Social Enterprise Focus

Social entrepreneur to feature on The Apprentice: Good or bad for social enterprise?

2011-05-03T10:27:00.000-07:00

Love them or hate them it's hard to deny that reality TV shows such as Dragons' Den and The Apprentice have generated a renewed interest in business. That's certainly true in my day job where as editor of BusinessZone.co.uk any content I publish focusing on the shows usually leads to a spike in traffic.

What there is very little of in these TV programmes however is anything focusing on social enterprise. You may well have seen the clip in a recent episode of Dragons' Den when an entrepreneur pitching a social enterprise cookery school was met with confusion from Peter Jones, Theo Paphitis and co who struggled to work how they could get a return from any investment in such a business model.

With that in mind I was interested to spot that among the contestants for the new series of The Apprentice, which were revealed today, is a successful social entrepreneur.

The woman in question is Melody Hossaini, founder of youth training organisation InspirEngage International. Melody set up her social enterprise, which aims to improve the lives of young people through skills development training, aged just 13 and looking at her LinkedIn profile she has an impressive CV having worked for groups including the Youth Parliament and with high profile individuals including Al Gore Desmond Tutu and the Dalai Lama.

Having been a viewer of The Apprentice since it started in the UK, Melody is not your usual candidate!

So why is she doing it?

The profile boost which comes from the show can't be ignored and although the entrepreneur already has an impressive CV, she is likely to get a lot more attention from appearing in the show. There's also a change in the format this year as rather than receiving a job with Lord Sugar the winner will be rewarded with up to £250,000 to invest in a joint business venture with the peer. That could be the reason why more entrepreneurs than usual feature in this year's line-up.

But what does it mean for social enterprise specifically?

I think it's a positive step that a social entrepreneur will feature in the show. The social enterprise sector has done lots over recent years to promote itself among the general public but there is a still a long way to go until most people really understand what social entrepreneurs are all about. Melody Hossaini's appearance in The Apprentice could help do that.

Also the fact that the programme results in the winner running a business rather than a job selling one of the Lord's wacky products could result in someone as high profile as the Amstrad founder getting involved in social enterprise.

That of course is looking on the bright side. It's highly possible that Melody's social enterprise background will get lost among the bickering and back stabbing which the BBC often prefers to focus on. We must remember that The Apprentice is entertainment afterall.

However let's not be too cynical at this very early stage. Let's hope that a social entrepreneur's starring role in a prime time BBC TV broadcast watched by millions will teach at least a few more thousand people about just how beneficial the social enterprise sector is.

Social Enterprise Ambassadors programme comes to an end: What did it achieve?

2010-09-22T09:09:00.000-07:00

Here's an article I wrote earlier this week for my day job as editor of BusinessZone.co.uk:

The three-year government-funded Social Enterprise Ambassadors programme, set up to promote social enterprise with high profile entrepreneurs, came to an end last week. BusinessZone.co.uk editor Dan Martin spoke to the programme's manager Pauline Milligan to find out what it did for social enterprise in England.

If the recession has done one thing, it has increased the interest in doing business for social or environmental reasons rather than solely to make pots of cash. Although social enterprises, the modern, collective term for businesses which put all or the majority of their profits into a social cause, are nothing new, high profile companies like Jamie Oliver's Fifteen and Divine Chocolate and Cafe Direct, two of the UK's biggest Fairtrade companies, have helped drive up interest among the general public and aspiring entrepreneurs.

One way the last government attempted to boost that interest was through its funding of the Social Enterprise Ambassadors programme, an initiative which bought on board 33 social entrepreneurs who toured England trumpeting the benefits of the social enterprise model. Among those who got involved were Tim Campbell, winner of the first series of The Apprentice and John Bird, co-founder of The Big Issue.

The programme, which cost a total of £860,000 and was run by the Social Enterprise Coalition, came to an end last week with a celebration event filled with tears and hugging. But why has it ended, what has it achieved and what's ahead for how social enterprise is promoted in the UK?

The end

Programme manager Pauline Milligan says the programme was always only going to last three years and participants decided not to push the new government into extending the initiative. "We felt it was going to be a risk to watch and see whether the government would continue funding and thought it was better to celebrate the achievements of the programme and the legacy which will continue in many ways."

Achievements

When asked what Milligan considers are the scheme's greatest achievements, a deal with telecoms company O2 is top of the list. "The company has launched new packages and a whole host of other activities to support social enterprise whether that be communications work, promoting social enterprise to business customers or looking at introducing a new award for social enterprise," she says. "O2 is promoting and supporting the social enterprise sector in a way that hasn't been possible before using the power of a huge, powerhouse brand."

Milligan is also proud of the programme's work in public services, particularly with the National Offender Management Service through which ambassadors were matched with senior civil servants at a 'speed dating' event who then spent time within social enterprises learning how former offenders can be helped back into work. "The social enterprise concept can be quite hard to grasp but it is brought to life through individual stories," Milligan explains. "It has been hugely effective in helping civil servants to 'get it'. As a result, there are lots of pilot schemes working with offenders around the country."

Responding to criticism

The programme hasn't been without its critics however. In 2008, some of the ambassadors attacked the programme for lacking direction and earlier this year, social entrepreneur Ben Metz wrote an article for The Guardian in which he said the programme "makes a lot of noise and wastes a lot of taxpayers' money in looking good and talking about themselves while effecting no legislative or policy change whatsoever".

Milligan accepts some of the criticism and said when she joined in early 2009, it was one of the first areas she focused on. Three taskforces, she claimed, tackled the direction problems and bought "real change".

When it comes to altering government policy, Milligan claims the programme wasn't set up with the aim of "changing laws" but says it has "influenced the debate and helped civil servants and ministers understand what social enterprise is all about".

She also claims one major success with the programme’s role in calling for added value to be taken into account when public sector spending decisions are made and contracts are being awarded. Chris White MP is currently tabling a private members bill calling for a greater awareness of social enterprises during the procurement process. "This was not solely down to the ambassadors but we had lots of meetings with key civil servants, ministers and the media in order to influence the outcome", Milligan says.

Enterprise education

Educating young people about business is another area Milligan is keen to stress the programme's success, in particularly through the recent introduction of social enterprise as an area of education taught by Young Enterprise, which works with 30,000 children and students in schools, colleges and universities.

Young Enterprise hit the headlines recently when Dragons' Den judge and National Enterprise Academy founder Peter Jones criticised the organisation for "putting good money after bad". Milligan says that is an argument by which she is "not impressed" adding: "I've met many of the young people who've taken part in Young Enterprise and they're very inspiring. They've set up profitable businesses and are doing some fantastic stuff so it's really dismissive of Peter Jones to disregard the organisation in the way he did."

One of the dragon's arguments is that enterprise education needs to be more coordinated and he has called for his National Enterprise Academy curriculum, currently running in three colleges, to be rolled out nationwide.

But Milligan says having one single scheme in place isn't necessarily a good thing. "There are lots of organisations working in the space and it's important they join up but I also believe there are different ways to do things," she says. "I wouldn't want to see a monopoly of one programme being used against others which have got a proven track record."

Public perception

So how does Milligan believe the public perception of social enterprise has developed during the three years the programme has existed?

"Things are shifting but there's still a long way to go," she says. "When I joined in 2009, we started to look at how to make it more focused and one of the things I quickly realised was that going out and trying to raise awareness among the general public was not the right thing to do.

"What we needed to do was get to key decision makers and organisations. Once we'd converted some of those, we could then move onto the general public. Through schemes like the Social Enterprise Mark and the deal with O2, the concept of social enterprise is starting to be taken out to a bigger audience."

The future

In terms of how the legacy of the programme will continue, Milligan says many initiatives "will continue" although without the coordinated format of a national programme. The Social Enterprise Coalition also plans to stay in touch with the ambassadors and all have committed to open the doors of their social enterprises to the public on Social Enterprise Day 2010 in November during Global Entrepreneurship Week.

But it's not just the programme that has come to an end; so has Pauline Milligan's job. When asked what she plans to do in the future, she reveals initially she is taking a break and spending two weeks in Vietnam "to have a rest and reflect". But whatever happens, social enterprise will likely stay a part of Milligan's life.

"I'm keen to stay within social change and business. I don't know whether that'll be starting my own, going freelance, working for a social enterprise or another business. I'm keeping an open mind but I certainly believe business is the way to do it."

Exclusive video: Barchester boss backs Big Society

2010-08-31T05:45:00.000-07:00

Last week I interviewed Mike Parsons, the founder of elderly care homes business Barchester Healthcare, for my day job as editor of BusinessZone.co.uk. He has been hugely successful having grown the business into a £400m turnover operation with assets of £1bn. I asked him about the government's Big Society vision and he is a big fan. The video has not yet been published on BusinessZone.co.uk but I thought I'd give Social Enterprise Focus readers a sneak preview. Parsons also talks about why business owners should get involved with charitable causes, his work with Sir Richard Branson in Africa and his view on social enterprise. Enjoy!

Live blog from the launch of the SE100 Index

2010-06-09T05:15:00.000-07:00

The RBS SE100 Index is a new tool that charts the growth and impact of any organisations that deliver social, economic or environmental change including charities, housing associations, co-ops, social firms, community enterprises and ethical businesses. The Index launches in London tonight and I'll be there. As is usual, I'll be providing a live blog below.

Live blog from OxfordJam

2010-04-14T05:31:00.001-07:00

Labour election manifesto: Commitments to social enterprise

2010-04-12T05:19:00.000-07:00

Included in Labour's general election manifesto, which was launched today, is a small section on social enterprise. These are the party's commitments:

The Social Investment Bank will make additional capital available to social enterprises with an initial endowment of £75 million funded by dormant accounts alongside existing funding streams.
Promote the creation of more social enterprise hubs in every community – helping more to get off the ground.
Extend the right of public-sector workers to request that they deliver frontline services through a social enterprise. Public-sector workers in the NHS currently enjoy this right.
More local organisations run on cooperative principles with an expansion of Community Interest Companies and third sector mutual organisations that reinvest profits for the public good.
British Waterways will be turned into a mutually owned co-operative
Promote the use of community shares that support investment in football clubs, pubs, renewable energy and shops.
A National Youth Community Service, with the goal that all young people contribute at least 50 hours to their communities by the age of 19

It's good to see the sector now has a place in election manifestos and the commitment is welcome. However, I would also have liked to have seen something which addresses how CICs are structured with efforts put in place to make them more attractive to investors.

What do you think of the plans?

Twestival: A lesson in real-time and transparent fundraising

2010-03-14T14:20:00.000-07:00

Anyone with an interest in charities and social media is likely to be aware of Twestival. Something that started in 2008 as one tweet and a small gathering in London has grown into a worldwide phenomenon which I'm delighted to be part of. I'm organising the Bristol Twestival, one of more than 175 parties due to take place around the world on 25 March. We're all raising money for one cause; Concern Worldwide, which uses education to help the world's most marginalised and poorest children.

I wrote last year how Twitter and other social media tools are changing the way charities fundraise by putting greater power into the hands of supporters. Well, this year Twestival has gone one step further.

Twestival parties haven't even taken place yet but in a secton on the global blog supporters can access details of exactly how much money has been raised and exactly where that money will be spent - in real time.

Too often charitable fundraising lacks this kind of transparency and interactivity but given where the Twestival idea was born it was inevitable that it would be good at it!

Charities - and indeed social enterprises - have a lot to learn. The social media generation craves information. They don't want to wait until an annual report is published many months after a charitable event has taken place to find out where their money has been spent; they want to know now.

Equipping supporters with the kind of information Twestival is providing - even before the event has even actually taken place - not only pleases though converted to the cause but creates cause champions which is turn attracts new backers.

So whatever your cause, think real-time!

UPDATED: Is The Phone Co-op’s Social Enterprise Mark award an attempt to quell the critics?

2010-02-13T04:46:00.000-08:00

I spotted a tweet this afternoon with a link to the announcement that The Phone Co-op has been awarded the recently launched Social Enterprise Mark. This is a high profile development given that the successful telecoms company was named social enterprise of the year by the Social Enterprise Coalition (SEC) in 2008 and its founder Vivian Woodell is a regular attendee and speaker at the sector’s big events.

What is intriguing however is that at Voice10, SEC’s annual conference in Cardiff, Woodell was asked whether he had applied for the Mark. He said he had but had been rejected because his co-operative didn’t fit the criteria. The comment was made during one of the workshops at Voice10, not during one of the main plenaries, but I was in the room when he said it.

The Social Enterprise Mark’s blog post makes reference to the “concern” over The Phone Co-op being rejected but does not say whether the criteria has been adapted or whether Vivian was mistaken when he made his comment in Cardiff.

Since its high profile launch at Voice10, the Mark has been met with some criticism from social entrepreneurs and other interested parties. Most have focused on Clause E of the criteria which calls for at least 50% of profits to be committed to a social or environmental cause. Those running co-ops have also expressed
concern that they are excluded.

The cynic in me would say that today’s development is a publicity stunt and an attempt to quell the doubters but at the moment I can’t confirm that. What is clear though is that the Mark does not yet have the support of the entire social enterprise sector and issues such as this won’t help.

I will do some digging and see what I can find out but in the meantime I’d be interested to hear your thoughts.

UPDATED (16/02/10)

Yesterday, the following quote from Vivian Woodell was published on the Social Enterprise Mark blog in response to my post above:

“It is absolutely clear that we were not rejected at any stage, and I never said that we were. What I said was that when we read the criteria initially, it looked as if we (along with other co-ops) might not qualify, because of what appeared to be rather rigid rules about profit distribution. They did not change their rules to accommodate us, and what Lucy Findlay said is correct – the application was still in process when I spoke at Voice. We heard that we had been awarded the Mark soon afterwards.”

Fair enough. However, my confusion does perhaps reflect the general confusion about how the rules apply. Woodell thought the criteria ruled him out but it turns out it doesn't. Why?

Poll: Does your social enterprise qualify for the Social Enterprise Mark?

2010-02-05T07:09:00.001-08:00

The long awaited Social Enterprise Mark was launched at the Social Enterprise Coalition's Voice10 on Monday evening with indoor fireworks and spectacular circus performances.

After a trial in the South West, the team behind the Mark claim it is a watershed moment for the UK social enterprise sector but does your organisation qualify?

Many social entrepreneurs have criticised the application criteria for excluding some businesses whose owners consider them to be social enterprises. Much of the criticism focuses on the fact that to be awarded the Mark organisations must put at least 50% of profits into a social or environmental cause.

Bloggers like Rob Greenland have expressed concern about the Mark as have some social enterpreneurs on Twitter:

What do you think? Do you qualify for the Mark according to the criteria? Take part in the quick poll below. I'd also be interested to hear why you think you do or don't qualify.

Live video and blog: Voice10, the Social Enterprise Coalition's annual conference

2010-02-02T04:12:00.000-08:00

Live video: Voice10 day two

Live blog:

Voice10: The Social Enterprise Coalition's annual conference LIVE

Video replay: Day one of Voice10

Going to Voice10? Join me for a tweet-up!

2010-01-29T08:11:00.000-08:00

Live blog: Doug Richard's School for Startups - Growing a successful social enterprise

2010-01-19T00:30:00.001-08:00

&amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;lt;a href="http://www.coveritlive.com/mobile.php?option=com_mobile&amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;task=viewaltcast&amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;altcast_code=7ac3a4214e" &amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;gt;Doug Richard's School for Startups: Growing a successful social enterprise&amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;lt;/a&amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;gt;

'Tis the season to be socially entrepreneurial: Events to attend in 2010

2010-01-17T11:14:00.000-08:00

As this is my first blog post of 2010, may I wish you all a Happy New Year!

I'm determined to blog more this year and what better way to kick off than with a list of the top social enterprise coming up in 2010. There do seem to be a huge number this year which bodes well for the future. The more exposure the sector gets, the better off we'll all be!

So here are my pick of what should be in your social enterprise calendar this year. I plan on attending them all.

19 January: School for Startups: Growing a successful social enterprise, London
Would you pay £10 for hours of expert advice from an ex-Dragons' Den panellist? Of course you would! You can do exactly that at this event where Doug Richard and big names from the world of social enterprise will be telling delegates everything they need to know about building a socially driven business. Doug Richard supported my event The Pitch last year and I experienced his expertise first hand. On that basis, his event is set to be a humdinger!

1-2 February: Voice10, Cardiff
Voice is the Social Enterprise Coalition's annual conference and this year it takes place in Cardiff. The theme for 2010 is 'No more business as usual' and features top class speakers including John Denham MP, minister for communities and local government; Carwyn Jones AM, Welsh first minister; Ed Mayo, chief executive, Co-operatives UK and Peter Holbrook, chief executive, Social Enterprise Coalition.

4 February: Media 140, London
Media 140 is fastly becoming one of the world's leading events focusing on the benefits of social media. Despite being founded around a year ago, the not-for-profit organisation has already held events in the UK and Australia. On 1st February, Social Media Week kicks off and Media 140 has chosen to focus on social media and the third sector. Exact details are still to be confirmed but the event will take place in London on the afternoon of 4 February. Keep an eye on the Social Media Week website for updates.

25 March: Twestival, Around the world
Twestival is a charity initiative founded in 2009. Arranged through Twitter, events take place in cities all around the world on the same day with all money raised going to charity. In February 2009, 185 cities took part and £400,000 was raised for charity: water. This year's event takes place on 25 March with all funds going to Concern Worldwide, currently doing great work in Haiti following the devastating earthquake. I have a big interest in this one as I'm organising the Bristol Twestival.

14-16 April: Skoll World Forum 2010, Oxford
Seen as the grand-daddy of social enterprise conferences, the Skoll World Forum is organised by the Skoll Foundation, set up by American billionaire Jeff Skoll. The agenda is yet to be confirmed but with previous speakers including former US president Jimmy Carter; ex-US vice president Al Gore; Mohammad Yunus, founder, Grameen Bank and Her Majesty Queen Rania Al-Abdullah of Jordan, it's set to be pretty good!

13-15 May: Shine, London
Shine is an unconference for social entrepreneurs. Described as the 'antidote to traditional conferences', unconferences have no set agenda but allow attendees to decide the sessions, seminars, discussions and debates. The organisers of Shine promise practical workshops, real stories from established social entrepreneurs and one-on-one advice sessions on all aspects of building a successful social enterprise.

If you'd like to share details of any other social enterprise events in 2010, please post below.

Are social entrepreneurs key to rebooting Britain?

2009-07-04T16:51:00.000-07:00

It's hard to deny that we're in a bit of a mess. The economy is facing its toughest challenges for decades, public services are being hit by ever increasing demands and trust in politicians is the lowest level it has ever been. With all that in mind, NESTA has organised Reboot Britain, a conference in London on Monday which will focus on how by embracing modern technologies and business practices, such problems can be overcome.

Looking through the schedule - which is probably one of the most impressive line-ups of conference speakers I've seen for a long time - there is a heavy emphasis on social enterprise. It's clear that the old way of doing things haven't worked and it's now time for the social entrepreneurs out there to take charge and make good things happen.

I'm going to be at the event and in the app below I've outlined the sessions I plan on attending.

In particular, I'm looking forward to the 'Building An Entrepreneur Country' session led by Julie Meyer, founder of Ariadne Capital and star of the BBC's online version of Dragons' Den. I'm a huge fan of Julie and hers should be an inspiring speech. One thing she believes is that the UK should be embracing the ever increasing number of entrepreneurs taking a social approach to business.

Previewing the event, Meyer wrote an excellent piece in The Independent earlier this week. Here's an extract:

"Entrepreneurs are some of the most generous people I know. They ‘send the elevator down’ to the next generation, as the overwhelming majority of them remember that they have been helped by others before them. Provoke their generosity by giving tax incentives for their work.

"Social enterprise is a hot area where many leading entrepreneurs are flocking, whether it’s Hoult’s Yard in Newcastle, or DoTheGreenThing out of London, or Bono’s Red led by Seb Bishop, the founder of Espotting, or Just Giving which is transforming charities. Not only do entrepreneurs know what to do to fix social problems, they do it."

If you're going to Reboot Britain, do say hello if you spot me. If not, I'll be tweeting and blogging as usual.

Social enterprise on the doorstep

2009-06-15T12:30:00.001-07:00

Social enterprise can turn up in places where you least expect it as I discovered recently when I popped down to an event taking place as part of the Bristol Design Festival.

I'm a big fan of the festival. From humble beginnings in a room above a market in 2007, this year's spectacle stretched to 30 venues across Bristol. Not bad for an initiative which is run entirely by volunteers.

Flicking through the programme, one venue in particular caught my eye - the Jamaica Street Studios. Situated in Stokes Croft, an area of the city with a reputation for being far from salubrious, my visit confirmed you should never judge a book by its cover!

It turns out that the studios have been based on Jamaica Street for an impressive 20 years and currently house 43 artists. Over the past two decades, the resident have developed a collective which serves as a mentoring group to encourage and nurture new talent. As I spent time wandering around the building, it was hard not to be inspired by the creativity and energy oozing out of every nook and cranky of the cast iron and wood beam architecture that is the studios.

Next door to the building is the People's Republic of Stokes Croft, a not-for-profit social enterprise. As well as its fabulous name, PRSC has a laudable aim; to prevent what it calls the gentrification of the area and promote it as Bristol's cultural quarter. In this video, founder Chris Chalkley explains how street art is being used to provoke social change:

The People's Republic of Stokes Croft and the Jamaica Street Studios are perfect examples of how social enterprise can bring real change to an area. Building yet more luxury apartments won't deal with the social problems faced by the local residents but empowering them will.

Unfortunately, the studios are threatened with closure. Once the 10 year lease is up in 2010, the landlords intend to put the property on the market. The 43 artists are attempting to raise the money required to buy the building but with between £800,000 and £1m needed, it's going to be tough.

However, I'm one blogger who supports their cause as I hope those other social enterprise fans reading this post do too. We need more organisations of the likes of the Jamaica Street Studios and its social enterprise neighbour. They represent the social change that the UK and other nations desperately need.

A new dawn for UK social enterprise?

2009-05-12T13:56:00.000-07:00

Amid all the talk of government help for business in this time of recession, it's about time social enterprise got a mention. Thankfully that moment arrived today with the government's Social Enterprise Summit.

A press release arrived in my inbox this morning proclaiming the summit signifies "unprecedented government support for social enterprises". Strong words but let's hope the impact of the measures prove as such.

Announced was a new ministerial working group to ensure a "level playing field" for social enterprises and charities to compete for public sector contracts, a new guide to social return to help public service leaders understand the social value that social enterprises can bring to local society and a £45.6m Futurebuilders Investment Plan to help social enterprises deliver public services, through a new fast-track investment process.

Mandelson also revealed that changes to the Enterprise Finance Guarantee Scheme (EFG), the initiative set up to provide bank loans to small businesses struggling to secure finance because of the economic downturn, will free up £20m to social enterprises in disadvantaged areas.

All great stuff but now the hard work begins.

The headline grabbing announcements are all very well and good but they're worth nothing if they don't get to the social enterprises they are designed to help.

The EFG has already received extensive criticism from businesses that loans are still hard to come by mainly because of confusion about the system among bank staff. We're told that £344m of eligible applications from 3,071 businesses that have been granted, are being processed or assessed, while 2059 firms have been offered loans totalling over £186m.

A good start but much more is needed.

Like Liam Bryne himself said, social enterprises are well placed to help the disadvantaged.

The traditional, excessive risk taking and massive profit making way of doing business has let us all down; now is the time for social entrepreneurs to seize the opportunity and prove that an ethical, sustainable approach to business is the future. It's not tree hugging; it's business. But it's business that generates social change.

The press release informed me that the "lessons from the summit will be taken forward across government". I'd certainly be keeping an eye on that one.

Skoll 2009: Inspirational social entrepreneurs

2009-03-29T09:06:00.000-07:00

With 785 delegates from 60 countries and 6 continents at the Skoll World Forum, it was hard to avoid inspirational social entrepreneurs during the 48 hours I spent in Oxford this week. But then, why would I want to?!

From Altanta to Amsterdam and Zambia to Zimbabwe, entrepreneurs are achieving success tackling social, community and environmental issues which those adopting traditional governmental and public sector approaches can only dream about.

Here is just a handful of the many inspirational individuals and organisations I came across during my time at Skoll:

Endeavor: After several months chatting with Elmira Bayrasli from New York-based not-for-profit Endeavor via social network Twitter I had the pleasure of meeting Elmira and her colleague David Auerbach in person at the forum. Established in 1998, Endeavor identifies entrepreneurs with high impact potential in developing countries and provides them with the resources required to break down local barriers to success.

In the developed world, Endeavor Entrepreneurs would be celebrated but in their own countries they are often overlooked, encounter few role models and lack access to sufficient capital and contacts. As of 2007, business owners assisted by Endeavor throughout Latin America, South Africa and Turkey have created 86,000+ new jobs and generated over $2.51bn in revenues.

Nathaniel Whittemore, founding director of the Center for Global Engagement at Northwestern University, interviewed Elmira. Here's what she had to say:

Better World Books: The best business ideas are often the simplest and Better World Books is one such company. Originally established by Xavier Helgesen, Jeff Kurtzman and Chris Fuchs while studying at the University of Notre Dame in Indiana, the company collects used and unwanted books, re-sells them online and donates half the proceeds to literacy projects. To date Better World Books has raised more than $6m for literacy charities around the world and saved in excess of 22m books from landfill. In 2008, Better World Books opened its first non-US subsidiary in Edinburgh.

Here's a short film about Better World Books:

APOPO: If I asked you to name your favourite animal, it's very unlikely you'd sing the praises of the rat. Once you've read about APOPO though you may well change your mind.

Founded by Belgium Buddhist monk turned social entrepreneur Bart Weetjens, the organisation trains African giant pouched rats to search for deactivated landmines in Africa. Cheap, intelligent and, most importantly, lightweight, the 'HeroRATS', as APOPO calls them, have been responsible for the reopening of over 400,000 square meters of suspect land thus preventing the potential deaths of hundreds if not thousands of local people. And if you thought that was impressive, the rats are also now being used for the early detection of tuberculosis in humans!

Here's a short film from Animal Planet about APOPO's work in Africa:

Skoll 2009: Welcome to the new paradigm

2009-03-26T16:18:00.000-07:00

As a journalist, I go to a lot of conferences but unfortunately not all prove to be particularly useful. That description however can in no way be applied to the Skoll World Forum which I had the pleasure of being part of today.

Not wishing to exaggerate but at times it really felt like a revolution is just around the corner. The overwhelming message coming out of Oxford's Said Business School, the main venue for the conference organised by the Skoll Foundation, is that it is entrepreneurs with a social conscience who hold the key to getting us out of the financial mess we're currently all in.

Speaker after speaker stressed that the old order is no longer sustainable. An economy based on extreme risk taking has proved to be unworkable (and that's a huge understatement) so a different type of approach is what's required.

Sir Ronald Cohen, the father of the British venture capital industry and a key player in the social investment market, summed it up the best. Referring to a "new paradigm", he told attendees including me at a session entitled 'Capital markets in crisis: Threat or opportunity?': "Philantro-capitalism is an idea that needs to come through strong in the new economic environment and it is up to social entrepreneurs to demonstrate its value to the powers that be."

"The role of the social market", he continued, "is to do what the government can't for the benefit of society. We are here and we will do the job."

That's not to say that the sector's complacent because, as we all well know, it isn't going to be easy. Like Sir Ronald warned, social entrepreneurs will get "lost in the noise" unless they raise their profile by lobbying government, speaking to the press and commissioning research.

It's not like we're stuck for examples of social enterprise in action though. I learnt of some pretty amazing businesses during my few hours at Skoll. I'll be blogging in detail about them in another post but some of my favourites are Better World Books which has raised in excess of $6m for literacy initiatives worldwide by selling used books and Apopo which trains sniffer rats to detect explosives and diagnose disease in Africa.

Apopo was one of seven social enterprises which received a grant of £500,000 at the Skoll Foundation's annual awards announced in the magnificant surroundings of the Sheldonian Theatre on Thursday evening.

Hosting the event, Skoll Foundation CEO Sally Osberg also welcomed the dawn of a 'new paradigm'. In a rousing speech, she told delegates: "The old order is crumbling as we create a morally justifiable and sustainable world. Social entrepreneurs are humanity's scouts looking for opportunities and returning with news of what real change looks like."

Now who wouldn't be inspired by that?

I'll be tweeting from day three of the Skoll World Forum on 27 March. Follow me at www.twitter.com/socialbusiness

How Twitter is changing the way charities fundraise

2009-03-15T07:38:00.001-07:00

If press reports are to be believed, one major casulty of the recession is charitable giving. Indeed a poll released last Friday by Fairinvestment.co.uk claimed 22% of Britons have reduced the amount they give to charity as a result of the economic downturn.

There's no doubt that when times are tough, many people are put off from dipping into their pockets for a good cause. Charities and other organisations with social aims certainly face hard challenges over the coming months but those who think innovatively about they way they get their word out could emerge from the recession in a better state than when they entered it. How? By embracing the power of social media.

The Fairinvestment.co.uk research mentioned above was released on Red Nose Day, a UK fundraising initiative which raised a staggering £59,187,065, the highest total in organiser Comic Relief's 21-year history. That doesn't suggest compassion fatigue now does it!

In my view, the key to Comic Relief's success was the way it embraced social media. From YouTube to Facebook to Flickr to MySpace, Red Nose Day was there but it's Twitter on which I'm going to focus.

I didn't buy pop down to my local supermarkt to buy a plastic red nose this year but I did buy a digital version for my Twitter profile image. I didn't call the fundraising hotline during the Friday night telethon but I did spend £9 on a book of jokes created to raise money for Comic Relief. Why? Because of Twitter.

Through clever use of the web, thousands paid a £1 for a digital red nose and to encourage greater take-up, a Twitter page informed tweeters that their profile pic sporting the red nose would be displayed on the official website for the world to see.

Equally innovative was the TwitterTitters initiative which in just four weeks gathered jokes and printed a book to raise money for the cause via Twitter. It even managed to gain the backing of Dave Spikey, co-creator of award winning British TV show Phoenix Nights and comedy legend and Twitter-addict Stephen Fry.

I think you get my point.

Using Twitter, charities can spread their word instantly to thousands if not millions of people. By our very nature, us humans like being part of something big and that is certainly the case among the Twitter community. But we're also quite lazy creatures so being able to participate in something massive by a simple click of a mouse is perfect.

Red Nose Day isn't the only time when Twitter has been harnessed for social change. More and more charities and social businesses are realising its power every day.

One of the biggest success stories to date is the Twestival, which raised in excess of $250,000 for charity: water. I was part of it and organised the Twestival in Bristol, south west England. Like the 184 other parties around the world, we put our event together in just five weeks and pretty much entirely through Twitter.

Through the network I was able to connect with interested parties instantly and gather donations, funding and other support much quicker and in greater numbers than I would have been able to without Twitter. Here's a short film showing what we achieved:

Another key driver behind Twestival's success was charity: water's willingness to step back and let the volunteers get on with it. Too often, many socially driven organisations fall short by imposing excessive rules and bureaucracy on its supporters. By their very nature, social media communities are put off by such an attitude so it's important charities give them the space to innovate.

Another current initiative is doing just that. Launched at the South by South West festival currently taking place in Austin, Texas, organisation Epic Change, is encouraging people to tweet messages of good luck to friends and followers and at the same time raise money for schoolchildren in Tanzania. Here's the official TweetLuck video:

Twitter is increasing in popularity every day which opens up more opportunities for social organisations to be innovative. Yes, the recession means it's not going to be easy but rather than sit back and wait for the worst, charities and others need to get out there and embrace social media in all its forms and prove the doom mongers wrong.

10 online resources for social entrepreneurs

2009-02-18T12:23:00.000-08:00

What is it about lists?! Everybody loves 'em! That was certainly the case with my last blog update. My tips for the social entrepreneurs to follow on Twitter was easily my popular post so far so as you like lists so much, I'd thought I'd write another one! This time it's my favourite websites for social entrepreneurs.

Social Edge is a network for social entrepreneurs. Set up in June 2003 , it is sponsored by funding group the Skoll Foundation. Social Edge contains blogs on issues of relevance as well as a useful Wiki which can be edited by members. The site also organises regular webchats with well known social enterprise experts, all of which are archived.

Third Sector Forums is a newbie on the internet scene but is fastly establishing itself as one of the places to be for social entrepreneurs. Established only a few months ago, the site is building up a loyal following and all through word-of-mouth. Use the site to network and share ideas with other social entrepreneurs and those interested in charities, volunteering and non-profits.

Society Guardian, a major supporter of key events in the UK social enterprise calendar including the Social Enterprise Coalition's annual Voice conference, publishes excellent articles on current issues of interest to social entrepreneurs. As well as regular news stories, check out the section on the award winning Guardian website for blogs, video and image galleries.

UnltdWorld is a social network. Combine the best of Facebook, Twitter and LinkedIn, add an audience of social entrepreneurs and you've got UnltdWorld. Run by UnLtd, the UK social enterprise funding organisation, the site allows members to connect with others, search and share opportunities, find and list products and services, share and find answers to key questions and support inspiring projects.

Third Sector is the online version of the UK magazine of the same name. Packed with news, opinion and blogs of interest to charities, voluntary organisations and social enterprises, the site also publishes job vacancies, a supplier directory and an events diary.

Office of the Third Sector is the British government department responsible for social enterprise. We may not always agree with the politicians but at least the setting up of the department in 2006 represents recognition from the powers that be that social entrepreneurs play a massive role in the economy. Cabinet minister Liam Byrne recently pledged an even bigger role so keep an eye on this site for whether or not he keeps his promise.

Ashoka proves that social enterprise isn't a new phenomenon. Founded in 1980 by Bill Drayton, this remarkable organisation provides the resources to social entrepreneurs in deprived areas around the world to make a difference to their local communities. As well as details of the organisation's many projects, the Ashoka website includes lots of practical resources including podcasts and articles written by top experts.

Change.org is a social enterprise based in San Francisco. Serving as a central platform informing and empowering movements for social change around the world, this massive website has dedicated bloggers who post on specific issues including social entrepreneurship. Each week the site also features a selection of causes to which visitors can donate money.

Social Enterprise Coalition is the sector's representative body in the UK and as a British blogger I couldn't ignore it! Some areas of the SEC's website are only available to members but many resources can be accessed by all visitors. A key area of the organisation's work is its Social Enterprise Ambassadors.

Muhammad Yunus is seen as the father of social enterprise and very justifiably so. The Nobel Prize winner is most well known for setting up the Grameen Bank. Founded in the 1970s, it reversed conventional banking practice by giving credit to the poorest of the poor in rural Bangladesh without any collateral. The bank currently provides services to more than 99% of the villages in Bangladesh. If anyone can inspire budding social entrepreneurs, it's Muhammad Yunus and this website tells you all you need to know.

Tweet tweet! Social entrepreneurs to follow on Twitter

2009-01-05T13:29:00.000-08:00

If you make only one resolution for 2009, I'd advise to you do more tweeting!

If you're not aware of the phenomenon that is Twitter, then this video will explain. Basically the microblogging services allow users to share with their 'followers via posts or ' tweets' in just 140 characters their thoughts, experiences, rants and opinions.

Twitter has grown massively in popularity in recent years and social entrepreneurs and those interested in social enterprise are among them.

I've been using Twitter for a few months (you can follow me via @socialbusiness) and have found it hugely beneficial. As well as the selfish reason of promoting this blog I have also learnt lots from some amazing people.

There are thousands of individuals with a liking for social enterprise using Twitter and I couldn't possibly list them all but here are some of favourites:

@socialentrprnr - Nathaniel Whittemore, the founding director of the Center for Global Engagement at Northwestern University, tweets on behalf of the social entrepreneur channel of the excellent website for non-profits Change.org

@rogerhamilton - Based in Bali, Roger Hamilton updates his 1,000+ followers on his thoughts on social enterprise as chairman of the XL Results Foundation, described as the world's largest network for social entrepreneurs.

@AlbertoNardelli - Alberto Nardelli is CEO of UnltdWorld, the internet social network offshoot of social enterprise funding charity Unltd. Alberto was also key in last month's launch of @tweetminster which encourages MPs to use Twitter to communicate with their consistuents.

@socialactions - The combined feed of several representatives of SocialActions.com, the not-for-profit organisation based in Canada and the US which makes it easy for people to make a difference.

@childsi - Showing that the charity sector is flying in the face of its behind-the-times image, this feed is from new charity Child's i Foundation, set up to build a babies' home in Uganda. And it's not just Twitter; the charity's website is positively bursting with Web 2.0 tools!

@ThirdSectorLab - Ross McCulloch tweets on issues related to the third sector. He recently founded Third Sector Forums, the UK's first internet forums for non-profits, social enterprises and charities where you can also often find me!

@rosettathurman - While growing up in the housing projects of Cleveland, Ohio, Rosetta Thurman and her family were helped by the local community non-profits. Now a writer, fundraiser and leadership development consultant, she uses Twitter to encourage the next generation of individuals who will drive social change.

@endeavor_global - Elmira Bayrasli tweets as she travels around the world in her work for Endeavor which aims to transform the economies of the globe's emerging economies by identifying and supporting high-impact entrepreneurs.

Social entrepreneurs get their own forums

2008-11-25T13:43:00.000-08:00

Internet savvy entrepreneurs have plenty of options when it comes to business forums - not least UK Business Forums which I look after. Thousands of social entrepreneurs are among those that utilise these networks to interact and promote their products and services but there's never been a forum dedicated specifically to businesses driven by social aims rather than profit. Until now that is.

Third Sector Forums launched on 20 November, Social Enterprise Day. I'd heard about the forums ahead of the launch after reading founder Ross McCulloch's posts on UK Business Forums so I was quick to sign up. I'm not alone. Less than a week since it went live the site has attracted 42 members and what's more the registrations have resulted solely from word-of-mouth rather than formal marketing efforts.

Some interesting discussions have already taken place - Is this the end of chuggers? and the value of Facebook for the third sector among them.

Despite the site being in its infancy, the popularity of TSF shows there's a need for such a network. It's important for us with a interest in the third sector to unite to demonstrate to those who don't already know the value of working with us and the huge benefits we can bring to the UK economy.

If you're involved in some way in charities, social enterprises or volunteering I urge you to get involved. Not only are forums great for interacting and sharing ideas with people on the same wavelength but Google loves them so get that link in your signature and start promoting all the great work you're doing. I look forward to seeing you there!

Social enterprise goes mainstream

2008-11-20T11:32:00.000-08:00

If ever there was a day I had to post on this blog, it's today, Social Enterprise Day 2008. For the first time it's being celebrated all around the world which is fantastic.

Days like today are vital to get the word out about the benefits of social enterprise. It seems to be working with several of the mainstream press covering the event.

Speaking of mainstream I was delighted to be present at the National Business Awards earlier this week which as well as rewarding corporate and profit driven giants Rolls Royce and Diageo, handed out gongs to individuals who certainly don't have eyes full of pound signs.

Duncan Goose, founder of One Water, a bottled water company which ploughs all its profits into funding pump water system project in Africa took the entrepreneur of the year title and Harriet Lamb, executive director of The Fairtrade Foundation claimed the outstanding woman in business award.

The National Business Awards is a big deal. The likes of the Duke of Wessex and British Airways CEO Willie Walsh don't turn up to any old do but they were at the Grosvenor House Hotel on London's Park Lane on Tuesday night. But for me, mixing with royalty and business giants wasn't the highlight of the evening; it was the fact that socially focused organisations took some of the honours suggesting that at last social enterprise is beginning to be accepted as a legitimate business sector.

Yes, there are plenty of social enterprise-focused awards scheme but I think it makes more of a statement that a 'general' and mainstream initiatives includes them among its list of winners.

That's not to say social entrepreneurs should be complacent and believe there work is done. There's still a long way to go to convince everyone that social enterprise is the way forward.

I've spoken to many people about the sector and most respond 'don't you mean charities?' NO!! They're not charities; they're businesses. The difference is they make the world a better place.
Admittedly though it's not just public perception that needs to changes. Too many social entrepreneurs start up with a charity mindset and as a result spend too much time seeking grants.

Earlier this week, entrepreneur and social activist Robert Ashton sent me his thoughts on social enterprise. I agree with everything he said so I'll leave it to him to make the case for how the sector can go truly mainstream:

"One day all businesses will be social enterprises. But they will not be structured as they are now.

As public awareness of social responsibility grows so to will people's desire to do business with organisations that support the weaker members of our society. They will not compromise on quality, price or service. They will however positively discriminate in favour of the business that uses its resources in a positive and socially constructive way.

It is often easier to add value to your product or service by being supportive of others, rather than by increasing the specification to gain competitive advantage.

Too many of the people currently setting up social enterprises are starting with a charity mindset and background. This means their sole focus is the beneficiary group and they seek grants to subsidise their trading activity.

Tomorrow's social entrepreneur will focus on his or her marketplace, on satisfying existing and emerging market needs, whilst employing or supporting their beneficiary group."

Ethical business at first hand

2008-11-16T11:11:00.000-08:00

During my career as a business journalist, I've spoken to hundreds of entrepreneurs about the trials, tribulations and immense benefits of running your own business. But despite all the many articles I've written and words of wisdom I've learnt, I've never been directly involved with a new business - until now that is.

A few months ago, Lindsay Drabwell, a close friend of mine, revealed she was launching a new business and asked whether I could lend a hand. I was delighted to help and even more delighted to learn that Lindsay's isn't just any old business; it's a ethical business with eco-principles the basis of everything it does.

DaisychainBaby.co.uk is its name and it's the UK's newest purveyor of some of the finest ethically sourced, organic and Fairtrade baby products. But that's not where the ethics end.

Lindsay is committed to making an environmental difference and is applying her ethical principles throughout her business processes. DaisychainBaby's packaging is recyled as are the company's business cards. Even her web host is run on 100% renewable energy and Lindsay is also a member of Ethical Junction and 1% For The Planet.

I've been leading DaisychainBaby's PR efforts and despite the business being officially less than two weeks old, the press interest has been huge. Several websites have written about it including the Financial Times.

What my involvement in DaisychainBaby.co.uk has taught me is that not only is everything I've learnt about starting up during the past seven years true but, more importantly, setting up in business doesn't mean you have to compromise on your principles. In fact, it's the complete opposite.

I've always been pretty sure that ethical, social and environmental principles are the future of business but now that I'm involved with such a company I know it for definite.

The ethical 100

2008-10-20T13:30:00.001-07:00

I admit I'm a regular reader of the Sunday Times Rich List. Finding out how much Richard Branson has made this year, how near the top the Queen has made it and in what order the millionaire Dragons appear is hard to resist. However while their success cannot be questioned what about what they're doing to benefit society or help the environment?

On that note it's great to see the excellent Striding Out has launched a search for the Future 100, entrepreneurs aged 18-35 who are demonstrating entrepreneurial flair and innovation in progressing a responsible business venture.

I don't think I need to tell you that the people like Striding Out are seeking are the future of business. and for want of sounding cheesy, the future of the world.

A friend of mine, who fits into the Future 100 age range, is just about to embark on her first entrepreneurial adventure. I can't say too much at the moment but not only are her company's products ethical but she's striving to ensure her entire business processes follow the same principles. From renewable energy in her web hosting to recycled business cards, it's all about ethical values.

There's absolutely nothing wrong with making money but why not, like Striding Out say, balanace economic, environmental and social goals to achieve business success? The current economic crisis demonstrates that simply striving to make money no matter what can often end in disaster - or a least a credit crunch.

I can't get no satisfaction

2008-09-02T11:16:00.000-07:00

I read with interest the news this week that England's Regional Development Agencies will soon begin measuring the level of "satisfaction" among social entrepreneurs using its Business Link services.

Anyone who reads my website BusinessZone.co.uk will know I'm generally not a fan of Business Link. I've been writing for and about entrepreneurs for eight years and a consistent theme throughout that time has been dissatisfaction with the government's flagship business support network. Admittedly, efforts have been made to improve it but we're still waiting for just how ministers are going to untangle the mess of 3,000 confusing, criss-crossing support schemes into the promised 100.

It's good to see RDAs are recognising that social enterprises need assistance but how and by whom is that assistance being given?

When responsibility for social enterprise passed from the DTI to the Cabinet Office a few years ago, concern was expressed that RDAs might conclude that social enterprise was "always about social inclusion, not about business". Is that still the case? I don't have direct evidence that it isn't but I'm worried that it might be if the criticisms of the "mainstream" Business Link services are anything to go by.

Entrepreneurs consistently complain that Business Link advisors lack business experience and even when they do provide advice it's very much early days, start-up stuff and they lack any expertise to supporting business growth.

Social entrepreneurs aren't different to traditional business owners in many ways - they need finances, they have to invest in marketing and must keep employees engaged. But they are different in that they have the power to change society and overcome its ills. How many advisors have got experience of that? How many social entrepreneurs has Business Link consulted in putting together its social enterprise strategy?

No doubt, the RDAs' first social enterprise 'customer' survey will show massive satisfaction levels - those sort of things always do but that won't convince me that Business Link's problems have been solved. It must engage with social entrepreneurs where they already are, where they meet, network and solve problems amongst themselves.

A survey I'm currently running on UK Business Forums, the other website I look after, shows it's other business owners entrepreneurs turn to first for advice with government services a poor third place in the popularity stakes.

Business Link advisors may be able to tick more boxes on their evaluation forms now they're reaching out to social enterprise but the real question is are they giving social entrepreneurs the real, useful, practical advice they need to succeed?

The Secret Millionaire: Social enterprise in action

2008-08-28T11:05:00.000-07:00

As regular readers of my website BusinessZone.co.uk will know I've a big fan of business reality television. So much of a fan in fact that I've started a blog on the subject!

The posts so far have been dominated by Dragons' Den, which I love watching although the amount it teaches entrepreneurs about the realities of business is diminishing by the episode as the desire for Simon Cowell-style entertainment takes over.

But one show which entertains as well as teaches is Channel 4's The Secret Millionaire. For those who don't know, each week the programme features a rich entrepreneur who is sent undercover into a deprived area of the UK where he or see interacts with community projects and local people before handing over financial support.

The show has it critics with many find it uncomfortable viewing. I disagree. It's an hugely inspiring show and it demonstrates just how many social entrepreneurs - although many may not call themselves such - exist in the UK.

This week's episode was a case in point. Marketing millionaire Carl Hopkins was sent into the former thriving mining village of Easington which has been in steady decline since its pits closed in the 1980s leaving thousands unemployed and destroying a way of life which had existed for generations.

During his stay, Hopkins met Jimmy Egan and if Jimmy can't be called a social entrepreneur I don't know who can. The former miner bought a piece of land and developed it into a city farm. Encouraging kids off the streets and onto the land to take responsibility for rearing livestock and tending vegetables, he has transformed the area.

Like the very best social entrepreneurs Jimmy has thought out of the box. When his livelihood disappeared after the mines closed he didn't sit back and feel sorry for himself; he got out and did something. And rather than traditional public sector ways, he has taken a business like approach which has worked wonders.

Carl Hopkins, a man who has made millions getting people to buy stuff they don't really need, recognised his business acumen. "This is a man who knows his audience", he said. Exactly.

The UK is full of people like Jimmy but they just don't receive the plaudits like should. Things like The Secret Millionaire and this blog are aimed at putting that right but it's not enough. Embracing and recognising the people in our community who maybe don't even know they're are social entrepreneurs needs to happen. It will benefit us all.

Social enterprise and the Olympics

2008-08-08T12:56:00.000-07:00

Well, the Chinese certainly know how to put on a good show. Today's opening ceremony of the 29th Olympic Games in Beijing was spectular as China pulled out all the stops and staged an impressive event. The attention now moves to the sport and after what will no doubt be a memorable 16 days of achievements, the focus will then be on London which will stage the Olympics in 2012. But what role will social enterprises play?

Organisers keep going on about the Olympic legacy but it is vital that social enterprise is a big part of it. Some work is being done as the government has funded a national social enterprise Olympics partnership for 2012 led by Social Enterprise London.

The group has recognised that London has been handed the perfect opportunity to stage the most socially, environmentally and community beneficial Games ever. But it’s not just about busing in some school children to watch the fencing for free or recycling rubbish left behind behind by spectators; it is so much more than that.

London 2012 mustn’t be seen as big business money-making machines like Atlanta 1996 which was dubbed ‘The Coca-Cola Games’. Organisers have pledged to avoid it but as ever the proof will be in the pudding.

Key to the whole thing is the supplier tendering process. I’ve spoken to a lot of experts about what’s involved in securing a contract and many fear it is unfairly weighted in favour of large corporates which will come out the true winners. But it is vital this doesn't put social entrepreneurs off.

The Games give them the opportunity to take social enterprise into the mainstream. The sector suffers from a common misperception that it’s full of grant dependent charitable tree-huggers. But if hundreds, even thousands, of social enterprises can win Olympic contracts and be seen to not only be highly efficient, value for money business operations but also providing social and environmental benefits, than the sector will be hugely boosted.

So how social enterprises get involved?

When I heard Sir Tom Hunter speak earlier this year he said he was disappointed that more social enterprises don’t come together and form partnerships. Ten voices working towards are a cause are so much better than one and the Olympics provides the perfect opportunity to make Sir Tom happy.

Too often, entrepreneurs – even the social ones – are scared of partnering up with what they perceive as competitors but why? Afterall, we’re all in it for the same reasons so why not group together and pitch for a huge contract which on your own you couldn’t fulfil but together you can?

A report by SEL claims that appetite exists among big corporate businesses to collaborate with social enterprises. These firms have the muscle to win the big Olympic deals so social entrepreneurs should be offering their services. Of course, a major motivator for the big boys for going down such a route is making them look good in the eyes of customers but this shouldn’t stop social firms approaching them.

I’ll be following up with the London organisers to find out how many social enterprises have already won Games tenders and will report back. But whatever happens, let’s ensure social enterprise goes for gold and wins it in 2012.

Social enterprise defined

2008-08-04T11:46:00.000-07:00

Ask a group of people to define 'social enterprise' and you're likely to get different answers. I've experienced it myself on several ocassions. There's no one definition with social businesses meaning different things to different people.

The problem with that however means some individuals may set up what they call a social enterprise but might not been seen as so by others. Most importantly, investors may get confused which of course is bad for the sector as a whole, while at the same time entrepreneurs running organisations which actually could be classed as social enterprises may not see themselves as such and fail to attract relevant investment.

With all this in mind, I was pleased to spot an attempt at clarity. A report by Venturesome, the social investment fund established by the Charities Aid Foundation, puts forward what it says are three models for social enterprises:

Model 1: Enterprises operating a profit making trading activity that has no direct social impact, but they give some or all of their profit to a charity. Examples: trading subsidiaries of charities like Save The Children’s Christmas card business and companies which promise to give a percentage of their profits to charitable projects such as Belu water.

Model 2: Enterprises operating trading activities that have a direct social impact but manage a trade-off between producing a financial return and social impact. Examples: fair trade businesses like Cafédirect, microfinance funds, such as The Grameen Bank. Test question: can you increase the social impact of the firm by decreasing financial returns? If the answer is ‘yes’, then the organisation is a model 2 organisation.

Model 3: Enterprises engaging in a trading activity that has a direct social impact but also generates a financial return in direct correlation to the social impact created. Examples: Windfarms, FareShare 1st, farmers’ markets. Test question: Can you increase the social impact of the firm by decreasing the financial returns? If the answer is ‘no’ then the organisation is a model 3.

Venturesome also calls for a rethink about how social investors chose to invest. Many, it says, are beginning to recognise that economic forces can shape social problems such as market forces, misalignment of price incentives etc. As a result, the report claims, they should use a calculation of risk and reward which is different to purely commercial investors.

As Venturesome says the report should be used to provoke a debate in the sector. The issue wasn't so important a few years ago but with new social enterprises being set up every day as new social entrepreneurs enter the market it is important to nail exactly what they are doing and what they want to achieve.

It should also provoke government ministers into better supporting the sector. In particular, in my view, the Community Interest Company initiative needs to be reviewed. The excellent Nigel Kershaw of Big Issue Invest made a renewed plea this week for the kind of tax breaks enjoyed by traditional investors to be made available to those backing social enterprises. I couldn't agree more. At the same time, the dividend cap on CICs needs to be reviewed because, as I've heard from several social entrepreneurs, it is proving a dis-incentive to investors.

Let the debate begin!

Striding out for success

2008-07-30T13:02:00.000-07:00

It's always great to discover something new especially when that something is making a real difference. Last night, I was introduced to Striding Out, the community interest company which supports young entrepreneurs.

The organisation has been around for a few years and I really wish I'd discovered them earlier! The people behind it are a truly inspiring bunch, no-one more so than Heather Wilkinson, the founder and managing director. I managed to grab a few words with Heather over a beer at London's new Club4Climate, Britain's first eco-nightclub.

Heather has been involved in social enterprise for eight years so is well qualified for all the services Striding Out provides. She has some interesting views on the sector and unfortunately we didn't get a chance to debate them in depth but it's something I hope to do in the future.

Heather works with many of the UK's social enterprise ambassadors and one of them, Liam Black, who founded Fifteen with Jamie Oliver, gives her a glowing reference: "Passionate. Sharp. Highly professional. We need more like her!" Here, here!

I met a couple of Striding Out's coaches who exude the same energy as the organisation's boss. I come across a lot of business advisors, coaches and mentors in my line of work - both from the public and private sector - but those I met last night appeared so much more committed, so much more passionate and so much more determined to boost enterprise in all its forms. It says something about traditional business support services I think. When entrepreneurs support entrepreneurs, the best results are achieved.

I've got my own ideas for businesses but I was disappointed to spot that at 32 I am too old to use Striding Out's services. Fortunately, Branching Out, a spin off group for us over 30s exists. I'll certainly be taking advantage of that one!

Unrepresented? Become a social entrepreneur

2008-07-29T07:15:00.000-07:00

Government and opposition ministers alike continually bark on about supporting unrepresented groups such as women and ethnic minorities in getting involved in enterprise but often their actions don't seem to back up their words. Alistair Darling for instance in his budget earlier this year focused on boosting female entrepreneurship - great - but announced the governnment is investing a paltry £10m to do it. A tiny amount in the scheme of things.

As a result, it seems these unrepresented groups are taking their backs on the authorities' limited efforts and doing it for themselves. Happily, given the subject of this blog, it's social entrepreneurship they are turning to.

New research from the excellent Social Enterprise Coalition shows black, Asian and minority ethnic communities have higher levels of social entrepreneurship than their white companies. In addition, while women are only half as likely as men to be mainstream entrepreneurs, they are equally or more likely than men to be social entrepreneurs, the report revealed.

The findings demonstrate the power of social enterprise and its ability to allow individuals who have struggled to get on the business ladder using traditional methods are able to do so by setting up a company which benefits society.

It is this which ministers should be focusing on. If they really want to promote entrepreneurship among all, boost the way social enterprise is supported and developed. As Jonathan Bland, chief executive of the Social Enterprise Coalition, said: "This data shows the prevalence of social entrepreneurship across the population and re-affirms that social enterprise is a sustainable business model essential not only for positive social change, but for the UK's economy."

A billion reasons to listen

2008-07-26T06:23:00.000-07:00

Ok, I know this post is a couple of few months late but good things come to those who wait! Since my last blog, life in my day job running BusinessZone.co.uk has been pretty hectic. We got involved in the Bristol Design Festival and ended up running a hugely successful Dragons' Den-style competition called The Pitch. More about that another time.

In this post I fulfil my promise of outlining my experiences at Good Deals, the UK's first conference focusing on financial investment in social enterprises.

The highlight by far was the keynote address by entrepreneur Sir Tom Hunter. It's not often I'm in the presence of someone who's worth £1.05bn so I made sure I paid attention!

Listening to his speech, I was struck that the 47-year-old Scot doesn't look like someone who's worth an amount of money I can't even imagine; he's wasn't dripping in bling, he didn't ooze arrogance and he wasn't tracked by a string of staff tending to his every need.

That's not saying he's not hugely confident and he must have a strong element of ruthlessness to reach the sort of heights that he has but despite all that his main passion in life is clear; he wants to give his money away.

He is already well on the way to doing it. Among the millions donated through the Hunter Foundation he set up with his wife in 1998 are £6m to Band Aid, £1m to Make Poverty History and £1m to Children in Need.

All very impressive but that's easy to do you may say for a man who founded the Sports Division chain and sold it on for £290m. However, entrepreneurs running businesses of all sizes have a lot to learn from Sir Tom.

He believes that those who make money have a duty to give something back. The words of Vartan Gregorian, president of the Carnegie Corporation of New York and a trustee of the Hunter Foundation, were key in sparking him into action. "If you're lucky enough to amass a great wealth, to die with it is a great waste," he told him.

Philantrophy in some circles is a dirty word - it's seen as the super rich writing cheques which while they benefit the causes are really aimed at boosting the public profile of the donor.
Sir Tom is different. He views his giving like a business transaction.

"Treat every philantrophic investment as you would a business investment", he explains. In business you want a return on investment so why should the same not be true for charitable donations?

If your only contact with a cause, campaign or scheme is handing over a cheque how do you know whether it has done any good? How do you know whether the cash has been used wisely and invested where it should be?

Leverage your money, Sir Tom advises. He explains that he takes the flack if an initiative he sets up fails but if it works, it's up to local authorities to take it on. "We are no substitute to the taxpayer," he proclaims.

Sir Tom also believes that it's vitally important key performance indicators are set for any community giving an entrepreneur undertakes. If it's not working, stop, he stresses; there are plenty of other good places where your money could be going.

Finally, one of the billionaire's biggest bugbears is there is not enough collaboration going on. "In the third sector, there are lots of people doing the same thing. In the traditional business world, if that was happening, we'd consolidate it and make sure everyone who should be is benefiting."

A hugely inspirational speech from an hugely inspirational man. Yes, he can afford to say it, of course he can, but put that out of your mind. There are immense problems in local communities all around the UK that aren't being solved using traditional charitable or public sector techniques.

Entrepreneurs hold the answer by approaching the issues with a business-like attitude. Being ruthless enough to halt projects when they're not working, setting people difficult targets and investing money where it should be invested will go a long way to overcoming society's ills.

So next time you write a cheque for the local church appeal or to fund a Scout group's new minibus, think about how you could actually do more. How could you get involved directly so you know exactly where the money's going and who it's helping. If it's not finance you provide, what about giving your time, your contacts, your experience?

You may not have billions to give away like Sir Tom but if every entrepreneur gave something, the world would certainly be a better place.

Deals that make a difference

2008-05-05T13:04:00.000-07:00

I'm off to Good Deals tomorrow. The conference, organised by the Office of the Third Sector in partnership with NESTA, is the first to focus on financial investment in social enterprise. About time too!

Like social entrepreneurs themselves who are using previously unexplored ways to solve social and environmental problems, investors are recognising that they too can make a difference by structuring investment platforms in such a way that society will benefit.

The event features some interesting speakers particularly Sir Tom Hunter, who will be giving the keynote address, and Liam Black, board advisor to Jamie Oliver's Fifteen Foundation and the conference chair. Real life pitches are also planned with social entrepreneurs including Divine Chocolate's Sophie Tranchell set to face the 'dragons' live on stage.

The conference is set to show that the main ambition for thousands of entrepreneurs is not making millions to fund their retirement in the south of France; it's doing good to benefit local, national and global communities.

There have been several high profile social enterprise conferences over recent years which demonstrate the rising interest in the sector. But we need more to show these type of firms are the future of business. Good Deals goes a huge way to putting that right.

I'll post my experiences on the conference later in the week.

Social enterprise: Serious business

2008-04-19T14:29:00.000-07:00

This blog celebrates the UK's most exciting, dynamic and inspiring business sector: social enterprises.

Social enterprises are businesses which devote all or a large part of their profits to social or environmental causes.

And before you say it, they're not charities! They are businesses through and through; run by drven and ambitious entrepreneurs who are using business principles to make a difference.

As a small business journalist, I've met and interviewed many entrepreneurs but time and time again it's the social entrepreneurs that inspire me the most. So much so, that I'm currently planning my own social enterprise. I've been thinking about it for a while but what convinced me to actually turn my idea into reality was my attendance at Voice 08, the annual conference of the Social Enterprise Coalition in Liverpool earlier this year.

Around 1,000 delegates were at an event which oozed energy. "Nothing can hold us back", proclaimed the coalition's CEO Jonathan Bland as he wound up day one of the conference. "We are here to harness the power of the market to create the social and environmental change our world needs," he continued. An over the top statement from a tree hugging hippy you may think but I beg to differ.

They are not tree huggers, they are not even charities but what they are are businesses. Proper companies who care about making money, who want to make a profit. The difference is the revenue raised doesn't go to faceless shareholders; it benefits society. The UK is currently home to 55,000 social enterprises turning over a collective £27bn and employing 500,000 people. Think they're tree huggers now?

In the past, the call to bring about community and environmental change has been driven by the public demand for ethical products. But now it's businesses which are driving the revolution. Social enterprises aren't new; firms have been doing it successfully for years - The Big Issue, Cafe Direct and Divine Chocolate to name a few. That record looks set to continue. Can 1,000 people at a single conference in Liverpool be wrong?

You may accuse me of overstating the situation but I'm happy to argue my point. Social enterprises are reinventing the rules of business and competing in mature markets with corporates that have been playing the game for years. That trend combined with the public's ever increasing desire for ethics and transparency from the companies they deal with, means that far from being the exception, social enterprises are likely to one day become the norm.