Twelve years ago, Community Housing Cymru set up an Award scheme to recognise housing innovation in memory of a special person - Pat Chown. Pat gave a big part of her life to helping others and spent much of her working life in helping to meet people's housing needs in Wales.
Gwynedd-based horticulture, catering and joinery social enterprise tells us what makes the business a success, and about its plans to grow the organisation further.
Jargon Buster
Below are listed the most common words and phrases you are likely to come across in the social enterprise sector.
A
Asset based development
A development strategy that recognises that the possession of tangible assets (land, buildings or a dedicated income) is the key to achieving the goals of self-sufficiency, independence and sustainability which underpin community based regeneration organisations.
B
Best value
The current arrangements for reviewing the effectiveness, efficiency and economy of public sector services, and the measure of value for money in public sector procurement.
C
Capacity building
The development of skills and knowledge in local communities, often to allow local people to contribute to social and economic regeneration
Cluster
The tendency of firms to improve their commercial performance through direct and indirect forms of collaboration, or sharing of resources, customers, inputs, often resulting in locational advantages from close proximity with each other. One of the best known examples of a social enterprise cluster is Mezzanine 2 which is located at 1 London Bridge.
Common bond
Credit unions all have a common bond. They determine who is able to join them. A community or residential bond refers to anyone who lives in a certain geographical area. A live or work bond refers to people who work and live within a certain geographical area. An employment or industrial bond refers to all employees in a company or group of companies. An associational bond refers to membership of a trade union, trade association or other group.
Community business
A trading organisation which is set up, owned and controlled by the local community and which aims to create self supporting employment for local people and also act as a focus for local development. The terms community business is often used by social enterprises that focus on local markets and services.
Community development finance institutions (CDFIs)
These organisations lend and invest in deprived areas and markets that cannot access mainstream finance, including social enterprises.
Community development venture capital fund
A venture capital fund, run for profit, which is targeted at communities that lack investment.
Community enterprise
These are organisations trading for a social purpose with a community base.
Community Interest Company (CIC)
A legal form for social enterprises, which became available in 2005. CICs report to an independent regulator on how they are delivering for the community and how they are involving their stakeholders in their activities.
Community loan fund
A community loan fund is a CDFI that provides loans.
Company Limited by Guarantee (CLG)
A company registered with Companies House with members rather than shareholders; members guarantee a nominal sum for paying liabilities and can also pay a regular membership subscription. Charities, Development Trusts, Social Firms and Community Businesses frequently use this form of incorporation.
Company Limited by Shares (CLS)
A company registered with Companies House which is controlled by its shareholders. This form is often used for trading subsidiaries of charities.
Competitive tendering
Arrangements for procuring services that involve tendering by more than one potential provider. Tenders are assessed against best value criteria that assess quality and cost.
Co-operative
An organisation owned and controlled by its members which is incorporated under the Industrial and Provident Societies Act and regulated by the Financial Services Authority. Another popular form for social enterprises.
Corporate social responsibility (CSR)
A wide ranging set of concepts that relate to businesses conducting their activities responsibly. Factors include environmental impacts, employee and customer health and safety issues, participation in local communities (being a good neighbour), good corporate governance, other social issues and ethical and fair trading. CSR proponents argue that these issues are core to the long term sustainability of all businesses and apply equally to both small locally based businesses and large multi-national listed companies.
Credit unions
A financial co-operative, which is owned and controlled by its members. 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. Only people who come within the common bond of the credit union can join it and make use of its services. The credit union is directed and controlled by a volunteer Board of Directors.
D
Development Trusts
Development trusts are defined as organisations that are:
- engaged in the economic, environmental and social regeneration of a defined area or community,
- independent and aiming for self sufficiency,
- not for private profit,
- community based and owned and,
- actively involved in partnerships between the community, voluntary, private and public sectors.
Development Trust Association (DTA) Wales
The Development Trusts Association Wales is an independent practitioner based membership organisation promoting the work of and supporting the growing network of development trusts in Wales. DTA Wales is part of the UK wide Development Trusts Association, the leading community enterprise and regeneration network and fast growing movement of 500 development trusts and more than 43 in Wales, with community owned assets worth £560 million.
E
Equity finance
Funds invested in a business in the form of shares. Investors usually have a say in the running of the company and also receive a dividend from profits.
Ethical investment
Investment which is screened to ensure it has no links to activities which the investor would not wish to support.
Externalisation
The transfer of in-house services which were previously delivered by publicly employed staff, to the independent sector.
F
Fair Trade
It implies a trading partnership which aims to encourage sustainable development for excluded and disadvantaged producers. Supporting partner businesses seek to do this by promoting and providing better trading conditions, conducting awareness raising activities and campaigning.
L
Labout market intermediaries
Community based organisations that are close to local people, are able to relate to unemployment issues and understand business needs. They act as job finders, brokers and support people in the early months of work.
M
Micro-business
A very small business, usually defined as "a business with fewer than 10 staff". Sometimes defined as "a business with fewer than 5 staff". 89% of all UK businesses have fewer than 5 employees.
Micro-finance
This term refers to small savings and loans facilities with no (or a very low) minimum deposit. It also refers to other financial services such as insurance, money transfers and bill payments that are designed for people on low incomes.
Micro-loan fund
This is a fund providing small loans and therefore a particular form of micro-finance. A micro-loan fund is a specialised form of financial service based on distinct products specially designed to service micro-enterprises and is not merely the occasional provision of a very small loan.
Mutuals
Mutual organisations are those whose members have joined together with a common purpose to provide a shared service of mutual benefit. They are legally constituted in a number of ways. Mutual business structures include co-operatives, building societies and other employee-owned businesses.
N
Non profit, Not-for-profit or Not-for-private-profit
Terms used to describe companies which may well make a profit, but do not distribute their profits to shareholders, instead using them for social or community benefit or reinvestment in fulfilling their social aims.
R
Regeneration
A programme of local development which addresses physical, social, environmental and economic disadvantages in both rural and urban areas. This is an important agenda nationally, regionally and locally.
Registered social landlords (RSLs)
More commonly referred to as housing associations, RSLs are independent not for profit organisations that are registered with the Housing Corporation.
S
Service level agreement (SLA)
These are agreements with suppliers that define the service they will provide, and sets out the responsibilities and priorities of the supplier under the agreement.
Social accounting and social auditing
Social (or ethical) accounting and auditing are all methods of measuring and reporting an organisational social and ethical performance. An organisation conducts a social audit makes itself accountable to its stakeholders and commits itself to following the audit's recommendations.
Social business
This is a term that is sometimes used by social enterprises where there is a small core of members who act in a similar way to trustees. These social businesses often focus on providing an income or employment opportunity for disadvantaged groups, or providing a service to the community.
Social capital
A term used to describe the non-financial resources – such as trust, partnership, shared values – which enable a community to thrive and function more effectively.
Social economy
Sometimes also called the ‘third sector’, this part of the economy exists between the private and public sectors and includes social enterprises, voluntary organisations, foundations, trade unions, religious bodies and housing associations.
Social enterprise
Social enterprise means doing business with social aims. ‘Doing business’ means trading goods or services in a responsible way and making money from it. The social and environmental aims of a social enterprise can range from creating employment and regenerating communities to preventing tonnes of waste going to landfill unnecessarily. There are social enterprises working in many different sectors – from health and social care to recycling, and from Fair Trade to leisure services.
Social entrepreneur
Somebody who identifies and brings to life new business opportunities but who is motivated by public and social good rather than the need for personal profit.
Social firm
A business created to provide integrated employment and training to people with a disability or other disadvantage in the labour market.
Social Firms Wales
Social Firms Wales is the National Support Agency for Social Firm Development. It works closely with Social Firms UK. It is committed to the creation of employment opportunities for disadvantaged people through the development and support of Social Firms in Wales.
Social Return on Investment (SROI)
SROI is a way of putting a monetary value on investment. It helps organisations evaluate how effective the social impact of their service is, which financial returns alone don’t take into account. The tool allows organisations to make continuous improvements and achieve best value. This is particularly useful for opening up the public procurement market.
Surplus
The profit in many social enterprises is referred to as a surplus, to reflect their "not for profit" status.
Sustainability
This term can refer both to the financial stability of an organisation and to the adoption of environmental policies and practices which minimise the impact of the enterprise on the environment.
Sustainable development
This term is often used to describe development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
T
Triple bottom line
When an organisation attaches equal importance to social and environmental objectives as well as to financial objectives.
V
Voluntary organisation
Usually a charitable body established to achieve a social purpose but which depends largely on grants and donations for its revenue.
W
Wales Co-operative Centre
The Wales Co-operative Centre is a support organisation for co-operatives, social enterprises, community groups and voluntary organisations in Wales. It promotes social, financial and digital inclusion through a range of projects and manages the £8m Social Enterprise Support Project.
Welsh Social Enterprise Coalition (WSEC)
The Welsh Social Enterprise Coalition is the collective voice for social enterprise in Wales. A membership organisation, it represents the views and interests of social enterprises to the Welsh Government, local authorities and the private sector. As an umbrella body WSEC also provides advice and guidance to social enterprises, as well as a signposting the range of financial and business support that is available to the sector.
