and tools for innovation being used across the world and across different sectors the public and private sectors, civil society and the household in the overlapping fields of the social economy, social entrepreneurship and social enterprise.
We show that many innovations take shape within organisations public agencies, social enterprises, mutuals, co-ops, charities, companies as well as loose associations.
perhaps linking some commissioners in the public sector, providers in social enterprises, advocates in social movements,
and identifying income streams to ensure the long term financial sustainability of the firm, social enterprise or charity,
Examples of successful projects include setting up social enterprises, and lowering hand straps in the Metros for shorter passengers. 57) Video booths to capture the views and ideas of the public.
Famous US examples include Brookings and the American Enterprise Institute. The most visible tend to focus on policy innovation.
like the Singapore Prime minister's Enterprise Fund, or the UK's Invest to Save Budget.
'or more like corporate venturing units whose primary target is the number of spin-off enterprises created. 98) Paying for time.
For social enterprises, the business model represents a strategy for sustainability. It needs to be simple, persuasive and striking,
as well as leisure trusts and social enterprises running public leisure facilities. There are now 109 such leisure mutuals 4 66 THE OPEN BOOK OF SOCIAL INNOVATION with a combined annual turnover of £640 million.
This is a new legal status for social enterprises, and is similar to charitable status. CIC status enables social ventures to access equity investment
while maintaining the social goals of the enterprise as paramount. They do this by having a lock on assets and a cap on dividends,
which partially insulates the enterprise from the private market's imperative for profit maximisation and capital growth.
when the enterprise goes through difficult times. 119) Boards are one of the key design features of any organisation.
For social ventures it is key that the sources of finance should share the venture's social goals as the primary driver of the enterprise.
enterprises can raise social equity, limit the quantity of common shares, and seek subordinated loans from sources ready to share early risk without demanding a counterbalancing share in the project's equity. 145) Grant funding is provided sometimes to grow social ventures.
Loan provision for social projects is now a reasonably mature industry in many countries with typical unit scales from £25k-£500k. 4 SUSTAINING 79 147) Equity is likely to be invested into both creating and growing enterprises,
and supporting spin outs from the public sector. It can be used for various kinds of social enterprises as well as for-profits.
when the enterprise has proved itself, and risks are reduced. They sometimes have an advantage over venture capital funding in that they can tap investors who want to make social impact their primary incentive rather than financial returns.
Local government in the UK has used commissioning to experiment with alternative service models provided by social enterprises and grant based organisations,
Small social enterprises and other NGOS generally find organisational growth difficult: it requires changes to leadership, culture,
while retaining the advantages of small and medium social enterprises, such as flexibility, drive, and dynamism. 203) The consortium model.
as 5 104 THE OPEN BOOK OF SOCIAL INNOVATION part of EQUAL, Finland developed an‘SYTA method'for assessing social enterprise activities.
France's Bilan Sociétal (literally social balance sheet) is a set of 100 indicators (ranging up to 400) showing how enterprises affect society.
giving students the experience of working in small social enterprises. These could play a critical role in training up a future cadre of social innovators. 249) Mutual help and mentoring by users.
or more social enterprises to improve local health outcomes within the first 12 months of the project.
and the Ministry of Employment, to bring together government, private enterprises, and the research community under one roof to promote user-centred innovation.
Another example is the Centre for Social Innovation (CSI) a social enterprise with a mission to catalyse social innovation in its home base of Toronto,
'They are creating a business park for social enterprises and cooperatives. The park will include start-ups, regional and governmental organisations,
and welfare by linking small-scale social enterprises and projects to big institutions, laws, and regulations (for example, shifting a city's transport system over to plug-in hybrids).
It has a wide-ranging portfolio, covering regulation, enterprise and business support, higher education, innovation, and science.
In the 1980's it was instrumental in the establishment of the Finnish Ministry for the Environment whilst at the same time making important progress in the opening of international markets to Finnish enterprises. 288) Specialist innovation agencies such as the NHS
or Singapore's Enterprise Challenge. Some funds are increasingly branching into service CONNECTING PEOPLE, IDEAS AND RESOURCES 133 innovation,
and grow a social enterprise; provide a space to test out new ideas rapidly in practice, with quick assessments;
and accelerate the creation and growth of successful Canadian enterprises. It was created in 2000 on the site of the old Toronto General Hospital.
it includes social enterprises engaging in the market, as well as some of the activities of private companies that have primarily social goals. 2
and social enterprises attract all sorts of voluntary support. But for both private and social enterprises the primary discipline is the market.
Similarly, some charities and other grantbased organisations run their own shops and other market enterprises
and many contract services to the state. Yet organisations like Oxfam and Age Concern are shaped still primarily by the grant economy in how they raise their money,
which refers to the social economy as the third sector namely NGOS and social enterprises.
as in the recent case of Grameen-Danone and their collaboration in a social enterprise producing yoghurt for low income households in Bangladesh. 5. Maxmin, J. and Zuboff, S. 2004)‘ The Support Economy:
such as the UK's‘Invest to Save'budget for crosscutting innovations, The Enterprise Challenge in Singapore,
The Greater london Enterprise Board financed its operational expenditures for many years through the sale of industrial property it had bought during the recession of the early 1980s.1 158 THE OPEN BOOK OF SOCIAL INNOVATION 361) Social investment funds
which would act as a wholesaler for a range of financing needs (see method 475). 362) Social enterprise investment funds,
such as the Social Enterprise Investment Fund launched by the UK's Department of health with around £100 million,
and Enterprise Boards. 376) Public Finance Initiatives, also referred to as‘public-private partnerships, 'have been used mainly to finance physical structures and infrastructures,
and improving prospective post-tax rates of return. 377) Exemptions and assistance such as tax relief along the lines of the Enterprise Investment Scheme (EIS) for social enterprises,
or property tax holidays for early-stage social enterprise and charities. 378) Experimental zones are geographic areas
000 volunteers contribute to the UK NHS. 401) Secondments of public sector employees to community organisations and private enterprises,
and what mix of funding for individuals, teams The State The Market The Grant Economy The Household 2 SUPPORT IN THE GRANT ECONOMY 169 and enterprises works best,
some are social enterprises, and some are charities themselves. They provide legal and business advice, offer free mentoring services,
for growing brand equity (through association with well known charities or social enterprises; attracting talent (particularly younger people who want to believe that their employer has a social conscience;
The most significant development has been in the growth of social enterprises. These are businesses which earn a profit
but are focussed on their social goals. 1 The main challenge for social enterprises is to maintain their commercial position in the market
In some cases, clusters of social enterprises have developed a network for collaboration and joint services
Increasingly though, there are examples of social enterprises establishing themselves in the mainstream. Inspirational examples and more information on successful business models 3 SUPPORT IN THE MARKET ECONOMY 181 are critical for the growth and sustainability of the social enterprise sector.
There need to be diversified more capital markets, packages of support for social entrepreneurs, and more supportive regulatory and legislative frameworks.
and organisational form in the Sustaining section in Part 1). 442) Social enterprises operate in the market to achieve social goals.
There is currently no universally accepted definition of social enterprise. This is because social enterprises can take numerous forms,
are engaged in multiple spheres of activity, and because legal structures vary from country to country.
For example, in Italy, social enterprises are constrained by a non-distribution clause that is, all income has to be reinvested in the enterprise.
In the UK, the Community Interest Company (CIC) was created as a new legal form in 2004 to reduce the tensions between finance and mission.
Social enterprises can generate income in a myriad ways. Some may generate their income through direct provision of a service
Image courtesy of Michael Valli. 3 SUPPORT IN THE MARKET ECONOMY 183 which is sold a magazine by homeless people. 443) Social enterprise mutuals as providers of joint services for their members,
in addition to its users in east Africa. 451) Corporate not-for-profit management of social provision such as Academy Schools in the UK and Charter schools in the US. 452) Partnerships between social enterprises and corporations
with not-for-distributed profits such as BASF-GAIN initiative for Vitamin a in Africa, the Danone-Grameen yoghurt enterprise in Bangladesh and the BASF Grameen venture, also in Bangladesh,
Finance One of the big challenges for social enterprise is growth. Partly, this is because they face limited access to risk and growth capital,
but it is also a reflection of the fact that as social enterprises grow, they often face difficulties in balancing conflicting pressures.
triple bottom lines and‘blended value'2 but how to ensure that the interests of investors remains subordinate to the social mission remains a critical question for social enterprise.
which take into account the particular needs of social enterprises and businesses with social goals. A number of these, like public share issues, funding through cooperative subscription and crowdfunding are discussed in section 4 on Sustaining.
and fair trade. 458) Social enterprise funds including the new venture capital fund, set up by Triodos Bank,
which invests in high impact and commercially sustainable social enterprises. Their aim is to help grow a dozen
or so social enterprises in the UK. 459) Social venture funds that use equity-like investments for start-up and early-stage social ventures where loan financing is unsuitable.
or promising enterprises to a stage where traditional investors can make investments. This can include
and growth capital to established social enterprises with the ambition and potential, both to scale up their businesses and maximise their social impact.
which provides shared office space for more than 115 charities and social enterprises in sites in central London (see also method 487). 467) R&d mentored funding prior to start-up lending, such as MONDRAGON
which are now catering to the specific needs of social enterprises and businesses with social and environmental goals. 468) Ethical banks including Triodos Bank and the Cooperative bank in the UK, RSF Social Finance in the USA, GLS Bank in Germany, the Alternative Bank
furniture, engineering, food, etc) and they give their judgement on the quality of the proposal and the prospects of the enterprise.
the committee then promises to guarantee a bank loan to the enterprise, backed by a small capital reserve and the personal guarantees of each member of the consortium.
In many cases investors are looking for projects that combine social and financial returns. 473) Bank-based funding for social enterprises
an online market place for social enterprises and lenders that takes a small margin on the financial transaction.
and in providing publicity to social enterprises. Countries like Cyprus have used the model of a‘Good Food Guide'to upgrade the quality of the island's food
of financial resources for social enterprise. As yet, very few resources have been devoted to labour market development. However, developing skills within the field of social enterprise is critical to the growth
and development of the sector. 483) Specialist academies linked to social economy initiatives, such as: the University of Mondragón in Spain;
and social enterprise across the UK (see also method 466). 3 SUPPORT IN THE MARKET ECONOMY 193 Markets for social goods New markets for social goods (or‘bads'can also play a role in accelerating social
Currently a number of social enterprises trade shares through matched bargains between registered buyers and registered sellers on the basis of a price recommended by the Board of directors.
The Rockefeller Foundation has announced recently a study to investigate the viability of a social stock exchange for social enterprises in the UK. 492) Social indices such as the FTSE4GOOD Index Series,
and to track their performance over time. 3 194 THE OPEN BOOK OF SOCIAL INNOVATION End notes 1. For more information on social enterprises
Defourny, J. and Nyssens, M. 2008) Social Enterprise in Europe: Recent Trends and Developments.‘‘Social Enterprise Journal.'
'Vol. 4, Issue 3, 2008; and Defourny, J. and Nyssens, M. 2008)‘ Conceptions of social enterprise in Europe and the United states:
convergences and divergences.''Paper presented at the 8th ISTR International Conference and 2nd EMES-ISTR European Conference, Barcelona, July 9-12,2008;
Borzaga, C. and Defourny, J. Eds)( 2001)‘ The Emergence of Social Enterprise.''London and New york:
166 National Health Service Duty to Promote 162 National Health Service Social Enterprise Investment Fund 158 NHS Innovation Hubs 135 NHS Institute
159 Prime minister's The Enterprise Challenge (TEC) 150 Private Equity Foundation 175 Pro-Ams 139;
199 Social Enterprise 2; 60; 66; 78; 86; 98; 99; 103; 130-132; 142; 158;
and tools for innovation being used across the world and across the different sectors the public and private sectors, civil society and the household and in the overlapping fields of the social economy, social entrepreneurship and social enterprise.
The great wave of industrialization and urbanization in the nineteenth century was accompanied by an extraordinary upsurge of social enterprise and innovation:
The Young Foundation's precursors were among the world's most important centers for understanding social enterprise
Some are celebrated widely Muhammad Yunnus (the founder of Grameen Bank and other microcredit enterprises), Kenyan Nobel prize winner Wangari Maathai,
In charities and social enterprises, the founders who were just right for the organization during its early years are unlikely to have the right mix of skills and attitudes for a period of growth and consolidation.
By comparison, in business the early phases of fast-growing enterprises often involve ruthless turnover of managers and executives.
Kingston, 1984). 2. Michael Young, inspiration for the Young Foundation, was judged by Harvard university's Daniel Bell the world's most successful entrepreneur of social enterprises,
and in his work and his writings he anticipated today's interest in social enterprise
Government and public sector organisations, businesses, academia and research organisations, social enterprises, charities and foundations; and grassroots communities;(
/Hero (http://urbact. eu/en/results/An example of an interesting project launched under this category is Erasmus for Young Entrepreneurs (http://ec. europa. eu/enterprise/policies/sme
They have several funding programmes such as the Knight Enterprise Fund (which provides early-stage venture funding for media innovation) and the Knight Prototype Fund
-computing. com/revolution-r-enterprise 94. http://floksociety. org/95. http://publiclab. org/96. http://www. whitehouse. gov/economy/business
by leveraging an evolutionary and open knowledge approach we have been able to engage diverse communities of small and medium-sized enterprises (SMES) in several regions of Europe in the adoption of state-of-the-art business modelling, software development,
and the willingness to contribute to a shared enterprise. In this introductory chapter we will give a high-level overview of the conceptual foundations, assumptions,
In the presence of roughly 20 million small and medium-sized enterprises (SMES) in the EU25,
5) Now Networked Enterprise and RFID Unit, Directorate General information Society and Media. 6) Inspired by work of Thomas Kurz,
This model also matches the economic structure of the USA where there is a predominant number of large enterprises at the center of large value networks of suppliers (Eurostat, 2006.
and mediate socioeconomic interactions between enterprises and people. Autopoiesis and Dynamic Conservatismmaturana and Varela (973) invented the concept of autopoiesis as a model that generalises the structure and function of a biological cell,
The digital ecosystem influences the structure of the enterprises and of their social and business networks,
The access to the infosphere created by the digital ecosystem commons represents one of the most promising strategies to reduce the digital divide between SMES and large enterprises.
and working at the centre of a peer knowledge production process allows small enterprises to overcome the activation threshold needed to use ICT in a novel and productive way.
Technological Innovation in Organisations and Their Ecosystems, in Transforming Enterprise: The Economic and Social Implications of Information technology, Edited by William H. Dutton, Boston:
Firms in economies that rank better on the ease of paying taxes in the Doing Business study tend to perceive both tax rates and tax administration as less of an obstacle to business according to the World bank Enterprise Survey research.
set at the lower end of the distribution of tax rates levied on medium-size enterprises in the manufacturing sector as observed through the paying taxes indicators.
Speedy trials are essential for small enterprises, which may lack the resources to stay in business
Government and public sector organisations, businesses, academia and research organisations, social enterprises, charities and foundations; and grassroots communities;
Government and public sector organisations, businesses, academia and research organisations, social enterprises, charities and foundations; and grassroots communities;
size and type of organisation (e g. government and public sector, business, academia and research, social enterprise, charity or foundation,
and movementsproviding new (fundamental) technologies and methodologiesdecis networkarduinosocial enterprises, charities and foundationsstimulate multi-disciplinary research and innovationconnecting top-down and bottom-up movementsamplifying weak signalssupporting grassroots movementsavaazushahidickangrassroots movements Engaging, facilitating
Social Enterprise or Foundation 68 Business 52 Grassroots Organisation or Community Group 41 Academia and Research 37 Government and Public sector 15 Table 6 Figure
Social enterprises, charities and foundationssome of the most well-known DSI services have been developed and delivered by not-for-profits,
and micro enterprises. An example of increasing interest is the possibility of setting up Urban Labs within city contexts.
particularly H2020 and work programmes, Digital Agenda, Social Innovation in DG Regio and Social Entrepreneurship in DG Enterprise.
and Enterprise and Industry during 2007 and 2008, suggests that indirectly, Social Computing applications also empower Civil Society Organisations (NGOS, voluntary groups, associations, etc.),
Social enterprises, charities and foundations Aim: Participation and democracy Technology Trends: Open knowledge DSI activities:
They look at the Citizens Foundation as a startup enterprise and in many senses the design and functionality of their websites, products and services might be thought of as an attempt to redesign democracy itself.
Social Enterprise services: Cities, countries and groups can also pay to use some of the Your Priority services.
Academia and research organisations, non profit and social enterprise organisations Aim: Participation and democracy, smart public services Technology Trends:
Social enterprise, foundation Aim: Education and Skills, Science, Culture and Arts, Energy and Environment Technology Trends:
Social Enterprise Aim: Create a‘transparency economy'by opening up the supply chain for electronics Technology Trends:
History and mission Fairphone was founded as a social enterprise in 2010. The organisation can't be described as an ordinary smartphone manufacturer.
As a social enterprise we work like other businesses, but we are different, Our goal is social change rather than profit.
In 2013, the social enterprise was founded with the aim of designing, creating and producing its own smart phone.
and cooperation offers since the start of the enterprise. There are five action areas defined and through active advisory groups all the relevant input from the community is being incorporated. 113
Since Fairphone decided to establish as a social enterprise and design, create and produce its smart phone,
Instances of Github can be licensed to run on private servers inside a company's firewall under the Enterprise plans ($5000/year/20 seats.
These Enterprise plans are claimed to be the Github's‘big-money option.''This plan enables clients to download a version of Github to live locally on their servers,
Enterprise clients include Lockheed martin, Microsoft, Livingsocial, VMWARE and Walmart. Another revenue stream is Github Jobs where employers can post job offers for $450/listing.
Charities, foundation and social enterprise Aim: Platform for crowdfunding for projects generate a collective return through fomenting the openness Technology Trends:
Social enterprises, charities and foundations; grassroots communities Aim: Work and employment, other Technology Trends: Open Knowledge DSI activities:
Type of Organisation Landshare is based a community social enterprise. History and mission Landshare sets out to bring together people who have a passion for homegrown food
Private business, social enterprises, charities and foundations Aim: Participation and democracy, other Technology Trends: Open networks, Open hardware DSI activities:
Not for profit, foundations and social enterprise Aim: Participation and democracy Neighbourhood regeneration Technology Trends:
's social enterprise model, means that the organisation are not solely thinking about the needs of funders-but also about clients'requirements quite often,
Social enterprises, charities and foundations Aim: Participation and democracy, other Technology Trends: Open networks, Open data, Open Knowledge DSI activities:
Social enterprises, charities and foundations Aim: Sharing economy, Participation and democracy Technology Trends: Open Knowledge, Open Data DSI activities:
social enterprises, charities and foundations Aims: Education and skills Tech Trends: Open Knowledge No. of units sold worldwide:
Social enterprises, charities and foundations Key Aims: Participation and democracy; Other Technology Trends: Open data*;
Government and public sector organisations, businesses, academia and research organisations, social enterprises, charities and foundations; and grassroots communities;
Government and public sector organisations, businesses, academia and research organisations, social enterprises, charities and foundations; and grassroots communities;
size and type of organisation (e g. government and public sector, business, academia and research, social enterprise, charity or foundation,
and movementsproviding new (fundamental) technologies and methodologiesdecis networkarduinosocial enterprises, charities and foundationsstimulate multi-disciplinary research and innovationconnecting top-down and bottom-up movementsamplifying weak signalssupporting grassroots movementsavaazushahidickangrassroots movements Engaging, facilitating
Social Enterprise or Foundation 68 Business 52 Grassroots Organisation or Community Group 41 Academia and Research 37 Government and Public sector 15 Table 6 Figure
Social enterprises, charities and foundationssome of the most well-known DSI services have been developed and delivered by not-for-profits,
and micro enterprises. An example of increasing interest is the possibility of setting up Urban Labs within city contexts.
particularly H2020 and work programmes, Digital Agenda, Social Innovation in DG Regio and Social Entrepreneurship in DG Enterprise.
and Enterprise and Industry during 2007 and 2008, suggests that indirectly, Social Computing applications also empower Civil Society Organisations (NGOS, voluntary groups, associations, etc.),
Social enterprises, charities and foundations Aim: Participation and democracy Technology Trends: Open knowledge DSI activities:
They look at the Citizens Foundation as a startup enterprise and in many senses the design and functionality of their websites, products and services might be thought of as an attempt to redesign democracy itself.
Social Enterprise services: Cities, countries and groups can also pay to use some of the Your Priority services.
Academia and research organisations, non profit and social enterprise organisations Aim: Participation and democracy, smart public services Technology Trends:
Social enterprise, foundation Aim: Education and Skills, Science, Culture and Arts, Energy and Environment Technology Trends:
Social Enterprise Aim: Create a‘transparency economy'by opening up the supply chain for electronics Technology Trends:
History and mission Fairphone was founded as a social enterprise in 2010. The organisation can't be described as an ordinary smartphone manufacturer.
As a social enterprise we work like other businesses, but we are different, Our goal is social change rather than profit.
In 2013, the social enterprise was founded with the aim of designing, creating and producing its own smart phone.
and cooperation offers since the start of the enterprise. There are five action areas defined and through active advisory groups all the relevant input from the community is being incorporated. 113
Since Fairphone decided to establish as a social enterprise and design, create and produce its smart phone,
Instances of Github can be licensed to run on private servers inside a company's firewall under the Enterprise plans ($5000/year/20 seats.
These Enterprise plans are claimed to be the Github's‘big-money option.''This plan enables clients to download a version of Github to live locally on their servers,
Enterprise clients include Lockheed martin, Microsoft, Livingsocial, VMWARE and Walmart. Another revenue stream is Github Jobs where employers can post job offers for $450/listing.
Charities, foundation and social enterprise Aim: Platform for crowdfunding for projects generate a collective return through fomenting the openness Technology Trends:
Social enterprises, charities and foundations; grassroots communities Aim: Work and employment, other Technology Trends: Open Knowledge DSI activities:
Type of Organisation Landshare is based a community social enterprise. History and mission Landshare sets out to bring together people who have a passion for homegrown food
Private business, social enterprises, charities and foundations Aim: Participation and democracy, other Technology Trends: Open networks, Open hardware DSI activities:
Not for profit, foundations and social enterprise Aim: Participation and democracy Neighbourhood regeneration Technology Trends:
's social enterprise model, means that the organisation are not solely thinking about the needs of funders-but also about clients'requirements quite often,
Social enterprises, charities and foundations Aim: Participation and democracy, other Technology Trends: Open networks, Open data, Open Knowledge DSI activities:
Social enterprises, charities and foundations Aim: Sharing economy, Participation and democracy Technology Trends: Open Knowledge, Open Data DSI activities:
social enterprises, charities and foundations Aims: Education and skills Tech Trends: Open Knowledge No. of units sold worldwide:
Social enterprises, charities and foundations Key Aims: Participation and democracy; Other Technology Trends: Open data*;
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