Helix Centre DCU November 9th Alan Curtis The potential contribution of social enterprise to promoting inclusive local labour markets Helix Centre DCU November 9th Alan Curtis

Introduction For Profit Not for Profit Social enterprise or hybrid org Community Services Programme

Inclusive Labour Markets Labour markets are inclusive when everyone of working age can participate in paid work, especially vulnerable and disadvantaged people.

For profit – not for profit FP = set up and generate income for entrepreneurs FP – sell products and services in the marketplace and distribute profits to owners and shareholders and the business itself FP – rely on traded/earned income and lenders to finance their ops. NFP = serve and find a solution for identified social need NFP – channel income into programmes and services NFP – rely on donations and grants from individuals, trusts and government. How each sector generates its money determines how it can be used i.e. NFP on specific programmes and services and FP can spend it on anything they choose.

Social Enterprise SEs have both social and economic goals Provide services to targeted groups/areas Generate traded & other income Expected to be financially viable and sustainable Key objective is to attain one ore more social goal with profit/surplus seen as the means to ensure sustainability

What makes it successful It is important that those involved in a social enterprise are clear that they are setting up a business, which although owned and controlled by the community must sell services or products, receive payments in return and aim towards sustainability. Social enterprises combine innovation, entrepreneurship and social purpose and seek to be financially sustainable. Their social mission prioritises social benefit above financial profit, and if and when a surplus is made, this is used to further the social aims of the target group or community.

Some of the benefits If financial viability is achieved you can minimise the need for fund-raising or to remain dependent on grant in aid. Sufficient surplus allows growth and scale and employment – job givers not seekers Social value creation can mean responding to new need for target groups and new markets Social value creation strives to balance profits and public good

Community Services Programme Managed by Pobal on behalf of DSP Circa €45 million in 2016 395 services 1,700 FTEs = 2,743 p-t & f-t and 1,712 (62%) > MW 294 orgs contracted to employ 301 managers Average 1+4 (€108K) CSP contribution €32K (manager) €19,033 (FTE) MW €9.25 (01/01/17) = €20,340 circa €1,300 difference Co-funding model encourages social entrepreneurship

Total employment cost of managers 251 managers supported under CSP worked 39 hrs. a week The average cost of employment per hr was €19.71 or €40,426 per annum 53 (21%) paid CSP contribution 197 (79%) above CSP contribution Range 32K – 82K Traded income

Traded income and additional staff 150 (39%) services employ 832 from traded income 657 (79%) employed by the top four 195 (23.5%) from CH&RC 187 (22.5%) from child-care 151 (18%) Tourism and Heritage 124 (15%) Services for Older People 38 (3.9%) employed by bottom four 20 (2%) Home insulation and environment works 10 (1%) Therapeutic Services 6 (0.7%) Broadcasting 2 (0.2%) Services for people with disabilities

CSP Categories Community halls & resource centres Tourism & heritage Services for older people Enterprise, education and ICT Child-care Home insulation and environment Broadcasting Community transport People with Disabilities Other

Conclusion Social enterprise can create jobs for people most distant from the labour market. They provide services to disadvantaged groups and communities and help address social exclusion. They offer a model for the development of sustainable communities. They seek to earn surpluses that can be reinvested into the community and pay staff a reasonable rate of pay It’s an exciting way of doing business and a way of thinking