What is a social enterprise?

“A social enterprise is a
business that trades to
tackle social problems,
improve communities,
people’s life chances, or
the environment. This might
sound like charity work, but
social enterprises are
businesses and when they
profit, society profits.
• Exists to tackle a social or
environmental problem
• Makes its money from selling
goods and services
• Reinvests its profits back into
the business or the local
community
But does not exist to
• make profits for shareholders
• make its owners very wealthy
Definition fromwww.olmec-ec.org.uk
socialenterprise.org.uk
Exploring Social Enterprise
Social
Enterprise
Product Process
Profit
www.olmec-ec.org.uk
Examples of SEs
www.olmec-ec.org.uk
Examples of SEs
www.olmec-ec.org.uk
Examples of SEs
Rubies in the Rubble
•
•
Delicious, handmade
chutneys and jam,
made as much as possible
from surplus fruits and
vegetables before they’re
discarded.
Rubies in the Rubble is
aiming to tackle one
problem- shortage of jobswith another- surplus of
food.
www.olmec-ec.org.uk
Organisational model

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Who owns or controls it and how?
Connected to social purpose and why it exists?
Co-operative / mutual
(community, mutual self help, members are beneficiaries)

Trust / charity / beneficial
(help others, beneficiaries receive, on behalf of members)

Social entrepreneur
(individual, help self while help others, beneficial)

Service users or beneficiaries?
www.olmec-ec.org.uk
Legal forms
• Unincorporated Association
• Unincorporated Charity
• Trust
• Charity (Company Limited by Guarantee, CIO)
• Company Limited by Guarantee
• Company Limited by Share
• Community Interest Company (Guarantee or Share)
• Society for the Benefit of the Community
• Co-operative Society
• LLP
For more information:
www.olmec-ec.org.uk
http://uk.coop/simplylegal
What you need
 Product/service
 Market
 Business model
 Investment
 Understanding of break even
 Marketing strategy
 Legal vehicle – organisation/legal status
 Operational management
 Good governance
 Business plan
www.olmec-ec.org.uk
Look out!
Right legal structure
Operational management
Regulation
Cashflow v. profit and loss
Fixed capital & working capital
Directors responsibilities
Capacity
Redundancy
www.olmec-ec.org.uk
Are you a social enterprise?
Organisation
 Clear social purpose
 Earn income from trading
 Create products or services for a market
 Earn 50%+ income from trading
(not grants/donation)
 Profits used in line with social purpose

www.olmec-ec.org.uk
Olmec Social Enterprise programmes

First Steps for start-ups
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Step Ahead for existing social enterprises
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10 day training programme
Training programme & Networking events
Visit s.coop/stepahead or www.olmec-ec.org.uk
Co-operative Enterprise Hub
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www.co-operative.coop/enterprisehub
Mention Olmec!
www.olmec-ec.org.uk