SOCIAL ENTERPRISE: youth organisations Craig Carey – Programme Manager, Business & Enterprise

Social Enterprise UK Programme Manager SEUK Chair of trustees & board director MySI & MySI Enterprises CIC Course participant What Do We Do: We do research, provide information and tools, share knowledge, build networks, deliver support + training, raise awareness and campaign to create a business environment where social enterprises can thrive.

Social Enterprise UK Established in 2002 as the national body for social enterprise (as a coalition) Membership organisation: over 600 members; reach to over 10,000 Bring together all the different forms of social enterprise under one umbrella Main purposes: Supporting social enterprises to thrive Developing the evidence base for social enterprise Influencing policy and political agendas Showcasing the benefits of social enterprise Broker, facilitator, market builder What Do We Do: We do research, provide information and tools, share knowledge, build networks, deliver support + training, raise awareness and campaign to create a business environment where social enterprises can thrive.

What is Social Enterprise? Social enterprises are businesses driven by a social purpose. They: Have a social mission core to their purpose (set out in their governing documents) Generate the majority of their income through trade (revenues mainly from goods and services provided, not grants or donations) Reinvest the majority of their profits (towards the social mission) Are autonomous and independent organisations Are majority-owned and controlled in the interests of the social mission Are accountable and transparent (financial, social, environmental reporting) Often have an asset lock (CIC) and use a range of different legal structures. Definition debates. Key points: trading / earning income what they do with profits ownership social purpose / mission primary Triple bottom line 5

Why Social Enterprise? Staff Customers Resources Innovation Governance Ownership Incentivisation Liberation Devolution Governance Co-design + delivery Responsive to needs Reach + diversity Staff Customers Resources Innovation Markets Joined-up services Investment Asset optimisation Multiplier Flexibility Investment Entrepreneurship Partnerships

Social Enterprise in the UK – state of play 62,000 social enterprises in the UK (5% of all businesses) Contributing £24 billion to the UK economy and employing over 800,000+ people. Operate in almost every sector: from health and social care, to renewable energy, transport, retail and housing There are many routes to becoming a social enterprise including: spinning out of parts of the public sector entrepreneur-led organisations charities and community orgs becoming more business-orientated 7

Social Enterprise in the UK – a closer look THE GOOD NEWS 14% of all social enterprises are start-ups Higher proportions of female + BME leadership than standard business 39% are based in the 20% most deprived areas (13% for standard business) 74% actively involve beneficiaries in decisions about their business Outstripping SMEs for growth (58% to 28%) + contributing more to economy 88% seek to minimise their environmental impact FROM FIGHTBACK BRITAIN 8

Social Enterprise in the UK – a closer look THE GOOD NEWS 14% of all social enterprises are start-ups Higher proportions of female + BME leadership than standard business 39% are based in the 20% most deprived areas (13% for standard business) 74% actively involve beneficiaries in decisions about their business Outstripping SMEs for growth (58% to 28%) + contributing more to economy 88% seek to minimise their environmental impact THE ‘CHALLENGING’ NEWS Public service delivery opportunities sporadic Procurement reform still badly needed Access to (appropriate finance) still difficult Often difficult to access (and fulfil) larger contracts Broader financial climate FROM FIGHTBACK BRITAIN 9

What is Catalyst? Catalyst is a consortium of four organisations working with the Department for Education’s (DfE) as the strategic partner for young people, as part of the Department’s wider transition programme for the sector. Catalyst will work to deliver three key objectives over a two year period: It will strengthen the youth sector market, Equip the sector to work in partnership with Government, Coordinate a skills development strategy for the youth sector’s workforce’. The consortium is coordinated by the National Council for Voluntary Youth Services with three partners: National Youth Agency (NYA) Social Enterprise UK The Young Foundation

Catalyst - Activities NCVYS: Establish a social finance retailer that can pilot and then promote a youth sector specific social investment approach, Develop yeah CIC as a vehicle for the sector to build and access new and bigger markets, Support the sector in representing issues to Government including the brokering of opportunities for young people to shape emerging youth policies. The National Youth Agency:  Engage in and influence emerging policy affecting the youth sector workforce and explore options to develop an Institute for Youth Work - desired by and for the benefit of the youth sector and young people.  The Young Foundation:  Supporting the strengthening of the youth sector market and in particular the establishment of the social finance retailer, Mapping the sector for social finance, and the development of a framework for impact measurement that is accepted by the youth sector overall and builds on existing tools. Social Enterprise UK: Youth Organisation Social Enterprise Leadership Programme, ‘Replication in Action’ Programme aims to work with a minimum of 4 organisations on an intensive and practical basis over a period of 12-18 months to develop their business model so that it can be successfully franchised or licensed, Online replication tools and guidance available for youth organisations to download from www.socialenterprise.org.uk, including a practical Social Franchising Manual.

My Social Innovation MySI Vision – started 2009 As a catalyst for youth led community enterprises MySI wants to  “enable the next generation of young social entrepreneurs in the UK” Our bespoke provision enables 16 to 24 year olds to establish “social innovations” in their community and build skills for their future. What makes MySI unique is that we don’t develop projects that need to draw from the public purse or grant funding to be sustained. Pilotlight story and how set up

“Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall” Stephen R Covey 13

My Social Innovation The MySI Model: offers an unrivalled opportunity via a 4 stage process – training, business development, social enterprise launch and long term sustainability… LB Hammersmith and Fulham: MySI supports development of Onthespotsports CIC. RB Kensington and Chelsea: MySI bespoke programme and MySI supports the development of Youth for Change CIC. Next Big Thing programme: Develop, deliver and replicate across London and UK. Manor House Development Trust / LB Hackney: MySI programme to develop the “Woodberry Down Cleaning Group” Hammersmith and Fulham Volunteers Centre: MySI programme to develop “Events4Youth” LB Camden: MySI bespoke programme to develop and support “Surma Bike Project” - Bike Maintenance CIC. Next Big Thing: replication across London and the UK. Training: Quality training enhances participants’ key skills and capacity for social enterprise. It also encourages the behaviour and characterful traits proven essential for business success. Business Development: MySI supports development over 10 training modules. A youth-led enterprise for the long-term Sustainability: MySI next helps to launch each social innovation and links leaders with experienced mentors to help develop a profitable business for long term impact

Youth Sector: key challenges Money /getting funding Growing need for youth services Capacity to take on investment Evidence social impact Need to collaborate – who & how? Engaging with public / private sector Leadership / culture Drawn from experience of the sector Leadership / culture: challenge; entrepreneurial mindset + insecure landscape; collective purpose

Youth sector: opportunities Social value bill / policy Timing – youth services in public spotlight Service need Innovation Community engagement Impact – if you can measure it? Interest from private sector Leadership / culture Leadership / culture: challenge; entrepreneurial mindset + insecure landscape; collective purpose

Leadership? Mission + vision – being clear Creating a brand Leading in the tough times Proving it: measuring impact Having the right governance structure Business development / external relations Enterprising culture – generating income mindset Skills + knowledge MEASUREMENT payment by results outcomes-based commissioning SROI etc MONEY: private / social investment innovative financial models earned income grants >> loans Government: local, regional, national, EU Lottery: BLF, HLF, Awards for All Trusts & Foundations: UK + international Corporate Support: CSR, pro bono Individual Giving: donations, philanthropy Earning: contracting, procurement Trading: selling, retail, trading Social Investment: loan, patient capital other resources: in-kind, volunteering.... MANAGEMENT: stakeholder engagement Users involved in design + governance Co-operative / stake in new enterprise Volunteers / trustees etc not just employees? MISSION / MOTIVATION: purpose of organisation What differentiates you from private business What is key for decision-making 17

Social Enterprise UK How can we help? Information Training + events Membership services Policy + advocacy Social investment Access to business support www.socialenterprise.org.uk MEASUREMENT payment by results outcomes-based commissioning SROI etc MONEY: private / social investment innovative financial models earned income grants >> loans Government: local, regional, national, EU Lottery: BLF, HLF, Awards for All Trusts & Foundations: UK + international Corporate Support: CSR, pro bono Individual Giving: donations, philanthropy Earning: contracting, procurement Trading: selling, retail, trading Social Investment: loan, patient capital other resources: in-kind, volunteering.... MANAGEMENT: stakeholder engagement Users involved in design + governance Co-operative / stake in new enterprise Volunteers / trustees etc not just employees? MISSION / MOTIVATION: purpose of organisation What differentiates you from private business What is key for decision-making 18

“Leaders don’t create followers they create more leaders” Tom Peters

“To lead the people walk behind them…” Lao Tzu 20

“Management is doing things right; leadership is doing the right things” Peter F Drucker 21

“Leaders are visionaries with a poorly developed sense of fear and no concept of the odds against them” Robert Fritz 22

Questions?

www.socialenterprise.org.uk craig.carey@socialenterprise.org.uk