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Business Development Standards

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Business Development Standards ...

Social Enterprise Support Standards Draft Version 3

    Social Enterprise Support Standards

    S1 Social enterprise knowledge and understanding of key areas

S2 Identify opportunities to start social enterprises

    S3 Help to start social enterprises

    S4 Help social enterprises to survive in the long-term

    ? Social Enterprise Partnership GB Ltd & SFEDI July 2004 1

Social Enterprise Support Standards Draft Version 3

    Knowledge and understanding of key areas of business

S1 Social enterprise

    You should have sufficient knowledge to understand the core values underpinning social enterprise and how you can work most effectively with social enterprises.

    You will be expected to know and understand the following.

    1 The meaning of the term “social enterprise” when used by government and

    agencies which promote social enterprise. 2 The core values underpinning social enterprise.

    3 What circumstances may lead to a social enterprise being started. 4 The similarities and differences between social enterprises and other

    organisations including:

    ? private businesses;

    ? charities;

    ? voluntary organisations; and

    ? community groups.

    5 The similarities and differences between different types of social enterprise

    including:

    ? social objectives;

    ? management structures; and

    ? who is involved with making decisions. 6 How to link social objectives to commercial objectives and include them in

    a business plan.

    7 What issues voluntary sector organisations that wish to become social

    enterprises might face.

    8 The legal formats and structures used by social enterprises.

    9 What start-up capital is available for social enterprises.

    10 How income in social enterprises is handled and the issues involved in

    mixing trade income with grants, donations, volunteers and so on.

    11 What specialist support is available for social enterprises locally, regionally

    and nationally, and how this specialist support links together. ? Social Enterprise Partnership GB Ltd & SFEDI July 2004 2

Social Enterprise Support Standards Draft Version 3

    S2 Identify opportunities to start social enterprises

Summary

What this is about

This is about identifying opportunities to start social enterprises. It involves:

    o identifying individuals and organisations that might want to be involved;

    o encouraging them to work together;

    o researching what might affect the potential social enterprise;

    o developing a proposal which describes the potential social enterprise;

    and

    o making sure the potential social enterprise is likely to succeed.

Deciding if you need this

You need to do this if you are:

    o exploring the options for setting up a social enterprise; or

    o advising a potential social enterprise about possible options.

The main topics

When you Identify opportunities to start social enterprises you will need to do

    the following.

S2.1 Identify opportunities and recruit stakeholders

    S2.2 Work with teams, networks and steering groups

    S2.3 Decide on the likely success of proposals

? Social Enterprise Partnership GB Ltd & SFEDI July 2004 3

Social Enterprise Support Standards Draft Version 3

    S2.1 Identify opportunities and recruit stakeholders

What you need to do

    You must make sure that you can do the following.

    a Identify and research opportunities to create social enterprises. b Identify which individuals and organisations (stakeholders) are most likely

    to be interested in a potential social enterprise. c Analyse information about trends that affect potential stakeholders. d Tell potential stakeholders about potential social enterprise concepts and

    opportunities.

    e Get potential stakeholders to confirm they will be involved.

What you need to know and understand

    You need to know and understand the following.

    1 How to find out about the range and type of social enterprises already

    operating in your area.

    2 Where to get information about social enterprise.

    3 The size, composition and key characteristics of the voluntary, community

    and charity sector in your locality. 4 The social enterprise policies and objectives of the public sector

    organisations that operate in your area that might become stakeholders.

    5 How to involve potential stakeholders in the search for social enterprise

    opportunities.

    6 What external trends might affect potential stakeholders. These might be

    political, economic, social, technological, legal or environmental.

    7 What conditions encourage individuals and organisations to consider

    starting a social enterprise.

    8 How to present information and answer queries to gain understanding and

    commitment.

    ? Social Enterprise Partnership GB Ltd & SFEDI July 2004 4

Social Enterprise Support Standards Draft Version 3

    S2.2 Work with teams, networks and steering groups

What you need to do

    You must make sure that you can do the following.

    a Encourage potential stakeholders to set-up teams, networks and steering

    groups to take the social enterprise idea forward. b Develop agreements with teams, networks and steering groups to

    establish a social enterprise. c Help teams, networks and steering groups to develop an outline proposal

    to start a social enterprise. d Help teams, networks and steering groups decide what type of social

    enterprise would best suit their purpose. e Help teams, networks and steering groups find out what funding or

    resources are available to help the potential social enterprise.

    f Help teams, networks and steering groups identify all the main

    stakeholders in the potential social enterprise. g Help teams, networks and steering groups develop the skills and

    knowledge they need.

What you need to know and understand

    You need to know and understand the following -

    1 How to get the most out of new teams.

    2 How the national standards for Business Start Up can help individuals and

    organisations to start a social enterprise. 3 What learning and development opportunities are available to improve

    their skills and knowledge.

    4 What strengths, weaknesses, opportunities and threats for the proposed

    social enterprise need to be thought about. 5 How to encourage people and organisations to be as open as possible

    when giving their views.

    6 How to resolve conflicting views from different individuals and

    organisations.

    7 The social enterprise policies and objectives of the public sector

    organisations that operate in your area that might become stakeholders.

? Social Enterprise Partnership GB Ltd & SFEDI July 2004 5

Social Enterprise Support Standards Draft Version 3

    S2.3 Decide on the likely success of proposals

What you need to do

    You must make sure that you can do the following.

    a Identify what and how the social enterprise might trade.

    b Make sure that trading plans agree with the purpose, resources and

    capabilities of the proposed social enterprise. c Identify who the target customers or service users would be. d Help prepare outline proposals to start a social enterprise. e Help to find out about the sectors that the proposed social enterprise might

    trade in.

    f Provide links to sector specialists when necessary.

    g Help to test the likely success of an outline proposal.

    h Help to decide if the proposed social enterprise will be successful.

What you need to know and understand

    You need to know and understand the following.

    1 What might affect the success or failure of the proposed social enterprise. 2 How to arrange contact with social enterprises who trade in the same way

    as the proposed social enterprise. 3 How to identify which businesses the proposed social enterprise might be

    in competition with, and how this might affect the social enterprise.

    4 Where to find business intelligence for feasibility studies.

    5 What support is available for people starting social enterprises and how

    this might affect the likely success of their proposals. 6 The main sources of competitive advantage for social enterprises.

? Social Enterprise Partnership GB Ltd & SFEDI July 2004 6

Social Enterprise Support Standards Draft Version 3

S3 Help clients to start social enterprises

Summary

What this is about

This is about helping clients to start social enterprises. It involves:

    o deciding the purpose, values, principles and objectives of the potential

    social enterprise

    o deciding on the right legal structures and set up for the social

    enterprise;

    o deciding how the social enterprise will be structured and run; and

    o developing a social enterprise business plan.

Deciding if you need this

You need to do this if you are:

    o leading a team to start a social enterprise; or

    o advising a potential social enterprise about start up.

The main topics

When you help clients to start a social enterprise you will need to do the

    following.

    S3.1 Help clients decide their purpose and objectives

    S3.2 Help clients decide on organisational and legal structures

    S3.3 Help clients develop a social enterprise business plan

? Social Enterprise Partnership GB Ltd & SFEDI July 2004 7

Social Enterprise Support Standards Draft Version 3

    S3.1 Help clients decide on purpose and objectives

What you need to do

    You must make sure that you can do the following.

    a Help clients to develop as a business-focused team which is committed to

    starting a social enterprise.

    b Help clients to prepare a statement of the purpose, values and principles

    of their social enterprise.

    c Help clients decide on their rights, responsibilities, risks and rewards as

    business people and founders of the social enterprise. d Help clients decide on their commercial and social objectives for the short

    and medium term.

    e Help clients identify and resolve any potential conflicts between their

    commercial and social objectives. f Help clients to decide what they will do with any profits the enterprise

    makes.

What you need to know and understand

    You need to know and understand the following.

    1 What values and principles are held by a range of different types of social

    enterprise.

    2 What is a charitable purpose.

    3 How to encourage teams to improve their skills and knowledge and the

    way they work with each other.

    4 How to help teams to resolve conflicts between team members. 5 What ownership and control rights are given to people starting social

    enterprises, and how they are rewarded for their work in starting the

    enterprise.

    6 How different types of social enterprise treat profits and how this affects

    investment and funding.

    7 The main reasons why social and commercial objectives may be in conflict

    with each other.

? Social Enterprise Partnership GB Ltd & SFEDI July 2004 8

Social Enterprise Support Standards Draft Version 3

    S3.2 Help clients decide on organisational and legal structures

What you need to do

    You must make sure that you can do the following.

    a Help clients to choose which organisational and legal structures will best

    suit their social enterprise.

    b Help clients decide whether they should set up their social enterprise as a

    legal company.

    c Help clients decide if they should seek charitable status for their social

    enterprise.

    d Help clients decide if they will have members and what their membership

    criteria will be.

    e Help clients decide what ownership and control rights will be given to

    stakeholders.

    f Help clients decide how the social enterprise will be managed and run. g Help clients to get specialist support to set up their enterprise as a legal

    entity.

What you need to know and understand

    You need to know and understand the following.

    1 The reasons for developing complex legal and organisational structures

    involving subsidiaries, holding companies or trading arms. 2 The relationship between the legal format of the enterprise and how the

    enterprise can be financed.

    3 Where clients can get specialist legal advice on social enterprise

    structures.

    4 The reasons for setting up a social enterprise as a legal company. 5 The comparative advantages and disadvantages of registering a social

    enterprise under the Companies Acts or the Industrial and Provident

    Society Acts.

    6 The organisational and legal criteria for membership of national

    promotional bodies such as Co-operatives UK, the Development Trusts

    Association and Social Firms UK 7 The advantages and disadvantages of charitable status.

    8 The different types of stakeholder social enterprises need. 9 The advantages and disadvantages of different management structures

    and decision-making processes. ? Social Enterprise Partnership GB Ltd & SFEDI July 2004 9

Social Enterprise Support Standards Draft Version 3

    S3.3 Help clients develop a social enterprise business plan

    What you need to do

    You must make sure that you can do the following.

    a Help clients identify what should be in their social enterprise business plan

    and how they will structure it.

    b Help the client to identify any sources of specialist help they may need and

    where to get it from.

    c Help clients pull together all the information they need for their social

    enterprise business plan.

    d Advise clients on how to find suitable premises.

    e Help clients identify the most appropriate sources of investment capital for

    their social enterprise.

    f Help clients present their plans to funders, investors and other potential

    stakeholders.

    g Assist clients in getting start-up capital for their enterprise.

    h Help clients devise an operational plan, job descriptions and recruitment

    strategy.

What you need to know and understand

    You need to know and understand the following.

    1 The main components of a social enterprise business plan. These include:

    ? a description of the social enterprise and its objectives;

    ? a description of the main products and services and how they will be

    sold;

    ? a description of any marketing activity that will be needed;

    ? an estimate of the start up costs and working capital required;

    ? forecasts of the income, expenditure, cash flow and profitability; and

    ? the physical resources, premises and staff or volunteers that will be

    needed.

    2 How to find out about the sources and types of finance available for the

    social enterprise when starting up. These might include grants, loans and

    equity.

    3 Who your clients are writing their business plan for, and how this will

    influence its content.

    4 How to put together and present information in a business plan, including

    the use of summaries and appendices

    ? Social Enterprise Partnership GB Ltd & SFEDI July 2004 10 5 Where to get information about suitable premises.

    6 What business planning tools and training courses are available to your

    clients.

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