Experience·Discovery·Inspiration
Social Enterprises in the UK
Yang Chao
21/02/2013
The sixth group from Shanghai(2012/13)
Centre for Lifelong learning, Warwick University
3
The flagship project for social enterprise
in the West Midlands.The first communityowned farm in England
Fordhall Farm, 128-acre, Located in
Market Drayton, North Shropshire,is
one of the UK's oldest organic farms
5
In 1929 the organic
pioneer, Arthur
Hollins, took on the
tenancy at Fordhall
In 1991 the farm
was hit financially, a
long legal battle
ensured throughout
the 1990s.
2004.3 Charlotte&Ben
extended leasehold before
they were due to be
evicted
2005-2006 The Fordhall
Community Land Initiative
structure was launched
and raised the £800,000
required to purchase
Fordhall Farm
2006-2009 Developed into a place that connects
people to the environment and provides the local
community with organic produce.
2010 The future is bright, with a new classroom
and an organic tea room...
9
Amazing?
10
Charlotte says:
Do business for social benefit
1. Objectives
To ensure farmland is managed sustainably
for community benefit
To advance education and provide facilities
Charlotte says:
Shares do not increase in value,no
dividends.One member,one vote
2. Ownership
FCLI is incorporated as an Industrial
and Provident Society(IPS) for the
Benefit of the Community with
charitable status and owns the land
Charlotte says:
A vital part is its fantastic board
members. everyone brings something
different to ensure the right direction
3.Board
The FCLI Board is elected from
members at the AGM.14 members
on board of directors completely
voluntarily
Charlotte says:offer long-term
tenancies to new entrants to the
agricultural industry, an opportunity
which is becoming increasingly hard
to find
4.Operation
The farmers, i.e. Charlotte and Ben
Hollins as Fordhall Farm Ltd, lease
the farm from FCLI for £13,500 p.a.
Charlotte says:make the transition,
to a social enterprise generating
own income
4. Operation
Newsletters,classrooms, tearoom,
restaurant, function room, farm shop,
volunteer and educational programme
Conclusion
 Social Aims
 Social ownership
 Do business
Characteristics of
Social Enterprises
Social Enterprises?
The Most Exciting Voyages of
Discovery ......
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History
Emerged 1840s. In Rochdale, a workers' cooperative was set up to provide high quality
affordable food in response to factory conditions
that were considered to be exploitative.
19
History
We need a long wave
of social innovation
to develop a new
philosophy, practice
and organisation of
welfare. (1997)
Resurgence:mid 1990s
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Definition
“A business with primarily social
objectives whose surpluses are
principally reinvested for that purpose.”
2002 Department for Trade and Industry's
'Social Enterprise: a strategy for success'
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Definition
A business that trades for a social
and/or environmental purpose
Fundamentally businesses
Explicit aims that benefit local
community or other groups
Characterised by their social ownership
22
Criteria
1.social objectives
2.independent business
3.50%+ income from trading
4.50%+ profit for social purpose
5.assets distributed for social purpose
6.social objectives achieved
23
Legal Structure
a number of possible legal structures:
•Unincorporated association
•Trust
•Limited company
•Community interest company (CIC)
•Industrial & Provident Society (IPS)
(Co-operative or Community Benefit )
•Society – BenComm
•Charitable Incorporated Organisation
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Scale
2004 15,000
£18 billion 450,000
2011 68,000
£24 billion 800,000
1 in 7 start-up, 3+ times SMEs
58% in growth, compared, 28% SMEs
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Features
• Are most likely to start-up and work in Britain’s
most deprived communities
• Reinvest in the communities where they are based
• Are run by younger people than traditional SMEs,
with a high proportion of Black and Minority Ethnic
directors, as well as female directors
• Are accountable to their customers and
communities, involving them in business
decisions
• Are increasingly trading with consumers and with
private companies
• Are turning away from public sector markets, in
favour of consumers and private companies
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Cases
• In 1991 a news and current
affairs magazine written
by professional journalists
and sold on the streets by
homeless vendors
• With weekly circulation
figures topping 135,000,
sales can support the Big
Issue Foundation, a
registered charity
providing support to
vendors and other
homeless people.
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Cases
•Aims to ‘walk the talk’
•The farmers are shareholders
too, making a profit becomes a
core element of meeting social
objectives
•Divine Chocolate has been a
pioneer in the fair trade
movement, demonstrating how
success can be achieved with
an alternative model for
business
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Cases
• Only employ ex-offenders.
Offering a proper job with a
proper company
•Aim to break the cycle of reoffending and challenge
perceptions about ex-offenders,
achieving real and long-term
benefits for society.
•Over five years only 15% of our
people have re-offended – one
quarter of the national average.
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Cases
Attracting over
1million
visitors every
year
30
Cases
The Prince of Wales
met with young people
who are being helped
into work by the social
enterprise:
Circle Sports
Jan 29,2013
31
Cases
Central Surrey Health was
the first co-owned social
enterprise to come out of
the NHS in 2006
The social enterprise digi steps is
run by the teenage students of
Avonbourne School.
BIG SOCIETY AWARDS
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Cases
BIG SOCIETY AWARDS
33
Cases
Newington Credit Union Limited - Social Enterprise
Vi-Ability Educational Programme - SE Start Up
Stonelaw High Fair Traders - Young Person’s SE
GLL (Greenwich Leisure Ltd) - SE Mark Holder
West Lindsey District Council - SE Partner
John McMullan, Bryson Charitable Group - SE
Leader
.....
AWARDS SEUK 2011 Winners
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Cases
Start-Up SE- Bristol Together CIC
UK SE - East Belfast Mission
SE Leader - Dai Powell, Chief Executive of HCT Group
Youth-Led SE - Music Theatre 4 Youth
Social Entrepreneur - The SWEET Project
SE Town - Alston Moor, Cumbria
SE Champion - David Adair
Social Enterprise Transition - Accelerate CIC
Innovation: best new product/service - Glasgow Credit
Union
International Social Enterprise - Shenzhen CANYOU
GroupAWARDS SEUK 2012 winners
......
35
Cases
International Social Enterprise Shenzhen CANYOU Group
a Shenzhen-based software
company that employs people
with disabilities and helps them
start businesses or find jobs.
The co-founder, Zheng
Weining, started CANYOU
with four friends back in
1997 and the organisation
now employs 3,700+ staff.
CANYOU runs one
foundation, eight
organisations and 32 social
enterprise branches.
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The UK is now viewed as a leader in having
developed an ecosystem (legal, financial,
support etc)for social enterprise
Social enterprise attracts three ministers
37
Prime Minister Tony Blair
I was struck by the fact that
social enterprises are
delivering high quality, low
cost products and
services....social enterprise
offers radical new ways of
operating for public benefit.
38
Prime Minister Gordon Brown
I have seen myself how
social enterprise can
mobilise talents and
resources... they are
centres of energy and
optimism.
39
Prime Minister David Cameron
Social enterprise is at the
heart of a ‘deep and serious’
reform of public services as
part of the Big Society
agenda.
40
Support
2002
A programme for
the next 3 years
illustrating how to
promote and
sustain social
enterprise activity
41
Support
2004.10.29
Companies (Audit,
Investigations and
Community
Enterprise) Act
42
Support
2005 Community
Interest Company
Regulations
 Lock on assets
 Dividend limit
43
Support
2006 Foster a culture of SE
Information and advice available
Appropriate finance access
Enable SE to work with government
44
Support
2009
“pilot Social
Impact Bonds as
a new way of
funding the third
sector to provide
services”
45
Support
2010
Guidelines for
cross-sector
relations and
public service
delivery
46
Support
2010
Empowering communities
Opening up public services
Promoting social action
47
Support
2011
Social investment as
important a source of
charity funding as
traditional donations and
the state. "big society
bank" launched to fund
social enterprises
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Support
2012
Require councils and
other bodies to consider
social benefits of
services offered by
contractors
49
Support
2012
Five principles
•Choice
•Decentralisation
•Diversity
•Fairness
•Accountablity
50
Support
2011 Regional Growth Fund £2.6 b
2012.4 Big Society Capital £600 m
2012.7 Social Incubator Fund £10m
2012.11Social Outcomes Fund £20m
2011.7 £11 m budget cut
51
Social innovation&Social investment
2009 A pilot programme has been launched
at Peterborough Prison using what has been
described as the world’s first Social Impact
Bond (or SIB) to finance rehabilitation work
with short term prisoners
52
Social innovation&Social investment
2012.11.23 Two new Social Impact Bonds,
which will support teenagers at risk of
going into care and help rough sleepers,
are being introduced alongside the Social
Outcomes Fund. This new £20 million
fund will facilitate even more Social
Impact Bonds
53
Early interventions
Instead of dealing with established problems,
we should be eradicating their causes.
every £6,000 invested saves £17,500
Family Nurse Partnerships
every £1 invested saves £19
Intensive tuition programmes for
children with lowest ability in literacy and
maths
54
Government data collected in October and
November 2011 estimated that £9bn is spent
annually on troubled families – an average of
£75,000 per family each year.
By intervening early to tackle the problems
before they spiral out of control, the existing
and recently announced social impact bonds
hope to improve over 10,000 people's lives as
well as save taxpayers money.
55
Support organisations
56
Inspiration?
The Most Exciting Voyages continue...
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3 4 5
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Paradigm Shift:
The
3rd alternative
59
"There is a way to solve the toughest problems we
face,even though that look unsolvable.
There is a path that cuts through nearly all life’s
dilemmas and deep divisions.
There is a way forward.
It’s not your way, and it’s not my way.
It’s a higher way.
It’s a better way than any of us have thought of
before.I call it " The 3rd Alternative."
Stephen Covey 《The 3rd Alternative》
60
they come to a
meeting point
which can define
social enterprise
there is a convergence
between companies on the
one hand who want to do
good by doing well, and
those who do well by doing
good
‘doing good’ and charity
and ‘society’
business, enterprise, profitseeking and markets
61
PEST analysis
Political
Economic
•economic growth↓
•unemployment↓
• legislation↑
• tax policy→
• grants&procurement↓
Social
•aging population↑
•community needs↑
•social entrepreneurship↑
Technological
•social innovation↑
•social investment↑
•social network↑
•social evaluation?
62
Blue Ocean:
The
4th Sector
63
Blue Ocean Strategy:
an organization
should create new
demand in an
uncontested market
space, or a "Blue
Ocean", rather than
compete head-tohead with other
suppliers in an
existing industry
64
Private Sector
Blue
Ocean
The third
Sector
Public
Sector
The 4th Sector: take commercial strategy for the
society purpose and supported by the government,
flexibility, efficiency, value...
65
SWOT analysis
Strengths
Weaknesses
• Fulfilling social aims
• Easier access to publicity
• Efficiently&effectively
• Keeping the balance
• Benefits long time delivered
• Keeping the momentum
Opportunities
Threats
• Finance and cash flow
• Market risks
• Social impact
• CIC, Soial Value Act
• Social investment
• Economic growth
66
"Social enterprise can have
an impact across the private
sector. It changes the public
sector. It says crucially that
organisations should be
owned by the people in
them and these people
should have a voice.
Monolithic organisations is
an old fashioned idea. "
67
Labour leader Ed
Miliband (The former
third sector minister )
Systems Thinking:
The
5th Discipline
68
Systems thinking is a discipline for seeing
the ‘structures’ that underlie complex
situations, and for discerning high from low
leverage change... Ultimately, it simplifies
life by helping us to see the deeper patterns
lying beneath the events and the details.
from 《The Fifth Discipline: The Art and Practice of
the Learning Organization》, by Peter Senge, 1990
69
Systems Thinking
Social
investment
Public
policy
Social
entrepreneurship
Social
enterprises
Social innovation
Charity
community
......
Civil Society
70
To entrepreneurs:
Paradigm shift: the 3rd alternative
To organisations
Blue Ocean:the 4th Sector
To policy makers
System thinking: the 5th discipline
71
To me:
•
•
•
•
•
•
6 lessons
Social innovation
System thinking
Consistent policy
Stakeholder engagement
Sustainable development
Broaden horizon
72
· More Experience
· More Discovery
· More Inspiration
Thank you !
Experience more · Discover more · Inspire more
Social Enterprises in the UK
Yang Chao
21/02/2013
mousetiger@hotmail.com
The sixth group from Shanghai(2012/13)
Centre for Lifelong learning, Warwick University
74