MissionTo be the voice of Social Enterprise across

Northern Ireland, connecting, supporting,

developing and sustaining vibrant businesses to

create social change.

VisionSocial Enterprise is recognised and valued as a

business model through which society profits.

●

Government definition

• A social enterprise is a business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners.”

• A social enterprise is a community

However they all have three things in common

• Business Focus – surplus from trading

• Social Purpose – local jobs / services

• Social Ownership – not for individual gain

• Profits are invested back into the business

People Profit Planet

The Social Enterprise umbrella covers

• Consumer co-operatives (circa 1840s)• Housing associations (1900s)• Trading arms of charities (1940s)• Credit unions (1960s)• Workers’ co-operatives & employee-owned firms (1960s)• Community businesses & community enterprises (1970s)• Development trusts (1980s)• Social firms (1990s)• Intermediate labour market projects (1990s)• Social businesses (1990s)

Dates in brackets indicate when this type of enterprise first started In the UK

Did you know?The 6th most popular coffee brand in the UK is owned by CaféDirectThe Co-operative is Britain’s biggest farmer with 85,000 acres of land

Diversity of Social Enterprises

• DETI mapping estimates in the region of 470 Social Enterprise

across NI. (Pwc 2012)

• Social Enterprises make up 12% of the Third Sector and contribute

49% of the sectors turnover.

• Social Enterprises employ 40% of those working in the third sector

some 12,200 people and 13,400 volunteers

• 68% of Social Enterprises reported a profit/surplus in 2010/11,

compared to 54% of C&V organisations

• 77% were planning expansion

•Highest density of SE’s emerging in Belfast and

Derry/Londonderry

Northern Ireland

“We already know of the work of social enterprises, charities, community and voluntary organisations in partnering with the public sector to provide services.

They do exceptional work to a very high standard and frequently cost far less than similar but less effective services provided by the public sector. They are a growing part of our economy and are dealing with social issues in ways in which government simply is not able to.

“It is my firm belief that it is time we examined how we could make even greater and better use of this sector in supporting us in government to achieve the outcomes we have agreed are necessary for Northern Ireland.

Minister for Finance Simon Hamilton

Political will

Councils role in

making it work locally

Senior level buy-in and activity linked to local policy and strategy

Creating opportunity through commission and procurement

Encourage and supply chains

Lead in innovative approaches to problems

Consult and broker relationships with SE

Meet and Greets with all Super Councils

How do they differ from Charities?

Charities and SE’s have a lot in common• Independent from Government, not answerable to shareholders or investors• Both aim to create social value

However Social Enterprises take a

• Business approach – focus on earning income from sales not grants

• Legal structures – Non Charities have more flexibility and different options of ownership, entrepreneurial leadership, and ability to access finance.

• Unrestricted Income

Legal Structures

There are many legal structures and selecting the right one is important. It will define how you do business, who is involved and what you with your profits.

Frequently used legal structures include• Company Ltd by Guarantee• Community Interest Companies• Co-operative models

How many legal structures are there?In Principle…..

• Sole Trader or self employed

• A partnership

• A limited Liability Company – share and guarantee

• Franchises

• A limited liability partnership

• A Co-operative (Industrial and provident society)

• A Community Interest Company

Challenges for

Community

Groups

• Concept of profit a Non profit Atmosphere

• The Absence of Business Skills and

Knowledge

• Behaving Like a Business

• Maintaining Competitiveness

• Attracting the right social entrepreneurs

• Leveraging social finance – share capital

3 Essentials

• Have a clear and researched business model

• Be clear what your social aims are

• Make a profit and use it to further your social aims

Top Tips

• Don’t rely on grant alone to sustain you – don't put all your eggs in one basket

• Innovate around new income streams• Increase revenue• Reduce costs• Don't trade on being a SE, trade on quality and

community good• Market what you do with profits • Show the social good

Social Value in Public Expenditure

What do we mean by Social value?

Social Value is about maximising thethe impact of public expenditure to getthe best possible outcomes

Social Value measures more than just Financial transactions and direct purchasing or goods and services

It includes additional benefit tocommunities…

• Health• Happiness• Wellbeing• Inclusion• Empowerment

If £1 is spent on the delivery of goods,

services and outcomes, can that same £1 also

be used at the same time, to also produce a

wider benefit?

Social Value asks the question:

“Instead of paying for failure, which is what we have been doing sometimes, we'd start to pay for success.

We construct contracts in such a way that the company or charity or social enterprise who are delivering for you only get paid when they hit certain measured outcomes," Simon Hamilton.

Social Value and Payment by results

• Grants

• Service Level Agreement’s

• Procurement

• Investment

Income Streams

Grants• Given to a charity/ social enterprise / for a specific project or

purpose.• You won’t need to pay a grant back, but there’s a lot of

competition and funding can be very restricting and at times make it difficult to meet your social purpose.

Service Level Agreement• A service level agreement (SLA) is a contract between

a service provider and the Customer (i.e Health Trust, Council etc) that defines the level of service expected from the service provider.

• SLAs are output-based in that their purpose is specifically to define what the customer will receive.

Income Streams

eTendering is the use of secure, web-based collaborative tools by buyers ands suppliers to conduct the tendering process online

https://e-sourcingni.bravosolution.co.uk

Gov’t Procurement / eTendering

• Improved efficiency (faster response/evaluation and reduced

timescales)

• Reduce tendering costs (no ccourier / printing costs)

• Compliance with EU procedures and procurement best

practice

• Improve tendering visibility and governance (access 24/7)

• Robust audit trails and reporting

• Supplier profiling and response prepopulation

Key Benefits of eTendering

• Local Banks – in particular Ulster Bank are very keen to support Social Enterprises and and recently ran an Investment Readiness Workshop

• Charity Bank - http://www.charitybank.org

• UCIT - http://www.ucitltd.com/ni-home.html

Investment

How the successful ones

do it• Highly Entrepreneurial, Innovative and Responsive

• High-quality care at affordable prices and generating economic and social benefits

• They are rooted in local communities

• Local services responding to local need e.g. shift patterns

• Able to act quickly when they see a problem

• Create jobs in local communities

• Don't DO IT to the communities, DO IT WITH

Where to get support

• Social Enterprise Hubs – 11 hubs across NI

• Unltd if you are a social entrepreneur

• Local Super Councils

• Local Enterprise Agencies

• Rural Development Programme

QUESTIONS ??

Amanda Johnston 07734 286 211

amanda@socialenterpriseni.org

Office: 028 9046 1810

Contact us

Thank Youwww.socialenterpriseni.org