***Week 6 - Introduction to Social Enterprise

Question 1

UK definition of social enterprise

What is CIC

Answer 1

• Defines the purpose not its legal form 

• Profit back into business or community
  
- Rather than max profit SH and owners (bigissue,1 homeless,1 back business)(Defourny, 2010)
• Community interest company
• first recognised legal business structure for a non-charity organisation
• if company fails, assets preserved for benefit of community
• specific features ensure working for benefit of community

Question 2

EU Definitions

EMES the defining characteristics of the social enterprise ‘ideal type’ include:
What does the Social Business Initiative (SBI), launched in 2011 aim to do

& plan contains 11 priority measures, organised around 3 themes

Answer 2


- focuses more heavily on the way and organisation is governed

• & what its purpose is
• rather than on whether it strictly adheres to the non-distribution constraint of a formal non-profit organisation (Young and Salamon)
• continue activity producing g/s
• high degree autonomy
• sig level econ risk
• min amount of paid work
• an explicit aim benefit community
• initiative launched by group of citizens
• decision-making power not based on capital ownership
• a participatory nature, involves persons affected by the activity
• Limited profit distribution
  Defourny 2001, pp16-18
• introduce short-term action plan support development of social enterprises, key shareholders in the social economy and social innovation
• prompt a debate on the avenues to be explored in medium/long term
• the initiative is implemented in close partnership with stakeholders in the sector and EU countries
  1) make easier for SE obtain FUNDING
  2) increase VISIBILITY of social entrepreneurship
  3) make the LEGAN ENVIRONMENT friendlier for social enterprises

Question 3

Typical academic definition USA 


What is included in the hybrid spectrum

Nest

What is Network for good

Answer 3

• includes those organisations that fall along a continuum
• from profit-orientated businesses engaged in socially beneficial activities
• to dual-purpose businesses that mediate profit goals with social objectives
• to non-profit organisations engaged in mission-supporting commercial activity.

1) Traditional for profit 

1) Corporation practicing social responsibility 

1) Socially responsible business 

2) Social enterprise

2) Non profit with income-generating activities

2) Traditional non-profit 


Motives

1) Profit Making motive, Shareholder accountability, Profit redistribution to shareholders

2) Mission motive, Stakeholder accountability, income reinvested in social programs or operational costs 


• business created to further a social purpose in a financially sustainable way:
  
- provide income generation opportunities that meet basic needs of people who live in poverty

• are sustainable & scalable
• SE help non-profit raise funds through simple, affordable and effective ONLINE FUNDRAISING SERVERS and offers free training through an online learning centre, online community and webinar series 


Question 4

Triple bottom line with mission & funding in social enterprise

Answer 4


- ‘tripple bottom line’ or ‘blended value’ arises from the notion that value has within it three component parts: economic, social and environmental. 


• Traditionally people have thought of non-profits being responsible for social and environmental value and for profits for economic value;
• in fact both types of organisations generate all three value sets

• 3 ways which social enterprises can make money and do some sort of social &/or environmental good
  1) 
Mission centric/ Embedded
  2) Mission related/ Integrated
  3) Unrelated Mission/ External

Question 5

1) Mission centric/ Embedded social enterprise
2) Mission related/ Integrated social enterprise
3) Unrelated Mission/ External social enterprise

Answer 5

1) 


-
- the mission is central to how they are funded and make money

- people who are farmers, all stuff farm they sell, what they cant sell they turn into stuff in their bakery, then they sell from their bakery store aswell
 direct link
- people who are actually creating/producing the food are the ones who are benefiting


2) 

- the way they make money, and there social impact do work together, but are not entwined 

- using resources (nursing home)/assets (level of care) from their profit making company which will help them with their social enterprise and vis visa

- IONA is a profit driven enterprise: nursing home - people that can afford them, pay a price a little bit above the norm, subsidising people who can not, mean test - find out how much they CAN spend


3)
- way make money and social impact no link

- Pants to Poverty, buying underpants have nothing to do with poverty, every pair you buy, money gets donates to charities and charitable causes

Question 6

Additional reading - Introduction to social enterprise

Answer 6

1) social enterprise turning plastic waste into currency, for a cleaner ocean - Haiti residence (Scott M, 2017 the guardian)
2) £142 million lent to 263 social enterprises, 4,661 jobs created or safeguarded (responsible finance: the industry in 2017)
3) social enterprise of the year awards (sponsored by NatWest) to Here (social enterprise uk)