What is Social Enterprise?And how do I start

one?

Aims

• To understand ‘social enterprise’• To go through an ideation process to

identify a need that can be solved by social enterprise

• To understand the first steps in starting a social enterprise

Social Enterprise?

There is no legal structure for a social enterprise, but they all broadly do this:1. Aim to generate their income by

selling goods and services2. They are set up specifically to make

a (social)difference3. They reinvest their profits into their

social mission

Basic definition

If you are considering social enterprise, one of the easiest ways to think about it is using a scale:

Charity CorporateSocial

Enterprise

Better Definition

Traditional Charity

Social Enterpris

e

Traditional business

Less commercial More commercial

Less social

More social

Types of SocEnt

As you can imagine, treating social enterprise as a ‘middle ground’ means there can be lots of interpretations.

Examples include:• Co-operative• Voluntary Organisation• Social Business

Examples of SocEnts

Some you might know:

Examples of SocEnts

Some you might not:

Society profits

Social Enterprise UK is one of the leading organisations in the field of social enterprise. This is how they describe it:

https://www.youtube.com/watch?v=ZJFX2cXjIQU

Dos and Don’ts

SocEnts do:• Make money from

trading• Cover their costs

in the long-term• Put their profits

into a social cause• Pay salaries to

staff

SocEnts don’t:• Exist to make profits

for shareholders• Exist to make

owners very wealthy• Rely on volunteers,

donations, or grants to stay afloat

One more thing to think about…

What happens if you take away the need?In a successful social enterprise, when you take away the need for the business – if the social problem is solved – what happens?

Think about if…• Divine: all farmers are wealthy• Fifteen: all disadvantaged youth

empowered

The market demand for your product /service should NOT be dependent on the need

If you take away the social need, the business should stand on its own

What happens if you take away the need?

Creating a social enterprise idea

Identifying the ‘real’ need

Consider your car not starting:

(Problem) My car won’t start

1. The battery is dead2. The alternator isn’t working3. The alternator belt is broken4. The alternator belt was old and not well looked

after5. The car was not maintained as recommended

by the garage.

Identifying the ‘real’ need

A more practical example:

(Problem) Greg is homeless

1. Greg cannot afford a house2. Greg doesn’t have a job3. Greg’s CV not high quality4. Greg has suffered from lack of job and poor

execution for a long time5. Greg dropped out of college and doesn’t have

skills or qualifications

Creating a social enterprise idea

Premise

You are a committee of individuals tasked with solving a ‘big picture’ need.

You have the following things:• A large venue (sports hall sized

room)• A year of no commitments• £10,000,000 to spend on anything

you like

Stage 1: Blue sky thinking

Stage 2: Growth phase

Stage 3: Streamlining

Stage 4: Consolidation

Stage 5: Realisation…

Realisation

Even the most outlandish ideas have a root in the practical.

How are you going to take this idea and turn it into something?

What do you need to know to move forward?

Planning your enterprise

• Problem Definition• Outline the solution• How will your revenue structure

work?• Break the solution down into tasks• Assign the tasks to individuals• Determine what resources you need

Planning your enterprise

Some things to think about:• Who do you know that could make

this work?• Where will you source the materials /

resources you need?• How much money will it cost to start

up? Where will your revenue come from?

Any questions?

Aims

• To understand ‘social enterprise’• To go through an ideation process to

identify a need that can be solved by social enterprise

• To understand the first steps in starting a social enterprise

Final thoughts…

• The main thing that stops success of social enterprises is a lack of action

• The need and the market demand are equally important in a social enterprise

• Now is a great time to start a social enterprise – both in terms of money and advice

Funding sources

Small start-up grants are available from the following:• O2 Think Big• UnLtd• University• LEPs• vinspired• Prince’s Trust

Thanks

will.churchill@studenthubs.org

www.studenthubs.org