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Social Enterprise Youth Guide
Ana Filipovska
http://funkyguerrilla.com/
Social Enterprise Real Story
Socialization of business
Social enterprise will create new ways to do
business
 Social enterprise is often defined as
finding business and market based
solutions to systemic social issues,
such as social exclusion, long-term
unemployment and sustainability.
 A social enterprise puts a higher
premium on its social mission and
its social returns which moderate
the way it runs its business.
To identify social enterprises, we
commonly use this criteria:
1. Constant production and selling of goods or services;
2. The enterprise is autonomous in relation to public and private sectors;
3. The enterprise takes economic risks in order to obtain their own income;
4. The enterprise employs certain, minimum number of paid workers, and
most often volunteers participate in activities of social enterprises;
5. Business activities are clearly undertaken in order to achieve the social
impact and benefits to society or to a marginalised group;
6. The enterprise has been formed and operates as a result of an organised
and solidarity action;
7. The management is based on the principle of “one member - one vote”;
8. Beneficiaries participate in the management structure of social enterprises;
9. There are clear rules and practice related to limited distribution of profit.
Social Enterprise Models
 Model One: Engage in a trading activity that has no direct
social impact, make a profit, and then transfer some or all of
that profit to another activity that does have direct social
impact (the ‘profit generator model’)
Example: for-profit businesses with CSR programmes
 Model Two: Engage in a trading activity that does have direct
social impact, but manage a trade-off between producing
financial return and social impact (the ‘trade-off model’)
Example: fair trade businesses; microfinance institutions; firms
that employ disadvantaged people
 Model Three: Engage in a trading activity that not only has
direct social impact, but also generates a financial return in
direct correlation to the social impact created (the ‘lock-step
model’)
KEY PARTNERSHIP
 
The network of suppliers 
and partners that make 
the enterprise work 
 
Commercial:
-Coffee distributor
-Drink distributor
-Local  chamber  of 
commerce 
Impact:
-Non-for-profit partner 
supporting young people 
with long-term 
unemployment 
- Social Enterprise 
Alliance
-Social Investor
 
KEY ACTVITIES
The most important 
things that need to be 
done to make the 
enterprise work
Commercial:
Baristaring
Cooking/catering
Customer service
Impact:
Support and participation
activities
VALUE
PROPOSITION
 
The products and 
services that create 
value for specific 
customer segments- 
what keeps customers 
returning to your 
enterprise 
Commercial Value:
Great fair trade 
coffee , fresh organic 
food, personal service
 
Impact Value 
Proposition:
Sustainable income for 
young people who 
have been long term 
unemployed 
CUSTOMER
RELATIONSHIP
 
The types of relationship an  
social enterprise establishes with 
specific customer segments 
Commercial/Impact
Personalized services, repeat 
custom , loyalty, long term 
customers
CUSTOMER
SEGMENTS
 
The different groups 
of people or 
organizations an 
social enterprise 
aims to reach and 
serve
Commercial:
Walk-by commuters
Local businesses, 
offices, services 
(retail and catering)
Regulars
Impact:
Ethical consumers 
Non-for-profits
Other social 
enterprises 
Social procurement 
customers (catering)
Government 
purchasing jobs for 
people with long 
term unemployment 
and financing 
training 
KEY RESOURSES
The most important 
assets  (physical, 
intellectual, human, 
financial) 
Commercial:
Kitchen/coffee
Equipment
Shop(asset)
Location
Staff
Impact:
Support expertise
Support staff
Impact brand
CHANNELS
How an social enterprise 
communicates with and reaches 
its customer segments to deliver 
a value propositions
Commercial:
Retail-high traffic near public 
transport station
Word of mouth
Commercial:
 
Impact:
 
Inventory 
Equipment  
Utilities 
Staff 
Support and participation 
costs (staff, productivity, 
training, work) 
Readiness cost 
Commercial:
 
Impact: 
Retail sales 
Catering sales 
Participation and 
support funding 
Training funding 
Legal structure for social enterprises
Italy UK Serbia
Legal framework Low decret 155/2006 Companies Act 2004
Community Interest
Company regulations
2005
Law on Professional
Rehabilitation and
Employment of Persons with
Disabilities
Law on Cooperatives
Law on Associations
Law on Endowments and
Foundation
Company LawLegal forms Association,
Foundations. Social
cooperatives, private
companies
All companies
regulated with
Companies Act from
1985
Association, Foundations.
Social cooperatives, private
companies
Entrepreneur
model
collective
empowerment
individual and
collective
empowerment
individual and collective
empowerment
Profit
distribution
Direct or indirect
distribution is
forbidden
Partial distribution of
profit allowed
Is no regulated
Governance principals of
participation “one
principals of
participation “one
Is no regulated
EU funds available for financing
social enterprises
 EaSI (2014-2020) - EU
Programme for
Employment and Social
Innovation with global
budget of 920 million
of euro is a financing
instrument at EU level
to promote a high
level of quality and
sustainable
employment.
 COSME is the EU
programme for the
Competitiveness of
Enterprises and Small
and Medium-sized
Enterprises (SMEs)
running from 2014 to
2020 with a planned
budget of €2.3bn.
Conclusion
 You may have the most beautiful and meaningful social
mission, but you have to have sustainable means to fulfil it,
the economic activities must be efficient and produce
financial return.
 The biggest challenge in the social enterprise
development to find and maintain the delicate balance
between its social goals and profitability.
 In a world dominated by individual and corporate interests,
a Social Enterprise has the capacity to mobilize and
focus on common goals to do things differently because of
the desire of social and economic transformation for justice
If we want to keep moving forwards equity and
sustainability, we have no other choice than to be
creative and innovative!
Discussion/questions?

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#PomaKSRB konferencija - Social enteprise youth guide 2015 - Ana Filipovska

  • 1. Social Enterprise Youth Guide Ana Filipovska
  • 3. Socialization of business Social enterprise will create new ways to do business  Social enterprise is often defined as finding business and market based solutions to systemic social issues, such as social exclusion, long-term unemployment and sustainability.  A social enterprise puts a higher premium on its social mission and its social returns which moderate the way it runs its business.
  • 4. To identify social enterprises, we commonly use this criteria: 1. Constant production and selling of goods or services; 2. The enterprise is autonomous in relation to public and private sectors; 3. The enterprise takes economic risks in order to obtain their own income; 4. The enterprise employs certain, minimum number of paid workers, and most often volunteers participate in activities of social enterprises; 5. Business activities are clearly undertaken in order to achieve the social impact and benefits to society or to a marginalised group; 6. The enterprise has been formed and operates as a result of an organised and solidarity action; 7. The management is based on the principle of “one member - one vote”; 8. Beneficiaries participate in the management structure of social enterprises; 9. There are clear rules and practice related to limited distribution of profit.
  • 5.
  • 6. Social Enterprise Models  Model One: Engage in a trading activity that has no direct social impact, make a profit, and then transfer some or all of that profit to another activity that does have direct social impact (the ‘profit generator model’) Example: for-profit businesses with CSR programmes  Model Two: Engage in a trading activity that does have direct social impact, but manage a trade-off between producing financial return and social impact (the ‘trade-off model’) Example: fair trade businesses; microfinance institutions; firms that employ disadvantaged people  Model Three: Engage in a trading activity that not only has direct social impact, but also generates a financial return in direct correlation to the social impact created (the ‘lock-step model’)
  • 7. KEY PARTNERSHIP   The network of suppliers  and partners that make  the enterprise work    Commercial: -Coffee distributor -Drink distributor -Local  chamber  of  commerce  Impact: -Non-for-profit partner  supporting young people  with long-term  unemployment  - Social Enterprise  Alliance -Social Investor   KEY ACTVITIES The most important  things that need to be  done to make the  enterprise work Commercial: Baristaring Cooking/catering Customer service Impact: Support and participation activities VALUE PROPOSITION   The products and  services that create  value for specific  customer segments-  what keeps customers  returning to your  enterprise  Commercial Value: Great fair trade  coffee , fresh organic  food, personal service   Impact Value  Proposition: Sustainable income for  young people who  have been long term  unemployed  CUSTOMER RELATIONSHIP   The types of relationship an   social enterprise establishes with  specific customer segments  Commercial/Impact Personalized services, repeat  custom , loyalty, long term  customers CUSTOMER SEGMENTS   The different groups  of people or  organizations an  social enterprise  aims to reach and  serve Commercial: Walk-by commuters Local businesses,  offices, services  (retail and catering) Regulars Impact: Ethical consumers  Non-for-profits Other social  enterprises  Social procurement  customers (catering) Government  purchasing jobs for  people with long  term unemployment  and financing  training  KEY RESOURSES The most important  assets  (physical,  intellectual, human,  financial)  Commercial: Kitchen/coffee Equipment Shop(asset) Location Staff Impact: Support expertise Support staff Impact brand CHANNELS How an social enterprise  communicates with and reaches  its customer segments to deliver  a value propositions Commercial: Retail-high traffic near public  transport station Word of mouth Commercial:   Impact:   Inventory  Equipment   Utilities  Staff  Support and participation  costs (staff, productivity,  training, work)  Readiness cost  Commercial:   Impact:  Retail sales  Catering sales  Participation and  support funding  Training funding 
  • 8. Legal structure for social enterprises Italy UK Serbia Legal framework Low decret 155/2006 Companies Act 2004 Community Interest Company regulations 2005 Law on Professional Rehabilitation and Employment of Persons with Disabilities Law on Cooperatives Law on Associations Law on Endowments and Foundation Company LawLegal forms Association, Foundations. Social cooperatives, private companies All companies regulated with Companies Act from 1985 Association, Foundations. Social cooperatives, private companies Entrepreneur model collective empowerment individual and collective empowerment individual and collective empowerment Profit distribution Direct or indirect distribution is forbidden Partial distribution of profit allowed Is no regulated Governance principals of participation “one principals of participation “one Is no regulated
  • 9. EU funds available for financing social enterprises  EaSI (2014-2020) - EU Programme for Employment and Social Innovation with global budget of 920 million of euro is a financing instrument at EU level to promote a high level of quality and sustainable employment.  COSME is the EU programme for the Competitiveness of Enterprises and Small and Medium-sized Enterprises (SMEs) running from 2014 to 2020 with a planned budget of €2.3bn.
  • 10. Conclusion  You may have the most beautiful and meaningful social mission, but you have to have sustainable means to fulfil it, the economic activities must be efficient and produce financial return.  The biggest challenge in the social enterprise development to find and maintain the delicate balance between its social goals and profitability.  In a world dominated by individual and corporate interests, a Social Enterprise has the capacity to mobilize and focus on common goals to do things differently because of the desire of social and economic transformation for justice
  • 11. If we want to keep moving forwards equity and sustainability, we have no other choice than to be creative and innovative! Discussion/questions?

Hinweis der Redaktion

  1. Во италија главната форма на соц.п=во се социјалните задруги кои секоја година имат од 15-30 % на раст, во 2003 год регистрирани 6500-7000 соц.задруги кои вработуваат 200.000 луѓе или 1% од вкупниот број на вработени а имаат бенефиции 1.5 милиони луѓе.