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Social Enterprise in IrelandJim Boyle, Head of Finance & Operations,

Clann Credo - The Social Investment Fund

10 October 2013

Converting Community needs into Enterprising Solutions

• More than jobs– support people to develop & acquire skills – training (formal and informal), – social outlets and networks for individuals who have been

isolated, – meaningful employment and experience for vulnerable groups

young people, people with disabilities, ex-prisoners, recovering drug users

• Overcomes market failures• Flexible and responsive to local needs • Innovative and creative

Background to Clann Credo• Formed 1996• Not-for-profit (Charitable tax exemption)• Over €50m invested in almost 500

projects • Fund size €25M • Funded by Charitable Organisations &

Foundations by way of Investment (not grants)

Forfás Report*

• Sector, currently employs between 25,000 and 33,000

• 1,400 social enterprises with a • Total income of approximately €1.4 billion.• Potential to double by 2020.

*Social Enterprise in I reland: Sectoral Opportunities and Policy Issues, Forfás, 2013

Key Characteristics / Definitions

• Enterprises which;–Trade for a social / societal purpose–At least part of its income comes

from trading–Separate from Government–Surpluses are primarily re-invested

in the social objective.

Social Enterprise contd.

• Well-known examples include; –Rehab, –Coder Dojo; –Jamie Oliver’s Fifteen Restaurant

Franchise–The Big Issue; –Café Direct; –Grameen Bank (Bangladesh)

Sectoral Areas in Ireland• Childcare• Health & Eldercare Services• Education, Employment Services &

Training• Sports & Recreational Activity• Environmental & Waste Management• Tourism & Festivals• Arts / Media

Examples - Tourism

• Allihies Copper Mine Museum

• Waterford & SuirValley Railway

Examples - Tourism• Copper Coast Geopark

• Kerry Writer’s Museum

Other Examples

• Castlerea Community Arts (Roscommon – Arts)• Belmullet Arts Theatre (Mayo – Arts)• Bonane Community Co-op (Kerry – Tourism)• Action against Addiction NE (Louth - Addiction &

Environment) • Vantastic (Dublin – Disability)• Speedpak (Dublin – Training & Employment Services)• Community Enterprise Centres (various)

Social Enterprise Policy - EU Social Business Initiative (October 2011)

• To exploit the full potential of SE sector.• Address public policy at EU level to ensure level

playing field for SE’s.• Noted that market imperfections constitute

barriers to SE to scale up and benefit from single market.

• Review EU rules on procurement, state aid & financial markets relating to SE’s.

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Social Enterprise Policy - EU Social Business Initiative (October 2011)

• Action Plan–Improve access to funding–Measures to improve visibility of SE’s–Measures to Improve Legal Environment

• Financed by European Social Fund & European Regional Development Fund.

• N.B. Lisbon Treaty prohibits discrimination favouring one type of business over another but Single Market rules can take into account plurality of business models.

OECD

• Calls for –More explicit focus on social enterprises –Appropriate policy supports

• Social enterprise activity in employment and training under-developed,

• Very few social enterprises which can operate on a pure business model

Recommendations to Further Growth

• Development of an enabling framework (Ireland is well behind other developed countries in this area).

• Building up of capacity.• Public Procurement Policy • Funding & Finance • Developing Leaders and Harness Community

Support• Governance

Social Enterprise – promoting the concept

Social Enterprise Longford– 8 projects assisted– Awards July 15th 2013

Social Enterprise & Entrepreneurship Task Force• Government Policy• Minister Appointed

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Irish Social Finance Centre

• Commitment to an underserved area –Inchicore, Dublin 8

• National hub for Social Enterprise & Entrepreneurship Development

• Offices for Clann Credo

Social Impact Investing (SII)

• Innovative financing mechanism• Focussed on areas of social need• Based on achievement of agreed outcomes• Uses private capital to fund interventions• Reward dependant on independent

verification of social outcomes• Pro-active performance management• Dividends and capital repaid to investors by

State on foot of achieved outcomes

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Social InvestmentPrivate Capital• Religious Charities €10m +• Social Finance Foundation €25m +

agreement with banks

Social Purpose

• No Exchequer funding• Income covers Costs• Supports State investments

€16.5m approved in 2012 137 loans approved in 2012 No viable project declined

Social Finance Public Benefit

Community Organisations Voluntary Groups Charities Social/Community Enterprises

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Our People

Jerry Butler; Magdalen Fogarty; Martin Coggins, Sheila Fox; Jerry Kivlihen; Philip O’Connor

Jim Boyle, Finance & Operations; Susan Gallagher, Social Finance ExecutiveTracey Hannon, Social Finance Executive; Angie Healy, Administration ISFC Jennifer Hennessy, Social Finance ExecutivePaul O’Sullivan, CEOAnne-Marie Woodfull, Administration

Hugh Quigley - EU Affairs (Pro Bono)Gert Ackerman - CommunicationsAnn Clarke - Social Impact Investment

Tom Finlay (Chair); Jerry Butler (Vice Chair); Gary Brennan; Magdalen Fogarty (Founder); Colin McCrea; Maurice O’Connell; Grace Redmond; Jim Rourke; Paul Sullivan

STAFFBOARD

EVALUATION COMMITTEE

ADVISORS

PROJECT SUPPORT COMMITTEETom Finlay; Emer Ní Bhrádaigh; Ann Clarke; Pat Leogue; Jim Rourke; Paul Sullivan

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ContactWestern Office:Clann Credoc/o Westbic Lower Main StreetFoxfordCo. Mayo

Southern Office: Clann Credo Owennacurra Business ParkMidleton Co. Cork

Head Office:Clann Credo The Social Investment FundIrish Social Finance CentreInchicoreDublin 8T: 01 400 2100E: info@clanncredo.ieW: www.clanncredo.ie

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Thank you

Please stay in touch!www.clanncredo.ie

23 Clann Credo Limited, a company limited by guarantee not having share capital with charitable status, CHY 13308: CRO No: 253147.