Social Enterprise Seminar Devon County Council 20 March 2009

Why am I here?  Specialist ‘Social Enterprise’ Adviser Director of three enterprises  ceu ltd  RISE -  Wessex Reinvestment Trust

What are social enterprises? Definition by DTI (BERR) “Social enterprises are businesses with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners”. Social enterprise = a trading organisation with a social purpose

Plunkett Foundation Social enterprise – wide range of organisations that achieve a variety of social aims by trading in goods and services They are NOT – investor-led enterprises or voluntary organisations

Business and Social Outcomes  Trading activity or contracting to deliver services  Running a business that has financial viability  Clear social outcomes  Responsive to the communities in which they operate  Distribution of profit for social as well as business purposes  A triple-bottom line; financial, social and environmental

Types of social enterprise  Co-operatives - organisations which are owned and controlled by their members - worker co-operative the employees own and control the business  Community Businesses - businesses which are owned and controlled by a community - could be a geographical community or ‘a community of interest’  Development Trusts - asset based organisations owned and controlled by the community - often have a range of projects under one umbrella  Trading subsidiaries - the trading arm of a Charity or Trust

Community Interest Company (CIC)  Introduced in July 2005 as new type of social enterprise  Statutory “asset lock” to prevent asset and profit distribution except for community purpose  Must operate for the benefit of the community and pass a Community Interest Test  Has limited liability, with shares or guarantee  Must be able to demonstrate community benefit to new CICs regulator (through eg. social accounting)  2,578 registered as of yesterday!

The national picture  More than 55,000 social enterprises nationally and rising (DTI 2006)  Combined turnover of £27bn per year and contribute £8.4bn every year to UK economy  1.3% of total turnover of all businesses with employees  Average number of employees 10.  11% of social enterprises have 50 – 249 employees

Snapshot of Devon 255 Social Enterprises on the RISE database comprising  14 Social Enterprise Charities  28 Community Interest Companies  65 Co-ops  10 Credit Unions  11 Development Trusts  24 Industrial & Provident Societies & 3 Social Firms

Some you may know of..  COSMIC  Proper Job  Gt Torrington Dev Trust  Devon Doctors  Mid Devon Community Recycling  Pluss  Exeter Credit Union  Magic Carpet and further afield..  Greenwich Leisure  Eden Project  Coin Street Builders  SOFA project

Benefits they deliver..  Tackling disadvantage, reducing social exclusion  Creating employment, often in difficult areas  Meeting social needs, developing sustainable solutions  Improving public services – closeness to communities  Encouraging efficient markets and corporate responsibility

Benefits they deliver..  Facilitating new markets  Empowering individuals and communities  Access to finance  Important partners for local authorities and agencies  Flexibility that other sectors may not have

Social Enterprise Mark