Business Pathways – CDEP Projects Social Enterprise, Micro-Enterprise Anthea Fawcett CDEP Regional Initiatives & Peer Learning Fund Building CDEP capacity & peer support to grow healthy food & healthy communities Workshop, Cairns

1. WHAT IS A SOCIAL ENTERPRISE? A Business founded on the pursuit of social as well as financial outcomes. WHAT ARE COMMON ENTERPRISE STRUCTURES FOR SOCIAL ENTERPRISES? 1. An Independent Business/Enterprise: stand alone social enterprise, separate legal structure 2. Interdependent Enterprise: non-profit organisation with other legally incorporated enterprises financially tied to the parent organisation 3. Enterprise Program: program or business unit of a non-profit organisation, not an independent legal entity 4. Enterprising Non-profit Organisation: incorporated non-profit organisation that has trading income 5. Non-profit Organisation: traditional non-profit organisation CDEP Regional Initiatives & Peer Learning Fund Building CDEP capacity & peer support to grow healthy food & healthy communities Workshop, Cairns

 DEFINING FEATURES? - Social enterprise encompasses a range of concepts. - They can broadly be defined as businesses founded on the pursuit of social as well as financial outcomes. - They aim to address environmental & social issues. - Supporting social causes is the prime motivation of a social enterprise. - This is achieved through engagement with the community and an emphasis on collaborating with clients. - Social enterprises focus on community and collective goals rather than individual profit - A social enterprise is not a charity, as it maintains its income by means of business activity rather than charitable donation. According to SVA, characteristic of social enterprises are: - explicit social aims - commercial orientation - social ownership - social accountability - socially entrepreneurial drive - use of profits for community benefit - socially inclusive values base (Social Ventures Australia, 2011)

FOUR COMMON MODELS – OF SOCIAL ENTEPRISE ACTIVITY Susan Dow, CAT, outlines three principal motivations for development of SE’s: - Income generation - Service delivery – to create or retain services needed in communities - Employment & engagement (intermediate labour market)

WHAT DOES THIS MEAN FOR YOU? Remote social enterprises - need to find funders to ‘subsidise’ the difference between the income they can generate and the total costs they need to cover to deliver the social benefits that they deliver - WHY you need Strong Stories – Strong Measures – “sell & tell” to investors – who will often still be government to ‘fund the gap’ - IMPORTANT model to work with but imp. key differences between i)Remote social enterprises – special story – generate income from delivery of products and services AND from investors who want social development outcomes ii)Social enterprises – near larger markets, more strictly ‘business’ cover all costs from income iii) Social enterprises in remotes – very imp. ‘home’ for micro-enterprises, to seek & manage support for emerging enterprises, to deliver services community wants iv) Implications - different funding options and potential investors

Social Enterprise – Funding Anthea Fawcett CDEP Regional Initiatives & Peer Learning Fund Building CDEP capacity & peer support to grow healthy food & healthy communities Workshop, Cairns

Social Enterprise - Funding Your Social Enterprise: A management umbrella for community projects & enterprises - Each need own plan, accounts to seek & manage funds - Commercial, semi-commercial, social development - Different funding avenues for each - Commercial & concessional loans - Grants - Partnerships – procurements with key customers, supporters to source goods & services from you - Fundraising – philanthropic sector, Foundations eg. See Useful Resources – Our Community, The Development Office CDEP Regional Initiatives & Peer Learning Fund Building CDEP capacity & peer support to grow healthy food & healthy communities Workshop, Cairns

Who can you approach for the different funding avenues? - Commercial & concessional loans Major Banks: NAB, Commonwealth, Westpac IBA – Indigenous Business Australia Indigenous Land Corporation * New Social Enterprise Funds - Grants Indigenous Land Corporation Fahcsia, DEEWR, DOHA, Dept. Arts & Environment Queensland - Agencies and Programs? - Partnerships Key customers, corporates in your area – invest, sponsor, procure Govt. agencies & programs in your community - Fundraising – philanthropic sector, Foundations eg. Our Community Office – offers fundraising service, Non-profits can do a fundraising marketing campaign with them online! CDEP Regional Initiatives & Peer Learning Fund Building CDEP capacity & peer support to grow healthy food & healthy communities Workshop, Cairns

* NEW Social Enterprise Funds FORESTERS SOCIAL FINANCE SOCIAL ENTERPRISE FINANCE AUSTRALIA Recently established, DEEWR $10 million plus matching industry funds Concessional commercial loans: property loans, bridging loans, equipment loans and working capital loans. What will they want? - Company/Association Constitution, Organisational Chart. - A Business Plan. - Est: 3 years Historical Balance Sheet and Profit & Loss - New: 3 years of projected Balance Sheet and P&L. - 3 years Cash Flow projections – inc. SEFA’s interest & loan repayments. - Other supporting materials: grant approvals, building plan, pre- sale contracts, etc. SEFA lends at a lower commercial rate. $ $ The terms of the loan is between 6 months – 10 years. Require security for the loan. Assessment includes site visit – takes 4-8 weeks to approve the loan application. CDEP Regional Initiatives & Peer Learning Fund Building CDEP capacity & peer support to grow healthy food & healthy communities Workshop, Cairns