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Masterclass in Social Enterprise Starting Your Social Enterprise FREE Social Enterprise Resource Documents
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What is The Social Economy? There are a number of definitions of The Social Economy flying around. The following two are the ones that CVS Stirling find most relevant.
1. In the UK The Social Economy is also called the Third Sector, to distinguish it from the other two sectors of the economy: the public and private sectors.
The Social Economy is composed of:
Although each type of organisation has a distinct identity, it can overlap with the other types. For instance, the majority of voluntary organisations, so called because of their use of volunteer workforces, are registered charities. Many community groups are charities and also use volunteers. Some social enterprises are community-based, use volunteers and are registered charities. Source:Understanding social enterprise SEP (GB) ltd 2005. - Gulbenkian Foundation) 2. What is Social Economy? The whole range of organisations that buy & sell goods and services or compete for contracts, but which do not primarily distribute their profits to shareholders. Their trading activities are undertaken with a clear social aim, and assets are held for the benefit of the community (from Communities Scotland FAQ sheets 2 Social Economy) Is that the same as ‘social enterprise’ This is difficult to answer since different people use the terms ‘social enterprise’ in different ways. Some people say that all activities that are neither in the private sector nor supported mainly by the public sector add up to a Third ‘social economy’ Sector. This would include both social enterprises that carry out trading activities and wider voluntary sector activities that are supported by fundraising or the work of volunteers. (from Communities Scotland FAQ sheets 2 Social Economy).
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What is a Social Enterprise?
Social enterprises, also known as community enterprises, are businesses (or similar organisations) which operate for the benefit of the community. Like any other businesses, social enterprises generate income through commercial activity, generating income through trading in goods and services. But the difference is that they reinvest their profits to maximise social, community or environmental benefits, and are not driven by the need to maximise profit for owners or shareholders.
A social enterprise is not, strictly speaking, a not-for-profit organisation; rather, it is an organisation which has social benefits as the foundation of its activities, and uses the surplus it generates to further these ends.
The social enterprise sector is a developing and dynamic one. More and more organisations are discovering that taking this route can be a strategy to ensure long-term sustainability in a competitive market economy, as well as a way to deliver their core aims more effectively.
To sum up, the characteristics of a social enterprise are:
Benefits to the Sector
Recent local and national studies suggest there are now over 3,000 social enterprises active in Scotland. (source: SSEC website). Social Enterprise and the Third Sector
Social enterprises vary greatly. Some work at community level, while others work nationally. Some work in public services, some in commercial markets. Some organisations work only as a social enterprise; in other cases social enterprise is a part of wider activity.
A charity or other voluntary organisation can become a social enterprise. Indeed, new government policy directives have made it essential for voluntary organisations to re-assess the way they fund their activities in terms of long-term sustainability.
Traditional reliance on donations, grants etc. may no longer be enough to secure an organisation’s finances into the future. It is time for Third Sector organisations to leave the ‘comfort zone’ of existing fundraising strategies. For many, social enterprise may be the way forward.
Running a social enterprise involves trading in goods and/or services, and charities and voluntary groups may be unaware they have these to offer. But when an organisation begins to quantify its assets, whether in terms of facilities, buildings, hardware & software, the skills and expertise of staff and volunteers, and many others, it becomes apparent that it does, in fact, have much to offer that can be traded and used to generate income and profit.
CVS Stirling and Social Enterprise
CVS Stirling is developing its information and advice resources to meet the challenges of The Social Economy, and to help members who are considering starting up a social enterprise. Interested organisations should contact us for more on this topic. Realising Potential – next steps for social enterprise in Scotland
Strathclyde Suite, Glasgow Royal Concert Hall
This year’s Scottish social enterprise annual conference: Realising Potential – next steps for social enterprise in Scotland, will bring together social enterprise leaders, practitioners, supporters and policy makers to establish a vision for social enterprise in our communities. Download the programme brochure at http://www.ceis.org.uk/file/september_2nd_programme.pdf, and book a place by registering online at http://www.ceis.org.uk/event-management.html#Current-Events
CHEX Report on Social Enterprise and Community-led HealthSocial enterprise is now well established as a means by which community and voluntary organisations may become more sustainable while continuing to develop and meet their social purpose. The model has gradually been adopted across different Sectors. As grant aided funding to the community-led health sector has diminished, organisations are testing out the feasibility of trading services, whilst retaining their commitment to community development and needs-led services.
Community Health Exchange (CHEX) has recently commissioned research into the question: “How does the social enterprise model fit with community development approaches to health?” The research draws on the experience of a number of mature social enterprises across Scotland.
These organisations emphasise that needs-led and market-led approaches do involve different motivators and drivers, and robust business plans must be produced to balance these tensions.
Key findings from the research have been brought together in the report which can be downloaded from www.chex.org.uk/uploads/social_enterprise_model_and_chis_report_aug_2009.pdf?sess_scdc=896220a92bd3656e5d857a0a40b51039 . For additional information on the research please email Janet Muir at Janet@scdc.org.uk.
Starting Your Social
Enterprise
Social
Enterprise Academy & Firstport The Social Enterprise Academy, in conjunction with Firstport and Scotland UnLtd, have designed a practical programme for those who are in the process of setting up their own social enterprise. Participants will finish the course with a functioning, robust business plan. This SYSE programme will give you the skills and knowledge to take your ideas forward, providing signposting and business support during the process.
For information about the dates of the next courses please email Kim at kim@firstport.org.uk
Is your organisation an enterprising third sector body? If so:
- Find out about Scottish Government support at: http://www.scotland.gov.uk/Topics/People/15300/enterprising-organisation
- Find out how you can win public contracts by participating in Tender Writing Training http://www.scotland.gov.uk/Topics/People/15300/enterprising-organisation/Opening-Markets - the programme will improve your knowledge of procurement and in responding to opening opportunities
- Register for free on the Public Contracts Scotland website http://www.publiccontractsscotland.gov.uk - registering means that you will automatically be made aware of contract opportunities on the theme(s) in which you have expressed an interest
- Register for free on the Suppliers Development Programme http://www.sdpscotland.co.uk/home.aspx - this will give you opportunities to receive support to help you develop as a supplier of services to the public sector.
FREE Social Enterprise
Resource Documents RCVS (Renfrewshire Council for Voluntary Services) have free copies of the following documents available: Tendering for Public Sector Contracts (2nd Edition) Better Business: A Strategy and Action Plan for Social Enterprise in Scotland To request copies, email gordon.mclean@rcvsweb.co.uk or phone 0141 587 2487
Enterprising Third Sector Organisations Zone
Public Contracts Scotland
By registering, you will automatically be made aware of contract opportunities as they arise for any theme(s) in which you have expressed an interest.
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Council for Voluntary Services - Thriving and Connecting Communities in Stirling CVS Stirling is a Company Limited by Guarantee SC169437 Registered Scottish Charity Number SC016980 © CVS Stirling 2008/ Designed and Coded by CVS Stirling
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