Social Enterprise Are you ready to take the leap?

Objectives Understand the characteristics of a successful social enterprise Understand the traditional phases of development Understand the connection between mission and success All while exploring examples of Social Enterprises

What is Social Enterprise? “A social enterprise is a business that trades to tackle social problems, improve communities, people’s life chances, or the environment.” Definition provided by Social Enterprise UK

Social Enterprise Alliance What is Social Enterprise? ...a revenue-generating business with primarily social objectives whose surpluses are reinvested for that purpose in the business or in the community, rather than being driven by the need to deliver profit to shareholders and owners. …organizations that address a basic unmet need or solve a social problem through a market-drive approach. Social Enterprise Alliance …an organization that applies commercial strategies to maximize improvements in human and environmental well-being—this may include maximizing social impact alongside profits for external shareholders. Wikipedia

Impact of Social Enterprise Social Enterprise is one of the fastest growing movements in this country and across the world. It’s the combination of DOING BUSINESS AND DOING GOOD that makes it exciting!

Rise of Social Enterprise Growing desire of charities to be more sustainable in the future Growing consumer awareness of spending and how it affects others Businesses looking for new opportunities to use their power for good

What Social Enterprise Does Social Enterprise DOES NOT… Result in a quick fix Rely on traditional fundraising Require volunteers, grants or donations to stay afloat Work for everyone Social Enterprise DOES… Generate sustainable resources Engage market forces Leverage assets in new ways Offer greater flexibility Decrease dependence

Catholic Charities Fort Worth Social Enterprises A CCFW Social Enterprise must: Be aligned with CCFW services Provide support or employment opportunities for our clients Operate a double or triple bottom line supportive of our mission Be a business with a potential for profit Provide a source of unrestricted funds to put back into the agency to support poverty ending programs

Basic Considerations Do you have an existing program within your agency that would meet the social enterprise criteria? Analyze how the program would change to meet the requirements of a social enterprise. Approach your start-up out of a need in your community and use your agency support of social enterprise to solve it. The key is to use the agency for the start up, not an individual effort.

Social Enterprise Success Translation & Interpretation Network (TIN) 1999 – TIN created using grant funding from the Texas Department of Health and Human Services to provide language services to Limited English Proficiency (LEP) clients 2006 – TIN converted to for-profit business

TIN SERVICES INTERPRETATION TRANSLATION TRAININGS Face to Face 24/7 On Demand Phone Interpreting over 200 languages 24/7 On Demand Video Interpreting TRANSLATION Document, website, books, marketing materials Over 200 languages TRAININGS New interpreters Continuing education Training of Trainers

TIN Triple Bottom Line Social Goals Provide language access to the community at large Provide employment to refugees Advocate within the community for universal language access Agency Goals # of people we employ # of people we help Pay a living wage Financial Goals Operate as a profitable business Send profits back to CCFW to fund the fight against poverty

TIN Success Story Over 50,000 interpretation hours a year Over 20,000 appointments annually Employs 270 interpreters Trains over 300 interpreters annually

Stages of Development

Stage 1: Preparation Preparation: Review the organization’s mission, objectives and potential market Questions to Ask What is your mission, vision, goal? What is your organizational culture? Who is your leadership? What is the support for a social enterprise?

Organization is prepared for social enterprise Are you Prepared? What is the mission? What is the culture? Who is the leadership? Organization is prepared for social enterprise

Stages of Development Preparation Review the organizations mission, objectives and potential market 2. Generate Ideas Gather input on potential needs and establish criteria

Stage 2: Generate Ideas Input from internal staff Think Tank Committee Social Enterprise Advisory Board Basic research Work with other non-profits: replicate vs. start-up of new idea

Stages of Development 1. Preparation Review the organization’s mission, objectives and potential market 2. Generate Ideas Gather input on potential needs and establish criteria 3. Idea Screening Work through ideas to find the one or two magical concepts

Stage 3: Idea Screening 1. Find the patterns, themes and larger relationships 2. Ask “How might we…” questions 3. Identify the product or service that addresses the social challenge 4. Take an idea to solution and make it tangible 5. Determine if the solution is a new offering or an existing offering 6. Get feedback

Stages of Development 1. Preparation Review the organization’s mission, objectives and potential market 2. Generate Ideas Gather input on potential needs and establish criteria 3. Idea Screening Work through ideas to find the one or two magical concept 4. Feasibility Study Determine the elements necessary to make the idea successful – high level overview

Components the Feasibility Study Stage 4: Feasibility Study Components the Feasibility Study Business Description – overview of service, business model and market Competitive Analysis – who is already providing service Market Analysis – what is needed in our market Financial Overview – high level of the return on investment Risk Assessment – evaluation of internal and external risks

Stage 4: Feasibility Study Is the solution financially viable? Is the solution a product, service or both? What is the value to the end customer? How much is it worth? What are the obstacles, challenges or disincentives? What are the capabilities needed to deliver the solution? Ask “Where, When, How, and Why” How will you reach the customers? Is there more than one way to deliver the solutions? What resources are needed to deliver the solution (human, manufacturing, financial, technological)?

Stages of Development Preparation Review the organization’s mission, objectives and potential market 2. Generate Ideas Gather input on potential needs and establish criteria 3. Idea Screening Work through ideas to find the one or two magical concepts Feasibility Study Determine the elements necessary to make the idea successful Business Plan How will the business operate, who will be involved, what is their role, what skills are needed, what resources are required

Components of Business Plan Feasibility Study = High Level Business Plan = Detail Level Build business plan using feasibility study as the base Additional elements include Marketing Plan Operations Plan Management/Personnel Plan Detailed Financial Review

WORN

Developing WORN 3. Idea Screening Preparation Generate Ideas Success of TIN resulted in an environment ripe for future social enterprise at CCFW Generate Ideas CCFW case manager suggested social enterprise idea that utilizes the skill of knitting after observing refugee clients 3. Idea Screening How might CCFW utilize the traditional skill of knitting in a social enterprise? 4. Feasibility Study Middle to upper class women age 20-40 are willing to pay a premium for social conscious goods

WORN Lessons Hire enough firepower on Day 1 Do NOT cut corners on branding Define social objectives early Do NOT underestimate or forget the strength of the parent organization Acknowledge the balance between mission and business is critical

Mission-Driven Services Challenges of Mission-Driven Services Social enterprise tackles the most difficult problems, not the most lucrative Drive to serve a social good can lead to higher costs or price disadvantages What is the definition of IMPACT or SUCCESS?

Measuring Success Social Enterprise can fail simply because the organization does not define success and measure it appropriately! How does CCFW measure success? 1. Social Impact 2. Agency Impact 3. Financial Impact

Success of Social Enterprise Social Enterprise should strive to introduce the most innovative, sustainable options Success comes when others replicate their efforts to achieve the maximum impact

Vice President of Social Enterprises Catholic Charities Fort Worth CONTACT: Marianne Woerner Vice President of Social Enterprises Catholic Charities Fort Worth 817-289-2797 mwoerner@ccdofw.org