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EC15: Social Enterprise

EC15: Social Enterprise

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EC15: Social Enterprise

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  1. EC15: Social Enterprise 2. Social Enterprise Networks Marcus Thompson University of Stirling

  2. Enterprise • “Enterprise incorporatesthose qualities and competencies that enable individuals, organisations, communities, societies and cultures to be flexible, creative and adaptable in light of change. To achieve the above the individual needs to use his/her imagination, be creative, taking responsibility, organising, identifying ideas, making decisions and dealing with others in a wide range of contexts (Bridge et al:1998)

  3. Entrepreneurial Social Outcomes • Mission goal number one: To sharpen organizational focus Being a social entrepreneur does not mean eliminating a program because it loses money . . . if a nonprofit is the best or the only provider of a program that is critically needed, it has an obligation to continue the program -- and a managerial challenge to find other sources of revenue to cover the cost • Mission goal number two: To expand their impact Despite having fewer programs, successful social entrepreneurs are still able to serve more people. Because they are able to concentrate more of their resources on fewer programs, they have more time to develop positioning strategies and marketing plans that work . . . and are able to selectively add new programs to meet the emerging needs of their communities.

  4. Social Entrepreneurs: Money Goals • Money goal number one: Incremental gains (for individual programs or entire organizations) This goal can be achieved by any nonprofit, and it can start to happen almost immediately: A reasonable one- to three-year objective would be to increase earned income by an amount equal to 15 percent of the organization's annual operating budget. • Money goal number two: Self-sufficiencyfor specific programs or business ventures and, on rare occasions, for entire organizations) This goal can be achieved by some nonprofits, but it will usually take three to seven years. • Money goal number three: Significant profitability and growth(for spin-off business ventures or entire organizations

  5. Guiding Principles • An explicit aim to benefit the community • Limited profit distribution • Decision-making power not based on capital ownership • A continuous activity producing goods and/or selling services • A minimum amount of paid work • A high degree of autonomy • A significant level of economic risk • An initiative launched by a group of citizens • A participatory nature, which involves the people affected by the activity

  6. Scoring Criteria – A Funders’ Perspective • Does the project meet the funders criteria? Has the need for this project been well researched and evidenced? • Are project objectives realistic and achievable? • Have appropriate project management systems been created that ensure the delivery of project outcomes? • Does this project include measures to demonstrate accountability and good financial controls? • Contains a clear exit strategy.

  7. SCVO Work Structure • Promoting equality • Developing active communities • Growing the social economy • Highlighting the rural dimension • Building sustainability

  8. Scottish Sub - sectors SCVO, 2004

  9. Size of Sector in Scotland (2004) SCVO, 2004

  10. Sector by Activity SCVO, 2004