The Social Enterprise Finance Australia - Case Study Example

Social Enterprise Finance Australia Name Institution Instructor Course Date of Submission Internal Report and Logic Model 3 Introduction 3 Social Entrepreneurial framework 4 Resourcing Social Entrepreneurship 6 Introduction 6 Defining the Social Value Proposition 9 The Social Value Proposition 10 Scaling Social Impact 12 Social impact 13 The social venture model 14 Conclusion 16 ReferencesTop of Form 17 Internal Report and Logic Model Introduction Social entrepreneurship is growing significantly universally. There has been a significant improvement in the figures of social entrepreneurs investing to solve societal challenges. Currently, the Social entrepreneurship is spreading significantly and thus gaining great attention from many corporate philanthropists, international institutions and government. According to Gregory 2011, social enterprises are primarily concerned with the change agents present in the social sector, new opportunities, initiate innovation, adaptation and learning processes. They also adopt a mission that focuses on creating and upholding social value in the society. Lastly, social entrepreneurs’ exhibit heightened responsibility to the constituencies served Social entrepreneurship makes a significant impact on the social value within the public. It has contributed positively on the innovation and entrepreneurship of many new ventures in the market. Recently, the role of markets has changed regarding social and commercial entrepreneurship. The sector is increasingly investing into the economy as well as the quality of life across the region. Through social entrepreneurship, the society is able to achieve vibrant and balanced inclusive economy for the large community. However, their contributions are not always appreciated. There are four core areas that distinguish social entrepreneurship from commercial entrepreneurship. Social entrepreneurship is characterized by human focus, social mobilization and motivation due to fundamental social impact (Merete et al, 2011, p. 22). Social entrepreneur tends to enact improvements that primarily profit communities, including attractive benefits on social entities as well as financial investments of the stakeholders. Innovation is one of the key assessment tool used by social entrepreneurs in evaluating their success. Essentially, social entrepreneurship capacity to innovate is often depended on the structural support offered such as financial and human capital. This support gives the social enterprises an opportunity to invent new ideas that improve their innovative capabilities. In addition, a favorable environment is essential in the success of a social enterprise. According to studies, environmental influences such as infrastructure, greatly determine the extent of which social entrepreneurs invests in a community. Social enterprise brings about change by supporting the marginalized groups, communities as well as individuals (Westlund & Nilsson 2005, p.5). Social Entrepreneurial framework Wei-sKillem et al.(2007,P. 17)Argues that in order for a social enterprise such as SEFA to greatly achieve a social impact on its social value preposition, they should strike a balance between the capital, people, opportunity as well as the context aspects of the social enterprise framework and adjust constantly to the new situations overtime. The social enterprise should ensures that all the people, capital, opportunities as well as their context of work interconnect to meet each and every goal set by the company. In addition, a social enterprise is characterized by creating large network of supporters from the community. This entrepreneurship often adopts the spirit of collaboration as well as good communication skills to ensure that it maintains it relationship with the community. They tend to greatly rely on volunteers in holding chief functions such as board members. The social enterprise Finance Australia (SEFA) is a top social enterprise in Australia. SEFA social framework ensures that all the four elements are fully optimized them also focus on serving their clients with long lasting solutions through effective innovative methods. SEFA is a social recognize enterprise by many Australians, it ensures that all its clients meets their social needs as well as intertwine the available resources to meet their goals. SEFA pursues ventures that tend to be economically viable as well as those that need subsidies such as successful provision of ancillary services and community finances against the sophisticated economic constraints in our society. SEFA is committed in using innovative leading solutions in inventing more vibrant social enterprise sector. It appreciates the potential of social entrepreneurs in enhancing the economic and social growth of Australians. SEFA was initially established to offer tailored financial assistance to social enterprises across the state. It was also meant to provide business advice based on commercial terms. Elementary to this is a commitment in assisting clients in enhancing their capacity to become financially stable over time as well as manage debts effectively. SEFA seeks to optimize social as well as environmental impact by encouraging utilization of financial returns in a viable sector (Merete et al, 2011, p. 22). SEFA develops a robust and imaginative financial assistance that promotes aboriginal enterprises in achieving long term viability. It brings together a network of Australian and global international organization with a common goal of financing the social sector through an extensive business expertise approach. Some of its major partners include Triodos bank of Netherlands, NSW Aboriginal Land Council, University of Sydney, Bush Heritage Australia and Macquarie Group Foundation. Other partners include private investors as well as Community Sector banking among others (Merete et al, 2011, p. 22). Resourcing Social Entrepreneurship Introduction Research studies on Australia’s philanthropic investments, 2005 depicts that philanthropy spirit in Australia is considerably less than in America. However, a study carried out in 2002 on volunteerism indicated that 34% of Australians were able to volunteer in providing social assistance compared to 27.6% of Americans. Wei-Skillem et al. (2007, p.67) points out that the concept of a social enterprise in philanthropic work is through offering long-lasting capital to social enterprises by adopting similar approaches as those of capitalists in commercial sectors. There are four main dimension of creating funds through earned returns, namely: mission affiliations, portfolio management, leveraging income as well as organizational custom and capacity. Wei-Skillem et al., (2007, p.135) outlines that most of the earned income among employees is often from non-profit organizations across the globe. In Australia, about 55 per cent of operating earnings is often from the market trading of goods and services. Since the publication of SEFA as one of the outstanding social enterprises in Australia, it has greatly gained support from social enterprises organizations such as the Department of Education, Employment and Workplace Relations (DEEWR) and Social Enterprise Development and Investment Fund (SEDIF). In 2011, SEFA received $10 million from Australian Government in addition to $10 million from a syndicate of equity lenders and investors. (Bruce et al., 2006). In addition to the Social enterprise economic strategy, SEFA is committed in developing and growing into a self- directing and jointly sustaining network of various social enterprises, intermediaries, key partners as well as support agencies. In order to achieve this, SEFA has identified a strategic framework that outlines key imperatives for future growth and development. This framework is basically based on the evidence –based analytical as well as a transparent process approach (Merete et al, 2011, p. 22).Together with its collaborators and partners, SEFA strive to achieve a more sustainable world. It encourages sustainable social development in the wider community. It also creates awareness among its beneficiaries in adopting appropriate financial solutions that enable them enjoy self sufficiency of the available resources. Through this, more new opportunities opens allowing more investments from viable enterprises that ventures in developing indigenous communities and environmental values (Merete et al, 2011, p. 22). Social enterprises in collaboration with SEFA engage in various activities universally. Basically, they majorly focus in assisting socially disadvantaged individuals in the workforce. They provide tailored loan packages that enable the individuals in starting their business. In addition, they offer business support services and promote new skill development. On the contrary, the loans borrowed from SEFA are individually managed and therefore there are no fixed rules regarding their use. The loans can be used in a range of activities ranging from buying or renovating property to refinancing business or funding projects. The loan managers appointed by SEFA to serve the clients ensure that the loan packages are useful to the tenures. From the available study and analysis, it is evident that SEFA is committed in promoting equality, diversity as economic inclusion by providing appropriate opportunities to all while valuing the region’s diversity. It is coupled with an intrinsic admiration of the social good to enhance the quality of life for everyone. It has generated significant wealth through long-term improvement of many several enterprises across the region (Wiseman 2013, p.42). For instance, as a result of approximately 1500 citizens spending nights in rough Cairns, Stuart Wright and Janet Guthrie decided to come with Three Sista project. SEFA provides financial assistance to the Three Sista’s development project that provides affordable crisis accommodation in addition to health services for the marginalized people in Australia. Stuart and Janet identified the essence of increased social responsibility in relation to provision of safe, culturally acceptable as well as friendly accommodation plus associated services (Wiseman 2013, p.42). Defining the Social Value Proposition Social enterprises should clearly lay out their process of effectively achieving its social impact. More than often, social entrepreneurship adopts the use of logic models and theories in defining their social effects. They mostly used by social enterprises in assessing as well as promoting its social innovation activities. Figure1: a diagram outlining the key elements of a logic model. The logic models tend to outline the cause and effect interactions between the events of a social enterprise and the impacts the social enterprise anticipates to achieve as illustrated in the diagram below (Wei-Skillern et al., 2007, p. 326) In addition, in order a social enterprise to keep track of its performance, they need to develop a strong and effective a performance system in relation to its strategies, mission and goals. This can be done by assessing the three organizational zones, namely: Administration, results management and Program Evaluation zones (Wei-Skillern et al., 2007, p. 341). The Social Value Proposition SEFA is opportunity-focused, tenacious in nature and flexible. Through its strategic framework, SEFA is able to identify various sources of income, business activities as well as use of standard management tools that displays a viable working enterprise. It is grounded on strong visionary approaches that are persistent in creating new opportunities. SEFA uses a consultative supportive approach that entails flexibility, expertise and rational judgment in providing appropriate assistance to its beneficiaries. SEFA’s innovative approaches are evident in their core programs that assemble resources and issue funds. A strategic social entrepreneur achieves their vision in spite of the limited resources available. They are often skilled at operating with fewer resources and at attracting more from funders. SEFA invests in using scarce resources efficiently. It also leverages its limited resources by partnering and collaborating with other institutions. They explore available resource options ranging from pure philanthropists to the commercial aspects of the business sector. SEFA is not guided by sector norms or traditions. It takes calculative risks as well as effectively controls its downside to help reduce its failure. SEFA comprehensively comprehends the risk tolerances of the stakeholders and thus uses this knowledge in choosing appropriate partners who are supportive (Mcneil 2010, p. 34). Since market discipline cannot guarantee automatic weed out of ineffective social ventures, SEFA has taken steps to ensure that it is creating value to the society. They correctly evaluate the values and needs of its beneficiaries and the communities in which they invest. Striking a balance between investor values and specific community needs is a major challenge that faces many social enterprises. As a result, SEFA came up a market-like feedback system that reinforces its accountability process. Apparently, SEFA assesses its growth through financial, social as well as managerial outcomes rather than in terms its outputs, size or processes (Dej 2009, p.3). Scaling Social Impact A successful social enterprise should expand their service sites to other geographical areas. This is often meant to achieve the growing demand for the services as well as help in achieving the organisation’s mission and goals. Other motivations may include personal ambitions of the company’s leaders as well as attaining economies of scale. Social enterprises trailing pattern-changing ideas are often more interested in scaling their effect with growing their business. This is attained through direct scaling by developing their own enterprise and indirect scaling by impacting on other organizations. The enterprise should also be able to assess its scaling options by evaluating the required resources, readiness of innovation in relation t the organisation, community and key institutions, risks involved and social impacts. Scaling can be done through dissemination of information, making of affiliations with other organizations, branching of the enterprise. Scaling through other firms ensures that the organisation competes effectively in the changing and complex world of entrepreneurship. Through SEFA, Stuart and Janet were able to address the issue of displacement and homeless in the indigenous area with the little resources available. The Three Sista’ program has opened new opportunities for the community by improving the living standards of many homeless Australians. It directly promotes health services, emergency housing, as well as employment opportunities for the disadvantaged families in Cairns. It provides medical procedures to the indigenous citizens travelling from Cape York regions. In mid-2012, the project through SEFA was able to transform 68-low rent houses that were in uninhabitable conditions into positive accommodation enterprises through an integrated support strategy (Wiseman 2013, p.44). Through collaboration with other social enterprises such as Cape York Health Council and Cairns Regional Council as well as Ozcare among others, Three Sista engages the community in providing sustainable housing plus promoting a better life for its beneficiaries. According to David Rickards, SEFA Managing Director, Funds provided by SEFA not only assisted the Three Sista in acquiring several units but also expedited the enactment of additional occupant services such as community gardens among other activities (Trivedi & stokols 2011, p. 22). Social enterprises based in rural setting tend to meet several needs and therefore, they distinctively requires different support requirement from urban-based organizations. Currently, Australia has relatively few social projects situated in rural areas and therefore, there is need for establishing such enterprises in these areas. SEFA research indicates that, in relation to rural context, local jobs offered by social enterprises can help address the social challenges such as transport that exist in these regions. However, the potential is wider and promising (Trivedi & stokols 2011, p. 42). Social impact Bricolage is defined as the process through which resources such as financial, social capital, human capital among others are recombined to solve certain social problems. The principal aspect of bricolage is that the resources should available in order to fill the market need (Parker 2000, p. 45).Bricolage is applicable in circumstances characterized by limited resources and where new resources are difficult to find. As a successful social enterprise, SEFA creates effective solutions to the sophisticated challenges faced by their constituents. It enacts new approaches that are sustainable as well as scalable based on catalytic innovation process. Catalytic innovations presents better solutions to many social problems that often limits desired social developments. Furthermore, SEFA engages itself in generating resources through grants, volunteers that offer free services such as business mentoring and trainings. It also optimizes use of donations such as government and other social organizations by effectively investing in its programs. For instance, SEFA provides loans to social enterprises that are committed in promoting land and environmental conservation in Australia (Mcneil 2010, p. 34). The social venture model SEFA has a developed model and as well as innovative projects, organizational structures and resources approaches around its basic principle. This model is essentially holistic, sustainable and incorporated business with regard to the organization’s ability to accomplish deep, cost-effective, broad as well as long lasting social impacts. SEFA’s model is centered on providing financial assistance through loans to transform the lives of disadvantaged citizens. Figure2: The following diagram illustrates a simple model illustrating the powerful mission. Conclusion Social entrepreneurship provides one with the opportunity to challenge, integrate as well as debate several traditional entrepreneurship assumptions in order to create a coherent and unifying paradigm. For Social Enterprise Finance Australia is a social vehicle where investors achieves both monetary and social returns. SEFA strongly believes that economies across Australia can be accomplished through social enterprises via well-established business principles. In addition, integration of the bricolage aspect to the field creates a unique approach in how social enterprises mobilize as well as optimize existing resources to steer innovations that tackle the societal most challenging issues. ReferencesTop of Form Austin, J., Stevenson, H. & Wei-Skillern, J. 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