1. business and industrial
2. company
3. earnings

How to Understand Social Enterprise
for Young People
This guide aims to explain to any and
all young people exactly what a social
enterprise is. It includes information
on legal structure, shining examples,
organisations offering support,
and the money available to social
enterprises. Altogether, this guide
should be all you need to learn the
basics about social enterprise.
The global social enterprise
movement is becoming bigger
by the week, with more people
across the country talking about it
than ever before. Whether you’re just
starting senior school, finishing A-levels
or a leading business person already, social
enterprise is becoming an important part of
today’s communities and economy.
Social enterprise has risen on the government’s agenda for many reasons; one
example is due to financial cuts across the country. In order to gain business and
funding, more organisations have to make a bigger difference with less money.
That might simply mean selling more items at a cheaper price, or it may mean
having a greater impact in the community with a smaller budget. This is just one
example of where social enterprise has an advantage over other business models.
Social enterprises invest some of the profit from a contract into communities;
the councils and government organisations recognise this extra value therefore
providing social enterprises the advantage.
Lots of big brands in business were originally as set up with the
social enterprise model. There are lots of products available in
your high street that are from social enterprises such as a bar
of Divine Chocolate or a copy of The Big Issue.
With charities struggling to bring in donations, and
the public demanding more for their money, it makes
sense that so many organisations are looking at a social
enterprise model and wondering if it’s the way forward
for them.
www.participationworks.org.uk
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How to Understand Social Enterprise for Young People
Definition
There is no strict definition of what a
social enterprise is, but a few important
organisations have made their own attempts
at explaining what they are.
their main aim is still to make profit. A social
enterprise is an organisation that aims to help
people or the planet, and reach these goals
through business.
Established
British Government –
“A business with primarily social
objectives. They principally reinvest
their surpluses in their business
or community for these purposes.
Unlike commercial businesses,
they are not driven by the need to
produce a profit for shareholders
and owners”
This simply means a business that uses its
profits to make the world a better place.
And unlike a typical business, a social
enterprise doesn’t just aim to make money
for the owners.
Wikipedia –
“A social enterprise is an
organisation that applies business
strategies to achieving philanthropic
goals.”
This simply means social enterprises use
business to promote the wellbeing of others.
Social Enterprise UK –
“A social enterprise is a business
that trades to tackle social problems,
improve communities, people’s life
chances or the environment.”
A social enterprise is not a charity, and it’s
not a typical type of business that’s simply
there to make money. However, it does bring
strategies from both of these. Some charities
sell wristbands to help raise money, and some
businesses give money away to charities and
community groups as part of their Corporate
Social Responsibility or C.S.R. - when a
business gives back to the community, but
www.participationworks.org.uk
Believe it or not, social enterprises were
around centuries ago. Even in 1844 when cooperatives (businesses owned by the people
who work for them) were started, there were
entrepreneurs in the UK, and around the
world aiming to help their communities. Social
enterprise has come a long way since the 19th
century and, according to Social Enterprise UK
is one of the fastest growing movements in
the country.
The actual phrase “social enterprise” has
been around for about 60 years but it’s only
since the 1990s that people have started to
recognise it. Around this time, many new
organisations were setting up with a social
enterprise model. One of the most famous
social entrepreneurs was Lord Michael Young;
his ideas paved the way for social enterprise
and resulted in him creating The Open
University, Consumers’ Association, Which?
and the School for Social Entrepreneurs. The
Young Foundation was also set up, supporting
entrepreneurship to help communities in need.
In the UK
The UK is one of the world leaders for social
enterprise, and holds large scale conferences
for social entrepreneurs from all corners of
the world. It’s estimated there are 62,000
social enterprises in the UK. Overall, these
contribute more than £24 billion into the
British economy, employing a workforce of
nearly one million people. (Sourced from
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How to Understand Social Enterprise for Young People
www.idea.gov.uk)
Structure
Whatever industry, field or market you can
think of, there’s most likely to be a social
enterprise in there somewhere. From restaurants
to retail, schools to sandwiches, healthcare to
holidays, entrepreneurs have taken their
business skills and used them to improve their
communities in a wide variety of ways.
Social enterprises are incredibly varied in their
business approach, and the same goes for
their structures. With organisations starting
from small community organisations going all
the way up to huge international businesses,
it’s only right that there are different structures
for different social enterprises.
The British government has released policies
and plans to support the growing social
enterprise movement within the country.
These include a new legal structure for
social enterprises, funding and support for
social entrepreneurs, and the backing of
organisations aiming to inspire young people
to take on the problems in their community
using business ideas.
Many legal forms exist for social enterprises
and it’s very important that an entrepreneur
chooses the correct one for his or her idea.
The best structure for a business may depend
upon the aims of the organisation, the people
it will be working with or the industry it’s
based in.
In July of 2010, a new bill was suggested
called the Public Services Bill, sometimes
referred to as the Social Value Bill. Basically it
explains that councils have to consider the
social value of buying public services, like
emptying waste bins in the city or the cleaning
of streets. For example, if a city council is trying
to find a company to collect all of the rubbish
bins from the public for 12 months, the
council has to think about which company
offers the best value, and in that figure include
the social value. The added value could be that
one business provides lots of apprenticeships
for young people, or that 70% of the profit
made by the company may go to community
projects, or even that a company is completely
carbon neutral. All of these factors and many
more, will become ever more important as
businesses compete for contracts and councils
choose the businesses offering the best value
for their money.
www.participationworks.org.uk
A common structure for social enterprises is
a registered charity with a company attached
for trading. As charities can be exempt
from certain taxes, and able to apply for
lots of funding, there are lots of benefits
in registering as a charity. Alongside the
registered charity, the “trading arm”, or
business owned by the charity, is able to sell
its products or services and donate the profits
to the charity. This forms an ideal partnership
for many social enterprises, and can often
bring the best advantages from both charities
and businesses to work together. A social
enterprise can then utilise benefits from both
structures and gain the best advantage when
selling their product.
Another form for social enterprises is the
Community Interest Company or C.I.C. This
is a legal structure, introduced in 2005, with
special features to support businesses that
have a community benefit. It’s basically a
limited company with a few extras added on.
To become a C.I.C., a test has to be passed
that proves the business has a positive social
impact, and isn’t just there to make the
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How to Understand Social Enterprise for Young People
owners rich. If a business gains the title of a
C.I.C., it has to follow certain rules and one of
these is asset-lock. This simply means that the
items and profits the company gains, can’t be
completely given to owners or shareholders,
and have to be invested back into the
business or community. C.I.C.s can’t be used
for political activities.
Companies limited by guarantee or shares,
these are often structures chosen by social
entrepreneurs. They’re the structure taken
on by most businesses and are very flexible,
meaning they’re able to trade in different
ways and spend their profits easily. The
documents that decide the company’s
goals may have social aims written into
them, however these are not checked by a
government organisation. Companies House
is the organisation that an entrepreneur
registers with to set up a company limited
by guarantee or shares, and provides lots of
information about how to set up.
Industrial and provident societies –
these organisations are usually used for
cooperatives, where the business is run
democratically. This means that the members
of the organisation all vote on how things
are run and which decisions are made. These
businesses are regulated by the Financial
Services Authority.
Charities
A social enterprise uses business to help
people or the planet. A charity is defined as
an organisation established for charitable
purposes only, and must be of public benefit.
There are 13 purposes that a charity must
fulfill at least one of, to become a registered
charity in England and Wales, and they
include:
www.participationworks.org.uk
1.
Stopping poverty
2.
Improving education
3.
Improving religion
4.
Improving health or saving lives
5.
Helping community development
6.
S upporting arts, culture, heritage
or science
7.
Supporting amateur sport
8.
S upporting human rights, peace
and equality
9.
Helping the environment
10. Helping those in need
11.
Helping animals
12. Helping the armed forces or
emergency services
13. Other similar charitable purposes
Compared to a social enterprise, a charity
could be considered less sustainable, because
it relies on donations and funding to operate.
A social enterprise can apply for funding and
receive donations. However it’s expected that
a social enterprise makes at least half of its
income from doing business. This means that
should funding come to an end, the social
enterprise will still have an income through its
own trading.
Also, organisations attempting to become a
registered charity can often have a lot more
paperwork and “baggage” in order to run,
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How to Understand Social Enterprise for Young People
compared to a company limited by guarantee.
This can deter social entrepreneurs from
choosing this structure; however there are
areas where charities have greater benefits,
such as in tax and surpluses.
Business
Social enterprises are a type of business,
but simply businesses with values and social
impact. Realistically, a social enterprise should
have a social or environmental mission at
the heart of the organisation. With so many
social enterprises setting up, many businesses
are facing tough competition. The public is
becoming even more aware of what a social
enterprise is and know that when they buy
a product from a social enterprise, society
benefits. This is true within business too,
private businesses are currently realising the
benefits of buying from a social enterprise,
and can often consider this when they spend
their money.
Businesses are set up to make profit, and
this is often referred to as the bottom line.
Sometimes a company may aim on growing
and investing; but over the long term a
business will plan to make lots of money.
However, things aren’t as simple for social
enterprises because they have to consider
the triple bottom line. This not only means
thinking about the profit the business has
made, but also the value for the people it has
benefitted, and the impact it has had upon
the environment.
www.getsustainable.net
Putting a number on the value of helping
people and the planet can be tough. For
example, if a social enterprise helps six
unemployed people into a job, how can
you place a price on it? Well, one way is to
think about how much the government may
www.participationworks.org.uk
save on paying their Job Seeker’s Allowance.
Another may be to think about the income
tax that person will then pay, and how much
their wages support other local businesses.
Just as important is the health of that person;
if they’re feeling better about themselves they
may need less visits to their doctor, saving the
NHS money. All of these factors and many
more add up to what is called the S.R.O.I.,
the social return on investment. For further
information visit:
www.thesroinetwork.org
www.redf.org
Social Enterprise Mark
There are many quality and standard marks
that exist across lots of different areas in
business. From construction to catering, and
everywhere else, there is likely to be a mark to
be achieved by meeting certain standards. For
example, there are “Positive about disabled
people”, “Investors in People” and the “EcoSchools Award” to name just a few.
In 2010, the Social Enterprise Mark was
launched to help social enterprises be proud
of their commitments. And also to allow
people to make more informed decisions
about the value of something they’re buying
from a business, compared to a social
enterprise. An example of this may be when a
charity is looking to hire someone to help with
their fundraising. The charity would know that
if a social enterprise applied for the contract,
part of the payment to them will be invested
to help the community. This adds value to
what the social enterprise is offering to sell
and can improve their chances of winning
the contract because the charity notices their
commitment to social change.
Another aim of the mark is to create a
network of social enterprises that connect to
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How to Understand Social Enterprise for Young People
each other and the public, to strengthen the
social enterprise movement.
To be able to use the mark, a social enterprise
must meet strict rules and also pay a fee. The
size of the fee depends upon how big your
organisation may be and starts at £350 if the
annual income of the business is less than
£150,000. This rises to a fee of £4,500 if the
organisation’s income is £30 million or above.
There are six questions a business must be
able to answer yes to, in order to gain the
Social Enterprise Mark, and these are:
1.Are there social or environmental aims?
2.Does the business have its own group
of leaders and a report that explains
the organisation’s rules, aims and
values?
3.Are 50% of the business’ profits
spent on community benefit?
4.Does 50% of the money the business
receives come from selling?
5.Can the business prove it’s making a
Money
Setting up a social enterprise, or any type of
business, will require some money to start. It
might be to buy a computer and projector,
if the business is going to do workshops
and presentations. It might be to buy sports
equipment, if the business will be running
football coaching sessions. Whatever it is, it’s
important to look at the money available to
help set up a social enterprise, and what type
of money is being offered.
Grants – These don’t have to be paid back
and are kind of like a donation, but they
will usually be given with requirements. For
example, an organisation might have to
explain what they will spend the money on,
and then stick to that list by a certain date.
Grants can vary in size from anything as small
as £20 (or smaller) up to millions of pounds.
There are also lots of different sources for
grants, all for different purposes. A grant
can be to help an organisation set up, and
this may be a £2000 business start up grant
from government. Another type may be a
£10,000 grant from the Big Lottery Fund, to
run a drama project in an area without many
facilities and things to do for young people.
difference and achieving goals?
6.If the business ended, would the
money and equipment left be given
to benefit people or the planet?
ASDAN, Yoga CIC and Recycle-IT are just a
few of the businesses that have passed the
standards for the mark. They display the mark,
as a symbol to their customers and partners,
of their commitment to people or the planet.
Hopefully this shows how grants can be big or
small, from government, charities or a business,
and can be given for lots of different reasons.
If applying for a grant, it’s important to know
which one is the best for you and what you’ll
need to do once you’ve spent the money. You
may simply need to send receipts to prove
how you spent a grant, but it may also be a
requirement to submit a report, photographs
and maybe even complete a presentation in
front of the funders.
Loans – These do have to be paid back and
usually with interest added on top. How much
interest needs to be paid will depend on where
www.participationworks.org.uk
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How to Understand Social Enterprise for Young People
the loan is from. The social enterprise loan fund
give out loans to charities and social enterprises
that might struggle to get a loan from the bank
or other sources. They do charge interest on
their loans, however the money they make is
reinvested into helping more social enterprises
and charities the following year. Banks do offer
loans but are often more interested in knowing
how they’ll get their money back with interest.
Before receiving money from anyone, a social
enterprise, or any organisation needing
money, will usually have to have some things
to show they’re legal and working safely with
their financial accounts. A governing
document, sometimes called a constitution or
memorandum, is simply a document that
explains how the organisation is going to
work. It sets out the aims of the organisation,
who’s in charge of what, and what may happen
if that organisation comes to an end. Other
requirements for funding may include the
correct insurance and policies explaining how
the organisation will support volunteers, or
work safely with children and vulnerable adults.
A separate bank account is usually needed too.
Lots of banks offer a free bank account to small
businesses and community organisations, it’s
worth looking around for the best offers
available. Finally, some funders will ask that the
money being provided is going to an account
that’s managed by 2 people, or more, that are
unrelated and don’t live together. This is to prevent
the money be used illegally, or simply vanishing.
The Social Investment Business, CAF
Venturesome (Charities Aid Foundation) and
Big Issue Invest are just a few organisations
that provide a real variety of financial support
for organisations. Some offer different types
of loans, some offer grants and often mixes of
the two. If investment is granted, it can usually
come along with business support to maximize
the effectiveness of the investment.
Examples
Getting a social enterprise off the ground and
working successfully is hard work, and it is clear
that this way of working takes a large degree of
independent-mindedness and entrepreneurial
zeal – so social enterprises aren’t for
everybody. Social enterprises come in many
shapes and sizes, and there are thousands of
successful ones across the UK many of which
are very well known. Here are a few examples
of business ideas making a real difference in
the communities they work in.
Fifteen
A restaurant brand set up by Jamie Oliver in 2002. Fifteen is a fleet of restaurants set up
across the world with businesses in London, Cornwall, Amsterdam and Melbourne. A very
simple concept to employ young people on an apprenticeship programme, giving them a
chance to learn new skills and gain an experience of working in the competitive restaurant
industry. The profits from the business are given to the apprentice programme and help to
change the lives of young people from all walks of life.
Fifteen London was rated as one of the top 100 restaurants in the UK, and globally the
Fifteen group have supported 220 graduates of the apprentice scheme, 50% of which
had drug or alcohol issues in the past. Also, only 2% of the apprentices that graduated
were unable to find a job. This means that 215 of the 220 who completed the apprentice
programme, have graduated and gained a job as a result. www.fifteen.net
www.participationworks.org.uk
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How to Understand Social Enterprise for Young People
Big Issue
Set up in 1991, this magazine aimed to give homeless people a chance to earn an income,
and use the content of the magazine for campaigning. Weekly, The Big Issue sells around
135,000 copies in the UK alone and the profits made go to The Big Issue Foundation.
The Big Issue Foundation is a registered charity providing support to people who sell the
magazine and other homeless people. They link these people to help and advice, and try to
solve the reasons that have caused their homelessness.
The Big Issue works on a structure of selling the magazine to sellers for £1, who then
sell it to the public for £2, keeping £1 for themselves. The organisation is very proud of
their values, and that they offer people a hand up to improve themselves, not simply a
handout. In 2008 they won the Ernst & Young Social Entrepreneur of the Year Award and
are mentioned regularly as an excellent example of social enterprise, not only in the UK but
other countries too.
www.bigissue.com
Divine Chocolate
In early 1990s, a group of cocoa farmers came together to form a cooperative (a business
owned by the people who work for it) and gain some control of how their cocoa was sold.
This was to try and gain a better, and fairer price for their cocoa. The group was called the
Kuapa Kokoo and in 1997, they voted to set up their own chocolate company. By teaming
up with The Body Shop, Christian Aid, Twin Trading and Comic Relief, they launched Divine
Chocolate. This meant the farmers of Ghana weren’t simply getting a good price for their
cocoa, but a share of the profits their cocoa beans were making.
Despite the massive amounts of competition from other chocolate makers, Divine has
grown to an £8 million business and has over 35 products available all over the country, as
well as abroad too. 45% of the business is owned by the cocoa farmers meaning that they
earn extra money. They are also empowered with the ability to shape, run and grow their
company for the benefit of their communities in West Africa.
In 2008, Divine won The Observer Ethical Award and has continued to win several awards
since. They’re currently on the shelves of many supermarkets and continue to make a real
difference to the cocoa farmers of the Kuapa Kokoo workers’ cooperative.
www.divinechocolate.com
www.participationworks.org.uk
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How to Understand Social Enterprise for Young People
Young Advisors
Set up in 2006, Young Advisors is a national charity set up to develop teams of young
people across England who strengthen the ways organisations engage with young people,
and improve the services offered to them. There are almost 50 Young Advisors teams
across the country, totaling over 800 young people. The majority of these young people
are employed by their scheme and work as professionals in their areas to help adults with
important decisions that effect the youth, and often many more people, in that area.
Young Advisors are an example of social enterprise, making positive changes across
England. They have a young person as the chair-person of the national charity, making
sure young people are involved and directing the work they do. Not only does the business
side help other organisations to connect and empower their young people, the Young
Advisors schemes employ and train local young people. They get paid, experience a real and
professional job, and maybe gain the key to a whole new career path.
www.youngadvisors.org.uk
The organisations mentioned so far have been founded by people with experience in
business or their industry. Young people have also set up and run social enterprises, many
of which compete on a professional level with businesses that have been around for years.
With the range of support and guidance available for all young people, getting a head start
in business, and particularly social enterprise, has never been easier. The following social
enterprises are examples of young people who’ve taken their idea and turned it into a reality.
Food Cycle
Established in 2008 by Kelvin Cheung, Food Cycle is a very simple but powerful concept.
The organisation takes the food surplus of retailers (the extra stuff they can’t sell), passes
it to volunteers who prepare it for members of the community who don’t have access to
healthy food. The volunteers gain new skills and experiences, members of the community
gain access to healthy food, and Food Cycle sell produce to the public in their community cafes.
Since setting up, Food Cycle have saved nearly 8,000kg of surplus food, and converted it
into almost 14,000 nutritious meals. Through this process, over 7,000 hours of volunteering
has taken place. In total, this amounts to a real community impact and brilliant social
enterprise that shows no signs of slowing down.
www.foodcycle.org.uk
www.participationworks.org.uk
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How to Understand Social Enterprise for Young People
FreshTeam
A social enterprise set up in early 2010 to empower young people. FreshTeam gains
contracts with professional organisations that are looking to enhance young people’s skills
and abilities, typically around business and enterprise, and support organisations that are
looking to work with young people. The team then use the profits from this to deliver
community action projects, fully developed by young people in the area who will benefit.
This ensures the money is spent on solving problems that matter to younger members of
the community. The organisation is lead by young people, employs only young people and
works for the benefit of young people.
This social enterprise was set up by a young person, and has overcome challenges to frequently
compete with professional businesses to successfully win contracts. This shows that young people
can succeed in enterprise and still have a great impact on the communities they work within.
www.freshteam.org
www.participationworks.org.uk
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How to Understand Social Enterprise for Young People
Support
There’s lots of support available to social
enterprises, and the entrepreneurs who
run them. Whether it’s being set up,
attempting to grow or even going global,
many organisations exist to support the
social enterprise movement. These vary from
government funded bodies, to charities, and
often successful social entrepreneurs trying
to help other people in their businesses. The
‘Social Enterprise Ambassadors Programme’
for example is a group of some of the
country’s leading social entrepreneurs who
come together and voluntarily give their time
to support others and raise awareness of the
social enterprise movement.
www.socialenterpriseambassadors.org.uk
The School for Social Entrepreneurs (SSE) exists
to help people enhance and use their creative
and entrepreneurial talents. The SSE is
established in many major cities, such as
Liverpool and London, as well as across the
world and is a great example of a social
enterprise franchise. A franchise is a business
that sells their logos and business model to
franchisees. (Lots of fast food restaurants
operate through this model too.) They
welcome a range of people and support them
in a variety of ways. Some students are fresh
out of school and haven’t even decided on a
name for their organisation, while some
students have had their social enterprise for
years and want to grow their organisation, or
themselves as a social entrepreneur. Students
receive training and advice but also visit
various social enterprises, witnessing different
projects, people and businesses. The SSE
brings a very hands-on approach to learning
about social enterprise, and supports students
even once they’ve graduated as fellows.
www.sse.org.uk
www.participationworks.org.uk
Support for social enterprises can vary by
area, but there will always be someone who
can help. A fantastic way of finding out
what’s available is to simply search online for
“social enterprise” and the name of an area.
Organisations will pop up and even if they’re
unable to support people with their social
enterprises, they may well be able to redirect
and signpost towards sources of help locally.
How to set up
There are different ways to set up a social
enterprise, and lots of different types of
support and guidance available too. A useful
way to organise setting up is with the GROW
model. GROW stands for Goal, Reality,
Obstacles and Way forward. It will help
any young person with an idea for a social
enterprise to take that idea and be on their
way into making it a reality. Following the
GROW model is a brief explanation of what
most young people will need to do in the first
steps of their social enterprise.
G - Goal
Decide exactly what your overall goal is. It
might be to make your city a safer place to live,
or to break down barriers between different
communities. This is a very important step, as
everything you do from here will be related to
achieving the goal you decide upon. Whatever
it is that you’re trying to achieve, it should be
something you’re passionate about and really
believe in. Try writing it down and sticking it
on the wall for a few days, you’ll soon realise
whether this is the goal to direct your social
enterprise or if it needs a bit of tweaking.
For help on deciding your goal, the best
advice will come from people who have
similar interests and motivations as yourself.
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How to Understand Social Enterprise for Young People
If you’re a bit stuck and don’t know anyone
who could offer a bit of support on setting
your goals, try to find an organisation that has
similar values to what you’re trying to achieve,
get in touch to see if they’ll offer a bit of help.
If you’re still unable to find the support you
need, try contacting one of the organisations
at the end of this guide who offer advice to
lots of different social enterprises, such as
the School for Social Entrepreneurs or Young
Enterprise UK.
R – Reality
Now that you’ve decided your overall goal,
it’s time to see how you’re going to reach
that goal in your current situation. With a
social enterprise, you need to think about
how you’re going to generate your own
income from trading, and maybe consider
other sources of money. Think about what
knowledge you have, and where you could
learn a bit more. What resources are available
that you could use to help you on your
journey? Are there people who can offer
you help, websites with information or local
organisations offering funding? Whatever
is available; if it helps you on your social
enterprise journey, take advantage of it.
Draw up a timeline for the next 12 months
and at points along the timeline, write down
mini-goals you hope to have achieved by
that date. These may include setting up a
bank account, completing your first funding
bid or having a website created and put
online. This will help you to plan ahead,
for example if you’re going to visit schools
and run workshops about the environment
with pupils, you can then note down that 2
months before you visit the schools you may
need to obtain a CRB check, purchase some
insurance or design some advertisements.
www.participationworks.org.uk
Looking at your goal and putting it into
reality is an important step, this is the start of
bringing all of your skills together. It’s useful
to be realistic, set achievable mini-goals for
what needs to be done, but still keep a list of
things that need to be completed longer term.
Sometimes you might have quite a lot on your
to-do list, try to prioritise and if you get stuck,
never be afraid to ask for help. The end of
this guide includes links to Start Ups which
contain very useful information online about
getting started with your organisation, and
Business Link can also offer some support to
keep you on track in achieving your goals.
O – Obstacles
Setting up any type of organisation you’re
bound to find some obstacles along the way.
Some problems can be easy to solve with a
quick search online, and some may need a lot
of thought such as applying for some funding.
At times you might have quite a few obstacles
to overcome, however whatever problem
comes up, the chances are that somebody
else will have faced something similar. Try
asking around your network and don’t be
embarrassed, people will often do their best
to help. Some typical obstacles that a person
can find when setting up a social enterprise
is trying to find some money to start up with,
or knowing how much to charge for their
products or services.
When obstacles arise, maintain a positive
attitude as solving them may be easier than
you think. There will be times when you won’t
understand a problem, such as creating your
environmental policy or which insurance to
purchase, and there are always sources of advice
and support such as the UnLtd who give out
awards of not just grants but staff support to
help you on your way with social enterprise.
The Prince’s Trust offer different support
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How to Understand Social Enterprise for Young People
packages too, both of these organisations’
links are given at the end of the guide.
W – Way forward
With your environmental or social goal decided
upon, an action timeline drawn and a to-do
list ready, you can now take your first steps with
your social enterprise idea. New opportunities
can arise so remain open-minded and continue
to develop a network of contacts. Completing
tasks set may produce great results, for
example you may secure funding from all 3
grants you apply for. If this happens, take a bit
of time to look at why you were successful
and how you can maintain that skill in the
future, or be able to pass it onto members of
your team. Something may go wrong but
with a positive approach and the right support
from your contacts you’ll be able to overcome
it and learn from it; make a little note of why
or how that problem arose to try and avoid it
in future, as well as how you solved it.
Finally, it’s easy to move forward once you
recognise how to achieve your goals, but feel
free to alter or adapt some plans if you need
to. Keep in touch with the people who
support you best. Keep an eye on what you’ve
achieved so far and plan ahead as best you
can. With an enthusiastic approach and clear
goals set, you’ll be on your way to setting up
a great social enterprise.
Key points for young people
setting up a social enterprise:
1.Set your overall goal and be 100% sure
it’s exactly what you’re passionate about.
2.Gain support from mentors or
professionals, ideally people who
understand your motivation and what
you’re trying to achieve.
3.Look at which legal structure is best
for your social enterprise, and look
into how you apply to register. Also
look at setting up a bank account,
search around for the best offers and
get an account to suit what your social
enterprise needs.
4.Plan your next 12 months with mini
goals to keep you on track.
5.Create a list of things you’ll need to
get going. If you need equipment,
look at what money is available to you.
If you need help services, ask for
recommendations and don’t be shy to
ask for discounts or freebies. After all,
you are a young person setting up a
social enterprise!
6.Think about the long term. Social
enterprises rely on making money from
trading as well as in grants, so consider
how your social enterprise is going to
become more sustainable by generating
as much of its own income as possible.
7.Always remember your core objectives,
the goal you set out to achieve at the
start. The actions you take with your
social enterprise, needs to be working
towards this goal and remain at the
very heart of your organisation.
www.participationworks.org.uk
13
How to Understand Social Enterprise for Young People
Summary
Social enterprise is making a clear impact on
our society; it is currently growing rapidly in
both the UK and across the world. Even with
fluctuations in our economy, social enterprise
continues to make a massive difference to the
lives of people across the country. There’s even
been a campaign to raise awareness of social
enterprise, the Society Profits campaign by
Social Enterprise UK.
Social enterprise has key elements of a typical
business, in that it needs to sell something
and make money from it. Social enterprise
has similarities with charities too, in that they
need to set goals for positive change and
work towards them. Bringing both of these
together is no easy achievement; in fact social
entrepreneurs aren’t typically people who sit
back and just let things work themselves out.
Social entrepreneurs look at their problems
and come up with a variety of solutions. They
combine a business mind with a real passion
for social change, having a valued impact on
the communities they serve.
Due to the variety of skills involved in starting
up or running a social enterprise, there are
accreditations and awards available, which
tie into the learning process and can benefit
the individuals involved across other potential
career paths.
Help is available for new and existing social
enterprises, and the offer of support should
be taken advantage of. In fact, any budding
social entrepreneur will probably be reading
this and be thinking about their own business
ideas and how they could change the world.
www.participationworks.org.uk
Organisations to
look at
There’s more information about social
enterprise available, and plenty of
organisations offering support and
guidance. Below are just a few of the many
organisations who work with entrepreneurs.
Social Enterprise UK is the national body for
social enterprise, together with their members
they are the voice for social enterprise
in the UK. Social Enterprise UK conducts
research, provides information and tools,
shares knowledge, builds networks, raises
awareness and campaigns to create a business
environment where social enterprises can thrive.
www.socialenterprise.org.uk
Social Enterprise Ambassadors are leaders
of successful social enterprises, who share
their stories, experience, and expertise to
help to raise awareness among key audiences
and help social enterprise spread and grow
throughout the country.
www.socialenterpriseambassadors.org.uk
The School for Social Entrepreneurs (SSE)
exists to provide training and opportunities
to enable people to use their creative and
entrepreneurial abilities more fully for social
benefit. SSE supports individuals to set up
new charities, social enterprises and social
businesses across the UK.
www.sse.org.uk
Business Link is government’s online
resource for businesses. It contains essential
information, support and services for you and
your business – whether you work for a large
organisation or are on your way to starting up.
www.businesslink.gov.uk
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How to Understand Social Enterprise for Young People
The Social Enterprise Mark Company is a
Community Interest Company (CIC) Limited by
shares. It is a certification authority for social
enterprises - social enterprises have to prove
they are genuine against a set of qualification
criteria, which is overseen by an independent
Certification Panel to ensure fairness and
consistency.
www.socialenterprisemark.org.uk
Social Enterprise Live is a platform for
stories and opinions, for debating the big
issues, for shared learning, news and innovation.
www.socialenterpriselive.com
UnLtd is a charity which provides a complete
package of funding and support, to help
social entrepreneurs make their ideas a reality.
www.unltd.org.uk
Young Enterprise is the UK’s largest business
and enterprise education charity, helping
young people learn about business and the
world of work in the classroom under the
guidance of volunteers.
www.young-enterprise.org.uk
Start Ups helps to locate information on
setting up a social enterprise including legal
issues, funding, ethical business practices and
examples of existing social enterprises as well
as expert advice on how you can become a
social entrepreneur.
www.startups.co.uk/social-enterprise
The Social Enterprise Loan Fund provides
loans to charities and social enterprises that
are unable to secure sufficient funding from
mainstream sources. They aim to help
organisations that have a social impact, especially
those working in disadvantaged communities.
www.tself.org.uk
www.participationworks.org.uk
The Prince’s Trust provide practical and
financial support to the young people who
need it most. They help develop key skills,
confidence and motivation, enabling young
people to move into work, education or
training.
www.princes-trust.org.uk
The Young Foundation works across the UK
and internationally – carrying out research,
influencing policy, creating new organisations
and supporting others to do the same.
www.youngfoundation.org
The Charity Commission registers and
regulates charities in England and Wales,
so it’s our job to make sure all charities meet
all their legal requirements and to work with
charity trustees to put things right if they
go wrong.
www.charitycommission.gov.uk
The Community Interest Company
Regulator is a partner of the Department for
Business, Innovation and Skills and is the
regulating body who approve the registration
of a company as a CIC. The Regulator also has
a continuing monitoring and enforcement role.
www.cicregulator.gov.uk
Companies House registers all limited
companies in England, Wales, Northern
Ireland and Scotland. The main functions of
Companies House are to:
•incorporate and dissolve limited
companies;
•examine and store company
information delivered under
the Companies Act and related
legislation; and
•make this information available to
the public.
www.companieshouse.gov.uk
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How to Understand Social Enterprise for Young People
The Financial Services Authority (FSA) is
the regulator of the financial services industry
in the UK. It is an independent body funded
entirely by the firms they regulate. However,
it is accountable to the Treasury and, through
them, Parliament.
www.fsa.gov.uk
[Figures, links, and organisations mentioned
are all correct as at December 2011].
Published as part of the Catalyst consortium, a NCVYS coordinated partnership; Catalyst is
a consortium of four organisations working with the Department for Education (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 and coordinate a skills development strategy for the youth sector’s workforce.
Acknowledgements
Authors: Matt Smith
Researcher: Radhika Howarth
Peer Reviewers:
Beth Parker, Ana Brankovic – NCVYS
Julie Hathaway, Louisa Jennings – KIDS
Emrys Green – Consultant
Mandy Douglas - NCB
Case Studies:
Fifteen
Big Issue
Divine Chocolate
Young Advisors
Food Cycle
FreshTeam
Participation Works
8 Wakley St, London, EC1V 7QE
www.participationworks.org.uk
Enquiry line: 020 7833 6815
Email: enquiries@participationworks.org.uk
www.participationworks.org.uk
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