Types of Social Enterprise — Integrated Model

When operations and impact overlap slightly.

In a previous blog post we looked at the different types of social enterprise model, and this time we’re delving deeper into the integrated model.

The integrated model often sees a social enterprise’s income generating activity partly fund some of the social activities within the social enterprise. At the same time the business side of things will also directly contribute to other forms of social good. However the product or service they offer is unlikely to solve some sort social or environmental need.

Read more here:
https://medium.com/@michaelfreersplit/types-of-social-enterprise-integrated-model-b70af2355570

Social Enterprise in Focus : FINACOOP, France

Since the recession and banking crisis, consumers have been a lot more proactive in choosing where they shop and what they buy. This has supported social enterprise in its growth and long may this continue! In this blogpost, we want to show you that it’s not only social enterprise products but also social enterprise services that are offer. So we’ve made our way to FINACOOP in France where we spoke to their Director, Mathieu Castaings. It’s well worth the read in both English and French!

Can you give us a brief background as to what led to FINACOOP being established?

As soon as I got my chartered accountant diploma, I started working on the project of an accounting firm dedicated to the Social and Solidarity Economy (SSE). The legal status matter soon arouse and according to me, the most accomplished in terms of democracy and inclusion of stakeholders is the SCIC (Société Coopérative d’Intérêt Général), the French form of a social cooperative. Today, among the members, in addition to the chartered accountants, FINACOOP include also employees, bénéficiaries, and partners. All of them being divided in 5 categories, 2 of which are chartered accountant thereby guaranteeing the valuable independance of the profession. Being a regulated profession, FINACOOP had to subcribe to the Ordre des Expert-Comptables and its registration was… refused! The Ordre des Experts-Comptables considered the SCIC as incompatible with  its professional ethics. An appeal and a political battle later, FINACOOP was finally registered and since July 2016, the cooperative has been rising steadily for the greatest happiness of all and has been progressively generating greater adherence by our beautiful profession.

Le diplôme d’expertise comptable en poche, j’ai travaillé le projet de monter un cabinet dédié à l’ESS. La question du statut juridique s’est vite posée et selon moi, le plus abouti en termes de démocratie d’entreprise et de démarche participative de l’ensemble des parties prenantes est la SCIC (Société Coopérative d’Intérêt Général). Du coup, parmi les sociétaires, FINACOOP d’intègre en plus des expert·es-comptable, les salarié·es, les bénéficiaires et les partenaires. Tout ce petit monde réparti en 5 catégories dont 2 d’expert·es-comptables totalisant la majorité des votes en assemblée générale ; et ainsi garantissant la précieuse indépendance de la profession. Sauf qu’en bonne profession réglementée, FINACOOP a du s’inscrire à l’Ordre des Experts-Comptables, et là c’est le refus ! L’OEC considère le statut SCIC comme incompatible avec la déontologie du métier. Lol ! Un recours et une bataille politique plus tard, l’inscription de FINACOOP est validée ! Et depuis juillet 2016, le cabinet ne cesse de grandir pour le plus grand bonheur de tous et toutes suscitant au fur et à mesure une plus grande adhésion de la part de notre belle profession.

You’re the first SCIC accounting firm, how has this been received by other companies in the industry and the general population?

In a general way, we receive enthusiastic support, as we are the first accounting social cooperative and therefore the ‘trend-setters’. The innovative approach in both in the legal form and our « specialisation » in the SSE is met with a certain amount of enthusiasm. That said, it is true that for people and professionals who are not familiar with the cooperative sector or SSE, that our approach is absolutely incomprehensible. Their entrepreneurial model is far too reduced to the image of a « boss », associates who are exclusively chartered accountants, a pyramid hierarchy, a profession reduced to tax optimisation with some big associations and foundations as clients so as to bring a little extra soul. For sure, setting an example is necessary! And we love the idea!

De manière générale, l’accueil est assez enthousiaste, nous sommes la 1ère SCIC d’expertise comptable et il est vrai, nous faisons figure de précurtrice (précurseur). L’approche innovante tant dans la forme statutaire que dans notre ‘spécialisation’ pour l’ESS rencontre un certain engouement. Après, il est vrai que pour les personnes et professionnel·les très éloigné·es du milieu coopératif et de l’ESS, notre démarche est juste incompréhensible. Leur référence entrepreneuriale est bien trop réduite à un patron, des associé·es uniquement expert·es-comptables, une organisation pyramidale, un métier réduit à de l’optimisation fiscale avec quelques grosses associations et fondations comme clientes pour gagner un supplément d’âme. Pour sûr, un travail pédagogique est nécessaire! Et on aime ça!

What is actually involved in being a SCIC?

It involves having a shared governance with all the categories of members, and making sure that they are able to participate according to their wish. They must be given the opportunity to reflect and participate in the strategic decisions of the firm such as the selection of bénéficiaries, partners, the hourly rate (Currently of 70€ /h) or the remuneration of chartered accountant. Basically every matter that aims to improve the commercial offer, the eco-system as well as working conditions. All of this requires working daily on the position as well as on the collective intelligence and decision making methods which is no simple matter, and it has been a preoccupation since our founding (hiring of an employee dedicated to the cooperative life, training and accompaniment on shared governance). Democracy with everything that goes with it in terms of transparency, power sharing and engagement also requires emancipation and reversing conditioning from a social and psychological perspective. There is much to do!

Cela implique d’avoir une gouvernance partagée avec l’ensemble des catégories de sociétaires, que ces dernier·es puissent participer selon leur souhait et possibilité à la réflexion et aux décisions d’enjeux stratégiques sur le développement du cabinet, le choix des bénéficiaires, des partenaires, le taux horaire (actuellement de 70€ HT/h) ou encore la rémunération des expert·es-comptables et toute autre question pouvant améliorer tant l’offre commerciale, l’éco-système que les conditions de travail. Tout cela nécessite de travailler au quotidien tant la posture que les techniques d’intelligence collective et de décision, ce qui n’est pas chose aisée, et a été une préoccupation dès notre création (embauche d’une salariée dédiée à la vie coopérative, formation et accompagnement sur la gouvernance partagée). La démocratie avec tout ce qui va avec en terme de transparence, de partage du pouvoir et d’engagement nécessite aussi un travail de déconditionnement et d’émancipation de représentation et comportement tant sociaux que psychologiques. Et il y a du boulot!

How do you think being a social co-operative can improve the sector?

For an accounting firm, the advantages of becoming a social cooperative are many. Facing the problems of turnover, people quitting the profession and demotivation, by choosing the cooperative and along with it participatory management should have a significant impact on employee involvement, the desire to work well and perpetuate the firm. The social cooperative makes the general interest even more alive, with an interest that is higher than the sole individual interest. Last but not least, to be in a social cooperative implies a limited pursuit of profit which puts forward the question of a fair wage policy and a more disciplined remuneration for the capital, a delicate issue.

Les avantages pour un cabinet à devenir une coopérative sont à mon sens multiples. Face aux problèmes de turnover, d’abandon de la profession (chiffres) et démotivation, faire le choix de la coopérative et avec cela d’un management participatif et de la propriété collective aurait un gros impact sur l’implication, l’envie de bien faire son métier et le désir de pérenniser le cabinet. La coopérative rend encore plus vivant la notion d’intérêt général de l’expertise comptable. En effet, là aussi et même particulièrement, il existe un intérêt supérieur aux seuls intérêts individuels. Et puis, autre notion déterminante, être en coopérative suppose une démarche de lucrativité limitée ce qui pose la question d’une politique salariale plus équitable et d’une rémunération du capital plus encadrée, point plus que délicat, vous en conviendrez.

What advice would you have for anyone wanting to set up a social enterprise?

I would advise them to consider that starting up a social business means a change of their entrepreneurial paradigm. This does not only mean having a social activity but actually changing the way we all work as a whole, with your community on every floor. There is the project in itself and the way you run it. We are fond of the idea that “the ways prefigure the end” rather that “the end justifies the means”. It also requires a strong financing plan and a system that puts the human being at the very centre, yourself, employees, partners, or the neighbour above. This requires a certain exigency which demands us to rethink our priorities, time management, emotions and ask ourselves about power and money sharing.

Je leur conseillerais de considérer que créer une entreprise sociale c’est changer de paradigme entrepreneurial, ce qui ne veut pas juste dire avoir une activité sociale mais belle et bien changer la façon dont on travaille dans sa globalité, avec l’ensemble des parties prenantes à tous les étages! Il y a le projet et la manière de le mener. Nous sommes adeptes de l’idée que “les moyens préfigurent la fin” plutôt que “la fin justifie les moyens”. Une démarche sociale efficace et pérenne nécessite tant une gestion et un plan de financement solides qu’un fonctionnement mettant l’humain au centre, soi, les collaborateur·rices, les bénéficiaires, les partenaires et la voisine du dessus. Cela demande une certaine exigence et cette exigence demande de revoir nos priorités, de revoir notre gestion du temps, de nos émotions, et d’interroger le partage du pouvoir et de l’argent !
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When you’re shopping for both products and services, check to see if there’s a social enterprise that offers the same, as then you’ll know what you spend is being invested and reinvested in social good.

Social Enterprise in Focus : Electra Energy, Greece

Greece has been in the news far more than it probably wanted to over the past few years. Everyone knows about the beauty and history of the great country, however recently the focus has been on the economy and refugee crisis. In response to this, a number of initiatives have started, and the social enterprise sector has taken off. We managed to talk in-depth to Ignacio Navarro, general manager of the social co-operative Electra Energy, a Greek cooperative enterprise that focuses on the development of renewable energy social investments, aiming to produce, manage and commercialise renewable energy to it’s members and other communities.

Why and how did you start Electra Energy?

Back in 2016, the team of Electra worked together to set up investment plans for residents and farmers communities of the Region of Lamia (a rural town in Central Greece) aiming to replace their oil burning furnaces with biomass systems that burn leftover olive trees cuttings to produce heat and hot water. As a result of this promotion, the Municipality proposed the development of the first bio-energy school community of the Region, turning the old oil boiler into a biomass combustion unit, and engaging the local community to clean their forests and provide their feed-stock to the school. The project served as inspiration to the founding members in the ambition of setting up a legal enterprise and promote initial services, technical consultancy and networking.

Electra Energy was thus launched in September of 2016, and the main purpose is to create job opportunities through the promotion and development of collective investments on renewable energy. Electra forms part of an Eco-system of social enterprises related to the promotion of sustainable energy, and it is co-partner of the organization SEYN (Sustainable Energy Youth Network) a non profit organization established in Belgium, who act as a mentoring and educational body for new entrepreneurs interested on the promotion of sustainable energy transitions.

What legal form did you adopt and how does this help or hinder you?

In Greece there are many different cooperatives enterprises which operate under different frameworks and operational rules. Electra Energy Cooperative was launched as a “KoinSEp -Koinonikes Sindeteristikes Epixiriseis N4430/2016”, defined as an economic, business, productive and social activities undertaken by companies or associations, whose purpose is the pursuit of collective benefit and service general social interest.

Compared to other existing frameworks, this legal form is the most flexible and involves less financial and legal risks to its members, a fact that was crucial during the constitution since the founding members wanted to test the business approach by running the minimum cost and risks at least during the initial steps, and it was also the form requiring less amount of administrative work and time for it’s constitution.

What are the social and environmental goals that get funded through your profit?

Our goal is to find collective investments to develop and produce renewable energy in Greece, and to be able to be launched as an energy supplier to compete in the local markets, always aiming to the social added value of giving open membership, participation and support to new and existing members.

During the first ten months of operation, we have focused on community engagement, networking with potential stakeholders, and identifying project opportunities that align with the principles and objectives of the organization. Right now the cooperative is initiating the permiting process for a small wind turbine in North Greece and participating in the legal work to allow better legislation to allow an investment on solar self consumption for multiple tenants.

The cooperative aims it’s economical activity to grow and attract social investments based on the principle of “renewable energy as a common good”. A common is a shared resource managed by a community who create rules to make the resource durable. The resource cannot be monopolized by one or a group of individuals. We aim to create business models that preserves these principles while contributing to create innovative and smart products and services to improve the quality and efficient of the Greek energy market. Electra Energy business activity aims to be aligned with three basic principes of the cooperatives enterprises (International Cooperatives Alliance): Fair and Easy Access to Common Goods, Energy Tranition in the Hands of Citizens and Fair Supply.

How have you managed to cope through this difficult financial time?

First steps are never easy and specially for a new enterprise. We also find obstacles in working with public authorities and speeding up licensing processes for the development of first projects that could bring us income. Out of the 9 founding members, 4 are unemployed, only one is part time employed in the cooperative and all the rest work on volunteer basis. However, from the beginning we all planned a two year grace period until we expect any substantial incomes that could cover at least some full time jobs within the organization. We currently have support from a German social investor, a lady aware of the Greek situation who liked our model and ambition and decided to cover some of the operational expensive until the cooperative can become self sustainable from it’s activities.

What advice would you have for would-be social enterpreneurs?

If there is anything I had to choose to say to them, (it would be to) work with people you like, have fun doing what you do, even if the idea is full of risks, always ask for help and advice but most importantly, don’t listen to all advice. Taking risks is a part of the activity and social entrepreneurship is full of risks and unknown paths. We may find that sometimes people tell us that what we are aiming to do is not possible, but it is, so remember to be open to advice but, always learn to trust your gut.

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A special thanks to Ignacio for a very informative interview about Electra, providing us with a few links to find out more about commons and the International Co-operatives Alliance. Feel free to join the SEYN network as well if you are involved in the field of sustainable energy.

Social Enterprise in Focus : VITA ANST, Croatia

This week we head to Split in Croatia to meet a local social enterprise.

Social entrepreneurship is a growing concept in Croatia. In 2015 the government launched a five year strategy which aims to develop and promote social enterprise across the nation, creating it in partnership with some key players such as ACT Grupa and CEDRA HR. A number of initiatives over the last couple of years have seen more funding opportunities for start-ups, which has also enhanced the reputation and knowledge of existing social enterprises.

One such social enterprise (in this case a social co-operative) is VITA-ANST. Founded in 2009, they have experienced ups and downs over the years, nevertheless they continue in their commitment to support people with addictions. They run both an NGO (ANST 1700) and the social co-operative to enable them to run support programs as well as work in the rehabilitation and reintegration of people recovering from addictions. The social co-operative produce bright and colourful souvenirs for the tourist market, as well as bespoke frames for pictures or posters for the home.

We caught up with Gabrijela Frakić, Vice President of the NGO, to tell us more about VITA-ANST.

Why did you decide to open a social enterprise (socijalna zadruga)?
From the very beginning we offered therapy in the form of art and craft. Through this we realised we could create a self-sustainable model and therefore the need to open a social co-operative arose. It enabled us to separate the business (in terms of product placement) and social activities. It also meant it was easier to promote and sell things since at the time it wasn’t possible to do this through NGOs.
 
What has been the most difficult thing in running a social enterprise in Croatia?
There are a few current issues regarding social co-operatives generally in Croatia. There isn’t a defined status of social co-operatives in the tax system and furthermore there’s a general lack of support from local administration. In addition to this there is insufficient knowledge of social entrepreneurship generally. Finally, there’s a lack of development support such as training or workshops around capacity building and there aren’t many financial tools available for market expansion.
 
What advice would you give to individuals thinking of opening their own social enterprise in Croatia?
In terms of a co-operative, make sure all members have common interests and there is someone who can lead or manage everything with excellence and professionalism. Then, with the right vision, there are possibilities out there but you have to persevere and learn how to deal best with external issues such as the legal and economic situation. Finally, whether you offer a service or a product, ensure you are always improving the quality of what you offer. It may be slow at times but it will enable you to expand and reach wider markets.
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In our next blog post we’ll be explaining more about what a social enterprise is.