EC15: Social Enterprise 8. Social Entrepreneurs Marcus Thompson University of Stirling

Monetary resources Trading Activities  From the sale of goods and/or services in the market or under contract to public authorities. Donations  From their members, other public donations, wills, foundations or corporate sponsorship. Public policies  At European, national, regional, council or other levels.

Common legal forms Companies limited by guarantee Industrial & Provident Societies (which are split into Bona Fide Co-operative Societies (Co-ops) and Benefit of the Community Societies (Bencoms)) Companies limited by shares Friendly Societies Limited liability partnership Bodies incorporated by Royal Charter Unincorporated associations

Reasons Why SE’s Form To bring together a group of individuals in pursuing a task or mission (or a number of tasks and missions) To ensure accountability to stakeholders To mobilise resources and manage assets DTI, Strategy Unit, 2002

Non-monetary resources Volunteering  Support from people who offer their services without being remunerated. This volunteer work can be found at various levels: among board members (nearly always), among trainers or guidance staff (less often), or through more specific contributions of professional skills etc. Social capital  Mobilising other non-monetary resources: local networks and partnerships, trust relations with other operators, sympathetic capital from the general public etc. This "social capital" can be used in many different ways and can have a direct or indirect impact on the enterprise. It often contributes to reducing costs, in particular what economists call "transaction costs

SE’s by Resource Groupings financed by market resources mainly financed by public subsidies

Share Ownership "Share ownership offers employees a real stake in their company with shareholders, managers and employees working towards common goals." Gordon Brown, Foreword to Consultation on Employee Share Ownership. (HM Treasury, treasury.gov.uk/documents

Entrepreneurial cultures Timmons (1999) six dimensions:  The degree of organisational clarity in terms of goals, tasks, procedures, etc.;  The degree to which high standards are expected;  The extent to which employees are committed to the firm's goals;  The extent to which they feel responsible for these goals without being constantly monitored;  The extent to which they feel they are recognised and rewarded for high performance;  The extent to which there is a sense of cohesion and team working within the firm.

An entrepreneurial culture needs to motivate people to do the right things, in the right way, for the organisation as well as for themselves. It needs to help them cope with an uncertain future by giving them a vision and a belief that they can achieve it. Westhead, The Entrepreneurial Organisation 2002