British Experiences in the field of Social Entrepreneurship

1. British Experiences in the field of Social Entrepreneurship John Bromley Executive Director – National Social Marketing Centre

2. A Biography • Director of the National Social Marketing Centre • Public health background • Works with social enterprises in the health sector • Worked with the British Council on researching the social enterprise sector in South-east Europe

3. What are Social Enterprises? • There is no concrete definition! (-in the UK) • Huge variety of types/organisational models • “Social Enterprise Sector”

4. Characteristics • Often driven by a social/environmental mission • They can be “profit making” • Combine revenue generation with social/environmental value generating structure or component • Many businesses have a social component, however, for social enterprises this is usually central to what they do!

5. Their main purpose • “generate profit to further social and environmental goals” • Charity shops • Employing disadvantaged people • Lending to businesses outside formal sector

6. So are they charities? • As a rule of thumb their income is derived from business trading rather than subsidy or donations. • Compromise the more businesslike end of the spectrum of organisations that make up the “third sector” or “social economy”

7. In Britain • Community Enterprises • Credit Unions • Trading arms of charities • Employee-owned businesses • Co-operatives • Housing Associations

8. Welsh Water. • Welsh Water single purpose company has no shareholders • Any financial surpluses are retained for the benefit of customers • Surpluses increase credit worthiness and reduce cost of borrowing • Customer Dividend - £22.00 from the bill

9. Big Issue – “a hand up not a hand out” Designed to support homeless and vulnerable people a chance to earn a legitimate income Sellers – buy for 75p and sell for £1.50 Confidence and self esteem Link vendors with vital support services, housing health and financial independence

10. Fifteen – “Inspiring young people” • Inspire disadvantaged people to create great careers in the restaurant business • Serve food of the highest quality • Apprentices learn the trade and profits fund the programme • Aim to become a “Global” Social Enterprise

11. LEYF is London's largest childcare charity and social enterprise • Established in 1903, it now employs over 200 staff across 19 community nurseries and Children’s Centres in three key London boroughs. • Thanks to the socially inclusive fee structure, last year they were able to help more than 1200 children from a range of backgrounds make a great start in life – parents pay what they can afford!

12. The Bread Maker - Aberdeen 21 Apprentices with learning disabilities 8 staff training and supporting to provide confectionary, breads and coffees Looking to provide skills so apprentices can take work in other businesses in the city

14. In the United Kingdom • 15,000 social enterprises • 1.2% of all enterprises in the UK • Employ 450,000 people + 300,000 volunteers • £18 Billion combined annual turnover • 84% from trading

15. Three Common Characteristics • Enterprise orientation- viable trading organisations with an operating surplus • Social/environmental aims and ethical values • Social Ownership – governance structures based on participation or trustees, profits used for the benefit of the “community”

16. British Council Research into Social Entrepreneurs • “I’m not working in the charity sector its primarily a business with a social conscience” • Highly motivated, committed and driven individuals • Deep and committed relationship with the sector they are working in • Often in sectors not traditionally served – highly innovative and often “risk takers”

17. “Types of Social Entrepreneur” • Existing Established businessmen – “giving something back” • Individuals with a social conscience • Agents for Change - environmental/social sector • Bottom of the Pyramid “entrepreneurs” • Background - Health and social care service sector

18. Serbia – potential Social entrepreneurs • Identification of potential/actual social entrepreneurs operating • Questions • Would social enterprise work here and in what sectors? • What are the barriers to setting up social enterprises • What activities could help develop social entrpreneurs?

19. Results - attitudes • Very limited understanding of what social enterprises are • The majority of people felt there were few examples – even people operating social enterprises didn’t think they were social entrepreneurs! • They were very keen on the idea of setting up social enterprises and saw a need for such organisations in the region • Confusion on “social” – “socialist”

20. What would help? • Lack of knowledge – a key barrier • Wide range of information on social enterprises required • Getting the Government onboard considered essential • Legal framework – but not too tight, constraining growth • Access to “start-up” up funding (not necessarily from government) • Mentoring would be critical • Practical advice/workshops – “How to” – didn’t want the theory!

21. How can the British Council help? • Didn’t consider that the British Council would be a natural partner and so therefore wouldn’t naturally look for help from the organisation • Assistance would be welcome but needed to be targeted and accessible • Practical business information – sound advice, legal frameworks, finance, HR, market analysis, mentoring

22. Conclusion – what we needed at the National Social Marketing Centre • Practical information – in one place – “one stop shop” • Mentoring – “social entrepreneurs - advice and support • Awareness Campaign – what social enterprise is and what it isn’t. • Clarification of the legal, administrative and financial framework • How to move from where we are now to a “social enterprise”