Social Enterprise
Advancing Sustainable Community Development
Presented by Brian Hurd, Rise Technical Assistance Program Manager
AUGUST 22, 2014
RISE’S M I SSI ON
Work in partnership with community-based and other
organizations to redevelop and strengthen neighborhoods and
communities.
PRESENTERS & SPEAKERS
 Exploring the Relationship Between Social Enterprise & Sustainable Community Development Brian Hurd (Rise, Technical Assistance Program Manager)
 Jubilee Services - Jeffrey Holtzman and Thomas Maxwell (Jubilee Christian Development Corp.)
 Sweet Sensations, Inc. - Phil Minden (Sterling Bank, Vice President)
 Employment Legal Issues - Dana Malkus (Saint Louis University Assistant Law Professor &
Supervisor of Community and Economic Development at Saint Louis University Law Clinic)
 Angel Baked Cookies – Father Gary Meier (North Grand Neighborhood Services)
 Sweet Potato Project – Sylvester Brown (North Area Community Development Corp.)
 Social Enterprise Business Development - Matt Nordmann (Director of Community
Development for IFF, Inc.)
 Socially Responsible Investment Causes - Jake Barnett and Daniel Conner (Morgan Stanley &
Company, Inc.)
PURPOSE
• Examine entrepreneurship and enterprise generation as a key
foundation of sustainable community development of both
economic and social capital in urban core communities, as well
as individual self‐sufficiency and community empowerment.
• Explore of entrepreneurship with an imperative to drive social
change and build sustainable ventures.
GROUP TRAINING SEMINAR OBJECTIVES
• Understanding the role of enterprise development in poverty reduction
• Identifying key elements to designing a successful social venture
• Analyzing social entrepreneurship in the context of developing
sustainable businesses
• Networking with resource organizations for social enterprise
development projects
SOCIAL ENTERPRISE AND
S U STA I N A B L E C O M M U N I T Y D E V E LO P M E N T
Brian Hurd
Technical Assistance Program Manager
SOCIAL ENTERPRISE AND
S U S TA I N A B L E C O M M U N I T Y D E V E L O P M E N T
What do we mean by the term “Sustainable Community Development”?
The process by which public, private, and community based stakeholders
work to meet the needs of current and future generations. It does so in a
manner that meets economic, environmental and social needs as mutually
supportive outcomes; reflects the community’s unique history and assets;
and evolves as the character of the community changes, priorities shift, and
new challenges and aspirations are defined. - American Planning Association
SOCIAL ENTERPRISE AND
S U S TA I N A B L E C O M M U N I T Y D E V E L O P M E N T
Nexus of Social Enterprise and Sustainable Community Development – Ex.
Environmental Issues •
Approx. 30% of waste in landfills
is organic waste creating green
house emissions as it is
biodegrading (and leads to
groundwater problems).
•
U.S. wastes 40% of edible food.
Recycling Opportunities –
•
Composting
•
Renewable energy
SOCIAL ENTERPRISE AND
S U S TA I N A B L E C O M M U N I T Y D E V E L O P M E N T
What is a Social Enterprise?
An entity that applies commercial strategies and business-like activities to
maximize improvements in the common good rather than maximizing profits
for shareholders and owners.
Characteristics –
• Social enterprises are distinctive because their purpose is absolutely
central to what they do - their profits are reinvested to sustain and further
their mission for positive change.
• What makes a social enterprise different from commercial enterprises is
that it places a firm emphasis on tackling social problems. This positive
impact is as important to its business objective as any financial bottom
line.
SOCIAL ENTERPRISE AND
S U S TA I N A B L E C O M M U N I T Y D E V E L O P M E N T
Social
Enterprise
Commercial
Enterprise
Motives
Appeal to common good
Appeal to self-interest
Methods
Mission-driven
Market-driven
Social value creation
Economic value creation
Directed toward
mission activities
Distributed to
shareholders and owners
Goals
Destination of
Income/Profit
SOCIAL ENTERPRISE AND
S U S TA I N A B L E C O M M U N I T Y D E V E L O P M E N T
Social enterprises are motivated by the social value more than the financial
return on investment.
SOCIAL ENTERPRISE AND
S U S TA I N A B L E C O M M U N I T Y D E V E L O P M E N T
SOCIAL ENTERPRISE AND
S U S TA I N A B L E C O M M U N I T Y D E V E L O P M E N T
Social enterprises can be structured as:
• a not-for-profit that carries on activities to generate revenue (ex.
Hamilton Heights Neighborhood Organization, Inc. management of its
properties)
• a business with specific community-based objectives (ex. DeSales
Community Housing Corporation’s affiliate Fox Grove Management,
Inc.)
• a program or venture that fulfills a social purpose (ex. Riverview West
Florissant Development Corporation’s Neighborhood Beautification
and Summer Youth Employment Program)
SOCIAL ENTERPRISE AND
S U S TA I N A B L E C O M M U N I T Y D E V E L O P M E N T
Social enterprise leverage
• Produce direct, measurable public benefits. A classic employment-focused
social enterprise, for example, might serve at least four public aims:
•
Fiscal responsibility — It can reduce the various costs of public support for
people facing barriers, by providing a pathway to economic self-sufficiency for
those it employs.
•
Public safety — It can make the community in which it operates safer, by
disrupting cycles of poverty, crime, incarceration, chemical dependency and
homelessness.
•
Economic opportunity — It can improve the pool of human capital to create jobs
in communities in need of economic renewal.
•
Social justice — It can provide a chance for those most in need.
SOCIAL ENTERPRISE AND
S U S TA I N A B L E C O M M U N I T Y D E V E L O P M E N T
Social enterprise leverage – National Example
Clean Street Team (CST) Cleaning Services, a social enterprise employment and
training program offered by the Atlanta Center for Self Sufficiency (ACSS)
•
A full-service nonprofit that provides professional cleaning services, street
maintenance and beautification.
•
Their mission is to provide businesses with a socially responsible alternative to other
commercial janitorial cleaning service companies.
•
Organization engages homeless men and women, many of whom are military
veterans, to work on various commercial cleaning and beautification projects
throughout metro Atlanta.
•
Clients include Georgia Governor’s mansion, City of Atlanta, Inman Park
Neighborhood Association, MARTA (transportation), Southstar CDC and others.
•
CST members receive weekly stipends and attend semi-weekly employment readiness
workshops while actively seeking full-time employment and remaining drug-free.
Eighty percent of participants transition to full-time employment within 12 months.
SOCIAL ENTERPRISE AND
S U S TA I N A B L E C O M M U N I T Y D E V E L O P M E N T
THREE REASONS FOR STARTING A SOCIAL ENTERPRISE?
A Sustainable Community Development Perspective
1.
To meet a need in the community or local market not met through
traditional business models
2.
Advance or achieve a specific social mission
3.
For a non-profit organization, contribute to its financial sustainability
SOCIAL ENTERPRISE AND
S U S TA I N A B L E C O M M U N I T Y D E V E L O P M E N T
NEED IN THE COMMUNITY
SOCIAL ENTERPRISE AND
S U S TA I N A B L E C O M M U N I T Y D E V E L O P M E N T
ADVANCING SOCIAL CHANGE
The City of St. Louis’ Sustainability Mission Statement: Harness the strength and spirit of
its diverse community to create an economically, socially and ecologically vibrant City for
present and future generations -- one that dynamically serves those who live, work, and
play in the City’s rich and celebrated historic landscape.
SOCIALENTERPRISE AND
S U S TA I N A B L E C O M M U N I T Y D E V E L O P M E N T
FINANCIAL SUSTAINABILITY
Social enterprise is a means to achieve sustainability through earned
income, which leads to:
• Income Diversification - Reducing the need for grants and
government funding sources;
• Financial Self-Sufficiency - Providing a more reliable, diversified
funding base; or
• Cost Savings and Resource Maximization - Enhancing the quality of
programmatic services and reducing administrative costs
SOCIAL ENTERPRISE AND
S U S TA I N A B L E C O M M U N I T Y D E V E L O P M E N T
PLANNING A SOCIAL ENTERPRISE, FIVE KEY STEPS
A Sustainable Community Development Perspective
1
2
3
4
5
• Assess Organization
• Identify Opportunities
• Feasibility Study
• Create Business Plan
• Measure Impact
SOCIALENTERPRISE AND
S U S TA I N A B L E C O M M U N I T Y D E V E L O P M E N T
FEASIBILITY & FINANCIAL SUSTAINABILITY – GOVERNMENT FUNDING TREND
COMMUNITY
DEVELOPMENT BLOCK
GRANT PROGRAM
HOME INVESTMENT
PARTNERSHIP
PROGRAM
$3.99 Billion
$1.825 Billion
FY 2010
FY 2010
$3.34 Billion
$1.607 Billion
FY 2011
FY 2011
$2.94 Billion
$1 Billion
FY 2012
FY 2012
$2.94 Billion
$1 Billion
FY 2013
FY 2013
HUD Appropriations
FY 2010 – 2013
MEASURING SUCCESS
OUTCOMES: ACTIVITIES VS RESULTS
• Conducting an activity is NOT the same as achieving desired results –
although both are important
• Studying (activity) for five hours (output) is NOT the same as
understanding a subject (outcome) well enough to pass a test (measure)
• Outcomes should be related to the initial needs identified
A BASIC LOGIC MODEL
Inputs
What resources
do you have to
bring to a social
enterprise
activity?
Financial
resources, staff
capacity, etc.?
Activities
What are you
planning to do?
What are the social
enterprise
venture’s primary
activities?
Outputs
(Results that can
be measured) -Did you implement
your planned
activities? How
many persons,
households, or
housing units did
you serve? Were
you efficient?
Outcomes
Changes to systems
-
What would
have happened
anyway?
= IMPACT
Economic, Environmental
and Social
SOCIAL ENTERPRISE AND
S U S TA I N A B L E C O M M U N I T Y D E V E L O P M E N T
Basic Logic Model - Local Case Study
Riverview West Florissant Development Corp. (RWFDC) is a 501(c) 3 organization with the
mission of undertaking community development activities that include housing,
neighborhood improvement along with and economic development in the targeted
communities of Baden, College Hill, Near North Riverfront, North Riverfront, O'Fallon,
Walnut Park East, Walnut Park West, and North Pointe.
• RWFDC’s Neighborhood Beautification Program was launched in 2009 based on the
organization’s five-year organizational strategic plan adopted in 2006. The strategic
planning process was facilitated by Rise.
• Overarching purpose for RWFDC’s Neighborhood Beautification Program include:
 Working with residents by providing lawn care maintenance (grass cutting, light
painting, exterior cosmetics of property) to ensure an attractive and aesthetically
pleasing community in addition to encouraging responsible property upkeep by
working with homeowners and other property owners
 Creating summer employment opportunities each year for approximately 50-75 youth
in addition to hiring adult non-violent ex-offenders to serve as supervisors and mentors
A BASIC LOGIC MODEL
RWFDC Neighborhood Beautification Program
Inputs
$120,000 ($100,000
CDBG + $20,000 Rise
Collaborative
Grant); existing staff
person expanded
duties; set-up data
employment
management and
tracking system;
business, insurance,
and background
check requirements,
etc.
Activities
Neighborhood
beautification services
(landscaping, lawn
maintenance, and light
exterior painting)
Outputs
•
•
50 youth hired
during summer (# of
jobs created in the
nine
neighborhoods)
100 yards serviced
per week
Outcomes
•
•
•
•
•
•
•
•
Increased employment
of those previously
unemployed
Obtaining jobs the
following summer
(transferability)
Opening and retaining
bank ccounts/increased
financial literacy
Graduation rates
Youth-related crimes &
recidivism rates
Reduced code violations
Reduced mowing costs
for City’s Forestry Dept.
And more
A BASIC LOGIC MODEL
RWFDC Neighborhood Beautification Program (Adjusting business model based on funding change)
Inputs
$120,000 $100,000
CDBG + $20,000 Rise
Collaborative Grant;
existing staff person
expanded duties;
set-up data
employment
management and
tracking system;
business and
insurance
requirements, etc.