social enterprise in south australia
DESCRIPTION
A presentation made by Fred Heidt, Director Reddengreen Education & Training - at the Givewell Nonprofit Forum in Adelaide SA on 20/10/11.TRANSCRIPT
fredsocial enterprise practitioner
www.reddengreen.comwww.sse.org.au
Hi. I am…
fredWhat would I know?
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.
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.
…2 minutes (promise!)From a practitioner’s perspective
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.
WARNING:What follows is a non-profit-centric view of the world(!)
social innovation
activism
social innovation
non-profit
activism
social innovation
non-profit
S-Ent
activism
social innovation
earned-income
non-profit
S-Ent
activism
Variety ClubMc2 FoundationQEHRF
social innovation
earned-income
business ventures
non-profit
S-Ent
activism
Smith Family
social innovation
social business venture(
s)
earned-income
business ventures
non-profit
S-Ent
activism
Examples to follow
social innovation
social business venture(
s)
earned-income
micro-finance
business ventures
non-profit
S-Ent
activism
Grameen BankKivaWestpac
social innovation
social business venture(
s)
earned-income
micro-finance
business ventures
non-profit
S-Ent
$(S)
activism
SEDIF
social innovation
social business venture(
s)
earned-income
micro-finance
business ventures
non-profit
S-Ent
$(S)
G &P-S
activism
Jobs Fund
social innovation
social business venture(
s)
earned-income
micro-finance
business ventures
non-profit
S-Ent
$(S)
G &P-S
CSR
activism
Bendigo BankVodafone
social innovation
social business venture(
s)
earned-income
micro-finance
business ventures
non-profit
S-Ent
$(S)
G &P-S
CSR
SRB activism
All of the above
social innovation
social business venture(
s)
earned-income
micro-finance
business ventures
non-profit
S-Ent
$(S)
G &P-S
CSR
SRB
P
activism
Engaged philanthropy / investment
social innovation
social business venture(
s)
earned-income
micro-finance
business ventures
non-profit
S-Ent
$(S)
G &P-S
CSR
SRB
P
activism
V Volunteer sector
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…
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
Interesting opportunities:
• TACSI• social enterprise hub• Renew Adelaide• Indigenous social enterprise• SEDIF• Adelaide SSE
"At least half the non-profit executivesin 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
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…
fredM: 0411 864 820
www.reddengreen.comwww.sse.org.au
SSE & study tour…