fred heidt

fred social enterprise practitioner

www.reddengreen.com www.sse.org.au

Hi. I am…

fred •  DECS •  Wheelchair Sport / SIU / APC •  SPARC Disability Foundation •  SA Mental Health •  CanTeen •  Consulting – NDS •  Youthinc •  School for Social Entrepreneurs

What would I know?

The starting point for any good discussion, meeting, or workshop on social enterprise should be a shared understanding of what a social enterprise actually is.

Social enterprises are organisations that:

a. Are led by an economic, social, cultural, or environmental mission consistent with a public or community benefit;

b. Trade to fulfil their mission¹; c. Derive a substantial portion of their income from trade²; d. Reinvest the majority of their profit/surplus in the fulfilment of their mission. ¹Where trade is defined as the organised exchange of goods and services, including:

•  monetary, non-monetary and alternative currency transactions, where these are sustained activities of an enterprise;

contractual sales to governments, where there has been an open tender process ; and •  trade within member-based organisations, where membership is open and voluntary or where membership serves a traditionally marginalised social group.

²Operationalised as 50% or more for ventures that are more than five years from start-up, 25% or more for ventures

that are three to five years from start-up, and demonstrable intention to trade for ventures that are less than two years from start-up.

Social Enterprises take a number of forms and deliver outcomes as diverse as employment for the disadvantaged, important

goods and services or fundraising for other charitable activities and community projects.

A social enterprise is defined as any business venture created for a social purpose--mitigating/reducing a social

problem or a market failure--and to generate social value while operating with the financial discipline, innovation and determination of a private sector business. Social enterprises use entrepreneurship, innovation and market approaches to create social value and change; they usually share the following characteristics:

Social Purpose - created to generate social impact and change by solving a social problem or market failure;

Enterprise Approach – uses business vehicles, entrepreneurship, innovation, market approaches, strategic-orientation, discipline and determination of a for-profit business;

Social Ownership – with a focus on public good and stewardship, although not necessarily reflected in the legal structure.

Social enterprises may be structured as a department within an organization or as a separate legal entity, either a subsidiary nonprofit or for-profit. The purpose of the social enterprise may be:

an additional funding mechanism for the organization’s social programs or operating costs;

a sustainable program mechanism in support of the organization's mission; or a leadership development mechanism in support of social innovation.

Used for either purpose, business success and social impact are interdependent.

www.socialinnovator.info/

WARNING: What follows is a non-profit-centric view of the world(!)

social innovation

social business

venture(s)

earned-income

micro-finance

business ventures

non-profit

S-Ent

$(S)

G & P-S

CSR

SRB

P ‘social enterprise’ as a noun or a verb

activism

V

Social enterprise in South Australia. Via the rest of the world…

UK (2007)

USA NYC, Wash.

(2008)

USA/CAN SF, Vanc. (2010)

South Australia

Op shops x135

Some observations:

•  disconnectedness •  co-opetition •  welfare / charity / CRM •  innovation, more than SBV •  e.g. Jobs Fund (8 & 1) •  no gathering around SE (noun)

Interesting opportunities:

•  TACSI •  social enterprise hub •  Renew Adelaide •  Indigenous social enterprise •  SEDIF •  Adelaide SSE

"At least half the non-profit executives in this country now understand that they have to do something different… probably the best 2% to 3% of them understand what needs to be done and have the guts to actually try it." (Jerr Boschee, 2007)

http://www.inc.com/magazine/19970515/1497.html

At the end of the day… •  grants V earned-income •  guidelines V innovation •  funders V clients •  compliance V relationships •  ‘strings’ V self-determination •  funding V self-sufficiency •  survival V social impact

Take a look around…

fred M: 0411 864 820

www.reddengreen.com www.sse.org.au

SSE & study tour…