Social Enterprise Advancing Sustainable Community Development
Presented by Brian Hurd, Rise Technical Assistance Program Manager
AUGUST 22, 2014 Slide 2 RISES MISSION Work in partnership with
community-based and other organizations to redevelop and strengthen
neighborhoods and communities. Slide 3 PRESENTERS & SPEAKERS
Exploring 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.) Slide 4 PURPOSE Examine
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
selfsufficiency and community empowerment. Explore of
entrepreneurship with an imperative to drive social change and
build sustainable ventures. Slide 5 GROUP TRAINING SEMINAR
OBJECTIVES Understanding 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 sustainable businesses Networking with
resource organizations for social enterprise development projects
Slide 6 SOCIAL ENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENT
Brian Hurd Technical Assistance Program Manager Slide 7 SOCIAL
ENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENT What 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 economic, environmental and social needs as mutually
supportive outcomes; reflects the communitys unique history and
assets; and evolves as the character of the community changes,
priorities shift, and new challenges and aspirations are defined. -
American Planning Association Slide 8 SOCIAL ENTERPRISE AND
SUSTAINABLE COMMUNITY DEVELOPMENT Nexus 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 energy Slide 9 SOCIAL ENTERPRISE AND
SUSTAINABLE COMMUNITY DEVELOPMENT What 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. Slide 10 SOCIAL ENTERPRISE AND SUSTAINABLE
COMMUNITY DEVELOPMENT Slide 11 Social enterprises are motivated by
the social value more than the financial return on investment.
Slide 12 SOCIAL ENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENT
Slide 13 Social 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 Corporations affiliate Fox Grove
Management, Inc.) a program or venture that fulfills a social
purpose (ex. Riverview West Florissant Development Corporations
Neighborhood Beautification and Summer Youth Employment Program)
Slide 14 SOCIAL ENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENT
Social 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.
Slide 15 SOCIAL ENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENT
Social 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 Governors 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. Slide 16 SOCIAL ENTERPRISE
AND SUSTAINABLE COMMUNITY DEVELOPMENT THREE REASONS FOR STARTING A
SOCIAL ENTERPRISE? A Sustainable Community Development Perspective
1.To meet a need in the community or local market not met through
traditional business models 2.Advance or achieve a specific social
mission 3.For a non-profit organization, contribute to its
financial sustainability Slide 17 SOCIAL ENTERPRISE AND SUSTAINABLE
COMMUNITY DEVELOPMENT NEED IN THE COMMUNITY Slide 18 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 Citys rich and celebrated historic
landscape. Slide 19 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 costs Slide 20 SOCIAL
ENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENT PLANNING A SOCIAL
ENTERPRISE, FIVE KEY STEPS A Sustainable Community Development
Perspective 1 Assess Organization 2 Identify Opportunities 3
Feasibility Study 4 Create Business Plan 5 Measure Impact Slide 21
SOCIALENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENT COMMUNITY
DEVELOPMENT BLOCK GRANT PROGRAM $3.99 Billion FY 2010 $3.34 Billion
FY 2011 $2.94 Billion FY 2012 $2.94 Billion FY 2013 HOME INVESTMENT
PARTNERSHIP PROGRAM $1.825 Billion FY 2010 $1.607 Billion FY 2011
$1 Billion FY 2012 $1 Billion FY 2013 HUD Appropriations FY 2010
2013 FEASIBILITY & FINANCIAL SUSTAINABILITY GOVERNMENT FUNDING
TREND Slide 22 MEASURING SUCCESS OUTCOMES: 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 identified Slide 23 A BASIC LOGIC MODEL
ActivitiesOutputs 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
ventures 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? Slide 24 SOCIAL
ENTERPRISE AND SUSTAINABLE COMMUNITY DEVELOPMENT Basic 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. RWFDCs Neighborhood Beautification Program was launched in
2009 based on the organizations five-year organizational strategic
plan adopted in 2006. The strategic planning process was
facilitated by Rise. Overarching purpose for RWFDCs 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 mentors Slide 25 A BASIC
LOGIC MODEL ActivitiesOutputs 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 Youth-related crimes & recidivism rates Reduced code
violations Reduced mowing costs for Citys 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 Slide 26 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)
