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What Is Social Enterprise?

Social enterprises are businesses that trade in the market in order to fulfil social aims. They bring people and communities together and provide the opportunity for economic and social development.

The term social enterprise is a relatively new one although the concept goes back a long way. The establishment of the co-operative movement in the 19th century is a clear example of a social enterprise in the form of collective self help through trading activity. Social Enterprise is about trading with a social purpose, using business principles and tools to achieve social aims.

Social enterprises are businesses that need to market their services and worry about cash flow through the organisation like any other business. However, social enterprises are not entirely the same. The social aims mean that the traditional 'bottom line' (of maximising profit at the end of the year) is not the primary concern of the organisation and multiple driving forces can require more complicated business plans.

Social Enterprise East Midlands (SEEM) Definition

The Social Enterprise East Midlands (SEEM) definition of a Social Enterprise is:

'...an organisation which is involved in enterprising activities for social aims with social ownership and democratic principles at its core.'

Department of Trade and Industry (DTI) Definition

The Department of Trade and Industry (DTI) definition of a Social Enterprise is:

'...a business with primarily social objectives whose surpluses are primarily reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profits for shareholders and owners.'

Common Characteristics

A social enterprise can be defined by the following common characteristics:

• Driven by social goals
• Involved in enterprising activities (profits reinvested back in the enterprise and/or the community it serves)
• With social/democratic ownership features

Social enterprises are organisations that use trading activities to achieve their goals and financial self-sufficiency. They are motivated by social goals such as employment creation, provision of quality services.

Key Resources

Social Enterprise East Midlands
Social Enterprise London
Social Enterprise Coalition

Credit Unions

A credit union is a financial co-operative, which is owned and controlled by its members. Members of a credit union save in a common fund. As well as being a good savings option, with successful credit unions paying an annual dividend of up to 8%, the money saved can be used to make low interest loans to other credit union members.

To join a credit union, a person must come within the 'common bond' of the credit union. The legally defined 'common bond' may cover:

• Employees of one employer
• Members of a particular organisations
• People living or working in a particular geographical area

The credit union is directed and controlled by a volunteer board of directors. All officers of the credit union are members of it, and are elected by the membership at the AGM. All members of the credit union have one vote, regardless of how many shares they own.

Key Resources

Association of British Credit Unions Limited

Cashfields Credit Union

Cashfields is the Ashfield Credit Union. Credit Unions help you to stay in control of your money. They offer good returns on savings and low cost loans.

Are there any benefits?
We provide free life insurance. This means your loan would be paid off and your savings doubled* and transferred to the person of your choice in the event of your death.
*Anything you have saved before the age of 60 will be doubled

What if I have poor credit history?
It doesn't matter if you have been refused credit before. With Cashfields you earn your own credit rating based on your regular savings. No one is prejudged due to past credit problems. Cashfield believe that everyone has the right to low cost finance.

Who can join?
Anyone who lives, works or volunteers in Ashfield District, Linby, Papplewick or Newstead may apply to join.

How do I save money?
After paying a small membership fee you will be able to save regularly to build up a sum of money. You decide how much you want to save, it can be as little or as much as you like. You will be able to pay in various ways:

• By cash or cheque at one of the collection points
• By payroll deductions from your employer
• By standing order from your bank account

How do I get a loan?
Anyone over 18 years who has been a member and saved regularly for 13 weeks may apply for a low cost loan. The interest charged on your loan is fixed by law at a maximum of 1% per month on the outstanding balance, which works out at 12.68% APR.

Who runs Cashfields?
Members are elected to run the credit union. Credit Unions are registered in according with the Credit Unions Act 1979 and the Financial Services & Markets Act 2002. They are audited once a year and submit accounts to members and the Financial Services Authority.

Is my money safe?
Yes. All credit unions are regulated by the Financial Services Authority (FSA) just like banks and building societies. Members saving are protected under the FSA Compensation Scheme.

If you would like to know more about Cashfields please contact:

Cashfields Credit Union
Under One Roof
Hucknall
Notts
NG15 7HN

Tel: 0115 952 1455
e-mail: admin@cashfields.org
website: www.cashfields.org

Co-operatives

Co-operatives are organised by and for their members, who come together to provide a shared service from which they all benefit.

Definition: A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.

Put simply, it is a form of business owned and democratically controlled by its members.

Co-operative Principles:

• Voluntary and open membership
• Democratic member control
• Limited return on capital
• Autonomy and independence
• Education, training and information
• Co-operation among co-operatives
• Concerns for community and sustainable development

Types of Co-operatives:

• Housing co-operative – where the co-operative itself owns or manages the properties.
• Community care co-operatives which provide quality care.
• Food co-operatives provide a community fruit and vegetable services or joint wholesale buying group to a community store with paid members of staff.

Key Resources

Co-operatives UK – co-operative and mutual solutions
East Midlands Co-operative Council
Co-operative & Social Enterprise Development Agency

Development Trusts

Development trusts are defined as organisations which are:

• Engaged in the economic, environmental and social regeneration of a defined are or community
• Independent and aiming for self-sufficiency
• Not for private profit
• Community-based or owned
• Actively involved in partnerships between the community, voluntary, private and public sectors

Structurally, development trusts operate as umbrella organisations under which different activities take place, sometimes incorporated as subsidiaries. Their boards include representatives of key stakeholders, which may include local community representatives, local business people, and representatives of community organisations.

An established development trust may run a variety of initiatives. Their activities may include building, managing workspace, providing sport and recreation facilities, running childcare centre, promoting community development, carrying out environmental improvements, preserving and refurbishing local buildings, running training programmes, supporting small businesses, and setting up community enterprises.

Key Resources

Development Trusts Association