This document discusses some potential challenges or "banana skins" for social enterprises. It notes that social enterprises must make a profit and avoid relying on grants or donations like a charity. It can also be difficult to deal with underperforming staff. The definitions around social enterprises are vague and there is a risk of market confusion. A case study highlights specific issues a social enterprise called Caremart Ltd faced with its legal structure, not meeting funding criteria due to definitional problems, and delays due to staff performance problems. The document concludes by emphasizing that knowing these potential challenges can help social enterprises avoid them.

1. Banana skins to watch out for...
Adrian Ashton
www.adrianashton.co.uk

2. • Social enterprise – if you’re
going to do it, do it with your
eyes open!
Adrian Ashton

3. The definitions mire
• Not necessarily for you, but understand what
people will ‘project’ onto you based on their
understanding (i.e. commissioning officers)
• Social enterprise can take any one of 13
different legal forms...
• Risk of market confusion with increasingly
ethical practices of private companies
Adrian Ashton

4. You need to make a profit
• Need for customers as well as consumers
• Ongoing reliance on grants and donations =
charity model
Adrian Ashton

5. Staff performance issues
• Not everyone who works in a social enterprise
will be the perfect employee...
Adrian Ashton

6. Advice and support
• Don’t take it at face value – question it
• You have to live with this enterprise, not your
advisor, so get them to explain why what
they’re recommending is not only the best
option, but also the best use of your time
Adrian Ashton

7. The banana skins:
• Confusing definitions
• Need for paying customers
• Don’t tolerate under performing staff
• Question the validity of advice and support
Adrian Ashton

8. Case study – Caremart Ltd
• Footcare for older people
• Flagship social enterprise for DoH
• National investment programmes
• Replicating enterprise
Adrian Ashton

9. The banana skins it had to deal with...
• Incorporated as a share company (on advice)
• Refused loan from social enterprise lender
because ‘you’re not a social enterprise’
(lender didn’t understand definitions)
• Delayed applications to national investment
programmes owing to problems with
application documents (poor performance)
Adrian Ashton

10. BUT DON’T BE PUT OFF!!
• Now you know what the problems are likely
to be you can avoid them and enjoy it more!
Adrian Ashton