Social enterprise in not-for-profits

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Presentation transcript:

Social enterprise in not-for-profits www.socialenterpriseauckland.org.nz Social enterprise in not-for-profits www.fitzgerald.org.nz www.socialenterpriseauckland.org.nz www.fitzgerald.org.nz

www.socialenterpriseauckland.org.nz www.fitzgerald.org.nz Challenges for not-for-profits How it can be done www.socialenterpriseauckland.org.nz www.fitzgerald.org.nz

www.socialenterpriseauckland.org.nz www.fitzgerald.org.nz

www.socialenterpriseauckland.org.nz www.fitzgerald.org.nz Research overview Qualitative research How do not-for-profits introduce and accommodate a commercial business model with commercial logics into a social organisation? 4 case studies from diverse sectors First social enterprise in the previous five years Government contractors 60 interviews and 40 documents 4 interview periods over 18 months www.socialenterpriseauckland.org.nz www.fitzgerald.org.nz

Organisational types Focus Income sources Type of enterprise Focus Income sources Not-for-profit business Mission Social impact Grants and donations Earned income, fees, contracts and donations Social enterprise Mission and market Profit reinvested in social impact Break-even through commercial revenue Profits are reinvested in social impact Social business Market & mission Social impact and profit distributed Socially driven and profit making For-profit business Market Profit Socially responsible business Business donating to charity Social value creation focus Commercial value creation focus www.socialenterpriseauckland.org.nz www.fitzgerald.org.nz

Different organisational species Not-for-profit Social enterprises Different organisational species www.socialenterpriseauckland.org.nz www.fitzgerald.org.nz

www.socialenterpriseauckland.org.nz www.fitzgerald.org.nz Differences Characteristic Desired outcome Primary driver Tactic Source of legitimacy Funding source Stakeholders Performance measures Social (not-for-profit) Social value Values-based mission Collaborative Unity of purpose Contracts and donations Clients and families, funders, community Quantitative social output, financial measures, and qualitative social impact stories. Commercial (for-profit) Economic value (profit) Market preferences Competitive Market position Trading income Customers, owners Quantitative financial measures (e.g., profit, ROI) www.socialenterpriseauckland.org.nz www.fitzgerald.org.nz

www.socialenterpriseauckland.org.nz www.fitzgerald.org.nz Issues to consider www.socialenterpriseauckland.org.nz www.fitzgerald.org.nz

www.socialenterpriseauckland.org.nz www.fitzgerald.org.nz Revenue Streams Key Partners Cost Structure Channels Customer Relationships Customer Segments Value Propositions Key Resources Key Activities Business model www.socialenterpriseauckland.org.nz www.fitzgerald.org.nz

Issues to consider www.socialenterpriseauckland.org.nz www.fitzgerald.org.nz www.socialenterpriseauckland.org.nz www.fitzgerald.org.nz

www.socialenterpriseauckland.org.nz www.fitzgerald.org.nz Structure www.socialenterpriseauckland.org.nz www.fitzgerald.org.nz

www.socialenterpriseauckland.org.nz www.fitzgerald.org.nz thank you www.socialenterpriseauckland.org.nz www.fitzgerald.org.nz