_ SOCIAL ENTERPRISE AND HOMELESSNESS Presented by Mark Daniels Social Traders

THE POWER OF MARKETS IN ADDRESSING SOCIAL PROBLEMS

© Social Traders Limited 2012

WHAT IS A SOCIAL ENTERPRISE?

THE AUSTRALIAN SOCIAL ENTERPRISE SECTOR Social Traders partnered with the Australian Centre for Philanthropy and Nonprofit Studies (ACPNS) at Queensland University of Technology  Define social enterprise  Identify and map the Australian social enterprise sector Forms social enterprises take? Industries they operate in? How many? Size? etc…

WHAT IS A SOCIAL ENTERPRISE? Social enterprises are organisations that: a.Are led by an economic, social, cultural, or environmental mission consistent with a public or community benefit; b.Trade to fulfil their mission; c.Derive a substantial portion of their income from trade; and d.Reinvest the majority of their profit/surplus in the fulfilment of their mission

CHARACTERISTICS A successful social enterprise is firstly a good business All the rules of small business success apply with the added dimension of the social mission Live and die based on: quality of their product or service understanding their market (customers and competitors) price promotion Start based on market opportunities. They succeed based on wise business heads.

SE’s seek a balance SOCIALFINANCIAL

MOTIVATIONS – 3 BUCKETS Bendigo Community Bank Community Childcare Sovereign Hill Yackandandah Community Development Co Prickle Op Shops, ‘Excellent Health’ Smith Family Textiles © Social Traders Limited 2012 Employment, training and support for marginalised groups Fair Repairs Boystown graffitt removal The Big Issue Services in direct response to social or economic community needs Income generation for charitable purposes

ORGANISATIONAL SIZE & INDUSTRY

THE AUSTRALIAN SOCIAL ENTERPRISE SECTOR  Social enterprise is not a new phenomenon –  Foresters Community Finance, Op-shops, Bendigo Community Banks, Food Co-ops, FCCC, Fair Trade…  The FASES research identified 5000 social enterprises in Australia  The sector is mature, diverse, innovative, sustainable  More than 73% of respondents trading for at least five years  62% for more than ten years

THE STATE OF SOCIAL ENTERPRISE IN AUSTRALIA: BUILDING ON FASES We now have a social enterprise sector in Australia. Social enterprise sector Capital Opening markets Ideas Capacity building

Social enterprise sector Capacity building

THE BUILDER © Social Traders Limited and click on

The Crunch is Social Traders social enterprise development support and investment initiative. The Crunch provides training, mentoring, networks and support, and the opportunity to pitch for a share of the Social Enterprise Development Fund.

Social enterprise sector Capital

Social enterprise sector Opening markets

Functional Silos Strategic Social Procurement A cross-functional approach to driving social value Strategic Procurement Corporate Social Responsibility Organisation

Social enterprise sector Entrepreneurs

Social enterprise landscape in Australia SEDIFs Social Ventures Australia Social Traders School for Social Entrepreneurs Leadership development of individual nascent social entrepreneurs Financial and/or capacity building support for social enterprise ideas Existing enterprise improvements in sustainability, trading capability and viability Growth and scaling of existing enterprises Growth and maturity financed by commercial investors SoFA stage Supports specific mission or social enterprise forms Supports all missions and social enterprise forms Universities – Centre for Social Impact Social Innovation research and policy Social Business Australia Social Enterprise Sydney (in Sydney) Social Innovation in Western Australia (in WA) © Social Traders Limited 2012

WHERE DOES HOMELESSNESS MEET SOCIAL ENTERPRISE?

What should a homeless motivated SE focus on? health housing employment

MOTIVATIONS – 3 BUCKETS Bendigo Community Bank Community Childcare Sovereign Hill Yackandandah Community Development Co Prickle Op Shops, ‘Excellent Health’ Smith Family Textiles © Social Traders Limited 2012 Employment, training and support for marginalised groups Fair Repairs Boystown graffitt removal The Big Issue Services in direct response to social or economic community needs Income generation for charitable purposes

BAWRUNGA ABORIGINAL MEDICAL SERVICE (BAMS)  An Indigenous owned and managed not- for-profit community cooperative in Bowraville NSW in 1999  Five medical clinics in the Nambucca Valley and NSW Western Region, sustained through bulk billing income  40% of bulk billing income goes to BAMS to cover accommodation and administration and 60% to the doctors  BAMS uses its 40% of income to deliver a range of ‘primary health care’ and community outreach programs utilising funds generated from the clinic business, including early childhood nutrition, substance abuse prevention, healthy lifestyles and youth related projects. Social mission: To address the need for affordable, accessible, and high quality health and medical services through the provision of culturally appropriate primary health services for the local Indigenous population 28

Yarra Community Housing The organisation exists to provide housing for people at risk of homelessness. Providing affordable housing for those at risk of homelessness is a key role for the homelessness sector. Housing Associations are major social enterprises that are also major buyers. Yarra is creating job trough their tendering and tenanting of commercial properties Social mission: A home for every single person 29

Cleanable  Developed and owned by a disability support organisation, WCIG to create the opportunity that the market was unable to create  Works across government, not for profit and private contracts worth over $1.5million  The cleaning business is now profitable and the complimentary businesses developed are becoming sustainable  Their target customer is able to and willing to pay mid-market price  They are employing 60 workers, almost half of which have a disability  Over 80% of income is from trade Social mission: Provide long term employment and retraining opportunities for individuals excluded from the mainstream labour market as a result of mental illness 30

© Social Traders Limited 2012

Mark Daniels Manager Learning and Development Social Traders