Presented by Brian Hurd Rise Technical Assistance Program Manager August 22 2014 Rises Mission Work in partnership with communitybased and other organizations to redevelop and strengthen neighborhoods and communities ID: 644990
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Social EnterpriseAdvancing Sustainable Community DevelopmentPresented by Brian Hurd, Rise Technical Assistance Program Manager
August 22, 2014Slide2
Rise’s MissionWork in partnership with community-based and other organizations to redevelop and strengthen neighborhoods and communities. Slide3
PRESENTERS & SPEAKERSExploring the Relationship Between Social Enterprise & Sustainable Community Development - Brian Hurd (Rise, Technical Assistance Program Manager)
Jubilee Services - Jeffrey Holtzman and Thomas Maxwell (Jubilee Christian Development Corp.)
Sweet
Sensations, Inc. - Phil Minden (Sterling Bank, Vice President)
Employment
Legal Issues - Dana Malkus (Saint Louis University Assistant Law Professor & Supervisor of
Community and Economic Development
at Saint Louis University Law Clinic)
Angel Baked Cookies – Father Gary Meier (North Grand Neighborhood Services)
Sweet Potato Project – Sylvester Brown (North Area Community Development Corp.)
Social
Enterprise Business Development - Matt Nordmann (Director of Community Development for IFF, Inc.)
Socially
Responsible Investment Causes - Jake Barnett and Daniel Conner (Morgan Stanley & Company, Inc.)Slide4
PurposeExamine entrepreneurship and enterprise generation as a key
foundation of
sustainable community development of both economic and social
capital in
urban core communities, as well as individual self‐sufficiency
and community
empowerment.
Explore of entrepreneurship
with an imperative to drive social change and
build sustainable
ventures.Slide5
GROUP TRAINING SEMINAR OBJECTIVESUnderstanding the role of enterprise development in poverty reduction
Identifying
key elements to designing a successful social
venture
Analyzing
social entrepreneurship in the context of developing s
ustainable businesses
Networking
with resource organizations for social enterprise development projectsSlide6
Social enterprise and sustainable community developmentBrian Hurd
Technical Assistance Program ManagerSlide7
SOCIAL ENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENTWhat do we mean by the term “Sustainable Community Development”?
The process by which public
, private, and community based stakeholders
work
to meet the needs of current and future generations. It does so in a manner that meets
e
conomic
,
environmental
and
social
needs as mutually supportive outcomes; reflects the community’s unique history and assets; and evolves as the character of the community changes, priorities shift, and new challenges and aspirations are defined
. -
American Planning AssociationSlide8
SOCIAL ENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENTNexus of Social Enterprise and Sustainable Community Development – Ex.
Environmental Issues
-
Approx. 30% of waste in landfills is organic waste creating green house emissions as it is biodegrading (and leads to groundwater problems).
U.S. wastes 40% of edible food.
Recycling Opportunities
–
Composting
Renewable energySlide9
SOCIAL ENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENTWhat is a Social Enterprise?
An entity that applies commercial strategies and business-like activities to maximize improvements in the common good rather than maximizing profits for shareholders and owners.
Characteristics
–
Social
enterprises are distinctive because their
purpose
is absolutely central to what they do - their profits are reinvested to sustain and further their mission for positive change
.
What makes
a social enterprise
different from
commercial
enterprises is that it places a firm emphasis on tackling social problems. This positive impact is as important to its business objective as any financial bottom line.Slide10
SOCIAL ENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENT
Social
Enterprise
Commercial
Enterprise
Motives
Appeal to common good
Appeal to self-interest
Methods
Mission-driven
Market-driven
Goals
Social value
creation
Economic value creation
Destination of Income/Profit
Directed toward
mission activities
Distributed to shareholders and ownersSlide11
SOCIAL ENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENTSocial enterprises are motivated by the social value more than the financial return on
investment.Slide12
SOCIAL ENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENTSlide13
SOCIAL ENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENTSocial enterprises can be structured as:
a
not-for-profit
that carries on activities to generate revenue (ex. Hamilton Heights Neighborhood Organization, Inc. management of its properties)
a
business
with
specific community-based objectives
(ex. DeSales Community Housing Corporation’s
affiliate
Fox Grove Management, Inc.)
a
program
or
venture
that fulfills a social purpose (ex. Riverview West Florissant Development Corporation’s Neighborhood Beautification and Summer Youth Employment Program)Slide14
SOCIAL ENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENTSocial enterprise
leverage
Produce
direct, measurable public benefits. A classic employment-focused social enterprise, for example, might serve at least four public aims:
Fiscal
responsibility
— It
can reduce
the
various
costs of public
support
for people facing barriers, by providing a pathway to economic self-sufficiency for those it
employs.
Public
safety
— It
can make the community in which it operates safer, by disrupting cycles of poverty, crime, incarceration, chemical dependency and homelessness.
Economic opportunity
— It
can improve the
pool of human capital
to create
jobs in communities in need of economic
renewal.
Social
justice
— It
can provide
a chance
for
those most in need.Slide15
SOCIAL ENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENTSocial enterprise
leverage –
National Example
Clean Street Team (CST) Cleaning Services, a social enterprise employment and training program offered by the Atlanta Center for Self Sufficiency (
ACSS)
A
full-service nonprofit that provides professional cleaning services, street maintenance and beautification.
Their mission is
to provide businesses with a socially responsible alternative to other commercial janitorial cleaning service companies.
Organization engages
homeless men and women, many of whom are military veterans, to work on various commercial cleaning and beautification projects throughout metro Atlanta.
Clients
include
Georgia Governor’s mansion, City
of Atlanta, Inman Park Neighborhood Association,
MARTA (transportation),
Southstar
CDC and
others.
CST
members receive weekly stipends and attend semi-weekly employment readiness workshops while actively seeking full-time employment and remaining drug-free. Eighty percent of
participants
transition to full-time employment within 12 months.Slide16
SOCIAL ENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENT
THREE REASONS FOR STARTING A SOCIAL ENTERPRISE?
A Sustainable Community Development Perspective
To meet a
need in the community
or local market not met through traditional business models
Advance or achieve a specific
social mission
For a non-profit organization, contribute to its
financial sustainabilitySlide17
SOCIAL ENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENT
NEED IN THE COMMUNITYSlide18
SOCIAL ENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENT
ADVANCING SOCIAL CHANGE
The City of St. Louis’ Sustainability
Mission
Statement:
Harness
the strength and spirit of its diverse
community to
create an economically, socially and ecologically vibrant
City for
present and future generations
-- one
that dynamically serves those who live, work, and
play in
the City’s rich and celebrated historic landscape. Slide19
SOCIALENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENT
FINANCIAL SUSTAINABILITY
Social enterprise is a means to achieve sustainability through earned
income, which leads to:
Income Diversification
- Reducing
the need for
grants and government funding sources;
Financial Self-Sufficiency
- Providing
a more reliable, diversified funding base;
or
Cost Savings and Resource Maximization
- Enhancing
the quality of
programmatic services and reducing administrative costsSlide20
SOCIAL ENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENTPLANNING A SOCIAL ENTERPRISE, FIVE KEY STEPS
A Sustainable Community Development Perspective
Evaluate Legal Context of Steps 1- 5 Slide21
SOCIALENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENT
HUD Appropriations
FY 2010 – 2013
FEASIBILITY & FINANCIAL SUSTAINABILITY –
GOVERNMENT FUNDING TRENDSlide22
MEASURING SUCCESSOUTCOMES: ACTIVITIES VS RESULTS
Conducting an activity
is NOT the same as achieving desired results – although both are important
Studying
(activity) for
five
hours (output)
is NOT the same as understanding a subject (outcome) well enough to pass a test (measure
)
Outcomes should be related to the initial needs identifiedSlide23
A BASIC LOGIC MODEL
Activities
Outputs
Outcomes
(Results that can be measured) -- Did you implement your planned activities? How many persons, households, or housing units did you serve? Were you efficient?
Changes to systems
-
=
IMPACT
Economic, Environmental
and Social
What are you planning to do? What are the social enterprise venture’s primary activities?
Inputs
What resources do you have to bring to a social enterprise activity? Financial resources, staff capacity, etc.?
What would
have happened anyway?Slide24
SOCIAL ENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENTBasic Logic Model - Local Case Study
Riverview West Florissant Development Corp. (RWFDC) is a 501(c
) 3
organization with the mission of undertaking
community development activities
that include
housing,
neighborhood
improvement
along with and
economic development in the targeted
communities
of Baden, College Hill, Near North Riverfront, North Riverfront,
O'Fallon
, Walnut Park East, Walnut Park West
, and
North
Pointe. RWFDC’s Neighborhood Beautification Program was launched in 2009 based on the organization’s five-year organizational strategic plan adopted in 2006. The strategic planning process was facilitated by Rise.
Overarching purpose for RWFDC’s Neighborhood Beautification Program include:
Working with residents by providing lawn
care maintenance (grass cutting, light painting, exterior cosmetics of property)
to ensure an attractive and aesthetically pleasing community in addition to encouraging responsible property upkeep by working with homeowners and other property owners
Creating
summer employment
opportunities each year for approximately 50-75 youth in addition to hiring adult non-violent ex-offenders to serve as supervisors and mentorsSlide25
A BASIC LOGIC MODEL
Activities
Outputs
Outcomes
50 youth hired during summer (# of jobs created in the nine neighborhoods)
100 yards serviced per week
Increased employment of those previously unemployed
Obtaining jobs the following summer (transferability)
Opening and retaining bank
ccounts
/increased financial literacy
Graduation rates
Y
outh-related crimes & recidivism rates
Reduced code violations
Reduced mowing costs for City’s Forestry Dept.
And more
Neighborhood beautification services (landscaping, lawn maintenance, and light exterior painting)
Inputs
$120,000 (
$100,000 CDBG + $20,000 Rise Collaborative Grant); existing staff person expanded duties; set-up data employment management and tracking system; business, insurance, and background check requirements, etc.
RWFDC Neighborhood Beautification Program Slide26
A BASIC LOGIC MODEL
Inputs
$120,000
$100,000 CDBG + $20,000 Rise Collaborative Grant
; existing staff person expanded duties; set-up data employment management and tracking system; business and insurance requirements, etc.
RWFDC Neighborhood Beautification Program (Adjusting business model based on funding change)