Learning to Start Something Good. Firstport s 10 year adventure with social entrepreneurs

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1 Learning to Start Something Good Firstport s 10 year adventure with social entrepreneurs

2 Social entrepreneurs are making a difference, in big ways and small, in local communities and across Scotland. Individually and collectively, these can-do people are seizing the initiative, setting up social enterprises, and introducing new ways of tackling local needs. SCOTLAND S SOCIAL ENTERPRISE STRATEGY

3 Setting the scene Firstport started work in 2007 to help social entrepreneurs bring forward their ideas and to make them happen. This report marks our tenth anniversary and shares our learning along the way. Our organisation was formed in the same year as Scotland s earliest Social Enterprise Strategy, Better Business, which first highlighted the significance and potential of social entrepreneurs in policy terms. Now ten years on, the Scottish Government s latest and most comprehensive policy has been unveiled. This identifies social entrepreneurs as central to the rapid expansion of the social enterprise sector and important in finding new ways of tackling the country s most pressing needs. In this context, we call for greater ambition and ingenuity in how we, as a country, go about unlocking the potential of social entrepreneurs. We have produced this document to inform the debate that must follow. In it we explore what has changed and been achieved by Firstport in the last ten years. We also share our learning and critically reflect on what works well when supporting social entrepreneurs. Our experience shows us that the potential for social entrepreneurship exists within every community and among people from every walk of life. However, the conditions are not always in place for this potential to emerge or flourish. We describe ways to get the ecosystem of support right for social entrepreneurs sowing the seeds of social entrepreneurship widely across Scotland, ensuring the ground is more fertile in places, nourishing new social ventures with the right blend of ingredients, and cultivating this potential with great patience and care. We recognise that it is only by working with others that this ecosystem can work efficiently and give rise to more social entrepreneurs.

4 Our work and impact We started small, have grown modestly, and consistently punched above our weight over the last ten years. During this period, we have introduced a variety of cutting-edge programmes and services that have enabled us to achieve a growing impact for social entrepreneurs. Since getting started in 2007 we have responded to more than 5,000 enquiries from budding social entrepreneurs. We are constantly challenging ourselves to find new and even more effective ways of supporting social entrepreneurs. Every day we help three people take their first step into social enterprise. In 87% of cases our work has had a positive influence on eventual success of the social ventures.

5 Pushing at the boundaries During the past ten years we have broken new ground and built a comprehensive set of services as a response to what we have seen and heard on the ground - what social entrepreneurs have told us they need. Our services help take new social enterprises from the seed of an idea to start-up and sustained success. Seed funding We run an awards programme on behalf of the Scottish Government. It offers two different levels of start-up funding to help pilot and grow social enterprise ideas. Business advice and training We have free business support, resources and training to help get social enterprises started. We provide this free of charge as part of the Government s Just Enterprise programme. Business accelerators We developed LaunchMe, funded by the Big Lottery Fund, as Scotland s first and only accelerator for ambitious, early stage social enterprises. Competition prizes We have introduced challenges such as Beyond the Finish Line (Big Lottery Fund), the West Dunbartonshire Challenge (WD Council) and the Social Innovation Competition (Scottish Government) to uncover innovative ideas that tackle social or environmental issues. Place-based programmes We have delivered placed-based social entrepreneurship programmes to find solutions to community need, fuelled by the imagination of local residents. These has been made possible thanks to Highlands & Islands Enterprise, CalMac Ferries, the PCG Foundation and the William Grant Foundation. Business replication Funded by Resilient Scotland, we designed the Ditto programme to offer aspiring entrepreneurs a range of proven business models that will benefit them and profit their community.

6 Reaching out across Scotland We have supported social entrepreneurs from all backgrounds and walks of life. Our social entrepreneurs are especially likely to be women, younger people and a higher-than-average proportion from minority ethnic backgrounds. We have also supported social entrepreneurs from every part of Scotland rural, island, coastal, coalfield and city communities. We have progressively extended our reach beyond the central belt to all parts of the country. A quarter of the social entrepreneurs we have assisted live in rural areas and 15% are from the most deprived parts of Scotland. Since 2009 we have invested more than 5.3m in start-up social enterprises. Since 2009 we have invested in more than 800 social entrepreneurs and worked with thousands more Gender 57% of the social entrepreneurs we assist are women (51% nationally) 800 SOCIAL ENTREPRENEURS 8% MINORITY ETHNIC BACKGROUNDS 25% IN RURAL AREAS Ethnicity 8% are from minority ethnic backgrounds (4% nationally) 25% of the social entrepreneurs we assist live in rural areas 46% Large Urban Areas Age 36% are aged between 16 and 35 years (25% nationally) 36% YOUNGER PEOPLE 22% Other Urban Areas 7% Accessible Small Towns 13% Accessible Rural 4% Remote Small Towns 8% Remote Rural

7 Making our influence felt Since 2009 we have invested more than 5.3m* in start-up social enterprises and had a big impact on the social entrepreneurs behind these ventures. *Includes funds from the Social Entrepreneurs Fund, Resilient Scotland, Millennium Awards Trust and Big Lottery Fund There is growing evidence that our services have equipped social entrepreneurs for business success. We enable them to understand social enterprise and give them the resources, networks, confidence, and personal resilience they need to get started. Ultimately, this helps social enterprises get off to a stronger start. In 87% of cases, our work has been reported to have had a positive influence on the eventual success of social enterprises. % of social entrepreneurs reporting an impact from Firstport An understanding of social enterprise Confidence to achieve goals The resources needed to get started Knowledge of business practices Awareness of support elsewhere Clarity over what to do next The right connections to move forward The skills needed to run an enterprise The resilience to overcome obstacles Ideas for doing new or different things We help three people every week to get their social enterprises off the ground. 0% 25% 50% 75% 100% Source: Survey of Assisted Social Entrepreneurs, Social Value Lab, December 2016, 206 Responses * Percentage reporting Some Impact or Major Impact

8 Providing the launchpad We help three people every week to get their social enterprises off the ground. The social enterprises tend to start very small. During the first year or two, the idea is tested and people learn from what works and what is needed. At this stage the fledgling venture is both fragile and heavily reliant on the energy and personal commitment of the social entrepreneur. Looking at the experience of those social entrepreneurs we first supported more than two years ago: 75% have increased their time commitment to the venture 81% of ventures are off the ground 61% of the ventures have attracted further funding 66% have become formally registered as companies 49% have taken on premises After taking two to three years to become firmly established we see new social enterprises steadily growing in size, strength and impact as time progresses. The evidence suggests that the likelihood of employing staff and the level of turnover rise steadily as the social enterprises really get going. 80% 70% 60% 50% 40% 30% 20% 10% 0% Current performance data for each annual cohort of social entrepreneurs After year 1 After year 2 After year 3 After year 4 After year 5 After year 6 After year 7 After year 8 onwards Average % income from trading % Employing staff On average, each of the social entrepreneurs we have helped employs three people today. This rises to an average of more than five employees among the social entrepreneurs that we first assisted five or more years ago. 9.3K 8K ,300 99,870 90,300 99, ,000 Average annual income Source: Survey of Assisted Social Entrepreneurs, Social Value Lab, December 2016, 206 Responses

9 Making a mark Ultimately we see more social enterprises getting started and making a difference to individuals, families and communities across the country. Evidence suggests that the new social enterprises we help go on to bring a range of health, educational, social and other benefits. Our social entrepreneurs tell us that on average their work benefits 560 people per month. Some realise a deep, localised impact while others go on to achieve wide-ranging effects. Four in five social entrepreneurs also go on to create volunteering opportunities. This equates to an average of seven regular volunteers per social enterprise contributing around 80 hours of time per month. Learning from our experience In our 2015 strategy Start Small, Aim High we set out four ambitious goals which together will help unlock the full potential for social entrepreneurship in Scotland. On the following pages, we reflect on our learning from the past decade and what it tells us about delivering on these aims. Four in five social entrepreneurs go on to create volunteering opportunities.

10 AIM 1 More people, from more diverse backgrounds and more places, start up social enterprises. Our starting point We have found that every community has people with the enthusiasm, passion and potential to lead change. Our challenge has been to find ways that can release the potential of many more of these people across the country. Our ambition We want more social entrepreneurs seizing the initiative and making good things happen. This can best be achieved by expanding the level of support we offer and extending our reach across Scotland. By achieving this, we can ensure that more people from diverse backgrounds and locations take the opportunity to start a social enterprise. Our work We have worked hard to extend our reach and impact, by: Helping more people to start social enterprises by way of an expanded Social Entrepreneurs Fund, managed on behalf of the Scottish Government. Introducing challenge programmes, such as Beyond the Finish Line and the Social Innovation Competition. Promoting opportunities for social enterprise start-up through Ditto, a creative approach to replicating successful business models supported by Resilient Scotland. Providing accessible business support through the national Just Enterprise contract and working with others to expand the sources of help available in all parts of Scotland. Our learning Our programmes and funds have been transformed over the last decade, as has our knowledge of what it takes to get more activity started. Sow lots of seeds Recognising that not all new social enterprise ideas will take hold, we have identified the importance of stimulating ideas in large numbers. Critical has been our ability to enable rapid access to relatively small amounts of capital (typically 3,000-5,000) and take a risk on people, allowing them to try things and fail. Crucially, our awards programmes work because they are uniquely designed to take a chance on individuals and their potential. Encourage diversity We have shown that it is possible to unleash the talents of social entrepreneurs from all backgrounds. However, this has taken time and has been achieved through a combination of targeted outreach, inspiring stories of change led by people from diverse communities, and the active consideration of diversity in our awards decisions. In the end, our efforts have encouraged a wider spectrum of social entrepreneurs, including an especially large number of women, younger people and people from minority ethnic backgrounds.

11 Lay down the challenge Challenge programmes can be particularly effective as a way of unlocking social entrepreneurship. Our experimental initiatives such as the Social Innovation Competition and Beyond the Finish Line have had successes as well as failures, and taught us much about the importance of a clearly defined challenge and prize one which excites interest, is outcomefocused, is not prescriptive, and has low barriers to entry. Applied in combination, these factors have helped unleash passion and uncover many pioneering ideas. Instil a commercial mindset Social entrepreneurs often come with great ideas and an abundance of purpose, but with a lack of business experience to back these up. The need for sound business support is widespread and demand can be excessive. We have discovered that this advice is most effective where it is highly personalised, flexible, delivered close to the point of need, and combined with an appropriate level of seed funding. Accommodate the twists and turns The journey of social entrepreneurs is rarely a linear one every social entrepreneur faces unique challenges, sometimes requiring multiple forms of help, and often over an extended timeframe. Unfortunately, social entrepreneurs still find it difficult to navigate the overlapping and sometimes disparate sources of help available to them. In this, we have found that an efficient support ecosystem is only possible with well-informed partners prepared to work across organisational boundaries and able to connect people with limited previous experience into a wider support network. CASE STUDY The No1 Befriending Agency Audrey Mutongi came up with the idea of the No1 Befriending Agency after working as a personal carer for older people and realising that, besides personal care, what they really needed was social support and companionship. She got things off the ground with help from a Ditto award, followed by Start It and then Build It awards. Most recently, funding through the West Dunbartonshire Challenge allowed Audrey to employ more staff, develop a volunteer strategy and grow her business in Glasgow and beyond. In addition to financial support, Audrey has benefited from access to a wider network of social entrepreneurs that has enabled her to share ideas and problem solve with her peers. Audrey now plans to extend the service throughout Scotland and offer supported social housing and befriending workshops for carers. She has recently been accepted onto our LaunchMe programme which will help her achieve this with seed funding, business advice and peer support. I d always wanted to start a business that is meaningful to both me and to my clients. We hope that our cup-oftea approach to befriending will develop a movement of people in communities who catch the befriending bug and the enjoyment they get from becoming a friend and reducing isolation becomes second nature.

12 AIM 2 Start-up social enterprises help our towns, villages and cities to be great places to work, live, learn and create. Our starting point Increasingly we find that social entrepreneurs hold the key to the renewal of the places in which they live, finding solutions to need that cannot otherwise be imported or imposed. However, some communities lack the professional skills, networks, resources and encouragement for social entrepreneurs. In these areas, radically different methods of reaching people are required. Our ambition We want to see social enterprise really taking hold in priority towns and villages across Scotland. We know that this is best achieved by supporting social entrepreneurs to develop solutions to need in the places they live and volunteer. By doing so, we can ensure a highly targeted effect, giving rise to new ways of tackling long-standing issues, improving services, and contributing to place-based regeneration. Our work We have come up with new ways of uncovering the people and ideas that make change happen in communities, including: Working with communities to develop locally focused initiatives, such as Vital Spark (Rothesay, Dunoon, and Campbeltown) and What If... (Girvan) Building local partnerships with public agencies, intermediaries and local businesses to develop programmes that promote social enterprise. Developing longer-term programmes that can be replicated across communities and sectors. Our learning Our innovative place-based programmes are showing much early promise demonstrating how local people can improve the fortunes of their area. Run a campaign, have a hook Our experience shows that we can t sit back and wait for social entrepreneurs to come to us; we must go to them. We have found high-profile campaigns to be a particularly effective catalyst, helping to reach beyond the usual suspects and achieve more diverse community involvement. Our most successful campaigns have achieved a strong identity, been highly localised, involved extensive outreach, and made an immediate splash. Inspire Often great ideas can lie dormant for some time, usually when people lack the confidence and experience to take them forward. Effective early engagement is needed to offer a sense of hope and inspiration, getting people feeling good about the place they live and seeing value in their contribution. Stories and learning from established social entrepreneurs can also help to motivate and crystallise ideas. Keep it local Every community, urban and rural, large and small, brings its own unique circumstances. Having experienced potential resistance and scepticism when new initiatives are introduced, we have learned that place-based programmes must be highly visible,

13 CASE STUDY Wee Toon Environmental Solutions sensitive to geographic differences, and shaped by local priorities. We have also found that a local co-ordinator is essential; someone with the experience to make connections, build trust and work effectively with local residents. This local presence can require a long-term term commitment, typically three years or more. Find the right recipe Successful place-based programmes require both a carefully defined community and a well-thought-out process of support. We have identified the importance of a structured process, with a defined endpoint, to maintain momentum. It is also essential to get the right blend of programme elements, typically including group-based learning, peer-to-peer support, access to mentors and training, and seed funding. Cultivate with patience The social entrepreneurs we work with are often at a very early stage, and it can take a considerable time to get their ideas to a testing stage. Each social entrepreneur progresses at their own pace, often with personal and professional obstacles along the way. Programmes must therefore be designed to anticipate some drop-out and to ensure constant, person-centred and flexible support throughout. Work well with others No programme should be delivered in a vacuum, but as part of a wider system of support. This offers the best prospect of helping social entrepreneurs to strengthen their networks, overcome obstacles, and secure continuing support from a wider supporting cast. We have found that partnership working does not always run smoothly and that tensions can arise and efforts diverge. Our experience has taught us the importance of clear roles, expectations and constructive relationships with local allies and delivery partners. Gordon Allen set up Wee Toon Environmental Solutions after being made redundant from Argyll and Bute Council s Employability team, to fill the gap in local service provision, including garden maintenance, landscaping and joinery, left by the team s closure. He soon secured a council contract and several private customers. Gordon has benefitted from support from our partner InspirAlba including business planning, bookkeeping and funding applications. Since receiving two awards through the Vital Spark programme, Gordon has been able to establish his venture, secure premises and buy a van. Wee Toon Environmental Solutions aims to create employment and work experience opportunities for people facing barriers to finding work and currently employs two people, giving them practical, social and life skills. Gordon plans to grow his social enterprise further, offer more jobs and services and expand his client base. He also plans to recruit a chargehand to allow him to focus on the strategic side of the business. Being involved in Vital Spark has been a challenge (but an enjoyable challenge) and exciting. I have been able to take the business idea forward and am much further on than I thought I would be and I have learned loads.

14 AIM 3 Start-up social enterprises achieve more impact, through more ambitious entrepreneurs and high growth ideas reaching the market. Our starting point While most social entrepreneurs are locally focused, and come with relatively modest ambitions, some have the potential to do much more. Our ambition We want to see more social entrepreneurs raising their game their confidence, ambition and capacity for growth. This requires tailored support and a stronger connection to the capital required to fuel growth. In doing so, we can ensure that new social enterprises achieve impact on a greater scale. Our work We have helped social enterprises to raise their game and realise their ambitions for growth through: Delivering LaunchMe on behalf of the Big Lottery Fund, Scotland s accelerator programme for high growth social enterprise start-ups. Introducing an enhanced service for start-ups with growth potential as part of the national Just Enterprise programme. Developing effective networks, pathways and partnerships that support high growth start-ups. Brokering relationships between social enterprises and new financial investors. Our learning We are continuing to experiment and learn about what it takes to support ambitious social ventures through their early growth phase. Build in ambition Most social entrepreneurs who come to us are modest in their hopes and wary of the risks. Where we see potential, a gentle push is sometimes needed. Business advisors play an important role in helping to build confidence, raise aspirations, clarify goals and chart a suitably ambitious course. However, we have had to balance our own desire to accelerate progress with the need to give new social enterprises time to get established, build leadership, test demand and ensure stable revenues. Establish an escalator of funding As aspirations grow, social entrepreneurs require a continuous escalator of funding at different levels and points in time. Smaller Start It awards can be effective as risk capital for testing or refining ideas, improving confidence and supporting learning by doing. The ability to transform entrepreneurial ideas into larger and stronger ventures requires progressively larger sums, with blended packages of grant and loan funding especially effective. We have found it a constant challenge to find the right mix and volume of funding.

15 Pick winners, take risks Our experience suggests that a relatively small number of social entrepreneurs have the potential to think big, take risks and achieve game-changing impact. Common ingredients in their success include: an unwavering commitment to their cause; strong leadership capabilities; a solid business model; a viable growth plan; and clearly identifiable social impact. Where this potential exists, we should not hesitate to invest in it. Unlock private capital Our work on LaunchMe has demonstrated much potential to unlock private investment, connecting investors to ambitious early stage social ventures. This is due to our personal access and credibility within the angel investor community (a coveted group of high net worth individuals), along with matching grant funding to mitigate the risk for pioneering lenders. Package support We have learned that every new social enterprise pursues its own path to growth and requires a highly individualised package of support. This requires a combination of inputs offered in a timely way, including access to networks, investment opportunities, highly specialised business advice, and inspiring mentors. We have also found value in peer groups that bring together high impact entrepreneurs to support their collective learning. Track and measure impact All of the social entrepreneurs we work with are driven by a strong sense of purpose. We have found that they intuitively understand their value proposition but find it difficult to describe the link between scale and impact, and the difference that scale brings. We need to provide social entrepreneurs with more effective tools to measure social impact and to describe it in clear and compelling terms. CASE STUDY Lingo Flamingo Experience of the devastating effects of dementia on older people, their families and loved ones led Robbie Norval to come up with the unique idea of tackling dementia, brain ageing and other forms of mental illness through language learning. Lingo Flamingo provides tailored foreign language workshops to adults in care homes, sheltered accommodation and day centres. The work of Lingo Flamingo is informed by cutting edge research and growing evidence that learning a new language can delay the onset of dementia by up to five years. Classes are slow-paced using visual aids and memory techniques, in a safe environment. Robbie and his team of volunteers have watched their pupils grow in confidence, improve their communication and social skills and rediscover the enjoyment of learning. Robbie received two Firstport awards to get started while business advice and workshops helped him refine the concept. He has now joined our LaunchMe accelerator programme to grow his business across Scotland and beyond. It is a misconception that people later in life cannot learn a new language; our aim is to empower vulnerable citizens to fight against brain ageing. Getting onto LaunchMe will provide us with much-needed business support and advice and funding to allow us to grow into new and different markets.

16 AIM 4 Social entrepreneurs are front and centre in the new economy and influencing how others do business. Our starting point More and more entrepreneurial people are finding social enterprise a good fit, a way of combining their business aspirations and social responsibility. Despite progress, the potential to pursue social entrepreneurship is not yet widely understood across Scotland. Our ambition We want to encourage more people with the potential to create, lead and grow social enterprises. This requires social entrepreneurship to be widely understood and social enterprise to be generally accepted as a more just, democratic and inclusive way of doing business. To achieve this we work with others to raise the profile of social enterprise, position Firstport as the go-to agency for social entrepreneurs, and create the best possible conditions for new social enterprise activity to flourish. Our work We have worked tirelessly to advocate on behalf of social entrepreneurs and to extend their influence. This includes: Supporting social entrepreneurs to tell their own stories, reaching wider audiences using both new and traditional media. Increasing support for social enterprise start-ups among stakeholders, funders and opinion-formers. Promoting innovation through research, the evaluation of practice, and the dissemination of learning. Influencing the design and delivery of programmes to support social enterprise start-ups. Our learning While we have put partnership building and communications efforts to the centre of our work, there is still much to learn and do before social entrepreneurs can take centre stage in Scotland. Tell the stories Over the last decade we are privileged to have worked with many of Scotland s most inspiring, can do people. During this period, we have reaped the benefits of a growing collection of profiles and stories from different types of social entrepreneurs in differing circumstances, industries and settings. We have learned that storytelling which people from all walks of life can relate to gives us the best chance of inspiring others to follow. Use many channels With only modest resources, we brought more stories of social entrepreneurship to public attention and excited local interest. This has been a challenge and we have found that effective communications efforts must span multiple platforms: social media and video content for creative online engagement; the broadcast media to get stories out; bold and distinctive campaigns to achieve a targeted effect; and positive word of mouth to underpin everything else.

17 Connect up the dots Having helped hundreds of people on their journey and engaged with many thousands more, we are just beginning to learn more about the spread and incidence of social entrepreneurship across Scotland. We know that there is still more to do in connecting our growing alumni across Scotland, and to harness the potential of established entrepreneurs as local ambassadors, talent spotters and mentors. Build partnerships As a relatively small agency with a big national remit, we have had to think creatively about how we work with others to deliver our goals. The steady but patchy growth of our partnership network has depended on finding the right partners, ensuring the right alignment of motivations, and putting in the right amount of effort. In a constantly shifting environment, where agency restructuring and staff turnover is the norm, we have had to continually build and rebuild positive working relationships. Inform as well as influence Scotland has now one of the most encouraging environments for social entrepreneurship anywhere in the world. Over the last decade we have been able to play a small but influential role in this. While we have not yet achieved everything we aspire to, efforts have been aided by: our willingness to pioneer new approaches; our diligence in gathering and sharing evidence of what works; and our ability to shape the thinking of key decision-makers. CASE STUDY Wild Sparks Inspired by a move to the Scottish countryside, Alice Warren wanted to work outdoors and started Forest School leadership training. Aware of a lack of affordable childcare provision in the area, she came up with the idea of Wild Sparks, which encourages children to learn through healthy, active and challenging experiences in nature. Wild Sparks based in Perthshire includes a holiday play scheme, an outdoor nursery and an education programme for schoolteachers. Activities include woodcarving, campfire building, natural arts and crafts, den building and much more. One-to-one care is offered for children with additional needs and discounted fees for low-income families. A Start It Award enabled Alice to get her idea up and running and business advice helped to communicate it more clearly. A Build It Award is allowing Alice to focus on an ambitious five-year plan to scale up her existing activities, while reducing dependency on grant funding and ultimately expanding the horizons of children and their families. When I am at Wild Sparks I really learn cos I think I learn more when I just do things myself, like playing, not when I am being taught by a teacher. And the adults are helpful - they tell you good stuff too. KATE, 8

18 Looking to the future We have continued to transform our work during the last decade as we have learned more about what it takes to stimulate social entrepreneurship. The next stage of our development will see us refocus efforts in five main areas our five Cs. Connection Fostering stronger connections between social entrepreneurs, supporting peer learning, and harnessing their collective efforts. Communications Redoubling efforts to promote the visibility of Firstport and the potential of social entrepreneurship across a wider range of institutions and settings, as part of a collective national effort to grow public awareness of social enterprise. Collaboration Mobilising a wider network of local partners and allies, to grow our footprint across the country and ensure more social entrepreneurs have access to the support they need locally. Communities Continuing to develop our place-based approach, finding ways to extend proven approaches to new localities and make better use of intelligence to achieve targeted impact. Capital Unlocking more capital to fuel the growth of new social ventures, by expanding the size of our awards programme and increasing the supply of private capital.

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20 On average 560 people benefit every month from the work of the ventures we help establish We would like to thank the support of our funders and partners: Big Lottery Fund Scotland CalMac Ferries CGI UK Highlands and Islands Enterprise PCG Trust Resilient Scotland Scottish Government William Grant Foundation West Dunbartonshire Council Every month January January PEOPLE BENEFIT PEOPLE BENEFIT PEOPLE BENEFIT Report based on research and evaluations carried out by Social Value Lab and Arrivo Consulting Registered in Scotland Company Registration No. SC Charity No. SCO37942