Social Enterprises in Australia by the Small Enterprise Finance Agency - Case Study Example

Analysis of Organizations to SEFA (Name) (University) Contents 1.0 Introduction 3 2.0 Recommended Organizations 3 3.0 Organization that can be recommended with Changes 5 4.0 Rejected Organization 7 5.0 Conclusion 8 References 9 Analysis of Organizations to SEFA 1.0 Introduction Social enterprises have emerged as an imperative aspect in the contemporary society. Simply put, they tend to tackle social problems and improving the communities in its operational regions. Most if not all social enterprise source acquire fund through the sales of products in the markets, which is reinvested into the business and community. Evidently, Australia has emerged as one of the countries typified by a strong history of its social enterprises. Their operations are centered within different enterprises in order to fulfill their social participation through many different forms. As such, this retrospect paper seek to analyze social enterprises in Australia by Small Enterprise Finance Agency (SEFA) in determining which organizations will be offered loan products, business advice, and support to help build their capacity to manage debt. SEFA funds will provide flexible, tailored financial products and support to social enterprises to assist them grow their business in order to achieve the greater social outcome. 2.0 Recommended Organizations The social enterprise recommended is the Bawrunga Aboriginal Medical Service (BAMS). This is a locally owned enterprise and managed not for profit community cooperative. BAMS was established in the year 1999 in Bowaville to address the constant need for accessible, quality health, and medical services through its provision of appropriate health service for the local population [Soc09]. BAMS’ main goal is to fulfill the need of medical services to the local communities and they normally achieve this goal by operation of commercial medical clinics that are related to the needs of the local community[Dyn15]. Analysis: until today, BAMS operates at least four to five clinics in the Nambuca Valley and the NSW Western area. It delivers a variety of community outreach programs by utilizing the funds generated from the clinic business. Currently, BAMS is the only self-sponsored clinic in Australia that caters for both the nonindigenous and indigenous members of the community. The reason behind BAMS is attributed to the sufferance witnessed at Nambuca Valley as a result of affordable and quality health and medical services for the local communities. The main focus of BAM to date is to support preventive education and the chronic disease management. Using primary health care and friendly resources as their main weapons to address and resolve violence, drugs, alcohol and many other social issues within the indigenous community. In addition to the clinics, they also support a wide range of community social programs and company development [Alm15].Unlike the Aboriginal Medical services, BAMS does not receive support from the AH and MRC and neither has it ever received any government support. However, it has received some funding from the preventive and social programs that it supports but not for the clinics operational services. The introduction of contractual fee agreement by the GPs has increased its revenue substantially although initially BAMS had suffered severe losses when it did not received the bulk billing revenue that is normally generated by GP[Soc09]. BAMS company strategy consists of the following objectives; To address the lack of primary health education and services in areas that are both accessible and affordable to the local community. To have a financially stable Aboriginal medical center, this includes them moving away from the so-called welfare mentality of the traditional Aboriginal health services and Linking the indigenous to the nonindigenous people in the community to overcome racism and promote the spirit of working together. Currently, BAMS has an approximately $ 1500000 turnover and provides its services to around 10200 clients an annually. BAMS requires to attend to about 30 clients a day in order to sustain itself per day. It made a profit of $ 60000 between the years 2007 and 2008 and since it has donated $150000 in profits to over 15 social and preventive programs to the local community. One of the programs is a pharmacy that now enables residents to gain access to medical services that they once did not have [Soc09]. Conclusively, BAMS pride does distinguish it from a company that operates on genuine business. Its entire arevenue is derived from the service fee and invested directly back into the enterprise where most of the profits is reinvested in social programs and the community’s enterprise development. It is surely an ongoing battle for this company to stay afloat because it makes only a small amount of profit faced by the constant pressure to retain GPs. That is why some funds should be donated to its assistance 3.0 Organization that can be recommended with Changes The organization that can be recommended if only some changes are put into practice is the GV Community Energy. This is an organization that was set about with the community with the aim of reducing the carbon emissions and in overall working towards environmental sustainability. It was established during the year 2008, around the same time that the Australian government solar energy scheme was established that aimed to support solar energy small scale installation [Soc12]. Analysis: the main goal as to why this organization was started was to extend the bulk buying services to the residents of Shepparton area and its neighbors as well as encouraging people to reduce carbon emissions. In order to fully support this organization, its founders Geoff and Yvonne had to increase the income of the company by encouraging the residents to adapt and acquire solar PV systems. GVCE is chhharacte; to establised by the following aspects; common cost where all its workers sweat equally, to achieve an operation where the years are broken down evenly, to have an annual turn over of $ 650,000 (achieved in 2011), to have an annual profit of about 11% including the grants, to contain atleast five full time working employees, and to request more grant funds from the sustainability of Victoria in order offer more services and became more financially self sufficient [Soc12]. The management fee was increased up to $ 500 per unit to cover operational and maintenance costs. GVCE went ahead to supply and manage around 30 solar PV units in an aged care facility. This social enterprise received funding from the Victorian government to expand its service to the local community as part of solar valley hub project [Soc12]. GVCE is required to provide the community with absolutely free services that should include energy workshops, solar awareness session, and home energy investigations. The public in turn has encouraged this organization to invest mainly in the development of its products and services that will enable it to become self-sufficient in future. Some of the goals of this organization include; Offering energy assessments to households Expanding the energy assessment serviced to businesses Becoming a solar hot water retailer and the sale of multi-fuel heaters [Soc12]. Although GVCE has a fairly increased trading and grant income, it still relies on additional volunteer work from its main founders, their employers and other sources. This s imperative to meeeet its funding goals, deliver quality services and develop new products. In particular, the resources levels needed after-sales they have accidentally underestimated their sale services Recommendations GVCE should continue to focus on the idea of rolling out its services and the product as most of this market solar product is still believed to be accounting to at least one in every eleven households. GVCE should also continue to win contracts as it will lead to some innovative projects like developing a solar park and other projects. In conclusion, if GVCE can try as much as possible to be self-sufficient by taking into account the above-mentioned recommendations, then it will be easier for them to receive more funds if need be. 4.0 Rejected Organization The organization that should be rejected the Fair Coffee Trade Company. It was established in Sydney in the year 2006 with the aim of eradicating poverty around the globe. All the profits of this company are reinvested into an independent organization that uses skilled international volunteers at the communities’ request. This Fair Trade Company Has established itself as a company of providing high-quality tea, coffee, and chocolate despite the competition [Soc091]. Analysis: None of the products that produced by this company can be said to have come from forced labor all of the goods produced are a certified fair trade. Fair trade and its consumers work to assure that they can provide improved trading conditions with other producers in different parts of the world and also ensuring that the workers earn the correct amount of wages in terms of the work they do. This company consists of nine Directors of Palm Australia with each member entitled to serve three-year term. The labor cost in this company normally accounts for almost forty percent of their overall expenses. Palm always complement the skill of the company by offering an internship to students from the Timor-Leste vocational school for three months. To date, the Fairtrade Company still continues to experience large amounts of profits despite the fact that one of the coffee shops along the palm street is closed [Soc091]. Despite the Fair Coffee Trade Company being able to experience some difficulties with respect to hiring the general manager and the cooks which may lead to high salary standards if they seek to employ professionals, it is fair to say that this companies does not really require any donations as it is capable of catering for itself through the sales of its products. This is because coffee is regarded as one of the most valuable products in the world. It is also largely valuable to many of the countries that are currently developing. If a less developed country like Burundi depends mainly on coffee for as its majority foreign exchange earning, it is clear that with more effort and responsibility the Fair Coffee Trade Company should be able to sustain its needs from the profits that they can make[Fai15] 5.0 Conclusion It is imperative for governments like the Australian government to fund and support most of these social enterprises as it helps them to develop in terms of business. By doing this, most of this social organization will continue to do the good work that they normally offer to the communities. By supporting SEFA, the government is also helping with the development of the larger social investment market in the country. The government and SEFA should also be careful on which of these social organizations should be given the funds as other organizations can be filled with corruption and unqualified systems. There are also some effective social companies that have an increased propensity at prospering provided that they are given the necessary support. Good social enterprises companies should be funded to ensure that money is not lost and that the goals for investing in these social enterprises are achieved. References Soc09: , (Social Traders, 2009), Dyn15: , (Dynamic Web Solutions, 2015), Alm15: , (Alma Technology, 2015), Soc12: , (Social Traders, 2012), Soc12: , (Social Traders, 2012, pp. 1-6), Soc091: , (Social Traders, 2009), Fai15: , (Fair Trade Authors, 2015), Read More