Unit 5.2A Module 5 Recovery and Employability Unit 5.2A Understanding Enterprise and Social Enterprise

What is an enterprise? An enterprise is: Every business needs: A for profit business A company or voluntary association formed to conduct a business. Every business needs: Some form of financial investment (money) Customers

What is an enterprise? Businesses can be: Privately owned Not-for-profit State-owned

Social Administration What is an enterprise? Ownership Public Private Social Purpose Social Administration Social Enterprises Public Enterprises Private Industries Primary objective of the enterprise Commercial Purpose

What is a social enterprise? A social enterprise is an organisation that applies commercial strategies to maximise improvements in human and environmental well-being. A social enterprise is a business with social objectives. Profits are reinvested in the business or the community, instead of being diverted to shareholders and owners. Social enterprises are often best placed to tackle a wide range of social and environmental issues and can often be found in some of the most deprived communities. Many compete in the marketplace like other businesses, using their business skills to achieve social aims. Like other businesses, social enterprises must sustain their business and make profits. The difference is the amount of profit that must be made and what is done with the profit.

What is a social enterprise? Social enterprises come in all shapes and sizes. They are in our local communities and you will find them on your high street from coffee shops and furniture makers, to leisure centres, banks and bakers. If you have ever bought the Big Issue or shopped at the Co-op then you already know what a social enterprise can look like. They are businesses which aim to change the world for the better by helping tackle social problems, improve communities, increase people’s life chances, or help the environment. They make their money from selling goods and services as do all businesses, but they reinvest their profits back into the business or the local community. If you are the type of person who is always thinking of innovative solutions to solve social problems in your community for example, then you could become a social entrepreneur. https://businesswales.gov.wales/bigideas/what-social-enterprise

What is a social enterprise? Social enterprises use a business approach to: address social issues create positive community change

What makes a social enterprise? A social enterprise must: Have a social purpose Achieve its social purpose by trading or providing services to others Hold assets and wealth in trust for community benefit Involve its members in running the organisation Be accountable to members and the wider community

Working in a social enterprise Ask yourself: Looking for a job in a social enterprise Do I understand what this social enterprise is about? Do I share the goals of this organisation? Am I willing to be part of the organisation? Do I understand the personal challenges and sacrifices that I will have to make?

Types of social enterprise? Social Firms: which aim to integrate people who might otherwise find it difficult in the mainstream job market, such as people with learning disabilities or mental health problems. Co-operatives: Owned, controlled, and run for the benefit of their members. New slide Associations

Setting up an enterprise To set up your own business, you must be able to show initiative and take a risk

Setting up an enterprise Taking the initiative: A person who takes the initiative is someone who ‘makes things happen’. Risk-taking: A person who takes the risk accepts the chance that things could go wrong (they may lose all their money or become personally liable for the debts of the business). The trick is to take calculated risks comparing them to the probable benefits. Someone who sets up an enterprise is called an ‘entrepreneur’.

If you decide to start your own business, ask yourself: Setting up an enterprise If you decide to start your own business, ask yourself: Setting up an enterprise Do I have a clear idea of what’s involved? Is my project/business plan realistic, in terms of cash flows and likely start-up losses? Can I get the resources (cash, supplies, distribution) I need to make the idea work? Do I accept the personal challenges and sacrifices that I will have to make?

RESOURCES PROJECT Start-up services, Chambers of Commerce, Unions, Consortium on the field… FUNDING Local Administration (Municipalities, Districts) – Bank – Crowdfunding Platforms MARKETING Magazines online, web sites, formal and informal networks