Social Entrepreneurship = Social Enterprise= Sosiaalinen yritys = Yhteiskunnallinen yritys

1. Social Entrepreneurship =Social Enterprise=Sosiaalinen yritys =Yhteiskunnallinen yritys

2. Workingtimetable / lessonplan 2018 • Kari Kaarna; Workshop – studyingtheory (3 h), 13.12.2017, 8.1.2018,12.1.2018 • What is SocialEntrepreneurship/Social Enterprise? (Sosiaalinen yritys/yhteiskunnallinen yritys, sosiaalinen yritystoiminta) • Who is Social Entrepreneur? • How to identifySocialEntrepreneurshipopportunities on society / for ourselves? • Writing a report and presentation • Sinikka Lemponen – 3 case studies (1 h) 1/2018 • Maarit Lehtonen (4 h) Excercise; BMC, 14.2.2018, 20.2.2018, 4.3.2018, 9.3.2018; • planning an ownsocial/societal business idea and describing it with Business ModelCanvas –tool • Productionplan and marketingplan for establishing a societalcompany to Sampo Vocational college; ’HappyDragon’ – automaticbottlereturn • Business plan is waiting for technicaldrawings for production - autumn 2018.

3. Sosiaalinen/Yhteiskunnallinen yrittäjyys/yritystoiminta

4. Social Entrepreneurship in Finland Co-Ops and neweconomycompanies Societal enterprises Social Enterprises employing disabled people Non-profit Service Providers Social Entrepreneur-ship What is Social/Societal Entrepreneurship?

5. Social Enterprise • Social enterprise is a corporation, a foundation or another registered trader • a registered trader who is entered in the register of social enterprises • at least 30 % of the employees the company’s employ are disabled, handicapped or unemployed persons • Social enterprises are value-based and have the following characteristics: • Their operations aim to solve social problems and achieve socially beneficial objectives; • They use more than half of their profits to achieve their goals, promote their business ideas and develop their operations; • They are founded by people who would not otherwise be interested in starting a business. • Socialenterprisesareofferingworkingopportunitiesespecially to disabled and long-termunemployedpeople

6. Law on Social Enterprises 30.12.2003/1351 • Socialenterprise is a corporation, a foundation or another registered trader • a registered trader who is entered in the register of social enterprises. • it produces goods and services on a commercial principle • at least 30 per cent of the employees in the company’s employ are: • Disabledorhandicappedpersons • Unemployedlast 12 months (long-termunemployed) • Personswhohaverecceivedunemploymentallowance min. 500 daysbased on their long-termunemployment • it pays all its employees, irrespective of their productivity, the pay of an able-bodied person agreed in the collective agreement, and if no such agreement exists, customary and reasonable pay for the work done. • Employment authorities may, within the limits of the national budget, provide support for the establishment of a social enterprise and the consolidation of its operations, if the specific aim of the trading is to employ persons in a poor labour market position.

7. National Register of Social Enterprises • Company must have an entry in the register of social enterprises held by the Ministry of Economic Affairs and Employment. Only a company with an entry in this register can use the name and business ID of a social enterprise in its business operations and marketing. • Social enterprise may select any form of incorporation. The Finnish law makes no distinction between social enterprises and other businesses. • At themomentthereareonly 38 companies(2014 89 companies) in Ministry’s Nat Registerentitled to usethe logo of Social Enterprise in their business operations and marketing • Social Enterprises in Nat Register 23.10.2017

8. State support for Social Enterprises • Paysubsidy • the amount of subsidy is a maximum of 50% of payroll costs for a maximum of 36 months at a time • Employment policy project support may be granted to organisations: • establishing a social enterprise or solidify its operations • whose purpose is to access the possibilities for establishing a social enterprise • Investmentsupport • Because of lowerproductivity, Social Enterprises aregrantedincreasedinvestmentsupport, which is 5-10% higherthanthesamesupport for normally-operating companies

9. Whystart a socialenterprise? • Socialenterprisehas a doublegoal: working as a successful business and at thesametimefulfillingthesocialgoals • Thecompanyhas a goal to employthefrail and the long-termunemployed, and thiswaytheydelivertheirownshare of corporatesocialresponsibility; for example; preventingsocialdisadvantageorexclusion. • Socialenterprisespromoteworker’srehabilitation and placement to open labour market

10. Whystart a socialenterprise? • Socialentrepreneurhip’sactionscanbeconsidered to besociallyresponsible, because in theaction’sbackround is an idea of socialresponsibility.  • Socialresponsibility is amongotherthingsstaff’swellfare and education, customer’swellfare, productsafety, consumerism and subcontractorchains’sworkingconditions. • Restaurant Kamu, Hamina • https://yle.fi/uutiset/3-10004393

11. Societal Enterprise • Societalenterprise is complicated and wideconsept. In Finland theSocietalentrepreneurship is full of differentkinds of operators/companies and theroots of societalenterprisedateback to thelate 19th century. • Theprimarygoal is not to makefinancialprofit. • Thegoal is to findsolutions to someproblemswhatsocietyhaveormakethesocietybetter. • If companymakesprofit it usuallyreturns it to improvethesociety. • Linnanmäki Amusement ParkrunbyChildren’s Day Foundation

12. Societal Enterprise • Societal Enterprise companiescanapply a Societal Enterprise labelfromThe Association for Finnish WorkPrioritycriterions: • Priority of thesocietalenterprise is tomakesocietybetter. Societalenterprise’sbusiness mustberesponsible. • Limited distribution of profit: • Societalenterprisecompanyusesmost of theirprofit to improvetheircompany’soperationsor to charity. • Company’s business mustbeopen and transparent.

13. How socialbusinessesdiffer… What is donewiththeprofit? Social Economic Sustainability No profit Social business, limitedprofit Enterprise with socialrespon-sibility Profit- oriented No profit- oriented, butwithsomeprofit Practisingsocialresponsibility Social value Economicvalue

14. Linnanmäki Amusement Park • an amusementpark in Helsinki, Finland • it wasopened on May 27, 1950 • it wasfoundedafterwarbychildwelfareorganization

15. It'sownedbynon-profit ’Lasten Päivän Säätiö’ (Children's Day Foundation), whichoperatesthepark in order to raisefunds to Finnishchildwelfarework. In 2016, thefoundationdonated a total of 4.3 millioneuros. • Becausethe money goes to Children'sdayfoundation, Linnanmäki amusementpark it is considered to be a societalcompany. • Theprofitgoes to charity. Linnanmäki is a foundationsotheyneed to putalmostall of theirprofit to charity.

16. Aalef Oy • Restaurants • Bookshop • Accounting company

17. Aalef Oy, foundedby LTKY, TheStudentunion of Lappeenranta University of Technology 31.12.2003 • Aalef Oy offers cafeteria, catering and bookshopservices • Offersservicesespecially for students, butalso for companies in South-Karelia • Aalef Oy is considered as a …. Cobecause….

18. Lappeenrannan vanhainkoti (resthome) ry • Toivokoti is owned and runby Lappeenranta Resthome Association. Theresthome is providedwithprivatefundings and wasstarted in 1925

19. Toivokoti offershomelyliving for eldersthatcan no longertakecare of themselvesToivokoti offershomelyliving for eldersthatcan no longertakecare of themselves • A feewillbechargedmonthly • Number of personnelvaries between 29-40 employees • Can beconsidered as a social company Becausetheaim is not to makeprofitbutinsteadprovideelderpeoplesafeaccomodation and welfareservices.

20. Excercise; Business ModelCanvas • Create a business idea for a socialorsocietalcompanythatcouldbeestablished and runbystudents. • Describethe idea with business modelcanvastool.

21. Business ModelCanvas Key activities Value proposition Customer segments Customer relatioships Key partners Channels Key resources Cost structure Revenue streams This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. www.businessmodelgeneration.com

23. Business ModelCanvas – Automaticbottlereturn ’HappyDragon’ (by Partanen, Kälviäinen, Loikkanen, Myllymaa, 3/2018) Key activities Value proposition Customer segments Customer relatioships Key partners • Collecting and carrying the returnable bottles • Planning timetable for student groups responsible for collecting • Money deposit • choosing charity destination • profit goes to charity • Environment protection • Easy way for students to do charity • Nice looking - self designed and self-produced- ‘Happy Dragon’ collectors make original furnishing elements to school buildings. • solidarity • Students working in projects • Supermarket(-s) • Wood technology / carpenter students • The headmaster of school • Chiefs of div’s • Ongoing service • Charity destinations vary every year • Students of Sampo vocational school • Staff of the school • Students in other schools Channels Key resources • Service is brought to customers – collectors situated in each div. at school • Marketing of idea through social media and internal channels • Group of students taking care of emptying the automatic bottle return collector • Carpenter students • Building material of ‘Dragons’ Cost structure Revenue streams • Production costs; plywood, paint, clothes • Trash bags • Transportation costs; gasoline • Bottle deposit money This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. www.businessmodelgeneration.com