewZealandHousingFoundation
‘SotheNewZealandHousingFoundationtheyaretryingtobuildgoodhousesefficientlyina
waythatwillmakethemaffordableandgetpeopleintoqualityhousing,andactuallybuilding
communities.Oneofthepitfallsofaffordablehousingisyoubuildinstantslums.NewZealand
Housingdoesn’tdothat.Thatistheirbusinessanditpaysforitself.Theydogetsomefunding
fromtheNewZealandgovernmentbutfundamentallytheyarebuildinghousesandselling
them,buttheyaredoingitinadifferentwaytoacommercialpropertydeveloper.’
Loomio
‘Loomioisdoingwell,theyhavemanagedtogettomarket,theyaregrowingreallyquicklyand
internationally.’
CBEC(CommunityBusinessandEnvironmentCentre)
‘…intheenvironmentalspace.CBECisagoodexample’.
People’sCoffee
‘Therearealsoalotofenterprisesthathavebeenalwaysoperatinginasocialenterpriseway,
buthaven’teverusedthatlanguagebefore,suchasPeople’sCoffee…theyareWellington
based,whohavegonebeyondFairTradeandhaveWorldFairTradeStatus.Theyruntraining
anddevelopmentworkshopsfortheirpartners.Itisgenuinelyworkingtohavethebiggest
socialimpactthroughthesupplychain…’
Hospice
‘TheotherreallyinterestingexampleistheHospiceshopshere.TheMercyHospiceshopshave
takenthatoldideaofanopshopandturneditintoahighmarketproduct.Theyhaveapoolof
volunteers,apoolofpeoplewhoaredyingandleavingthings.Theyemployprofessional
windowdresses.Thatisanexampleofasocialenterprise.Peopledieandwhatdoyouthink
whenyouarecleaningoutgrannieshouse,youthinkHospice.’
4Trades
‘In2001westartedanemploymentprogrammedownhereinDunedincalled4Trades.At
MalcamTrustwewerelookingatthoseyoungpeoplewhoweredisconnectedbuthadthe
abilitytocompleteatrade,butdidn’tnecessarilyhavetheskillstodoit.Wesetitupwiththe
Mayor’sTaskforce(supportedbyTindall)andwegrewitwith89apprenticesandwestilldo
employthemandwehirethemout.Ourgoalwastoemploythoseatrisk…Wewantedto
createemploymentopportunitiesacross20differenttradesandsupportthem,weusedour
22
socialenterprisemodeltodealwithalltheissuestheyhad,itcouldbeanger;dealingwiththe
court;itcouldbeowingmoney;alcoholanddrugs;literacyandnumeracy;itcouldbeanability
tocompletetheassignments;gettothejobontime…Wearestillrunningatabouta90%
successrate…weareself-sustaining…Todaywehaveabout60fulltimeapprentices…We
runapartnershipwiththeOtagoPolytechnic.’
ColvilleStoreCoromandel
‘TheothersocialenterpriseIliketothinkaboutistheColvilleStoreintheCoromandel.Itwas
startedbyabunchofhippies…Colvilleisathrivingtown,partlybecauseofthecommunes
there;it’sareallyinterestingtown.Theyhaveatraditionalgeneralstore,thatsellsgoat’s
cheeseandquinoa,andthereisnowacafénextdoor.It’saninterestingcasestudy,againit
goesback40yearsanditoperatesinawaythatamumandpopbusinesswouldhavefallen
overlongago.Theprofitsgobackintoacollective’.
Otherstrengths
OtherstrengthsofsocialenterpriseinAotearoaincludethecountriesnaturalresourcebase;
accesstointernationalexpertiselocally;andamovementofyoungerpeoplewhoarejust
gettingonanddoingit.
‘Wealsohaveahugeamountofdistributednaturalassetsthatcreateagoodresourcebaseto
createsocialenterprises.’
‘Ithinktherearesomepeoplenowinthesectorwhohaveexperiencedoingitinotherpartsof
theworld,wearefortunatetohavethosepeopletohelpusdevelopthesector.’
‘Thereisamovementofyoungerpeople,manyofwhomweknowandlove,whoarejustdoing
itthemselves;usingtechnologyanddifferentwaysofworkingtocreatesocialbusinessesand
thatisreallyexciting.’
23
3.ResponsivenessoftraditionalNewZealandbusiness
Thoseinterviewedwereaskedhowresponsive/understandingtraditionalNewZealand
business(suchascorporatesandSME’s)weretosocialenterprise.Responsestothisquestion
weremixed.Therewasasensefrommanythatunderstandingandsupportwasminimal,some
feltthatshiftswerebeginningandothersgaveexampleswhereasupportiverelationship
existed.IntervieweestalkedaboutthedichotomousrelationshipinAotearoabetweenbeing
seenas‘either’charity‘or’business-withlittleunderstandingofthespacesinbetween.Some
respondentstalkedabouttraditionalbusinessesperceivingsocialenterpriseascompetition.
Socialprocurementwasseenasanareaofsignificantopportunity.
Socialprocurementisasignficiantopportunity
Businessunderstandingandresponsivenessisdiverse
Therewasasensefrommanyofthoseinterviewedthattherewaslimitedunderstandingand
supportofsocialenterprisefromNewZealandbusiness,includingbanks.Somefeltthatshifts
werebeginningtobefeltandothersgaveexampleswhereSME’sandcorporateswere
supportive.Onerespondentsawbusinessstrugglingwithunderstandingsocialenterpriseand
anon-mainstreamsystemofeconomicsthatencompassedsocialandfinancialoutcomes.
‘Ithinkitwouldradicallyacceptit,ifitknewreallywhatitwas,it’sthatunrealisedpotency.
Thebusinesssectoronceitrealiseswouldgo‘wowthatisfantastictakingabusinessmodel
andusingthattomakeadifference’…NewZealandbusinesswouldacceptitifitunderstood
whatsocialenterprisewas-itwouldintuitivelymakesense.’
‘Idon’tthinktheyreallyknowaboutit.IfyoustoppedtenpeopleonQueenStreetandtenon
LambtonQuayrightnow,mostwouldnothaveheardofit…Talkingtootherstakeholderslike
government,somearealittlebitfamiliar,pocketsintheMinistryofBusiness,pocketsin
24
Treasury.Onceyoudoexplainittopeople,peoplegenerallygetitquitequicklyandare
generallyquitesupportive.’
‘Theydon’t’getit.WheneverIgototraditionalbusinesses,theysay,‘whyareyoudoingthat’.
Thereisademarcation.Thereistheblackandwhitemarketapproachoftraditional
businesses.Thereisnotmuchunderstanding…ourcommercialdealsatEnspiralarejustthat,
commercialdeals.’
‘Idon’tthinkbusinessesinherentlyunderstandsocialenterprisemodelsandyetwearea
countryofSME’s.’
‘TheNGOandgovernmentsectorisreallystartingtogetit,thecorporatesectorlessso.It’s
stilltoo‘what’sinitforme’-corporateshaven’tinternalisedsharedvalue.Somearebutit’s
notwidespread.’
‘Ithinkthatisvery,verymixed.Myexperienceofithasbeenverylittleinthemiddleground.
It’sbeeneitherveryreceptiveandenthusiasticorincrediblydisinterested.Bothofthose
experiencesareverypowerful.Itisquitepolarised.Therearealotoftraditionalbusiness
ownerswhodon’tseethevalueorunderstandwhatwearedoingorwhywewouldchooseto
dothis.Andthentherearepeoplewhogetitimmediately.’
‘Astheownerofasmallsocialenterprise,frommyexperienceSME’sareamixedbag.Ifthe
valuesarethereitissupereasy.Theyarelowerhangingfruit.Theyaresmall,nimbleand
quick.Iftheyliketheideaandhavethevaluesthentheywillrespond...Ioftenfind,people
willsupportmeandLovenotes,because…theywanttosupporttheirlocalyoungpeople.’
‘WehadsomeearlierdiscussionswhentheASBCommunityTrustandTindallcommissioned
thepieceGlennSaundersdidonsociallending.Glenntalkedtothemaintradingbanksabout
sociallendingandtheywerereallydifficulttoengage,asapotentialfundingstream.Ido
wonderifthatisn’tshiftinginthelast6to12months…ifwehadthosesameconversations
perhapstheywouldfallonslightlymorefertileground.’
‘Somedo,obviouslyContactEnergyaresponsoringĀkinaandKPMGhasbeeninvolvedwith
Ākinaforalongtime.ButIwouldarguethatisdowntoindividuals.It’snotinstitutionally
embeddedinmostcorporates.Mostwouldstruggletocomprehendsocialenterprise.’
25
‘…ingenerallocalbusinessesaresupportive,theyaregood,reallyneatpeople.Notonlydo
theysupportourorganisation,theysupportthefamilies.Theyseethefamiliestryingtohelp
themselves.Wehadtencondemnedhouses,thelocalbusinessesgaveusproduct,thereal
estateagentgaveusjib,andthepaintshopgaveuspaint.OprahWinfreysentme75
tradesmencopsfromaroundtheworldtorepairhomes.Wehavehadlocalsupport,regional
andinternationalsupport.That’sgooday.’
‘Generallybusinessesandbigcorporatesaresettingupsocialenterpriseincubators,and
lookingatmentoringopportunitiesfortheirstafftoworkalongsidesocialentrepreneurs,
becausetheyrealiseit’sgoodforjobsatisfactionifanythingelse.’
‘Thereareafewlittleglimmersonthehorizon.Itisstillaveryimmaturemodelanditisnotyet
wellunderstood…thereissometranslationworktodointothecorporateworld,toseethat
thereisamarketthatisworthinvestingin.Thereisnotmuchaction,muchconcretethathas
comeoutofit.However,Iknowatleastonebankthatbelievesthereisamarketforsocial
enterprise–againledlargelybythoseyounger,emergententrepreneurs.’
‘Whenyouhaveaneconomicstructureit’saroundanindividual,orcorporationdoingreally
well,gettingwealthy,getmore,havemore,moreassetsandthenthehigherIaminthe
ladder.Whenyoustarttalkingaboutitfromsocial,beinggenerous,it’sbuiltongenerosity.We
alldowell,weallfeelthegoodofthis.Wearebroughtupfromschoolage,thismainstream
economicview,alotofpeoplestrugglegettingtheirheadaroundcreatingasustainable
processofeconomics.’
Charityversusbusiness-beingseenas‘either,or’
IntervieweestalkedaboutthedichotomousrelationshipinAotearoabetweenbeingseenas
‘either’charity‘or’business(withlittleunderstandingoftheplacesinbetweensuchas
cooperativesandsocialenterprise),aswellasalackofconnectionacrosssectors.
‘Ifindmyselfinthisstartupcommunity,hangingoutwithstartsup.Theyseeusastwothings
eithermoreonthecharitable‘dogood’sideofthings(thatdon’treallyhaverobustbusiness
models),ortheyseeusasactuallylikeallbusinesswithanextrafocusonthesocial.Wehave
tobecarefulofpolarisingit-betweencharityandbusiness-asthereisawholelotofstuffin
between.Everyoneneedstocomeintothemiddlespace.Charitiesneedtobecomemore
business-likeandbusinessneedstobecomemoresociallyminded.’
26
‘Idon’tthinkit’scleartopeoplewhatsocialenterpriseis.Peopletendtogetstuckinthisnot
forprofitmindsetandweshouldbelookingmoreathowdowemakethingsmoresustainable
andhowdowemonetisethem.Therearewaystomakethingssustainableandprofitable.I
don’tthinkmonetisationshouldbelookedatinabadway.’
‘Wedon’tconnectwellinNewZealandacrossdifferentsectors-acrossbusiness,notfor
profit,publicsector-therearedivides.Itdoesn’thappennaturallyoreasily.’
Movingbeyondcorporateresponsibility
Someintervieweessawscopeinbusinessmovingbeyondcorporatesocialresponsibilityinto
areassuchassocialprocurement-whichcouldhave‘gamechanging’impact.
‘…intheUnitedKingdomandotherpartsoftheworld,whereitisamuchmoreestablished
sector,thereisastrongervaluepropositionaroundtheprocurementstuff.Marketschooseto
buyfromsocialenterprisesratherthanothers.Thereisalotofscopehere.’
‘Thebigopportunitiesaheadofusarewhenwegobeyondcorporatesocialresponsibilityand
skilledvolunteering-whenwethinkaboutmarkets,investment,socialprocurement-those
thingsaretherealgamechangers.’
Competitiveview
Respondentstalkedaboutsometraditionalbusinessesperceivingsocialenterpriseas
competitionandnotbeingseenas‘realbusiness’.Onerespondenttalkedaboutthe
importanceofbuildingcomplementeryratherthancompetitiverelationshipswithlocal
businesses.
‘Ithinkbusinessfrommyperspectiveanyways,theyseeusascompetition…Businessesfeel
theyneedtocompetequiteruthlesslywithsocialenterprise.’
‘Ononeleveltheyaresupportive,partlybecausethereisabeliefifyoucanbringmore
businesswaysofworkingintothesocialsectoryouwillgetbetterresults…onotherlevels
thereareconcerns,istherealevelplayingfield.Socialenterprisesthatarecharitable…There
istaxrelief.Competitorsdon’tthinkitisfair.Theycanseethatveryrobustsocialenterprises
cancompetemoreeffectively.’
27
‘Theyareresponsivebecausewespendtimetalkingwiththemsowhenwelooktodothe
gardensstuff,wetalkedtothemaincontractorshere,andsaidwearenottryingtodoyour
jobwearetrainingpeopleandwewillgiveyouthefirstchoiceofthetrainees…youhaveto
communicatewiththem.Ittakestimebutit’sworththeeffortandit’sreallyimportant.
Otherwiseyouareseenasastraightoutbusinesscompetitor…’
Theinvestmentopportunity
AnopportunityexistsinNewZealandforphilanthropy,governmentandotherstothink
beyondtraditonalgrantmakingandtowardssocialimpactinvestment(investingforpositive
environmentalorsocialbenefitalongsidepossiblereturnsforinvestors).
‘Asocialenterprisemightneedsomegrantfundingearlyon,whichcomesinasaformof
capital.Whatsocialenterprisefundamentallyneedsisinvestment.Whatcorporatesaredoing,
mainly,(andit’sdoneingoodfaith)thereisamarketingorreputationalaspecttoit.Theyare
lookingathowtheycangivemoneyaway,whichismucheasierthaninvestinginsocial
enterprises…Thesolutionisyoufindintermediarieswhocanbridgethegapbetweenthe
corporateandsocialenterprise.Thatwilldevelophere.’
‘Wearealsoacountryofhugeinvestmentinnotforprofitorganisationsandthatcouldbe
reframedaroundsocialenterprise.’
28
4.NewZealandcultureandpsycheThoseinterviewedwereaskediftheNewZealandcultureandpsycheisacceptingofsocial
enterprise.Responsestothisquestionvaried.Māorivaluesandenterprisewasseenasaligned
tosocialenterpriseandKiwi’sgenerallyweredescribedasentrepreneurial.Somerespondents
commentedonacultureoftallpoppiesthatdetractsfromsuccess.Further,oldmodelsand
mindsetswereseenasholdingsocialenterprisebackinthiscountry.Thisincludesalackof
diversityonboardslimitingknowledgeofsocialenterpriseatgovernancelevel.
Māorienterprise
Māorivalues,communitymindednessandlongtermthinkingwasseenasalignedtosocial
enterpriseanda‘richopportunity’.
‘…Ifyoustarttalkingaboutsocialcontextintermsofenterprise,thatiswherewecomefrom,
thatisourroots.Thatisoneofthebiggestchallenges,whenIamwithCouncil,withpoliticians.
ThisregioninNorthland…wehavesomethingtoadd,tobalancethingsout,thinkingaround
whānau,andhowwedoitcooperativelythatisourstuff…Therearevalueswecanbringto
thisthatbringvaluetoenterprise.’
‘…ifyoulookatalotoftheMāorienterprises,theyaresocialenterprisesfundamentally;they
arebuiltoutofcommunitywellbeing.WiththeTreatysettlements,Māoriarecomingupwith
socialenterprises.Wehavethosesocialenterprisesallaroundus…’
‘…ifyoulookatMāoriandthewaytheyusuallythinklongtermandhowtheythinkabout
theirpeople,thatisarichopportunity.’
Kiwisarenaturallyentrepreneurialandaligned
Kiwisweredescribedasnaturallyentrepreneurial,havinganumbereightwirementalityanda
countryofsmallbusinessesandwithhighvolunteerismrates.
‘IthinkKiwi’sarenaturallyentrepreneurialandinnovative.Wedon’tgettootiedupwith
traditionalmodelsunnecessarily…Ithinkthereisayoungergroupofpeoplecomingthrough,
seeingtheworldinadifferentway.’
‘…Thenumbereightwirementality,peoplejustgetonanddostuff.Thatisastrongattribute
withinNewZealand.’
29
‘…NewZealandcultureisverysociallyawareofissuesinthecountryspecifically,suchas
domesticviolence,childpoverty.ThereisKiwiingenuityintheNewZealandpsyche.Social
enterpriseisbasicallypeoplegettingonandfixingstuff,notwaitingformoreimportantpeople
tocomeanddoit,‘yeahwecandothat’.’
‘YesbecauseIthinkinthemainNewZealandersdocareabouttheirneighboursandtheyare
interestedindifferentandsometimesquirkywaysofdoingthings.’
‘YeahIdo.IsaythatfromtheperspectivethatIamconstantlysurroundedbypeoplewho
totallybuzzonthisstuff.ButIhavememories,IhaveexperienceswhereIrunintopeople
completelyconventionalandtheyfullygetintoit.Ithinkingeneral,itmightnotbeeveryone’s
norm,butcertainlypeoplewarmtoit.Ialsothinkfactslikethatwehavethehighestnumber
ofcharitiespercapitaintheworldandmassivenumbersofvolunteeringkindofreflectthatas
well.’
Oldmodelsandmind-sets
Tallpoppysyndromewasseenasanissue,aswasasuspicioninNewZealandaroundmaking
profitoutofsocialissuesandtakingan‘either,or’view(eithercharityorbusiness).One
personcommentedonthe‘practicalmenproblem’andalackofdiversityandunderstanding
ofsocialenterpriseatgovernancelevel,whichwasabarrier.
‘…yesandno.Thewholetallpoppythingisdefinitelyanissue…intraditionalenterprisein
NewZealand,peopledon’twanttogettoobigortoosuccessful.Itstiflesmassivesuccess.’
‘…wehaveamentalmodelthatbusinessisverygoodatgettingthingsdonebutthatit
essentiallyexiststomaximisebenefitsforitsowners,andthereisaviewthatcharityistheway
thatwe‘dogood’…Thereisareservationthatyoucanpointabusinessmodelatsomething
thatisinservicetothecommunity-thatyoucangenerateprofitandbepurposedriven.’
‘MyviewhasalwaysbeenKiwisarepracticalpeoplewhoaresociallyminded,sotheyshould
besuckersforsocialenterprise,whichleadsmetothequestionwhyhasitnotdevelopedhere
asithasoverseas.IthinkwehaveaproblemwhichIwouldcallthepracticalmenproblem,
whobelievetheyknoweverything,andtheydon’tbelieveinthis.Ithinkthatisamajor
impedimenthere.Thereisacohortofpeoplewhoallsitondifferentboardsandallknoweach
other,andtheydon’treallyhavetheexperienceofhavingseenwhathasdevelopedoverseas.
Thatisablock…’
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5.WhatisuniqueaboutsocialenterpriseinAotearoa
Intervieweeswereaskedwhatisuniqueaboutthesocial
enterpriselandscapeinAotearoa.Thiswasdescribedas
undevelopedandhavinghighpotential;manyinterviewees
citedMāoricultureandtheMāorieconomyasaunique
aspect;aswasthesmallsizeandconnectednessof
Aotearoa.
SocialenterpriseinNewZealandisundevelopedandthereishugepotential
Thesocialenterpriselandscapewasdescribedasearlystage,undevelopedandemergent;led
byasmallnumberofpeople;fragile;ledoutofcommunityratherthanbygovernment
(differingtoothermarketssuchasAustraliaandtheUK);requiringinvestment(beyondgrants
anddonations);andrepresentinghugeopportunity.
‘It’squiteemergingandit’snotformed.It’sindividuallydriven.Downtoliterallyahandfulof
individualswhohaveahugeamountofpassionandcommitment.Butthatisoftentypicalof
newmovementsisn’tit?’
‘Itisverysmallandundeveloped.Oneofthethings,ifIlookathowitdevelopedinEuropeand
theUS,thereweretwoparalleldevelopmentsgoingon.Onewasthesocialenterprise.The
othersidewasthesocialinvestmententities,raisingfundsandinvestinginsocialenterprises.
Youalmosthavetohavebothinparallel.’
‘Thesizeofit.Thereareadvantagesanddisadvantagesinoursmallness.Perhapstheother
thingthatisuniqueisthesectorisledbyaverysmallnumberofpeople.It’scomingoutofthe
communityasitshould,andthesmallbusinessarea,it’snotledbygovernment,andIknow
thatisdifferenttohowithasbeenintheUKandAustraliawherethegovernmenthasbeena
bigplayer.Wearestillverymuchemergentinthatsense.Oursizeandourscalereally,andour
relianceonhalfadozenindividuals…’
‘Ithinkjusthowfewgenuinesocialenterprisestherearethathavemanagedtosetupand
sustainandgrowtoanysize.Thatisdefinitelythecasecomparedtoothercountries.Howfew
theyareandfragiletheyare.Andthepolicyframeworkisnotcompletelyamenable.Accessto
appropriatecapitalhasnotreallytakenoffinNewZealand,wedon’thaveasocialbanklike
TriodosintheUKandothers.Thereseemstobeareluctanceformainstreaminvestmentand
31
philanthropytoinvest.Capitaliswhatsocialenterprisesreallyneed,notjustgrantsand
donations.Theyarebusinesses.’
‘Therearemassiveopportunities.Alsoweforgettolookatinfrastructure,socialinfrastructure
aswell.We’veseenithappeninMumbai.Therearehugeentrepreneurialopportunitiesinthe
massurbanisationofAuckland…’
Māoricultureandeconomy
Māoriculture,initiativesandenterpriseweredescribedasuniqueaspectsofsocialenterprise
inAotearoa.Further,onepersoninterviewedcommentedonthereconciliationandthelinking
ofcapitalto‘coreMāorivalues’.Furtheroneintervieweedescribedtheoverlapbetweensocial
enterpriseandMāoriandPacificaculturalnorms.
‘Māoricultureandindigenousenterprisewouldbethemostuniquething.’
‘…iwiinitiativeswhichobviouslymakeusuniqueworldwide.’
‘Māorisocialenterprise.IngeneralwhatmakesAotearoaNewZealanduniquehereisour
heritageandoutlook.’
‘TheobviousoneisMāoricultureandtheMāorieconomy.Particularlyintermsofalargepart
ofoursocietywhohavebeentoadegreeoppressedandunderserved,arenowgettingtoa
pointofreconciliationwhichisbringingcapitalandwhenthatisalignedtocorevalues…that
createsauniqueopportunityforMāoridomandNewZealand.’
‘ThatpotentialforoverlapwithMāoriandPacificIslandculturalnorms.Caringforthe
environmentandfuturegenerations…Therearehugethingsthere.Doingthingsforus,notfor
me.’
Aotearoaissmall,agreatplaceto‘trystuff’andconnected
Otheruniqueaspectsincludethesmallsizeofthecountry(andeaseofconnectiondueto
smallsize),Kiwisdesiretohelp,NewZealandisanexcellentcountrytotrialthingsandthereis
anempathicculturetowards‘goodforall’.
‘Ireckonthatwhatisuniqueisthatsocialenterprisehere,rightatthebottomoftheworld,
nothingisimpossible…whatisuniqueabouttheaverageKiwionthestreetistheyarekeento
32
help,theywanttohelp.Itissomethingwecanallbeveryproudof.Theyjustwanttoknow
how.’
‘It’sthatconnectedness.IthinkNewZealandisanexcellentplacetotrialthings.Wearesmall
enoughthatifyou’vegotagoodideaitcantakeoffprettyquickly.’
‘Ithinkthatconnectivityisabigthing,weareasmallcountry.BetweenAucklandand
Wellingtonyouareabletoenhancethatconnectivity.Therearelessuniversitiesherethan
internationally,it’sasmallerlandscape.’
‘Thereisarealempathytheretowardswhatisgoodforall;thereisastrongfeelingof
empathyinNewZealandcomparedtosomeothercultures,someothercountries.It’s
connectivity,topeople.Inalotofcountriestheyjustdon’thavethataccess,whereinNew
Zealandifsomethinghasagreatideaandreallywanttodoit,it’seasytoconnecthighupin
organisations,nothingisimpossiblehere.IntheUSit’smuchhardertocreatediverse
professionalnetworks.Wedon’treallyhavethosebarriershereinNewZealand.’
HistoryofthewelfareState
OneintervieweecommentedonthehistoryofthewelfareStateandhowthishascreateda
cultureofdependence.
‘ThehistoryofthewelfareState…AsmuchasthegovernmenthasrolledbacktheState,there
isasensethatweneedtobelookedafterandsocialenterpriseIthinkisathirdcentury
versionofthewelfareState,butitismarketbased…alotofKiwishaveissuewithit,they
wanttofeelthattheStatehasgottheirback.’
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6.LearningareasandopportunitiestostrengthenThoseinterviewedwereaskedwhatthelearningareas/opportunitiestostrengthensocial
enterpriseareinAotearoa.Thestrongestthemeherewasaccesstofundingincludingsocial
impactinvestment(investingforpositiveenvironmentalorsocialbenefitalongsidepossible
returnsforinvestors).Furtheropportunitiestostrengthenincludedcapacitybuildingand
investinglongterminthesocialenterpriseecosystem.Thiscouldincludecreatinganational
network/bodyandinvestinginleadership,capabilityandintermediaries.Celebratinglocal
successstorieswasidentifiedasanopportunity.Afurtherthemewastheimportanceof
commercialknowledgeandcapabilityforsocialenterprisestobesuccessful.Other
opportunitiesincludedsocialprocurement;supportforyoungpeople;andoneparticipant
citedanopportunityforcollaborationwithNewZealandbusiness.
SocialImpactInvesting
ThestrongestareaforlearningandopportunitytostrengthensocialenterpriseinNewZealand
wasidentifiedassocialimpactinvestment.Thisisrequiredinanareadescribedas‘under
financed’;accesstocapitalisrequiredatvariousstagesofdevelopment(startupphaseand
beyond);andphilanthropyandgovernmenthaveanopportunitytoimplementmorediverse
andfitforpurposeinvestmentmodelsandbuildasocial‘impactinvestmentcommunity’.
Philanthropywasdescribedas‘illequippedtoconsidertheinvestment’.
‘…thereisstillheapsofpotentialwithengagingpotentialinvestors,inthatconceptofimpact
investment.’
‘Wehavetoinvestinsocialenterprise.Thatisthething,wearejustlookingatstartingupa
businessatthemoment,thisguyhasdevelopedamodelofwoodfiresandsettingupa
factory.Thebankwouldnotgiveusaloan,ourbottomlinewasnodifferent,butbecauseyou
getgrantsandcontractsfromallovertheplace,thebankwassayingnowewanttowatchyou
foranotheryearbeforewegiveyoualoantopurchasea$60,000building.Wehavecloseto
halfamilliondollarsworthofassets…theyhavecomefromafeardrivenplace,nothingever
happensunlessthereareriskelements.Weareunderfinanced.’
‘Therearebiglearningsacrosslocalgovernment…throughhowitdistributesitsfunding.The
termsitputsaroundthat.’
‘…increasethesourceofthefinancelookingatthistypeofinvestment.’
34
‘Themissingpieceofthepuzzleiswhatistheroleoffunders.’
‘…Ithinkfundingisabigissue.InaresearchpaperIdidthreeyearsago,oneorganisation
CBECtoldustheywereconsideredtoocommercialforagrantandtoosocialforabank.
Workingouthowwecanbetterfundsocialenterpriseisstilldefinitelyonthetable.’
‘…makemorefundingavailableforsocialenterprisesthatareintheirsecondorthirdyear,that
havevalidatedtheirmarketandnowneedsupporttosolidify.Chalkleislookingatgoingfor
somefundingatthemoment,butthereisnocheckboxforsocialimpactfundingwithin
governmentgrantopportunities.’
‘IntheUKthereisfundingtoenableinvestmentintoinnovationinthesocialsector.Weneed
anindependentstand-alonesocialinnovationfund,notadministeredbyanyoneorganisation
withavestedinterest.Itshouldbepartisan,independentlyrun,thatcouldenableleveraged
fundingfromprivate,government,philanthropicandbusinessinvestors.’
‘Ithinkaccesstocapitalissomethingthatisonmymindatthemoment.Thereistheearly
stagenostringsattachedstartupgranttypepiece.Lotsofsmall$5,000grantstotrystuffout,
experimentandthenattheotherendofthecontinuumtheearlystageloanbasedfinance.
Maybeinterestfreeloansorevennegativeinterestloanswhereyouhavetopaymostofit
back.’
‘Thereisbiglearningaroundthesocialfinancestuff.Atdifferentstages.Wheredoesmoney
comefrom,whofrom,whatlevelisneededatdifferentstages.Whatarethetypesof
investmentsatdifferentstages?Ithinkgovernmenthasbeentryingtofigureouttheirroleand
wheretheysit.’
‘Myexperienceisthatthereisareallycriticalperiod,afterayearortwoyears,theremaybea
coupleofpaidstaff,butit’snotatthatpointofbeingselfsustaining.Thatiswherealotof
socialenterprisesfalter…‘
‘Thephilanthropicsectorcouldmakeahugedifferenceinthewaytheyactandfund.’
‘Weallneedthatfundingelementsorted.Astablewaytogetfunding,abetterinvestment
model.Notsomuch‘givemeagrant’,more,‘investinmybusiness,ithaspotential’.’
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‘Philanthropylikestheideaofsocialenterprise,butisillequippedtoconsidertheinvestment.
Thereisnoactiveimpactinvestmentcommunity.’
Longtermleadershipandcapacitybuildingofthesector
Longtermleadershipandcapacitybuildingofthesectorwasseenasasignificantareaof
learning.Supportingleaders,investinginlongtermapproaches,growingtheecosystem,
supportinganationalnetwork,creationofmorephysicalenvironmentstonurturesocial
enterprisesandtraining.
‘Whatitrequiresismoreleadershipandmoreinvestmentinlong-termdevelopment.The
biggestriskisshort-termism.’
‘It’sabitlikeeatinganelephant.Doitinlittlebites.WhatVodafoneisdoingwithWorldof
Differencethatwasoneofthebestthingsthateverhappenedtome,intermsofgettingme
outofthestartingblocks.Ihaven’tgotanyschoolqualifications.Iwasabletousethataward
onmyorganisationandpersonallyanditopeneddoorsanddidthingsforme.’
‘Therearesomepassionateandinnovativethinkers.Butthosepeopleneedtobesupported
tooandthatishardwhenitisanotonlystartinganeworganisationbutawholedifferentway
ofoperating.Theinfrastructureisneededtosupportthoseindividuals.’
‘Rememberthereisenterpriseinsocial.Youcangetenrapturedinthesocialpart,let’smakea
difference.Thereisariskoflosingtheenterprisepartandyouneedtheinfrastructurearound
it.’
‘Howyouputthewholeecosystemtogether.It’ssuchanimmaturemodelyet,thattherearea
fewpeoplewhoarebeginningtogetorganisedbutI’mnotsurethecoordinationbetweenthe
variouspartsarequiteconnectedupyet.’
‘Ithinkmaybebuildingevenmoreanationalnetwork…anationalbodythatcouldsupport
somemarketingaroundtheconcept.Itwouldneedtocaptureeveryone.’
‘Oneofthethingswehavestruggledwith,itisnotclearwhohasthevoiceofsocialenterprise
andwhoprovidesthehub. Ākinaareanincubatorandacceleratorandthatisnotthe
equivalentofsayPhilanthropyNewZealandforfunders.Thereismoreworktodoregarding
36
whospeaksforthesector.ThereisalsotheCommunityEconomicDevelopmentlensandthe
workofDiJennings.’
‘TheotheropportunityIthinkalotaboutisthephysicalspace-thesocialequivalentofthe
Icehouse.’
‘Ithinkcreatingacommunity…Spreadingthemessage,spreadingtheinspiration,sharingthe
message,mentoringpeople,communicating,thatgivesushugeopportunity.’
‘Socialenterprisesuccessdependsonafundamentallyentrepreneurialattitude.Theycanget
capacitybuilding,butifyouarenotfundamentallyentrepreneurialitwon’twork.Youcango
to101courses,bementoredandalltherestofit.’
Raisingawarenessandsharingsuccess
UnderstandingofsocialenterpriseinNewZealandislimited–anopportunityexiststoraise
awarenessandsharetangiblestoriesoflocalsuccess.Thiswouldhelpincreaseunderstanding,
learning,knowledgeandpride.
‘Thereneedstobemarketingtogetawarenessoutthere.’
‘Thereisworktobedone,definitely,aroundsimplifyingthelanguageandhelpingpeople
understanditandhavetangibleexamples.Thereisabigpieceofworkthatneedstobedone
aroundthat.Whilstnoteveryonegetsitatthemoment,therearesomekeyinfluencerswho
arestartingtogetitacrossdifferentsectors…’
‘…createexamplesandpublishthem,sharesuccessstories,andthenpeopleseetheminthe
concrete.Thenpeopleearlyonintheircareercanseeitandsay‘thatiswhatIwanttodo’.
Concreteexamplesspeaktoentrepreneurs…’
‘…wecouldlearnalotbylookingatstuffthatisalreadygoingwell.Likethereisacamping
groundontheWestCoastthathasbeenusingfundsgeneratedfor50yearstoreinvestprofits
backintocommunityprojects.Acommunitymemberbroughtthatland,it’scommunityasset
based…‘
‘Thereareexamplesherethathavedonewellfor15or20years.Peoplehavenotgonebackin
andlookedatthesuccessfactors.ForexamplethereisagroupintheWaikatocalledtheWise
37
Groupwhichisoftenquotedasasuccessfulexampleofasocialenterprise.ThereistheCBEC
inthenorth,it’sbeengoingforabout20years,itdoesalotofenterprisethings.Community
recyclinggroupsthathavehunginanddonewelllikeWanakaWasteBusters.’
‘Weneedtolearnhowtoplagiariseothersexperience,wedon’thavetoinventitallourselves
…Recognition.Getthemonthetelevision,beproud.Weneedsomegoodnewssocially.’
Businessskillsrequiredevelopment
Businessideas,knowledgeandskillswereseenasakeylearningarea-particularlyfor
individualscomingfromacharitableparadigmwhichrequiresadifferentsetofskills.Afurther
learningareawascollaborativedialogueandhavingaccesstoskillswheregapsexistand
evidenceofwhatworks.Onepersoncautionedthatwhileinthiscountrywecanlearnfrom
businessmodelsthathaveworkedinternationally,thelocalenvironmentisunique.
‘Fundamentallysocialenterpriseisaboutrunningabusinessandthereisquiteabitofbusiness
knowledgethatIthinkneedstobelearntfirstofall.’
‘Itisgoingtogrowwheretherearevalidbusinessideas…theyhavetostandontheirownas
businessideas.’
‘Thelearningopportunitywouldbeaboutsharingbusinessmodels,sharinglearningabout
whatworksandwhatdoesn’t,creatingopportunitiesforsocialenterpriseandentrepreneurs
tocometogether…’
‘…whenitcomestoexecutingandrunningasocialenterprise,therearealotofpeopleinthat
spacethathavecomefromacharitableparadigm.Thereisawholelotofrelearningaround
money,social,psychological,howweaccessmoney,conversationswithphilanthropic
organisations,figuringoutsocialfinancing,thatisabigspacewehavetolearnlotsin.Ifeelwe
areagreatplacetodothat…NewZealandissomewhatablankcanvas.’
‘Youalsohavetochangethecapacity.Managethebalancesheet,managethecashflowand
youneedtobemoreofabusinesspersonthanoldschoolcharity.’
‘Insocialenterprisesyougetpeoplewithapassionanddrivetodosomethingthatcancreate
anincomeaswellaschangetheworld.Buttheyarenotnecessarilythebestpeoplefor
systems,andtheydon’tknowaboutdevelopingcontracts(thenutsandboltsstuff).Theycan
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spendalotoftimedoingstufftheydon’tactuallydonaturally.Gettingtherightkindof
supportaroundthis…theguywhoinventedthewoodburnerwearelookingtomanufacture.
It’stakenhimfouryearstogetthroughthebureaucracytogetabrandapproved.Eventhe
brandpeoplesaidhehasagreatproduct,heisabrilliantinventor,heisnotgoodatworking
withbureaucracy.Thatiswhythewholecollaborativedialoguehavingothersintherewhocan
bringthenutsandboltstoit.’
‘Learningareasarearoundprovenandeffectivebusinessmodelsthatareviable,thatare
scalable.Ithinkwecanlearnalotfrominternationalexamples…Thereisadangertothinkwe
cantakethoseexactframeworksandrollthemoutherewhenwehavequiteaunique
landscape.’
Thesocialprocurementopportunity
Socialprocurementandleveragingpurchasingpowerforgoodwasidentifiedasa‘big
opportunity.’
‘…wehavealotofworktodoinNewZealandintermsofthatfilteringthrough,intermsof
changesofprocurementpoliciesandhowpeoplethinkabouttheirpurchasingdecisions.So
creatingmarketsfortheproductsofsocialenterprises…’
‘WhenIthinkaboutlargeorganisationsIthinktheirinterestcanbepurchasingformsocial
enterprises,partnerships,campaigns,projects…’
‘Thereisabigopportunityaroundprocurementcontractsaroundgovernmentandcity
councilsinparticular.Anyorganisationthathasasocialmandateshouldhaveaclear
procurementpolicy.Thiswouldmakeabigdifference.’
Youth
Targetingandsupportingyouthintosocialenterprise(includingrealexperiencegoingtowards
qualifications)wasseenasalearningopportunity.Thiswouldreadythenextgenerationof
leadersandreduceunemploymentdownthetrack.
‘Ithinkthatgettinginyoung,gettinghighschoolkidsorevenyoungerinvolved.’
‘Iwonderifit’saboutincreasingthepipelineforsocialentrepreneurship?IfIhadmoneyand
structureIwouldincreasethepipelineforyoungpeople…’
39
‘Thethingswehavedonesomeworkonislookingatasecondhandstorecaféwhereweuse
thestaff,students,givethemtheopportunitytorunitonashorttermbasisaspartoftheir
qualifications.Trainthembeforetheybecomeunemployedanddoitinaveryrealsense.They
canlookatfoodcertificates,marketing,thefullmonty.Mygoalistosaylet’sdoityounger,
whiletheyarestillintheschoolsystem,neverletthemonthedole.’
Oneofmyreviewersnotedthatthereissomegoodstuffhappeningwithintertiaryinstitutions,
includingtheUniversityofAucklandwhichhas‘embeddedsocialenterprisedevelopmentas
partoftheSparkChallenge,haveafewprofessorsresearchingonindigenoussocialenterprises
andseveralstudentclubsfocusingonsocialenterpriseandinnovation.’
Other
Otherlearningareasreferencedincludedtheopportunitytocollaboratewiththebusiness
sector;developmentoftrainingandaccreditation;utilisingsocialenterpriseasatoolto
resolvekeyissuesfacingMāoriandPacifica;andresearchingtheefficacyoflocalsocial
enterprise.
‘Thereneedstobealotmorecollaborationwiththebusinesssector..eventswiththe
ChamberofCommerceandsocialentrepreneurs,somesortofplatform…forthosegroupsto
cometogetheranddiscussideas…sometimesthebusinesssectorisn’tparticularlyclearon
whatsocialenterpriseisandwhatsocialenterpriseistryingtoachieveandtheyseeitassome
sortofdo-gooderideathatisnotgoingtogenerateanymoney.Thosetwogroupsneedto
cometogether,collaborate;therecouldbealotofpartnershipsthatcomeoutofthat.’
‘Withsocialenterprise,puttingsomesortofaccreditationaroundit…Buildtheunits.Buildthe
qualification.Buildthecomponentsthatmakeupthatqualification.’
‘DefinitelyMāoriandPacific,I’vespenttwoyearsdevelopingtheMāoriDevelopmentStrategy,
reallylookingatpostsettlementeraandMāorigettingtheirmojobackandenterprise,really
focusingonenterprise.Ithinktherecouldbehugethingsoutofthat.Becausewehavesome
realissuesinNewZealandwehavetoresolve…’
‘…wehaven’tquitecaughtupwithotherplacesintermsofourresearcharoundefficacyof
socialenterprise.’
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7.Untappedpotentialforgreatestimpact
Thoseinterviewedwereaskedwheretheuntappedpotentialforgreatestimpactsitsforsocial
enterpriseinAotearoa.Keythemesfromrespondentsincludedthepotentialofcommunity
ownedassetsandlocalmodels;youthasasignificantforcetotackleissues;thepotentialinthe
worldofTeAoMāoriandtheMāorieconomy;potentialforincreasedimpactonkeyissues
facingNewZealand;crossdisciplinaryapproachesandcollaborationwithbusiness;taking
successfullocalexamplesoverseas;investmentinsocialenterprise;andacademic
development.Otherpossibilitiesexistinarangeofareas-suchascelebrating‘peopledoing
awesomethingsinthesocialenterprisespace’andtheopportunityforNewZealandto
showcasetotheworldwhatasustainablesocietycouldlooklike.
Communityownedassetsandlocalservicedelivery
Communityownedassets,communitydevelopment,localservicedeliveryandempowerment
oflocalcommunitieswasseenasaprimeareaofuntappedpotentialinthesocialenterprise
space-includingleveragingoflocaltalent.Therewerebenefitscitedintheareasoflocal
employment,environmentalimpact,communitydevelopment,tacklinglocalissues,supporting
indigenouscommunitiesandretainingmoneyincommunitieslocally.
KilmarnockEnterprises(Christchurch)
‘Communityownedassets’.
‘…lookingatcommunityandsocialdevelopment.AgoodexampleisWhaleWatchinKaikoura,
whichhasaTrustaboveitthatisspecificallyfocusedonMāoridom,employmentandcreating
arichersocialcontextandgeneratingfundsforsocialprogrammes…investingineducational
achievementthatsortofthing…’
41
‘Itiscertainlyintheenvironmentalspacebecauseyoucandoitinacommunitybasedway…if
youtaketheCBECexampletheyhaveacontractforwastemanagementfromtheFarNorth
DistrictCouncil,andonetomanagetheCouncilpoolsinplaceslikeKaitaiaandKawakawa.
Theydoitforamarginof$15,000peryear.It’snotamarginthatifyouorIsetupabusiness,
thatwecoulddeliveritfor.ThereisalotofpotentialforsayservicedeliverywithlocalCouncil.
Becauseasocialenterprisehastheabilitytotakealowermargin.’
‘…it’sineverycommunity,therearehugesocialenterpriseopportunities…wecanrevitalise
alotofoursmallcommunitiesthroughsocialenterpriseactivitiesandpartnershipswith
farmersandcommunities…Thelandcanbeusedforallsortsofwonderfulreasons.’
‘Ithinkthereisroomforsettingupincommunitiesorbiggerareasasabeginner,abitofan
advisory,giftedadviserstoworkwithsmallertrustsandhelpthemresolvetheirissues.’
‘Anotheropportunityaretheregions,whichareunderservedinNewZealanddespitehaving
muchneedandoftenhugeamountsofnaturalassets.’
‘Inindigenouscommunitiesthereispotentialthereforthemtoownsomeofthethings,
developbusinesses,it’scrazythatwearelettingsomeourrubbishcontractstomultinationals
withtheCouncilandthingslikethat…Ifyouhaveonecompanydeliveringthatnationally,that
willnevergrowlocalownershipandcommunities…Peopleholdingtheirheaduphigh,
developingtheircommunities,themoneystayingintheircommunities…‘
Youthandtheagingpopulation
Youthwascitedasanareaof‘massive’potentialanddescribedasa‘significantforce’;youth
couldbeinvolved‘throughalearningprocesswheretheycontribute’;youngentrepreneurs
wereseenasalready‘gettingonanddoingit’;youthwereseenashavingthepotentialto
tacklekeyissues(suchaskeepingtheplanet‘fitforpurpose’)throughinnovativeapproaches;
andhighereducationwasseenas‘lowhangingfruit’.Twopeopleinterviewedinadditionto
youth,alsosawuntappedpotentialintheagingpopulation.
‘…thereisamassiveopportunityinyoungpeople.WehaveamillionyoungNewZealanders-
thatisasignificantforcetobereckonedwith.’
42
‘Itsitsparticularlyinyoungpeople,particularlythosethataregoingtostayhere.Young
technologistsandinnovators…Itbelongstothenewmillennialgenerationtorealisethatthe
planetneedstobekeptfitforpurpose.’
‘Forusit’sinouryoungpeople.Forourregion,whentheylookatMāoriandyouth,it’san
issue.Formetheyareourfuture.Ifyoudon’tknowhowtocreatealearningprocesswhere
theycontribute,theywillbethedeficit.Theyhavepotentialandyouneedtoharnessthat…
Workingwithyoungpeople,thatisourfocus,thatismybackgroundworkingwithyoung
people.Findingtheirpassion,takingitandgivingitanoutlet.’
‘Ithinkthegreatestpotentialjustliesinthatgroupofyoungentrepreneurswhoarejust
gettingondoingitanyway.ThereisanorganicnaturetothatwhichIreallylike.Thereare
somecleverandsmartpeopleinvolvedinthat.’
‘Noinnovationcomesifpeoplearenotletlooseintheareaoftheirpassion.Creatingthenew
worldthatiswhatwearetalkingabout.Weneedtosustainwhatwehaveandpushpeople
intotheirownpassion…Ourneedsbecomeouranswersgoingforward.Youngpeoplewith
innovationwillcreateopportunitiestodealwiththeproblemsthatwehave...Ourneedscan
beouropportunitiesinthefutureandweneedtomakesureouryoungpeopleareuptoit.’
‘Obviousonesincludeyouth…Highereducationisalow-hangingopportunity–anaccessible
placewherehugevolumesofpeoplearekeentolearn,enthusiastictoexperiment,theyhave
theirwholelivesaheadofthem.’
‘Thereisuntappedpotentialinyoungpeopleandinpeopleofretirementage.Wemustn’t
forgetwehaveanagingpopulation,andtheirexperience.Serialentrepreneurswhoarein
their60’sand70’s.Wehavesomepeoplewhoarefairlywelloffandretiringandarethinking,
‘whatamIgoingtodointhenext30yearsofmylife?’Maybeit’sthatintergenerational
entrepreneurialthing.’
‘Thatisliketheholygrailquestionisn’tit…WhenIthinkaboutimpactarea,theeasyansweris
tosayworkwithyoungpeopleastheyhavetheirownlivesaheadofthem.Iseesome
interestingstuffhappeningwithagingpopulations.Thatisahugetimebomb.’
43
PotentialwithinTeAoMāori
PotentialforgreatimpactwasdescribedasexistingwithinTeAoMāori,theMāorieconomy,
creationofemploymentandconnectingMāoritotheirresourcebase.Thispotentialwould
manifestinincreasedemploymentforMāoriandpositiveflowoneffectsacrossvariousareas.
‘ThereisalotofuntappedpotentialinTeAoMāori,thewholeMāorieconomyisreally
beginningtogettraction.Scalingupsomeofthereallypromisingthingsthatarehappening
andshowinghowsuccessfulthingscanbe.’
‘…EstablishingMāoribusinesses.Givingworkwhereitisneeded.’
‘Māoridomhastheresources.Thereareover1100maraeinthiscountry;wehavealanguage
thatisrecognised.Wehaveakohangareomovement,kurakaupapa,ourwayofpraying.
Everythingisthere.IfIwasreallygoingtobeasocialenterpriseambassadorandaMāori
entrepreneur,Iwouldbeconnectingtotheirresourcesandsay,‘allyouhavetodoisstart
usingthem’.’
Tacklingkeyissues
Thoseinterviewedsawuntappedpotentialforsocialenterprisetotacklekeyissuesfacing
Aotearoasuchasaffordablehousing,childpoverty,theprisonpopulation,issuesofinequality,
challengesfacingPacificacommunities,healthandeducation.
‘…affordablehousingandsocialhousingisonearea.ForexampleyouhaveintheUKthriving
HousingAssociations.InEuropeaswell.Wehavevirtuallynothinglikethathere,notofthat
scaleandtype.Someofthechronicsocialissueswhereabitofinnovationmightbehelpful.’
‘NewZealandshouldfocusonchildpovertyandtheprisonpopulation.Issuesofinequality.’
‘Ithinkintermsoftypesofissues…thereisaPacificachildcaregroupupinAucklandandit
hasaverygoodguywhostandsbehindit.Heisfinanciallyverysavvyandentrepreneurial…
Thathasdevelopedreallywell.Developingreallygoodqualitychildcarethatiscomfortablefor
thePacificacommunity.Thatwasanunmetneed.Therearemanyexamplesofthattypeof
thing.Whereeverthereissomethingnotworking,youwillfindopportunities.’
‘Iwouldhavethoughthealth,education,justice.Thebigspendareas.Idon’tknowhowwe
dealwithsuperannuation…’
44
Collaboration
Variousintervieweessawuntappedpotentialincollaboration,includingcross-sectoral
approachesthatbuildcapability.
‘…makingconnectionsbetweendisciplinessothatsocialneedislistenedtobythosewith
creativegeniusandfinancialnous,tobeabletoproblemsolve.Ithinkthereisuntapped
potentialforsocialenterprisetocomeoutofcollaborativeprojectsbetweensaydesignand
business…It’saroundcollaborationandinterdisciplinaryconnection.’
‘Thereissuchimportantworktobedonearoundbuildingcohesioninanemergentsectorin
quiteascatteredsector.Buildingacoherentcross-sectoralapproach,tobuildsocialenterprise
capability.’
‘It’sinthecomingtogether,thecollaborationbetweensocialenterpriseandbusiness.’
‘Collaborationbetweencorporatesandsocialenterprise.Wearenotdoingthatwellenough…
IthasbeeninterestinglearningaboutUnilever,theyflippedtheirstrategytohave
sustainabilityattheircore,andeverythingisbuiltaroundit.TheirChiefExecutiveispartofthe
foundinggroupoftheBTeam.’
Takesuccessfullocalmodelsoverseas
Twoofthoseinterviewedsawopportunitiesintakinglocalexamplesofwhathasworked
overseas.ThiswouldplaceNewZealandontheinternationalstage,accessnewmarkets,drive
uprevenuecomingintothecountryandstrengtheninternationalconnections.
‘Wecouldbeleveragingsometechnologybasedstuffinternationally.’
‘Thereispotentialtotakesomeofthesmartstuffwedooverseas.ForexampleConscious
Consumerswehavebeenaskedbysevendifferentcities,whowanttousethemodel.Ittakes
alotofmoneyandtimetohelpsetsomethingupinanothercountry.Thatisuntapped
potentialtoo.’
45
ConsciousConsumersfindandsupportlocalbusinessesdoinggood
Academicleadership
Untappedpotentialwasseenintheareaofacademicleadershiptosupportsocial
entrepreneurshipandinthinkingstrategicallyaboutwhatskillsareneeded.
‘…thereisstillabunchofworktodointermsofhowourUniversitiesteachbusiness.It’s
happeningslowly.Thereareheapsofareas.I’dlovetoseeinnovationschools.I’dlovetosee
somethinghappeningwhereyougivestudentssay$1000andsay‘dowhatyoulike,butcome
backwith$2,000.’
‘Thereispotentialtogrowstronger,tohavesomeproperacademicprogrammestosupport
peoplewhowanttodevelopsocialenterprise.Wearereallylackingthat.Wheredoyougo?
Thatwillrequirestrongleadershipfromsomeacademicinstitutes.It’snogoodturningoutall
theselawyersandpsychologists…therearenojobsforthem!Wedon’tthinkstrategically
aboutwhatweneed.’
Celebratingawesomeness
Untappedpotentialwasseenintheareaofcelebratingawesomehumansdoingawesome
thingsinsocialenterprise.
‘Ialsothinkcelebration.Thereisuntappedpotentialintermsofculturesetting.Howdowe
celebratepeopledoingawesomethingsinthesocialenterprisespace,andpromotethemas
beingsuccessfulhumans.’
46
Otherareasofpotential
PotentialwasseeninotherareassuchasNewZealandmodelingwhatasustainablesociety
couldlooklike;potentialwithingovernmentandbusiness;intheutilisationofdesignthinking;
inNewZealandbeingatestbedfornewideas;andgrowingthetalentpool.
‘OtherareasareforNewZealandtomodelwhatasustainablesocietylookslike.Whenyou
lookatglobalcivilisationsit’scompletelybroken.NewZealandisnotthatbig,theideaof
figuringoutwhatasustainablesocietylookslike.Howdowegetawholevehiclefleetrunning
offelectricity?ThatismoreofapossibilityhereinNewZealand.Wecouldshowcasehowa
countrycouldorganisesustainability.’
‘Māori,Pacifica,NGOsector,philanthropysector.AndthewholediversityofAucklandhasreal
potentialtoignitethatdifferently.’
‘Iaminterestedintheintrapreneursandgovernmentandbusiness.PeoplelikeElizabeth
GoodwinwhoinitiatedtheLifehackproject,sheisbrilliant.Whatwouldmoreinitiativeslike
Lifehacklooklike,championedbypeoplelikeElizabeth…’
‘Everywhere!FormewhenIlookattheworld,everythingcouldbesocialenterprise,every
business,product,service.…Idofeelparticularlystrongaroundthepotentialindesign…I
thinkwecantakedesignthinkingandapplyittoeverythingtoredesigneverythingintheway
weshowupintheworld…Everythingcouldberedesigned,tobeenvironmentallyandsocially
awesome.…WithinLovenoteswehavehadlotsofconversationsaroundthisandwehave
redesignedthebusinessaroundit.’
‘InatinylittlecountrylikeNewZealand,wehaveauniqueopportunitytomakeNewZealanda
testbedforalotofthis.Iamafanoftheideathatbecauseofthesizeandgeographyofour
beautifullittlecountry,wehaveanamazingnetworktoconnectup,collaborate,trystuff,
whilestillbeingabletolearnfromsomeofthebestexamplesintheworld.’
‘Embeddingandgettingmoretalent-Thereisgreattalentbutamongstfewindividuals…
Someofthethingsthatarecriticallymissingincludetalentandmentoringsupport.Capacity
andinfrastructuresupportintoorganisationsandindividualsthathavethattalent.’
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8.RisksandthreatsThoseinterviewedwereaskedwhatrisksandthreatsfacesocialenterpriseinAotearoa.The
risksandthreatsidentifiedincludehavingnoecosystemorlongtermthinking;lackof
investment;riskadversityandlowtoleranceforfailure(andgivenmostbusinessesfailthis
tolerancemustshift);andaperceptionthatsocialenterpriseis‘easy’whilemanylackthe
businessskillstomakeitwork.Otherrisksincludelackofanappropriatelegalstructurefor
socialenterprise;old‘one-dimensional’thinkingfocusingonproblemmanagementratherthan
systemicchange;theriskof‘alltalkandnoaction’;predatorycompetitivereactionby
establishedbusiness;andnotdevelopingthenextgenerationofyoungpeopleadequately.
Earlystageandlackingcollectiveownership
RisksidentifiedincludesocialenterpriseinAotearoabeinglessmaturethanotherpartsofthe
world;operatingwithisolatedactivityandlackingcollectiveownership;havingashortterm
focusandrequiring‘sustainableleadership’andlongtermthinking;reliantonasmallnumber
ofindividuals;and‘ifitbecomestooinsular’.
‘NewZealandnotmovingasfastastherestoftheworld.Wearemuchmoreimmature.Ifour
socialenterpriselagsbehindeveryoneelse,itreducesourcompetitiveness.’
‘Ifwedon’thaveasystemthatworksreallywell.Ifeellikethewheelsarenotturning
together,thingsarehappeninginisolation.Somethingneedstohappentobringitall
together.’
‘Whoisholdingthewholething?’
‘Howdoyougetsomeconsciousnesstothemovementsotheenergycanbeharnessed?
Communitiesofpractice,sopeopledon’tfeelalone.Ithinkthereissomethingthathastoshift
inthecorporatesectorandingovernment.Theriskisthatweendupwithunrealisedpotential
aswedon’tcreateenoughenergyandsupportandcollectiveownership.’
‘Ithinkshort-termism.Itbecomesyesterday’sshinynewthing.Ifwedon’tgrowsome
sustainableleadershipandchampionsallthesethingscanfallover.’
‘Developingthesocialenterprisesector/ecosystemshouldbeframedasatenyearproject.
Fundingandinvestmentneedstoreflectthis…WhathashappenedintheUKisfarfrom
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perfectbuttheyhaveachievedacriticalmassbecausetheytookalong-termapproach…
Strongleadershipisrequiredtosay,‘wetrustthisenoughtotakealongtermapproach’.’
‘IfwearegoingtoinvestinbuildingasocialenterprisecultureinNewZealand,weneedto
buildthislongterm.It’snotgoingtosustainitselfinlongevityintwoyears.Weneedtoinvest
inlongtermthinkingarounditandappropriatescaffolding.’
‘…therearemaybehalfadozenkeyindividualsinvolvedinthisarea,iftheygooffandfind
somethingelsetodowiththeirlivesthatwouldbeprettydevastating…’
‘Therearesignificantrisksatthemoment,becauseitissoearlystageandallthosethings
(infrastructure,individualsandcapability)aren’tinplace.Theriskliesinthatnoneofthat
exists.Orifitdoesexistit’sdowntooneindividualororganisation…’
‘Ifitbecomestooinsular,ifyoudoonlyhavethosecertaingroupsofpeoplecomingtogether
allthetime,reflectingontheirownviews.’
Lackofinvestmentandlackoftherighttypeofinvestmentattherighttime
Anotherthemewastheriskandthreatoflackofinvestmentinsocialenterprise;lackofthe
righttypeofinvestment(thinkingbeyondtraditionalgrants),‘whetheritisloansorstartup
grantsorwhatever’;andlackofinvestmentattherighttimeincludingurgentstartupcapital
andlookingatwhatisrequiredateachdifferentstageofdevelopment.
‘…theurgentrequirementofsocialenterprisesforstart-upcapital,notjustgrants’
‘Thereisariskthatwedon’tinvestinitproperly…Whathappenswhenyougettothestage
thatyouneedinvestors.Whenthosetestedmodelsarereadyforinvestment.Whoisgoingto
invest–isitgovernment,business,philanthropy?Thereisariskofnoinvestment.’
‘Thereisallthistalkbutverylittleresourcegoingin.Thethreatiswetalkaboutit,wedon’t
investinit,andthenwhenitdoesn’twork,werationalizefailurebysaying‘itwasafad’when
reallyitwastheresultofunderinvestment.’
‘Thedangeriswesay,‘theremustbeanothergrouplookingafterthat.’
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‘Ithinkariskandthreatisnotbeingabletosecurethecapitaltosupporttheseenterprises.
Theriskiswehavelotsofgoodideasandexpectantentrepreneursbutnoonewhoiswillingor
abletoinvestinthemandthethingwilljustwitheranddie.’
‘Oneofthethreatswillthelackofanappropriatefundingmechanism,whetheritisloansor
startupgrantsorwhatever.Thatisnotwellenoughthoughtthroughyet.’
‘Thereisathreataroundnothavingaccesstotherightlevelofinvestmentattherightstages–
thedevelopmentofthesectoritselfandthedevelopmentofventuresthathavepotential.’
‘Itnotbeingtakenseriouslyenoughandnotbeinginvestedinatalevelthatshowsitsimpact.
Ifpeoplekeepteeteringaroundtheedgeitwillremainaniceidea.ButIthinkthatischanging.
It’sthatstuffaroundgettingfundingattherighttime…Theriskispeoplenotunderstanding
thatwhenyouinvestinsocialenterpriseyouareinvestinginamorerobust,longerterm
solutionandthattakeslongertoachieve.TheguyfromSocialTraderstalkaboutittakingfive
yearstogetsomethingofftheground,andit’simportantpeopleunderstandthat.’
‘ForsomethinglikeChalkle,fundingitisreallyhard.Wedon’tsitinthecharitablespace.We
don’thaveabigreturnthatangelinvestorsarelookingfor.Idon’tbelievemoneyshould
alwaysbethebiggestbarrier.WehaveChalkletwoyearsdownthetracknowwithnoexternal
investmentandonlynowarewelookingforexternalinvestment.’
‘Ithinkriskismoneyfactor.Asapersonwhohascomefromacharitableperspectivethathas
learnedhowtocreateabusiness…weneedtolookatfinancingtotakeaquantumleap,
wheredowegetthecapital.Theconventionalreturnoninvestmentisnothighenough,but
fromasocialandenvironmentalreturnitisgood.Wearetoooldforphilanthropy-theyare
toointerestedinnewideas,gettingthemofftheground.It’salmostlikewearefiveyearstoo
early…Iffinancingcannotbemet,thentheseorganisationsmightworktheirbuttsofforfive
years,andnotbeabletocontinue...’
Riskaversionandfailurefear
Anotherthemewasthethreatofriskaversionwhen‘businessisarisk’andmostnew
businessesfail.Variousintervieweesmentionedtheimportanceofacceptingthattherewillbe
failure,theimportanceofbeing‘okay’withthis.Further,thatriskaversefundercultureneeds
toshift.
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‘Ithinksocialenterpriseisonlyanygoodifyoutakearisk.Thatishalfthebattle.Ifyouwantit
wrappedincottonwoolthendon’tgothere.Businessisarisk.Socialenterpriseisarisk.’
‘Ifit’sgoingtowork,it’slikesettingupasmallbusiness,threeoutoffourfail.Thechallengeis
thereisnopipelineforgrowth.Thereislittleinvestmenttogetbeyondstartupstage.’
‘Ithinkthereisariskofitfailing.Obviously.Buttheriskorconsequenceofitfailingisthat
everybodygetsabadname.Noteverysocialenterpriseisgoingtowork,inthesamewaythat
noteverybusinessisgoingtowork.Weneedsometoleranceforthat.’
‘Thesecondaryriskistheyfail,andparticularlyifit’spublicmoney,theywillfailpublicly.
Peopleneedtogettheirheadsaroundthatsocialenterprisesarelikelytohaveasimilarfail
ratetootherbusinesses…Wehavetogettoaplacewherethatisokay.’
‘Thereisathreatofhowthingsthatdon’twork,getshotdown.Ifmoneyisputintosomestuff
(andlet’sfaceit80%ofnewbusinessesfail),wearegoingtohavetolearntolivewithfailure
andnotgiveupbecausefailurefeelstoohard.’
‘Idon’twanttohearaboutyourfirstyear,Ialwayssay,Iwanttohearaboutyoursecondyear,
whereisthemoneygoingtocomefrom?Youhavetoplanyourrisksandtakeyourrisks.’
‘Ahugeproportionofsmallandmediumbusinessesfail,andoneassumethatsocial
enterpriseswillfaceexactlythesamebusinessrisks,astheytryandstartup.Successisno
moreguaranteedinthissectorthanifyouweresettinguparegularsmallbusiness.’
‘Theriskaversecultureinfundingneedstobestirredup.’
Theriskofthinkingsocialenterpriseis‘easy’
Furtherrisksincludeperceptionbysomethatsocialenterpriseiseasy,whenitis‘bloodyhard
work’.Further,commercialskillsarecriticaltosuccessand‘oftenpeopledrivenbysocial
motives,don’thavethebusinessexpertiseandtenacitytopullitoff.’
‘Oneofthebigrisksisthatpeoplethinkthisisareallyeasything,butit’sabloodytoughgame
anddemandsnewtypesofskillsandexpertise.’
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‘Thechallengeofjustmakingitwork.Itisnoteasy.Youareaskingpeopletodosomethingthat
isreallydifficult.’
‘…ispeoplewhocomefromanoldercultureoffundraiseandspend,thinkthisiseasyandit’s
noteasy,thentheygetoutoftheirdepthquickly.Thentheysay,‘thisdoesn’twork’.Itdoes
work.Thereistheissueofoverreaching.Theculturalshiftisnottoeasytodo.Youneedknew
peoplecomingforwardwhowanttodothingsinadifferentway.’
‘Frompersonalexperienceitisbloodyhardwork…youworkyourgutsouttosetsomething
upasabusinesspersonwould-butyouwalkawaywithnoequitypersonally.Allthatsacrifice
isnotrewardedinthetraditionalsense…Oftenpeopledrivenbysocialmotives,don’thave
thebusinessexpertiseandtenacitytopullitoff.’
Noplaceforsocialenterprise
TherewasaperceptionfrommanythatinNewZealandyouarepositionedeitherasabusiness
oracharity-withnomiddlespaceforotherapproaches.Whetheryoustructureasacharityor
businesswasidentifiedascarrying‘massive’risk.Further,therewasaperceptionthatthereis
nosuitablelegalmodelheretosupportsocialenterprise.Onepersoninterviewedcommented
ontheriskofthecharitablemodelfosteringdependence.
Oneofmyreviewersnoted‘theUSisalsomilesaheadintheinstitutionalsupportforsocial
enterpriseincludingonthelegalincorporationside.Thiswebsitehasjustbeenlaunchedto
tracktheadoptionofsocialenterpriselegislationacrosstheUShttp://socentlawtracker.org’
‘It’sreallyhardworkandyouarenotabusinessandyouarenotacharityandyouarealways
tryingtovalidateyourself.Everyoneislookingtoustryingtofigureoutwhatweare.Weare
tryingtomakeasustainablebusiness,andprioritisesocialimpactovereverythingelse.Itgets
tiring.’
‘Wedon’thavealegalmodelherethatworksforsocialenterprise,thereareissuesaroundtax.
Thereisn’tactuallyasocialbusinesslegalmodel.Thatneedstobethoughtabout.Inother
countriestherearemodelsforthefourthsector.’
‘Howyoustructureisarisk.Itisamassiveproblem,doyousetupasacharityorabusiness.’
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‘Thedangerisalsogivingpeoplefishratherthanteachingthemtofish.Yougetco-
dependency.Ifyouendupwiththewrongmodel.Charity.Youcangrowacultureofrightsto
that,aninappropriateco-dependence.’
Oldapproachesarenotdealingwiththeissueatasystemlevelorenablinginnovation
Oneintervieweenotedtheriskofmanagingissuesratherthandealingwithrootcauses.A
secondintervieweesawriskinthetraditionalparadigmoffundingandfeltashiftwasneeded
towardsgreaterflexibility.
‘Theriskiswhenpeoplearemanagingtheproblemsthinkingtheyareactuallychangingthings.
Welivetherewithourprisonsystem.Alotofmoneyisgoingtowasteandnotactuallydealing
withtheproblems.Thatformeisthehugerisk.Whenwecan’tdealwiththeproblem,we
managethem…Askingthehardquestions,whatdowereallyneedtodo.Whenpeoplesayto
uslet’stalkaboutpovertyIwouldsay,‘let’stalkaboutgreed’…Nooneisdealingwithwhatis
causingit.’
‘Theoldwayoffundingsocialchangeisdeterminingoverarchingneedsandpreferred
outcomes(thisisfromgovernmentandphilanthropy),andthenfundingtheorganisations,
communities,andactivitiesthatarecompatible.Thatistheparadigmofthewaysocialchange
isfunded-thosewhohaveresourcedeterminewhatisimportantandwhatgetsfunded.
Whenyouwantsocialinnovationandprovideatrulyenablingenvironment,youhavetotakea
leapoffaithandallowpeopletodeterminewhattheybelievetobeimportant–thisrequiresa
capabilitybuildingapproachandworkingwithcomplexity,ofdiscoverywhereresourceisin
servicetotalentratherthanviceversa.Thisisverychallengingforfunderswhoholdresource
andpower,andwhoareusedtoworkinginamorestaticuniversewhereyouworkfromthe
outcomesbackward.It’ssymbolicofawholeshiftwehavetomake…’
Theriskofnoise
Someofthoseinterviewedcitedtheriskofthesectornotdevelopinghereasitcould,dueto
inactionandalackofbusinessskills.
‘Thefirstthreatisnoise.Theminutethebusisleavinganawfullotofpeopletryingtogetonit
andalltryingtoclaimtobeexpertsinsocialenterpriseorsocialfinance.’
‘Ithinkthebiggestriskisitstaysalltalkandnoaction…’
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‘Ithinkover-expectationsisone.Theexcitementthatthisisanexcitingnewthingtodo
withoutthedeeperunderstandingofwhatwillmakeitwork.Lackofsolid,substantialbusiness
plansandunderstandingofwhattheyare…‘
Predatorycompetitivereactionbyestablishedbusiness
‘…theriskofpredatorycompetitivereactionbyestablishedbusinesswhensocialenterprise
becomestoosuccessfulandchallengestheirdominance.’
Oneofmypaperreviewers,sharedarecentexamplewhereCBEClostit’swastecontractinthe
FarNorthbecauseafor-profitcompanyputinaprice1/3ofwhatCBECcould(whohaddone
thisworkfor7yearsandseekminimalprofit,sotheirtenderedpricewasverysharp).Thelocal
Councildidn’tpricethesocialbenefitsoftheCBECbidtocoverthatdifferencesotheygaveitto
privateenterprise.
Notadequatelypreparingouryoungpeople
Afinalriskidentifiedwasnotadequatelydevelopingandgrowingthenextgenerationof
enterprisingyouth.
‘Areweteachingouryoungpeopleaboutcourage?Thesearesystemic.Yesyouneedmaths,
yesyouneedliteracy,butthevaluesbasedstuff,thatdriveshowyouuseforgood…Oneof
thebiggestrisksforusasanorganisation,andwe’regettingtoitnowkindoflate,is
developingthenextgenerationofenterprisingyoungpeople.Theyaredifferenttous…Bring
youngpeoplethrough,letgo.Andletthemwalkinandletthemfigureoutstuff,make
mistakes.Keepthatinasafeenvironment,butnotsosafethattheydon’trisk…Formethat
riskisthatwedon’tletgoandletthemgrowbesideus.’
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9.PastsupportforsocialenterpriseThoseinterviewedwereaskedwhatsupporttherehasbeeninthepasttosupportsocial
enterpriseinAotearoa.Pastsupportwasdescribedascomingfromphilanthropy(theTindall
Foundationreceivemostmentions);somesupportcomingfromindividualsand
intermediaries;andsomethroughgovernment.
Philanthropicsupport(past)
Philanthropywasrepeatedlydescribedashavingsupportedsocialenterpriseinthepast-in
particulartheTindallFoundationwhoreceivedthegreatestnumberofmentionsandwere
describedas‘leaders’.OtherphilanthropicorganisationsmentionedincludedASBCommunity
Trust(nowFoundationNorth),theVodafoneNewZealandFoundation,theToddFoundation
andthecommunitytrusts.
TheTindallFoundationhassupportedvarioussocialenterprisesincludingtheNZHousingFoundation
‘TheTindallFoundationhasbeenaleaderinthisandtheyhavedonealotofreallygoodwork.’
‘Tindallprobablytalkedabouttheirsocialentrepreneurthingandthereweresomegood
learningsthere.Itwasaprettycoolthingthattheydid.’
‘AttheTindallFoundationwesupportedtheSocialEntrepreneurFellowship,manyworkedin
socialenterprises,wesupported15peopleforfiveyears.IntheendIreckonthatonlyabout
threeorfourweregenuinelyinvolvedinsocialenterprisesofscale.Thelearning’swerethatit
ishardwork,itisauniquepositiontotake,ittakesspecialpeopletomakeitwork,theymust
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beveryentrepreneurialandtherearenotmanyofthem.Wehaveaspecificstrategytosocial
enterpriseandwehavealwaysbeenopentothem…’
‘Tindallweretheinitialsupportersofour4TradesApprenticeshipProgramme.Wereally
appreciatedthat.Thatwastrulyvaluable.TheonlyothersupportwastheSocialEnterprise
Fellowship.Tindall,ToddandASBwereinvolvedinthat.Wemettwoorthreetimesayear,
thatwasinvaluable.’
‘ASBCommunityTrusthasbeenamazing.Forphilanthropy,wehavedeveloped,Tindallwill
alwaystalkabout‘handupnothandout’.ButIthinkthenextgenerationforphilanthropyis
aboutrelationships.Realstrongcommunityrelationships.Notcominginfromtheoutside
saying‘heywegotthemoney’.Formingrelationshipsandpartnerships.’
‘ASBCommunityTrustandToddFoundationhassupported.Notmanyinvestinsocial
enterprise.’
‘TherehavebeengroupsliketheSocialEntrepreneursFellowship,thatwasanopportunityfor
awholerangeofpeopletocometogetheroverafouryearperiodtotalkaboutissuesrelated
totheircommunityandevenonawiderscale.’
‘Somephilanthropistshavesupportedit…Someofthecommunitytrustshavesupported
socialenterprise.’
‘Someofthephilanthropicshaveinvestedovertheyears.TheTindallFoundationand
VodafoneFoundationhavebeensignificant.CanterburyCommunityTrust4.AucklandCity
Councilnowhasapodthere,butwhattheyhavedoneintermsofactivelyinvestingIamnot
aware.’
‘WhatVodafoneisdoingwithWorldofDifferencethatwasoneofthebestthingsthatever
happenedtome,intermsofgettingmeoutofthestartingblocks.Ihaven’tgotanyschool
qualifications.Iwasabletousethataward…itopeneddoors…’
4CanterburyCommunityTrusthasrebrandedasRātāFoundation
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Individualsandintermediarysupport(past)
VariousindividualssuchasVivienneHutchinson,DiJennings,LindsayJeffs,GuyRyanand
DianaSuggatewerementionedashavingsupportedsocialenterpriseinthepast.
IntermediariesEnspiralandĀkinareceivedmultiplementions.
‘TheearliestsupportsthatIknowofwhatVivienneHutchinsondoingsomeworkwiththe
SocialEntrepreneursFellowshiptotryandbuildacommunity…ThatishowIcameacross
MalcolmCameron.Weareabsolutelyreadyforthenextgenerationofthatnow.’
‘DefinitelyagainEnspiral,havingacollectiveoflikemindedsocialenterprisetypepeople
hangingoutinthespace,helpedamplifytheinterestinthespace.’
‘…DiJennings,theworkshewasdoing,ontheedgesofsocialenterprisecertainly.Anditwas
superinterestingattheendofthesocialenterpriseconferenceinWellingtonin2013,runby
ĀkinaandEnspiral.’
‘IhadsomecontactwithLindsayJeffs.Hehasbeenaquiet,strongandknowledgeable.Outof
everybody,byfar,Ihavefoundhehasbeentheonewiththemostknowledgeandexperience
insocialenterprise…Heisverymodest,quietlyinthebackground.Thereisanewwavewhich
isawesomebutthelanguageoftheolderpeopleinthespaceisabitdifferent.’
‘Thestrengthofsocialenterpriseisprobablygoingtocomefromindividuals,andsmallgroups,
notbigorganisations.It’stheGuyRyan’sandtheIgnites.Allthosesortofpeople.’
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‘Idon’tthinktherehasbeenalotofconcertedorcontinuoussupport.Peoplehavebeen
broughtoutfromScotlandandAustraliainthe90’s.We’vehadafewconferencesrecently,Di
Jenningsputoneon…ThereseemstobemorenowwithĀkinareceivingsomegovernment
funding,we’lljustseehowthatgoes.IthinkthatpeoplelikeDianaSuggatewhowaswiththe
OfficeoftheCommunityandvoluntarySector(nowDIA)workedhardtogiveitvisibilityand
validitywithingovernment.Ofcourseyou’vehadvisitingFellowscomeoutaswell,Laura
BenedictandMJKaplan.Theyhavecomeanddonestudiesofwhatispossiblehere.’
‘Therehasn’tbeenthatmuchsupportinaconsistentcoherentsortofway.Therearea
numberofpeoplewhoworkedprettyhardtogetasocialenterpriseframeworksetupinNew
Zealandfiveorsixyearsago,thesupportotherthanfromgrassroots,itwasn’treallythere.
Anditkindofpeteredout,buttheydidlaythegroundworkforthenextlotofpeopletocome
through…‘
‘It’sslowlygrowing.AtEnspiralwe’vedoneeverythingonourown,we’vehadalittlebitof
supportfromtheCouncilinWellington.’
‘ThereisĀkina(whoweren’tsetuptodosocialenterprisebutthatiswhattheyaredoing
now).ThereisEnspiral.TheworkthatMJKaplandid.DiJennings…MasseyUniversity.There
havebeenallsortsofinitiativesandnoonehasquitehadthetractiontheyneeded.Ithas
beensomewhatfragmented.’
‘Thesupporthasbeenprettyskeletal.It’sonlyinthelast18months. Ākinahaveonlyjust
becomeanationalsocialintermediary.It’sveryearlydays…It’sprettyemergent.Whathas
happenedismoreinformal.’
Governmentsupport(past)
Asmallnumberofthoseinterviewedcitedpastgovernmentsupportforsocialenterprisesuch
asthroughtheDepartmentofLabour,theCommunityEconomicDevelopmentcompetitions
andmorerecentlytheDepartmentofInternalAffairs(DIA).Anumberofthoseinterviewed
perceivedthegovernmenthadnotinvestedmuchinthepast.
‘YoucangorightbacktotheDepartmentofLabourandtheGELS(GroupEmploymentLiaison)
Schemeandthentherewasanotherschemethatgotcancelledonthebasisoftheso-called
hiphoptrip.Thatgovernment‘easytogetgrant’pieceismissing.’
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‘IguessthereistheCommunityEconomicDevelopmentcompetitionsthathadasocial
enterpriseDragon’sDenaspartofthatin2011.Thatplayedareallyimportantrole,intermsof
communityinitiativesbeingseenasenterprises.Ithinkalotofconversationsgrewoutofthat.’
‘ClearlytheDIAandthefundingcommitmenttoĀkina…Thatwasthefirsttimegovernment
hadinvested.’
‘Thegovernmenthasnotbeenintoitupuntilthispoint.’
‘Idon’tthinkthegovernmenthasdonemuch.’
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10.CurrentsupportIntervieweeswereaskedwhatsupportcurrentlyexistsforsocialenterpriseinAotearoa.This
wasdescribedasprimarilythroughintermediaryorganisationssuchasĀkinaandEnspiral;
throughgovernment(inparticularAucklandCouncilandtheDepartmentofInternalAffairs);
andthroughphilanthropy.Othersupportsincludesviaeducationalinstitutesaswellas
organisationsandindividualswhoreceiveasinglemention.Supportfromintermediaries(current)TheprimarycurrentsupportforsocialenterpriseinAotearoawasseenascomingthrough
intermediaryorganisationssuchasĀkina,EnspiralandInspiringStoriesTrust(whichseeded
theLivetheDreamaccelerator).InadditionPrometheusFinancereceivedtwomentionsasan
intermediarysociallender5.
AspiringyoungsocialentrepreneursfromInspiringStories'accelerator,LivetheDream
‘Ākinaaredoingsomegreatwork.’
‘TheothertypeofsupportwhichIsawrichly,isEnspiral,theinkindsupport,theplace,the
opportunitytohaveaphysicallocationandmeetotherpeoplewhoaretryingthings.Iampart
oftheirGoogleplusnetworkandtheconversationsgoingonarephenomenal.Theyhave
crackedsupportinthedigitalenvironmentforthemillennialgeneration.Whatdopeoplewho
wanttodosomethingpositivewiththeirlives,howdotheymeet,whatdotheydo.Ihave
neverencounteredsuchanextraordinarycommunity…’
5PrometheusFinancehasgoneintoreceivership
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‘…theworkthatĀkinaisdoing,InspiringStoriesandFestivalfortheFuture,Enspiral.Thereare
theseentitiesandorganisationssayingwe’dliketosupportsocialenterpriseandtheyare
doingitofftheirownbat.’
‘MainlyinvestmentintoĀkinaandGuyhashadsomefundingfortheincubatorthings…
Individualswhohavetakenonandnurturedtheirpeers(theEnspiralmodel)…’
‘WellIsupposewehavesomeorganisationsthatarestartingtodeveloptoprovideabitofa
pathwayintoandthroughthedevelopmentofsocialenterprises.Asanexample,peoplelike
GuyRyanworkingataprettygrassrootslevel,creatingplacesforpeopletocomeandpresent,
developtheirinitialideasandincubatetoacertainlevel…NowĀkinaaredevelopedto
supportmoreofanincubationprocess,capabilitybuildingandsoon.Forsometheywillbea
keypartofthesupportstructure.ThentherearesomesociallenderssuchasPrometheus…’
TheĀkinaTeam(photocareofsocialimpactphotographerBevMeldrum)
‘YouhaveĀkinacomingthrough,IthinktheCentreforSocialImpact…PrometheusSocial
Lendingservicescanprovidefinanceadviceandaccesstocapital.Thereseemstobeabit
moresupportofsocialenterprise…‘
Supportfromgovernment(current)
Perceptionregardingcurrentsupportofsocialenterprisefromgovernmentwasmixed.Some
intervieweescitedexamplesofwherecentralandlocalgovernmentweresupporting-
AucklandCouncilreceivedmultiplementionsandtheirsocialprocurementpracticewas
highlighted.TheDepartmentofInternalAffairs(DIA)granttointermediaryĀkinareceived
mention.Someofthoseinterviewedsawminimalfinancialsupportcomingfromgovernment
anditwassuggestedgovernmenthadanopportunitytoinvestdifferently.
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‘AucklandCouncil’ssocialenterprisestrategyisalsoencouragingpeopletocomeforwardinto
thiswayofoperating.’
‘IthinktheworkthatBillyMathesonisdoinginAucklandisawesome,heisplayingan
awesomesupportrole.’
‘InAucklandIfeellocalgovernmentsupport.Andforusthathasbeeninthebestwaypossible,
adoptingourservices,likeAucklandCouncilandtheyweresoeasytoworkwith.Thatishow
supportivetheywere,theywerelike‘yesweneedtodothis,weneedtogetsocialenterprises
onourvendorslist’.Icouldn’tbelieveit.Iwasexpectingittobeahardprocessanditwasthe
completeopposite.’
‘Therearepods.AlittleoutMB(MinistryofBusiness,InnovationandEmployment),outofDIA
(DepartmentofInternalAffairs),outofAucklandCityCouncil…’
‘IjustknowabouttheĀkinastuffthatwe’vemanagedtogettheDIAmovingon.Thereisjust
notenoughofit.’
‘TherewasthegovernmentfundingforĀkina.ThevisionforLifehackisthatitbecomesasocial
enterpriselongterm.Wedidn’tfundittobecomethatbutitbecameapparentthatitcouldbe
one.’
‘…theMinistryoftheEnvironment,theyliketofundsocialenterprisesbutdon’thavea
deliberateapproachtodoingso.’
‘Fairlyrecentlyithasbeenstartedtoberecognisedbygovernment,therehasnotbeenmuch
inthepast…Thegovernmentistryingtofindawaytocontractwithserviceproviders
differently,theybelievethewaytheydoitnowispartoftheproblem,andtheybelievethey
shouldfreethatupbuttheyarenotsurehowtodoit.Ifgovernmentcouldcontractdifferently
withentrepreneurialsocialenterprises,thatwouldbeveryuseful.’
Currentsupportfromphilanthropyandtheinvestmentopportunity
Someofthoseinterviewedcitedexamplesofcurrentphilanthropicsupportincludingfrom
CanterburyCommunityTrust,TindallFoundation,ToddFoundationandASBCommunityTrust.
Thestrongerthemewasthatoftheinvestmentopportunityandtheimportanceof
philanthropy(andgovernment)becomingmoreintentionallyfocusedhere.
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‘ThereistheSocialEnterpriseFundthattheCanterburyCommunityTrustintroduced.’
‘Thereareoddfunders,likeTindall,usASBCommunityTrust.’
‘ASB,Todd,Tindall.’
‘Ithinkthephilanthropicthingaswell,thereismoneyaroundbutIamnotclearonwhothatis
for,howaccessibleitisandwhatthatlookslike.’
‘SotheToddFoundationwillfundsocialenterprisesbutnotthroughanamed‘social
enterprise’fund...Thereissomesupporttherebutintermsofintentionalprogrammestoget
peopleengagedandimproveperformance,toscale,improveaccesstotherightcapitalatthe
righttime,itdoesn’texistyet.’
‘Ihavealwaysfoundithardtogetsupportforsocialenterprise…Thereisafear,whenyoutalk
tosomeofthefunders,it’sliketheyaretakingtherisk,butit’stheorganisationorthe
individualtakingtherisk.Thebigriskiswesay,‘I’mgoingtodoitanyway’.Thereisnopipeof
investment.’
Supportfromeducation(current)
Somesupportwasidentifiedascomingfromeducatorsandtertiaryinstitutes.
‘AUT….haveaclubthatisspecificallyforstartingupsocialenterprises.’
‘SomeUniversitieshavesomecourses,somepapers…Someofthestudentclubsandgroups.’
‘…thereisthecoursethatLindsayJeffsteaches...’
Othersupports(current)
OthersupportsmentionedincludedMalcolmCameronfromDunedinandtheMinistryof
AwesomebasedoutofChristchurch.
‘…peoplelikeMalcolmCameronwhohavehelpedothers…’
‘…inChristchurchthereisMinistryofAwesome.’
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11.SupportgapsThoseinterviewedwereaskedwherethesupportgapsexistforsocialenterpriseinAotearoa.
Thestrongestthemesidentifiedherewerethegapsinaccesstofunding;capabilityand
supporttogrowthis;nonationalnetworkandlimitedsupportiveinfrastructure;lackof
awarenessandstorytelling;andbusinessprocurement.
Investmentandreadinessofinvestors
Availabilityoffundingandaccesstoaffordablecapitalwasidentifiedasadominantgap.
Further,banksneedtounderstandandcatertosocialenterprise;andsocialimpactinvestment
knowledge/trainingisagapforpossibleinvestors.
‘Thereisafundinggap.’
‘Oneofthegapsistheavailabilityoffunding,Istillthinkthatisthebigchallenge.Howisthe
sectorgoingtobeabletoraisethecapitaltosupportthesefledglingenterprises.It’sthebig
challengeamongahostofchallenges.Thebiggapisinmoney,wherearethefunders.’
‘Socialenterprisesstruggletogetoffthegroundbecausetheydon’thaveanycapital.’
‘…theavailabilityofaffordablecapital,ontermsthatsuitsocialenterprise.Affordableand/or
accessiblecapital(especiallystart-upcapital)isarealissue.’
‘AtRekindlewedon’thavethecapitalweneedandweprobablydidn’thaveenoughsupport
earlyon…Wehavebeenfunctioningbeyondourcapabilityforsometime.Wehavecome
fromsuchanunder-capitalisedspace.’
‘Fundingismassiveit’slikethebanksinthatareaaswell.Actuallyfindingaconsiderationfor
modelsthatcouldwork.Traditionalbanksneedtocatertotheneedsofsocialenterprise.
Socialenterprisesareagoodmarketopportunitybutthebanksdon’tseeitandsomeone
needstogettheirattentionandspeakthelanguageofthebanks.’
‘Definitelytrainingandsupportofimpactinvestors.Weneedsomeonetoputtheirhandup
andputtogetheraninvestmentnetwork.Supportforinvestment.’
Gapsincapabilityandsupporttogrowcapability
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Gapsincapacitybuildingsupportwereidentified.Thisincludedtheneedformoresupporting
intermediaryorganisations;buildingbusinessknowledgeandcapability;knowledgeofwhat
initiativesaresuitedtosocialenterprise;developingleadersandnetworks(usingtheSocial
EntrepreneursFellowshipasanexample);takingideastothenextstage;andmentoring.
‘Therearegapsintermsoftheacceleratorprogramme,thereisLivetheDreamandĀkinabut
thereneedstobemuchmore.’
‘Therearefarmoregapsthannotgaps…wehavetoaskwhatsupportscurrentlyexistforeach
stage.Therearedifferentsupportsavailable,buttheyareveryfragmentedandpossiblynot
greatquality…Wehavetothinkaboutdevelopingaconsistent,coherentandjoined-up
infrastructure–andprovidetheappropriatesupportsateachphase,fromideationrightupto
investment.Thesemustbehighqualityandconsistentlyaccessiblewhetheryouarein
InvercargillorAuckland.’
‘It’speople…growingtheknowledge.Youcanreadamilliongoodbooksbutthereal
experiencecomesfromthedoing.It’sthesimplethings.Somanypeopleareouttherewith
goodideaswhodon’thaveanyideahowtogetthemstarted.Ihelpthembutyougettired
eventually.’
‘…amoreacuteunderstandingofwhatsortofinitiativessuitsocialenterprisesandwhat
don’t.Itisnotjustacure-all,apanaceaforeverything,anotherincomestreamforanalready
strugglingcharitableorganisation.Ithinkthatishowquiteafewofcharitiesseeit,anddon’t
fullyunderstandtheriskstheytakeon,orthechangesinhowtheymustwork.’
‘…maybetheyneedmoretrainingaroundhowbusinessesgetofftheground.Iftheylooked
attheirbusinessmodelandfocusedonhowitcouldactuallymakemoneythatcouldsolve
someofthoseproblems.Therecanbealotofnaivety…Therecouldbeabitmoretraining
aroundhowbusinesseswork.’
‘TheTindallFoundationdidreallywellinthesocialentrepreneurfundingthattheydidandwe
reallybenefitedfromthat…WhatwasIdisappointedwithwasitpeteredoutattheendand
therewasn’tamodeltocarryiton…Itwouldbeofhugepotentialforthecountry.’
‘…Iwouldimaginethegapsareaboutenoughsupporttodevelopideas,takethemtothenext
stage…’
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‘…Isuspectaroundmentoring.’
Thegapinconnectedness
Thoseinterviewedidentifiedfurthergapswithregardstoconnectednessincludingthegapof
anationalnetworkbody;andgapsin‘joinedtogetherness’and‘intentionalthinking’.
‘Iaminterestedinwhatanationwidenetworkwouldlooklikeandatthesametimeyoudon’t
wantittobetopdown.’
‘Havingthatonenetworkthatcouldrepresentus.’
‘Joiningthedotsandparticularlybringingtogetherthedifferentcommunities,thatareisolated
fromeachother.’
‘Joined-upness,joinedtogetherness.’
‘Therearegapsaroundintentionalthinking…’
Gapsinunderstanding,awarenessandstorytelling
Understandingandawarenessofsocialenterprisewasseenasagap,aswasthesharingof
storiesofsuccess.
‘…thereisstillagapinunderstanding,underlyingalotofthereasonwhytheremightnotbe
fullsupport…‘
‘Themarketisnotfamiliarenoughwiththeconceptandbenefitsofsocialenterprisetobe
marketready.’
‘Therearelotofpeoplenewtothesector.WeshouldtalktopeoplelikethefoundersofWhale
Watch,WallyStoneandCliffColhounfromCBEC.’
‘Thegapisthatsortofrichwell-definedsetofexamplesofsuccessfulsocialenterprises.There
aresomegoodonesandthosestoriesshouldbetold,theyshouldbepropagated.Forexample
theNewZealandHousingFoundation(theirfundamentalpurposeistodevelophighquality
affordablehousing)…Theyhavemigratedfrombeingagrant-basedorganisationtobeinga
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socialfinancebasedorganisation.Theirprojectsarehighlysuccessfulandifyoulookatthem
asapropertydeveloper,theyareverygood.Theyalsoworkforaffordablehousing.Another
exampleisLittleBirdOrganics.Theyhaveaverygoodentrepreneur.Thebusinessisorganic
foodinawaythatisfundamentallycommercial.AthirdexamplewouldbeEnspiralin
Wellington…theyhavebeenabletobeabletobeafoundationforanumberofother
interestinginitiatives.’
Theprocurementgap
Procurementandpurchasingfromsocialenterpriseswasidentifiedasagap.
‘Bigbusiness.Whenitcomestocorporatesandbigbusiness,therearepartsofourbusiness
thatscarescorporates.Inmyareabigbusinessisagap.IknowAucklandCouncilaretryingto
changetheirprocurementpoliciestoincludesocialenterprise.’
‘Theotheroneistheprocurementstuff.’
Governmentsupport
Itwassuggestedgovernmenthasanopportunitytolookattheframeworkforsocialenterprise
inAotearoa,tomakeitmorefriendlyandencouragegrowth.Furthergovernmenthasan
opportunitytosupportsocialenterpriseasa‘legitimatesectorworthyofsupport’6.
‘Changingpolicysettings,thatisabiggap.ItisgoodthatgovernmentsupportsĀkina,butif
theygrowwithinanunfriendlyorlessfriendlypolicyframeworkthenwhatistheuse?It’s
hardlyworthit.Thosechangesinpolicy-intentionallylookingatchangesinpolicywouldbe
onegap.’
‘Theothergapiswhereisgovernmentinthis–issocialenterpriseseenasalegitimatesector
worthyofsupportandscaling.’
Gapsinsupportofyoungpeople
Supportingyoungpeoplethroughanactionlearningprocesswasidentifiedasagap.
‘Massivegapsforsupportofyoungpeopleathighschool,tertiary,thosewhohaveaninterest
inthisstuffwhodon’thavethelevelofbusinessnousthatmatureorganisationsmighthave.
6 InSeptember2015theDepartmentofInternalAffairsputtogethera‘strategicgroup’tolookatsupportforsocialenterpriseinNewZealandandreportbyMarch2016
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Thereissuchabigneedtosupportyoungpeoplethroughanactionlearningprocess.Learning
fromthebestinthegametodevelopandgrowtheirideas.…MJKaplan’sworkoveratBrown
University,theygiveoutsummerFellowshipsandsixmonthfundingforrunwaytoreallycrank
it.’
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12.ThefundingandinvestmentopportunityThoseinterviewedwereaskedwhattheopportunityisforfunders,tosupportsocialenterprise
withinAotearoa.Funderswereencouragedtowardsincreasinglyinnovativeandflexiblestyles
ofworking;newwaysofinvesting;andsupportingcapabilityandsectordevelopment.
Newwaysofworkingandenabling
Fundingstylewasseenasanimportantopportunityforfunders.Therewasanopportunityfor
funderstobecomeincreasinglyflexible,relaxingcriteria,experimental,innovative,
collaborative,thinkinglongterm,expansiveinthinkingandapproaches,creative,embracingof
riskandabletospotopportunitiestotransformlives.Thisshiftinfundingstylewouldenable
innovationandtransformation.
‘Ithinkthatcriteriaandrulesreallyneedtoberelaxedabit.Theremightbesomerandomidea
outtherethatmightnotnecessarilyfitthecriteria.I’dliketoseemorefreedomforpeopleto
getinthereandtrysomethingdifferent.Freedomtogetrightoutsidethesystemandseewhat
ispossible.’
‘Ithinkit’stogetbetteroutcomes,togetbetterandquickerinnovationandreduce
dependency.Andtoworkmoreinapartnershipacrossfunders,thatiswhatIseethereisreal
potentialfor.Tobemoreconsciousaboutthismovementandhowwe’regoingtosupportit…
Socialenterprisehassomuchmorepotentialforlongevityinit.’
‘Ifyouareinterestedinfundingyouthprojects,fund$1000toindividualstocomebackwith
$2000…Maybesomeexperiments.Lookatfivedifferentmodelsofsocialenterpriseandfund
oneofeachofthose.Tryabunchofdifferentthings.Experiment,takearisk…Thesocial
enterprisesandcommunitysectorparadigmthatisfunctioningatthemomentisnotworking
…Hereisanotherwaytotry.’
‘Theopportunityissignificantbutitneedstobeoneofcoordinationandcollaboration.The
philanthropicsectorisnotthatbig…Thereispotentialformorespecialisedfunding.…the
pipelineneedstobewelldevelopedandsupported…Thereneedstobealongertermstrategy
inphilanthropyaboutthis.Thereneedstobeasharedunderstanding.’
‘…linkingpeopleinandgettingpeopletogether.Sharinginformation,seeingiftherearesome
jointfundinginitiatives,thereareopportunitiesforcollaboration…’
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‘IlovewhatyouguysattheVodafoneFoundationdowithWorldofDifference.Ithinkthereis
anopportunitytheretoworkcloserinpartnerships.’
‘Theopportunitiesforfundersistomakesurewedon’tgetboggeddowninrules.Oneofthe
thingsthathashadperverseconsequencesintheUKisthehardconstraintsaroundsocial
enterpriseshavingtoreinvestspecificpercentagesbackintocoreoperations…itmaybe
bettertoexpandourthinkingandapproachesandhaveagreaterdiversityoffundsthat
recognisethatimpactisthemaingoalandit’snotonesizefitsall.TheRudolfSteiner
Foundationisagoodexampleofthis.Theyhaveaninvestmentfundfornotforprofitsocial
enterpriseandoneforfor-profitsocialenterprises.’
‘Ithinktheopportunityistobeinnovative…I’vebeeninthesocialandhealthservicesfor
about30years.Themodelswewereusing30yearsagohaven’tprogressedenormously,in
manycasesthey’vefailed.Theyhaven’tmadethebigdifferenceintheareasofbigsocial
challenge.Howdoesafunderreallyhaveimpact?Perhapsfundinganotherbunchofsocial
serviceinterventionsisnottherightwayforward.WhatIlikeaboutsocialenterpriseisit
bringstogetherthatbusinessthinkingandsocialthinking–thereisacreativitythatcomes
withthat.Thatleadstoadifferentwayoflookingattheworld.Thereisanopportunitytobe
innovativeaboutthewayinwhichwetryandachieveouroutcomesasfunders,withasocial
purpose.’
‘Forphilanthropyit’saboutinnovation,somanyorganisationsgetcomfortablewithlongterm
fundingfromphilanthropy.Weneedtobemuchmoreinnovative.InNewZealandwecompare
wherewefitintheworldandwherewesitontheOECDlist.Idon’tcarewhereweareaton
thelist,Ijustwantustobenumberoneandwecanbe.’
‘Weneedphilanthropistswhoareopportunityspotters.Philanthropycouldspottheonething
thatcouldtransformthelivesofmorethanoneperson.’
AshifttoSocialImpactInvesting
Fundersacrossphilanthropyandgovernmentwereencouragedtomovebeyondtraditional
‘handout’approachesandconsidernewwaysofsocialimpactinvesting(suchasloans)and
working(suchasbecomingmorecommercial)whichstrengthensocialenterprise.Oneperson
commented‘theopportunityistodesignsomeawesomefundingthatoptimallysupports
socialenterprise.’Inaddition,fundingatdifferentstagesofdevelopmentwasseenas
important.Oneintervieweecommentedontheimportanceofrelationship,citingthe
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VodafoneFoundationWorldofDifferenceProgrammeasauniqueresponsetogrowth
challenges.
‘ThatpaperIdid…itlookedatthesocialenterprisespectrumandthesocialinvestment
spectrum.Forinvestments,youhaveagrantatoneendandatraditionalmaximised
sustainablereturnontheother…Whatistheroleofphilanthropyinsupportingsocial
enterprise?Thereisaroleforgrants(particularlyinsetupandexpansionphases),thereisa
roleforsocialloans,therearerolesforsocialinvestmentsinequity(althoughassumingthe
socialenterpriseisstructuredasacharityyoucan’treallytakeanequitystake)…Whatwedid
atToddFoundation,wedidn’twanttodosocialloansbutwedidseegrantsasappropriatein
therightcircumstances.’
‘…thereisthepotentialforinvestmentratherthanfunding.Theymaywanttolendmoney
ratherthangrantmoney.Thereisanopportunitytoexploredifferentwaysoffinancingthe
effortthatisgoingintoaddressingsomeofourbigsocialconcerns.Forpeopletomoveoutof
agrantmakingandintomoreofaninvestmentmentalityisoneofthenextsteps.’
‘Theimportantthingisphilanthropistsshouldstopthinkingpurelyintermsofgivingmoney
awayandstartthinkingaboutinvestmentwhichstrengthenssocialenterprises.Grant
donationcanweakenorganisations.Youcanseeoverseas,organisationshavemovedinto
venturephilanthropy,becausetherewasenoughevidencethatitmadestrongerinitiatives.’
‘Therearefactorswithinthewaythatfundersandphilanthropycurrentlyworksthatarenot
welcomingordon’tsuittheneedsofsocialenterprise,suchasalotofthecommunitytrusts
willnotgivesocialenterprisecapitalorsocialloans,theywillonlygivegrants.Theyonlysee
themascharitablerecipients.Ithinkthatiswrongbecauseyouimmediatelyturnthemintoa
socialrecipient,andyoudon’tputfinancialrigouronbothparties,tobeabletopaybacka
loan…’
‘Thereisanopportunityforseedfunding,tofundbusinessmodels,thatdon’thavethat
reliancementality.Thereisanopportunitywithsocialimpactinvestment.Lookingatimpact
fundingandnotcharitabledonations.Forfunderslookingatgrants,tofulfillsocialgood,use
thegranttomakeasustainablebusinessmodel.Puttinginabusinessmodelfromthevery
beginning.’
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‘Ithinktheopportunityistofigureout,todesignsomenewformsoffunding.Itmightnotbe
thetraditionalgrant,orcashinjection,itcouldbeacombinationofinterestfreeloans,Idon’t
know.Theopportunityistodesignsomeawesomefundingthatoptimallysupportssocial
enterprises.’
‘Torealisetherearedifferenttypesofmoney.Thereneedstobedifferentpotsofmoneythat
areaccessibleatthosedifferentstagesofsupportandthatbyworkingtogetherisawaytoget
biggerimpact.’
‘…creatingsalariesforpeopleinthestartupphase,fundingforadhocsupport,likepeople
whocancomeinandcoverorhelpgrowthings.Thereissuchaworryaboutsecurity.Getinto
themeatofthatabitmore.Don’tjustaskaboutbalancesheets.Gettoknowpeople,whichI
expectisreally,reallydifficult.TheVodafoneFoundationWorldofDifferenceisareallyunique
responsetogrowthchallengesforsocialimpactorganisations.’
Growsectorcapabilityandsupportintermediaries
Opportunitiesweredescribedingrowingthecapabilityofthesector(includingsocialimpact
investmenttrainingforfundersandbecomingmorecommerciallyminded),lookingatthe
supportiveinfrastructure(thiswouldhelppreventburnout)andsupportingintermediary
organisations(‘thereneedtobemoreintermediaries’)andtrustingthemindelivery.
‘Ifeellikethepathlinefordevelopingprojectsismovingaheadtheabilityofinvestorsto
resource.Thereneedstobeimpactinvestmenttraining.’
‘Imeanthebigone,isthesameoneforgovernmentinaway,it’sthechallengeofbecoming
morecommercial.Howcanphilanthropystartinvestinginsocialventuresthatprovidea
financialreturn?’
‘Formethereissomethingaroundlookingbeyondtheindividualsocialenterprises,lookingat
teams,networks,thesupportiveinfrastructurethathelpsstuffgrow,helpspeoplenotburn
out.Thedifferencebetweensocialenterpriseandregularentrepreneurs,isthesocial
imperativeyouaretryingtofix,issomassivepeoplewillsacrificethemselvesinordertoget
there.’
‘Thereareopportunitieshere,thereneedtobemoreintermediaries…toprovidethebridge.’
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‘…trustintermediariesindelivery.’
Investinresearchanddrawoninternationalevidence
Opportunitieswereidentifiedtoinvestinresearch(topromotelearningand‘whatworks’and
alsoexplorehowsuccessmaybemeasured).Further,toinvestigateifanarticulatedbusiness
caseforsocialimpactinvestmentexists,bylookingatinternationalmarketssuchasScotland
andtheUK.
‘Thereisanopportunitytofundsomeresearch,thatwouldbegreat;itwouldlookatwhatwe
canlearnfromotherpeople.’
‘Theotherspaceisaboutlearning.Howdoweinvestinlearningandhowdowemeasurethe
differenceitmightmake?Seeingthatisimportant.’
‘Theproblemisthereisnotmuchdemonstratedsuccessatscalehere.Philanthropic
organisationsgenerallyhaveahigherappetiteforrisk.Butforcommercialinvestors,thatisa
toughone.Isthereanarticulatedbusinesscaseforinvestmentthatarticulatesthe
opportunity.LookingatScotlandandtheUK,clearlythisworksinothermarkets.’
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13.ParticularareasorprojectstoconsiderforfundingThoseinterviewedwereaskediftherewereanyparticularareasorprojectsthatshouldbe
lookedatforfunding.Themostdominantthemeherewastheopportunitytoinvestinthe
supportiveinfrastructure-supportingnetworks,collaboration,buildingcapabilityand
leadership.Thesecondthemewasthatofinvestinginregionalandlocalsocialenterprise
projectsandcommunitydevelopment.Thethirdwastheopportunitytoinvestinyoung
peopleincludingthoseofschoolageandwithintertiaryinstitutesandsupportingstudent
networks.Withregardstofundingstyleitwasnotedfundersneedtobeincreasinglyflexible,
innovativeandactionoriented.Variousissues,organisationsandprojectswereidentifiedfor
possibleinvestment.
Investingrowingsectorcapacity
Investingingrowingsectorcapacitysuchasdevelopinganetworkinfrastructure,supporting
collaborativeapproachesandgrowingsectorleadershipwereidentifiedasareasforpossible
investment.
‘Howdowedevelopanetworkinfrastructure?Wedon’twanttojustproliferateafewbig
organisationsthatwillthenprovideaone-sizefitsallsolutionforthewholecountry.Itneeds
tobemorefluidthanthat. Ākinawillbefarmoreeffectiveatworkingdynamicallyand
supportingotherversionsofourselvesthatareconcernedwiththeirowncommunities,oron
specificissues,and,critically,connectingthemtogether,thanjusttryingtogrowintosome
sortofsocialenterprisebehemoth.’
‘Socialenterprisehereismissingthisthingwherewecandosomethingtogetheryouknow,we
areoperatinginsomanysiloseventhoughweknoweachother,andthatjustmakesitreally
difficult.’
‘LeadershipNewZealandtheiralumnaemeetallthetime.Wehavehadsevenoreight
generations.Weneedtobegeneratingthatconversationaroundthenation.Urban,rural.
Acrosscultures.Therealityismakingsurewehavediversityofthinkingintheroom…wehave
gottofigureouthowtodothis,notjustMāori,notjustnonMāori,everybody,wehaveto
workouthowtodothistogether.Andwhenwegettogether,wewillchangetheworld…The
whakatauweusealot,‘Tekaiaterangaira,hekōrero.Whatisthefoodofchiefs,itis
dialogue,hekōrero.’’
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‘…howdowegetthistobeamoreconsciousmovement,withallthefundersand
government?Idon’thaveananswer.Butitwouldbeworthputtingsomeofthesectorand
philanthropiststodoadesignthinkingonit.’
‘Thereisalwaysthisdebatewhatcomesfirst,supplyofcapitalorthedevelopmentof
capability.Ofcoursethetruthistheybotharemutuallyreinforcing.’
Regionalandcommunityinitiatives
Supportinglocalcommunityinitiativeswasidentifiedasanopportunityforinvestment.
‘Communityledinitiatives.’
‘…someoftheservicesinregionalcentresthatmightbestrugglingtohaveafor-profitreturn.
Butasasocialenterprisetheycanbemadetowork,throughacooperativeorsomethinglike
that.Itmightbethelocalstorethatisgoingtoshutdown.’
‘Givemelotsofmoneytobuymylocalsupermarket!’
Developingyouth
Investmentopportunitywasseenindevelopingyoungpeople–providinghandsonexperience
insocialenterprise;creatinglearningenvironments‘rightthrough’;supportattertiary;
growinglearningcommunities;andreframingfailureaslearningopportunity.
TheDevelopsterTeamatAoTawhitiUnlimitedDiscoverySchool
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‘Weneedtostartdoingthisearlier.WorkingwithkidsinschoolorPolytech,engageearlyso
theyneverenduponthebenefit.ThewholecommunityhastohelpinthatprocessandIthink
theschoolsarereadytoacceptthatnow(theyweren’tafewyearsago).Aclassicexampleof
that,isourworkinhighschools.Socialenterpriseisoneofthebestwaystobuildonthat.That
modeltherestaurantsecondhandthing,involveyoungpeopleaspartoftheirschooling.If
theyaredoingeconomics,marketing,thereareprojectsthatselfsustain.Thensuddenlyyou
havepeoplegettingNZQAresultsthatarereallypractical.’
‘Projectsaroundlearning…it’sdifficultforphilanthropiststogetinvolvedbecausethe
MinistryofEducationshouldbedoingit,buttheyarenot.Creatinglearningenvironments
rightthrough…thatactuallycreateskills,developideas,innovation.Howdowesetupthese
learningspaces?TheyshouldbeinPolytech’sbuttheyareprettyscripted.Placestohelp
developinnovationandrecognisetheneedofthestudentstheyareworkingwith.’
‘Thereismassivelowhangingfruitinthetertiarysector/highereducation.Thereisprecedent
forthis.WhatUnLtdhavedoneintheUK,theycreatedacommonawardspot,common
capabilitybuildingresourcesandtoolkits,thenworkedwithinstitutionstosetuptheirown
programmesandthenthenetworkthemalltogether…’
‘Definitelythestudentnetworks…ThestudentshavegoneontocreateSocialInnovation
Aotearoa.’
‘Learningcommunities,investinginentrepreneurs,taketheseyoungpeople,takethemto
placeswherepeoplecanconnect,liketheNewZealandFellowship,creatingmoreFellowships
whereyoucanbringpeopletogetheroveralongperiod.Exposethemtoawholerangeof
otherthinking.’
‘Youngpeoplearelookingformeaningmorethanever.Thesocialenterprisespaceisripefor
youngpeopledevelopingstuff.Enspiralisamazing;theyoungpeoplehaveawholedifferent
setofvalues.Theywanttodosomethingmeaningful.Theycollaborateinthatspace.Our22
yearolddaughterhassaid‘Idon’twanttoworkanymore,Iwanttovolunteer.ButIcan’tlive
withoutmoney’.Moreandmoreyoungpeopleareinthatspace…it’saboutencouraging
them.It’sabouttryingthings…Theeducationsystemiscentredon‘youcan’tfail’.Learningis
aboutmakingmistakes.’
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Fundingstyle
Intervieweescommentedontheimportanceoffundingstyle–forphilanthropytobeaction
oriented;strategic;abletothinkwithinacontext;andflexible.
‘Justallofit.Iguess,formesocialenterpriseisanareaphilanthropyshouldlookto.Theyare
lookingbutit’sjustlooking,let’sdosomedoing.’
‘Haveanoverallstrategictrustandthenseetheopportunities,don’tmakeittoo
programmatic.’
‘…thefundingenvironmentisveryspecific…OnthegroundIthinkwhatwehavetodoistry
andseducethefunderintothinkingwithinacontext.Thatisnotalwayseasy.Whenyouthink
withinacontext…youthinkcollaboration,youthinkawin-winforeverybody.Alotofthings
areintangible,andyoucan’tmeasurethem.Anexampleisyoucancounthowmanytimesa
childhasbeentoadoctor,butifyoufixsanitationinahouse;youwillneverbeableto
determineifyouhavebeenabletostophepatitisandotherlongtermdiseases.’
‘Asocialbusinesscouldloseitsindependencethroughfunding.WithĀkina,theyhavedifferent
funderswhoexpectdifferentthings.Andtheyhavetochoosebasedonthosedeliverablesand
thatbringsinlimitationsinitself.’
Issues
Arangeofissuesforpossibleinvestmentwereidentifiedincludingsupportforemployment;
conservation,recyclingandenergy;housing;earlychildhood;andtheagingpopulation.
‘Thereisunemploymentinthecountry.Creatingbusinessesthatemployyoungpeople.’
‘…lookingatemploymentdifferentlyandopportunitiesforemployment.Secondlythere
seemstobeanaturalemergenceofbusinessesforgoodthatarelookingtodogoodthingsin
theconservationandenvironmentarea.Thereareopportunitiesthere.Maybeineducation…
Therehavealsobeensomegreatsuccessesinthehousingarea,forexampletheNewZealand
HousingFoundation’sworkwithlow-incomefamilies.’
‘Ithinkthewholeareaofrecycling,wastedisposalisalogicalareatolookat.Partlybecause
youhaveastrongvaluesalignment.Youcouldn’thaveasocialenterpriseinanareawhere
therewasn’tavalueproposition.’
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‘TheotheroneIwouldsaythatwouldbeworthinvestingindevelopingregional,localenergy
projects.Especiallywhereyouhaveplaceswhereitcostsmoretodeliverpowertosmall
communities.Theycoulddeveloptheirownenergysupplynetwork.Evenplacesthatareon
thegrid,thatcouldsetupsolarfarmsorwindfarms.Powersmallercommunities.’
‘Anythingthatwouldhelptoincreasethestandardoflivingandwellbeingofpeoplein
general.’
‘Investinginhealthorearlychildhoodeducation.Ifyouinvestinthefirstthreeyears,thereis
seventeenfoldreturnoninvestment.Earlyinterventionshaveareallystrongreturn.’
‘Thereareincreasingnumbersofoldpeople…thewaywearesupportingthemisbecoming
moreandmoreinstitutionalisedandweareputtingtheminthesegreatbigretirement
villages.Ibelievethereisawaytosupportthemthatisalotmorecommunitybased,anddoes
goodforalotmorepeople,notjustthem.’
Organisationsandprojects
SpecificorganisationsandprojectsmentionedforpossibleinvestmentincludedLoomio,
Enspiral,Ākina,Lifehack,WikiHouse,OOOBY,ConsciousConsumers,CBEC(Community
BusinessandEnvironmentCentre)andCYDP(CanterburyYouthDevelopmentProgramme).
‘Ifeelthisnewwayofsocialenterprisesisgreat,buttherearemassiveexistingsocial
enterprisesthatreallywarrantattentionandshouldbeconsideredfirst.ThingslikeWiki
House,socialhousing,youthemploymentrelatedinitiativeslikeCanterburyYouth
DevelopmentProgramme…’
‘IthinkthestuffcomingoutofEnspiralisreallyexciting.Therearesomepeopleinthat
organisation,acorebunch,ofallwhomItotallyrate…ThestufftheyaredoingwithLifehackis
verycool.AndLoomio,thatisgenuinelyaworld-classinnovationcomingoutofalittleroomin
Wellington.Therewasamassivecrowdfundinground,andtheygotover$100,000butthey
stillfindtheycan’tdowhattheywanttodo.Peoplefromaroundtheworldaresaying,‘we
reallyneedthisproduct’.Peoplearecallingforit.Againanunbelievableteamofpeople.An
opportunityforNewZealandtobeontheworldstage…’
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14.Benefitsofsocialenterprise
Manyofthoseinterviewedcommentedonthebenefitsofsocialenterprisethroughoutthe
interviewprocess.Benefitsincludemoneybeingretainedinlocalcommunities;social
outcomeshavingbenefitforbusiness;everyonecanshareinthebenefits;beingasoundand
moresustainableeconomicmodel;andbeingamodelthatteachesindependence.
‘JoePublicneedstoseethebenefits,thefruitsofwhatsocialenterprisecando…For
Northlanditisthewayofthefuture…Northlanddoesn’tfitwithinthenormaleconomic
model,butifyoustarttousesocialenterprisethinking,thereareheapsofopportunities.The
keyvalueisnotaboutmebecomingamillionaire,it’sabouthowweshare,weasacommunity
allshareinthegood.It’saboutreframingthethinkingaboutwhatissustainable,whatislong
term.Whatwetreasuremost.Nothavingthebigflashcar.It’saboutfamilies,youngpeople
beingabletofollowtheirpassions,notassets…Moneygoingaroundtwoorthreetimesin
onecommunity,wherebeforeitwouldjustleavethecommunity,gotoanothercountry.’
‘Thefunnythingaboutsocialenterprise,itisnotnecessarilyascompetitiveasbusinesses
withinacommunityandyoucangettogetherwitharangeofnotforprofits,wherepeople
aren’tseeingcompetitiontheyareseeingcollaborationandtheyareseeinghowwecanmake
goodchangesinthecommunity.Alotofthecompanieswanttodosocialgood…theycan
comeoutlookingreallygoodaswell.Andachievetheirfinancialoutcomesaswell.’
‘Whereeverybodycanshareinthis,everyoneispartofthis,changethepsycheofonlyafew
benefiting.Whereit’sabouteverybodybeingabletoshare,playtheirpart,everybodybeing
valued.Wehaveahierarchicalstructurearoundbusiness,ifyouareonthelowerscaleyouare
treateddifferently.’
‘Withsocialenterpriseeverypieceisdependentoneachother,howyougrowanddevelop,it’s
notabout‘whatcanIgetfromthatemployee’.It’sawholenewwayofthinking.Businesses
outsourceandgooverseas,chasingtheprofitmargins,thesocialelementwaslost.Howdowe
dothistogether,createenterprise,keepitlocal,andkeepitathome.Butalsobepartofthe
globalmarket,theglobalmovement?Alotofcountrieshavetorethink,Americabeingoneof
them,theyoutsourcedeverythingandnowtheyarefacingalltheseproblems.’
‘…theeconomicmodelofsocialenterprisestandsupwhereeveryougointheworld.There
aredifferentindigenousflavours,ImeanMāori,ImeanAfricanAmerican.Indigenous
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communitieswillhaveadifferentflavour.Themodelissoundandittakesonadifferent
flavourdependingonwhousesit.’
‘Wewillreinvestprofitsbackintothecommunitythatisagoodmodelwhereeveryougo.The
modelsweuseherearearoundreinvestingbackintothecommunity.Wedon’thavebigChief
Executivesonhugewages.It’sdonemorecooperativelythancorporately.’
‘Wehadoneenterprisethatwedidthathadalotofbenefitonthehealthside,benefitsacross
theboard-youcanbringdifferentgroupstogether.WecoverthewholeofNorthlandfrom
thetiptoDargaville.Forthattohappenitbroughtawholelotofgroupstogether-health,
philanthropy,business–withavisionforwarmerhealthierhomes,cutdownhospitalisationof
youngchildren.Allofusboughtintoit.One,weallliveinNorthland.Weallshareinthis.This
wayofdoingthingswherewehaveourownownershipascitizens,gettingbetterbangfor
buck,it’sdoneamazingwork,whatwecallourgovernancegroup–PHP,iwi,businesses,we
cametogethertodevelopthis,gethousesrefittedintheregion.ASBCommunityTrustcomes
inwithphilanthropy.Wecangetwayabovewhatonegovernmentdepartmentwouldhave
everdone.Aswellasemploymentforlocalpeople.Hugebenefits.Thatshouldbetheway
goingforward.InNorthlandweneedtodomoreofthis.It’saboutdevelopingrelationships
throughthedifferentsilos–commercial,government,iwi.Hugeopportunitiesforthecrossing
ofinformation.’
‘It’snotgoodtogiveafishaway,butifyougiveanetandshowthemhowtofish,theycan
feedtheirfamily.Socialenterpriseislikethat…’
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INSIGHTSANDRECOMMENDATIONS
1.Governmenthasaroleinsettingtheconditions
Insight:Governmenthasakeyroleinsettingtheconditionsforsocialenterprisetothrive(I
likenittopreparingthesoiltoensureit’snutrientrichbeforeplanting).
Recommendation
Government-inacollaborativepartnershipwiththesector-hasanopportunitytoreviewand
refinetheconditionsinAotearoaforsocialenterprisetooptimallythrive(theDepartmentof
InternalAffairshasalreadyinitiatedworklookingathowgovernmentmightsupport).Looking
tocountriessuchastheUK,ScotlandandCanadaforinspirationandideas.Thismayinclude
reviewingthelegalstructure(makingiteasiertoinvestinsocialenterprise),provisionof
incentives(includingstartupfundingandtaxbreaks),incentivesforfinancialintermediariesto
supportthesectoranddoinganythingelsetomakethesocialenterpriseenvironmenthere
trulyenabling.AimtomaketheconditionsheresostrongthatothercountrieslooktotheNew
Zealandcontextasanexampleofbestpracticeandinnovation.Investmentisalsoapriority
areaforgovernment(referInvestmentsectionbelow)
2.LeveragethestrengthofMāorisocialenterprise
Insight:Māorisocialenterpriseisakeystrengthanduniqueaspectofsocialenterprisein
Aotearoa.Thereisanopportunitytoplaytothisstrengthandmagnifythisforgreatergood.
Recommendations
1.FundersspecificallylooktoMāorisocialenterpriseasapriorityareaforinvestment(and
ensurethatMāoriareincludedinfundergovernancestructuresandselectionprocesses)
2.BringtogetheranetworkofleadersfromwithinMāorisocialenterprisetoexplorefurther
opportunitiesforgreatergood.Thesemayincludesharingstoriesofsuccessandlearning;
documentingandsharingthesestorieslocallyandinternationallyincludingwithindigenous
communities;furtherexploringhowsocialenteprisecouldbenefitMāoriandimpactonissues
specifictoMāori;andexploringhowiwiandhapu7governancestructurescouldsupportsocial
enterpriseinitiatives
3.MāorisocialenterprisetofeatureintheSocialEnterpriseWorldForumbeinghostedin
Christchurchin2017
7 Tribeandsub-tribe
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3.Createanationalnetworkbody
Insight:NewZealandisasmallcountryenablingeaseofconnection,yetnonetworkbody
existsforsocialenterpriseandthisisagap.
Recommendation
Bringtogetheradiversenetworkofleadersfromwithinsocialenterprisetoexploreandcreate
anationalnetworkbody.Againlookingtomodelsofwhathasworkedinternationallyto
leverage.Thiswouldrequirefundingtocovertravel,facilitation,eventandotherdevelopment
costs.
4.Storytellingandcelebrating
Insight:AwarenessofsocialenterpriseinAotearoaislimited(includingwithinNZbusiness)
andthereisanopportunitytosharestoriesofsuccessandlearning.
Recommendation
Let'sleveragethegreatmahi/workhappeninginthesocialenterprisespaceandshareMORE
storiesoflocalsuccessandlearnings–includingintentionallysharingstoriesofsuccessful
Māorisocialentrepreneursandyoungsocialentrepreneurs.Wecanallplayaproactiverolein
this(philanthropy,government,otherinvestors,intermediaryorganisations,socialenterprises
themselves,NZbusinessandgenerouschampionswhojustlikesharinggoodstuff).Allofus
canproactivelyusethecommunicationschannelswealreadyhaveinplace(suchassocial
mediaandprint)…andmaybefundsomeadditionalstuffto,toreallygetthemessageout
(particularlytargetingNZbusinesswhocouldsupportsocialenterprisethroughforexample
sharingofbusinessskills,aspartnersandinsocialprocurementetc).Agoodstartingpoint
wouldbetoproactivelysharesomeofthestoriesofsocialenterprisesreferencedthroughout
thispaper.
5.SocialImpactInvestmentTraining
Insight:NZfunders(philanthropy,governmentandothers)requiretrainingintheareaofsocial
impactinvestment,tobecomeequippedtoinvestinsocialenterprise.
Recommendations
1.Capacitybuilding/trainingisrequiredforfunders,specificallyintheareaofsocialimpact
investing.PhilanthropyNewZealandhasalreadybegunworkinthisareaandwouldbewell
placedtoleadthis.8
2.CreateafunderSocialImpactInvestmentNetworknationally(againPhilanthropyNew
Zealandhasotherfundernetworksoperatingandwouldbewellpositionedtoleadthis).
8I’macurrentBoardmemberofPhilanthropyNewZealand,sohaveaconflictofinteresthere
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6.Investment
Insights:Accesstofundingisakeyopportunityifsocialenterpriseistothrive.Funders(across
philanthropy,governmentandothers)needtofocusinvestmentonareasidentifiedasa
priority(includingthesupportiveinfrastructure)anduntappedpotentialandbepreparedto
investlongterm.Banksandfinancialintermediariesareasupportgapthatneedsaddressing.
Recommendations
1.Itisrecommendedthatallfundersreviewtheirfundingtosocialenterpriseandspecific
fundingismadeavailableinsupportofsocialenterprise(includinggrantsandutilisingother
socialimpactinvestmenttools);andthisfundingbeaccessibleandflexibleandembracingof
risk(andreframingfailureasanopportunityforlearning).
2.Focusinvestmentlongtermonidentifiedpriorityareasanduntappedpotentialincluding
thesupportiveinfrastructure/capacitybuildingofthesector(seesectionbelow),supporting
localsocialenterpriseinitiatives,communityownedassets,Māorisocialenterprise(refer
sectionabove)anddevelopingyouthasasignificantforcetotacklekeyissues.
3.Exploretheneedsofsocialenterprisesastheymaturetobetterunderstandinvestment
requirementsandpositiontheseorganisationsforlongtermsustainability.Startupcapitalis
crucial,asisfundingatdifferentstagesofdevelopment
4.Governmenttoreviewthelevelofgovernmentinvestmentintosocialenterprisemadein
othermarketswhereitisthriving(suchastheUKandScotland)atdifferentstagesof
developmentandinvestatsimilarlevels(adjustingforpopulationdifferences)
5.Investinapieceofresearchexploringtheroleoffinancialintermediariesandbanks
internationallyinsupportofsocialenterpriseandwhatisneededhere.Thiscouldinclude
incentivesfromgovernmentforfinancialintermediariestoinvestinsocialenterprise(as
suggestedintheGovernmentsectionabove).
7.Capacitybuildingofthesector
Insight:Strengtheningandcapacitybuildingofthesectorisagapandopportunity.The
intermediaryorganisationswedohavearepioneers,buttheyarefewandfragileandrequire
support.Newintermediaryorganisationswillrequireinvestmenttoo.Thesocialenterprise
eco-systemhererequiresstrengthening.
Recommendation
Fundersincreasinglyinvestinsocialenterpriseincludinginexistingintermediaries(suchas
Enspiral,ĀkinaandSocialEnterpriseAuckland)andnewintermediaries,developmentof
regionalandnationalnetworks,connectingthesector/collaboration(ensuringthereare
83
diversevoicesintheroom),supportingeducationandknowledgegrowth,growingcommercial
knowledge(includingsupportwithbusinesscasedevelopment),research(localand
international)andsupportingleadershipdevelopmentandcommunitiesofpractice.
8.SocialProcurement
Insight-Thereissignificantopportunitytosupportsocialenterpriseandpositiveoutcomes
throughsocialprocurement
Recommendation
AucklandCouncilandothersareinnovatinginthisspacealreadyandusingtheirbuyingpower
forgood.Whatcanbelearnedfromthem?Governmentandbusinesscoulddrawonthis
experienceandtakeaction.SocialTradersinAustralia‘connectbuyersfromfromcorporate,
governmentandconsumerstosocialenterprises’–whomightleadthispieceofworkforNew
Zealand?Howmightyouasaconsumermakeamazingbuyingchoicesandpromote‘good’
organisations?Weallhavearoletoplay.
9.Learnfromoverseas
Insight:Othermarketsarefurtheralongthissocialenterprisejourneythanusandthere’san
opportunitytolearnfromthosewhoareleadingtheway
Recommendation
Leverageinternationalknowledgeandexperience.Bringoutinternationalleadersinsocial
enterprise,intentionallyformstrategicrelationshipsandpartnerships,supportstudytoursand
learningsabbaticals,investinresearch(what’sworking,whatarethelearnings,wheredoes
NewZealandsitrelativetoothercountries),training,mentoring…trysomestuff(andalso
makeittwoway,wehavesomewonderfulexperiencestoshareaswell).TheSocialEnterprise
WorldForumbeinghostedinChristchurchin2017representsasignificantleverage
opportunity.
10.Articulatetheposition
Insight:Nosectorpositionstatementexists
Recommendation:
Developasectorpositionstatementonsocialenterpriseandit’splaceinNewZealandsociety.
Thiswouldbewellledoutofthenewlycreatednationalnetworkbody.
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ABOUTTHEAUTHORAnnetteCulpanhasabackgroundinphilanthropy,businessandnot
forprofit.ShemanagedtheVodafoneNewZealandFoundationfor
nineyears,sitsontheBoardofDirectorsforPhilanthropyNew
ZealandandtheGriefCentreAucklandandco-leadsanadvisory
groupfortheVodafoneNewZealandFoundation.Annetteis
passionateaboutbusinessforgoodandcommunityled
collaborativeapproachestodrivesocialchange.Annettebelievesin
theabilityofordinarypeopletoachieveextraordinaryoutcomes
throughgenerosityandaction.In2014AnnettevisitedIndiatolook
atsocialenterprisemodelsandincubators,andseeshuge
opportunityinsocialenterprisewithinthecontextofAotearoa.
https://twitter.com/AnnetteCulpan1
annetteculpan.wordpress.com
ArtworkbyMelissaJadeMcMahon
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