Dotforge Accelerator: Accelerating Social Innovation

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Accelerating Social Innovation, Dotforge Accelerator’s conference on the role of accelerators in supporting social enterprise and social venture startups brought together leading voices from the U.K.’s social enterprise community and startup entrepreneurs for candid conversation, debate, and valuable networking opportunities.   Panels chaired by RSA Fellow Adrian Ashton, Dotforge’s Tobias Stone, Social Enterprise Acumen CIC’s Kate Welch, and UnLtd’s Steven Leach discussed the role and need for social enterprise, how accelerators can boost social innovation, inspiring the next generation to take on social enterprise and the strategies and barriers to social investment.  Creative enterprising solutions as varied as peer-to-peer postgraduate loan mechanisms (StudentFunder) to integrated Diabetes apps (We Love Life.) were showcased to demonstrate the breadth and versatility of social enterprise and its crucial role in the U.K.  Contributors from Canada, Mexico, and from across the U.K. reminded attendees of the importance of social enterprise across the globe and international partnership and cooperation opportunities.

The conference opened with an address from Dotforge highlighting the key advantages of accelerators for tech startups, particularly social enterprise.  Accelerators foster a culture of participative product development and provide great opportunities for mentorship and knowledge sharing.  Local entrepreneurs who donate time to provide mentorship within accelerators find the experience deeply rewarding.  They draw on the creative spark and enthusiasm of startups to enhance their own ventures while reminding themselves of their own beginnings, core purpose, and values.

Sam Tarff from Key Fund spoke of the long history of social enterprise, monasteries in the middle ages for example, and the shift in perception from a fringe activity to a legitimate form of organization. Social enterprise values are influencing the private sector (think triple bottom line) more and more remind the business world of the importance of risk taking, troubleshooting, and creativity in problem solving.   He concluded by stating that the challenges of the most challenging communities cannot be met with top down initiatives, enterprising thinking must be the driving force for social change.

The opening panel of Kate Ebbutt (Patient Opinion) and Hugh Rolo (Locality) discussed emerging technologies and social innovation.  Patient Opinion is using the changing technological landscape to connect patients with each other and health care providers, helping to shift power dynamics and empower its customers.  A true social enterprise success story, Ebbutt recounted the early struggles, successful expansion and advised on how growth should not mean parting with core values.

Rolo provided wisdom throughout, saying, “we’ve cracked material, the future is in how we look after each other, a service-based space that social enterprise can fill like no other.”  The panelists agreed social enterprise focused on aging, dementia, diabetes, depression, and serving the “underbanked” are needed and areas of opportunity for both profit and social change.  Early warning mechanisms, intervention and cleverer preventative action all need exploration and enterprising thought.  Opportunities can also be had dealing with big data, given the amount of public information that exists.  At present, almost all requests to government come from the private sector.  How can social enterprise mine this data for social innovation?

With a career spanning investment banking and social enterprise leadership, Rolo made an important point in saying that it doesn’t matter what legal form you take, you need a quality product or service.  It’s crucial to have ambition; he stresses the risks of starting too small for a social enterprise.  You need the bulk of your presence on the frontline, customer facing, after all that is the focus.  “If you lose the center of perspective, you’re toast.”

Overall the first panel told the audience that the virtues of social enterprise as a concept alone are not enough, a strong business model, ambition, reading the landscape and smart growth are crucial to success.

Panel number two was equally engaging, with Dotforge moderating a discussion with Juan Gerra of StudentFunder, a social enterprise designed to fill a true void in the postgraduate student loan space in the UK.  It was refreshing to see such a young entrepreneur find success by fulfilling a real need and a gap in the market.  There had been no real support from banks or government in the form of loans to masters and doctorate students, so Guerra developed a very attractive loan system funded by investors and philanthropists, and crucially, did so with the help of an accelerator.  The discussion then veered into comparing accelerators with incubators, the difference being in the name really, as opinion was largely that incubators need entrepreneurs in the building paying rent, whereas accelerators relying on equity want to see their entrepreneurs out the door as soon as possible, making waves in the market.

Many accelerators have entrepreneurs-in-residence, and ideally these would be six months to one year ahead of the startups, who could then visualize their progress and see where they could be in just a short period.  The mistakes and lessons learned would be fresh in the memory of the EiRs, allowing them to help startups avoid repeating errors and see how it’s possible to persevere and overcome initial slipups.

The third panel chaired by Kate Welch OBE, director of Social Enterprise Acumen CIC, centered on youth and technology, the future landscape of startup social enterprise and the associated challenges felt by young entrepreneurs on the panel.  The panel, consisting of Darren Chouings of the University of Sheffield, Johnny Luk of the National Association of College and University Entrepreneurs, and David Thompson of startup Yoomee discussed why young people are turning to social business and social enterprise as a form of social action.  Why is it a convincing career choice?  Social action is often a moral choice, but since many young people are not in a place financially to make take other forms of social action are increasingly turning to social enterprise, allowing profit to fund their mission of social change.   The panel praised volunteering as a way to spur young people onto social enterprise, citing social entrepreneurs who found their idea, purpose or important contacts through volunteering.

Lastly the panel asked how we incorporate entrepreneurial training and social enterprise education into curriculums and graduate schemes?  At what level of education should the pillars of social enterprise be introduced?  Opinion varied, some thinking pupils as young as primary school level should be introduced to the idea of using business as a way to combat social challenges, with sustainability and environmentalism crucial to future models.

The day closed with a panel discussing social investment, common pitfalls of entrepreneurs approaching investors, grant funding versus loans, crowdfunding, and more.  Sam Tarff and Dave Thornett of Key Fund, Kevin Lloyd-Evans of The Big Issue Newcastle and Steve Leach of UnLtd began a bit differently than previous panels, with a brainstorming session of investment key terms, including risk, intangible profits, investment readiness, too small or too big, and finding the middle ground as you grow.   The key lesson from the discussion was to know what you need and why you need it, then go shop around.  Going for money because it’s there can seem like a no brainer, but it’s the panels advice was to know what you want it for and how you will spend it in the short term.  A panelist asked “If I gave you a million pounds what would you spend it on on Monday?”  Having a clear answer before approaching investors is the heart of a successful pitch.

Having seen many pitches in the past, the panel articulated what they would most like to see from social enterprise startups.  Have clarity of vision.  Be aware of language.  Avoid business speak, be clear about barriers to success, make sure the numbers match that story, and in terms of cashflow projections, articulate your presumptions. When placing a cashflow statement on the table, make sure it’s not a P&L or mixture.

With a broad range of topics and panelists, it was clear that attendees left the conference with added wisdom and enthusiasm, inspired by the creativity and determination of their fellow social entrepreneurs.

Dotforge deserves a big thank you from Social Enterprise Acumen CIC for the invitation and allowing our director Kate Welch to chair an exciting discussion.  We look forward to monitoring the success of all of the social entrepreneurs present and incorporating the lessons learned in our work finding, guiding, and coaching social entrepreneurs in the North East.

Social Enterprise Profile: Paula McCormack – Meadow Well Connected

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In the first instalment of our new Profile Series, we sat down with Paula McCormack, experienced facilitator, HR professional, coach, and currently director at Meadow Well Connected, a multifaceted community hub and social enterprise in North Tyneside. The purpose of this series is to showcase the people behind the dynamic social enterprise landscape in the North East and inspire other social entrepreneurs to make a similar mark and drive social change.

Please tell us how did you get started?

I started life as a graduate in management and chose a career in human resources. For my first five years in human resources, particularly in the North East, my job really was closures, restructures and reengineering. I saw the devastating impact that had on the NE, and how vulnerable the NE was to external investment. I did 10,000 redundancies in a five-year period. Then I went outside the NE and focused on professional services, returning to the NE in 2003, at which point I set up my own consultancy to support the 20% of the population who were self employed, focusing on considering organic growth. In 2012 I was approached to take over at Meadow Well following the departure of its founder. I guess I was chosen because of my understanding of community and community-led intervention combined with a clear business background.

What does social enterprise mean to you?

On a really simple level it’s delivering services that support the growth of communities and economies that have the capacity to be reinvested into those communities and economies.

How do you see its role in the North East?

I suppose with the demise of local authority services and an incredibly challenging economic environment, social enterprise for me is the only way forward that marries the need for services with the need for economic development. Social enterprise is relevant in North Tyneside because the values that underpin social enterprise enable a different perspective in developing solutions to fit community concerns rather than solutions that fit a government or business agenda. To achieve this, we have to walk our talk. So over the past two and a half years, we’ve made it our business to move away from grant dependency, and into self sustaining enterprise all the while developing business streams and solutions that meet both the Meadow Well community’s needs and the wider North Tyneside residents’ needs.

How does your social enterprise work? Please tell us a bit more about the business model.

In its simplest form we have a two-core function business model.

The first is generating income through our charitable and community activity supporting people with learning difficulties through their Personal Budget to access quality services that develops their independence – working in our extensive gardens developing horticultural and beekeeping skills and our joinery workshop developing products that support the garden, birdcages and chicken coups. We also deliver alternative education provision serving the wider NE, serving 14-16 year olds with vocational education in joinery, horticulture and sustainable renewable energies.

The second function is using our extensive facilities to support many other local enterprises through room hire and delivering training to meet the needs of the care and hospitality sectors. While room hire can be for multiple purposes, profit can be reinvested in core programs.

Both functions generate income, the first very much focused on community activity, the other on generating income, but both serve wider communities.

What are your barriers to success?

On a personal level there aren’t enough hours in the day. I would have said initially it’s finding like-minded people who would support me as a peer in the journey, but having now developed that network, I’m ok. What the organisation faces is just a daily profitability and cash flow management challenge in the transitions. If I were to be really pedantic, we’d like getting acknowledgement through the local authority in what we can deliver. We’re not one of the big boys, and so sometimes we are discounted. Political challenges in bidding for contracts are also a source of frustration. You always have to hold more belief in others than they have in themselves.

What are the main things you’ve learned about yourself by being involved with a social enterprise?

I’m stronger than I thought I was and definitely more passionate than I could have imagined. Having a good peer group around me is essential for my sanity. As long as you’re bringing enough enthusiasm, passion, and belief, it’s easy to have people follow you and then take their own lead. Inspiration from the drive and commitment of others, particularly volunteers, gives me immense strength.

What advice would you give to a budding social entrepreneur?

Get a great peer group around you, invest in yourself, and believe in yourself and then you’ll carry enough belief for everyone else.

Social Enterprise in Vietnam Part 2: Meeting Some Inspirational People and Amazing Social Enterprises!

During my recent trip to Hanoi I had the joy and privilege of meeting some inspirational founders of social enterprises.

KOTO is a social enterprise that trains people in catering and hospitality in a real restaurant setting. The model is working well and is spreading to other parts of Vietnam. I visited KOTO and was warmly greeted by young people who demonstrated their skills in customer services and fluency in English.KOTO-bakery-counter It put my Vietnamese to shame but they did let me sample their exceptional dishes. I also met two Australian volunteers who were so moved by their experiences in working with young people at KOTO they have committed to giving support, ranging from teaching English to helping to write the next annual report.

Mrs-Vy-and-spring-rollsThere’s a bit of a food theme developing here! At the Hoa Sua Restaurant at the Museum of Ethnology I had lunch with Mrs Pham Thi Vy, the redoubtable 71 year old founder of the training school there. When I learnt that the current retirement rate for women in Vietnam is 55 her story is even more remarkable. She spoke passionately about her work; the children she takes as they leave the care of orphanages, providing them with accommodation, training and employment in her restaurants. She has a 100% success rate of progression into employment in catering and hospitality. Wow!

The most moving visit was to the 14th Floor of an apartment block in the suburbs of Hanoi where I found Ms Thao Van, the founder of The Will To Live Center. She is providing training, accommodation and routes to employment for young people from across Vietnam who live with disabilities. She runs a graphic design company and uses the money raised through trading to support and train young people. They learn graphic design and web design skills and she helps them find work with large companies.Will-to-Live

The transformation in the lives of these young people is truly inspiring and her only ask was for some wheelchairs. These will provide the young people with mobility support which will enable them to find employment. Hopefully we can help them with that from the UK! We’ve already sourced some refurbished wheelchairs through the Margaret Carey Foundation, who work with offenders at HMP Kirklevington and other prisons. Now we just need to find a way to deliver them to Van and the young people she supports. Come on, if there’s anyone out there who can help, please get in touch!

 

Kate

Social Enterprise in Vietnam: ‘Hanoi in October! The Best Time of Year to Visit!’

Welcome to ‘Part 1’ recounting my recent trip to Hanoi, Vietnam. The poignant quote above is the words of Tran Thi Hong Gam from the British Council. She was right! Not about the weather but about the enthusiasm and visible signs of growth in the social enterprise sector in Vietnam. Over four days of meetings, visits and lectures I was able to hear more about what was happening at a policy level. I also met some of the people involved in supporting social entrepreneurs to turn their ideas into reality and help social enterprises to grow their impact and become sustainable through trading.

The understanding that social enterprises are businesses was clear and the message that it was more than ‘corporate social responsibility‘ was being spread effectively. There are some great supporters of social enterprise such as Ms Pham Kieu Oanh and her team from The Centre for Social Initiatives Promotion (CSIP) and it is apparent that the British Council has already invested effectively in development with the support of companies such as Diageo.

Even more importantly there are growing numbers of social enterprises, a huge potential for new social entrepreneurs and also help for existing organisations to develop into social enterprises. My lectures to University lecturers (and then to almost four hundred students!) showed that there is a real appetite for addressing social and environmental issues with sustainable business models.

The understanding of social enterprise as a means of bringing about change is becoming more and more understood!

In ‘Part 2‘ I’ll tell you about some of the amazing social enterprises I visited.

Kate

My Day at Carlshead Farm

Visited an amazing #socent @Carlsheadfarm last week. Giving opportunities to ex-offenders to learn new skills in forestry and farming and supporting them to find work in the local area. Great success stories of young men who have turned their lives around, been given confidence in their own value and equipped with the learning and qualifications they need to gain employment. This is exactly what is needed to deliver the transformation of rehabilitation.

The challenge is to find the sustainable business model to enable this work to continue and grow. The budget to pay for the qualifications is no longer available. Carlshead Farm is being asked to provide work experience for less or no money and although some work can be done commercially this needs equipment and supervision which has to be paid for in some way. They have the offer of a seconded member of staff but have to find additional funds from somewhere else if they want to continue and not lose money delivering this valuable service.

They don’t want to be a charity, they want to be a social enterprise being paid for the work they do. If a grant-maker  can help with some funding for capital equipment or the start up capital for a new part of the business that is fine as it enables the start up phase to be less risky but the ongoing revenue to sustain the business has to be enough to cover the costs of the commercial activity but also to pay for the additional training and supervision needed for working with people who may never have worked, may not have had any experience of a real work environment and are overcoming a lifestyle of criminality and all that goes with it.

Transforming Rehabilitation: A Strategy for Reform has some measures that should enable opportunities for Carlshead Care Farm and others to become subcontractors to large primes delivering probation contracts but it is a long and perilous journey before an actual contract might materialise and after that an ongoing risk to make sure that the targets are achieved.

www.carlshead.co.uk

Kate

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