Member Article

How social enterprise could help grow your business

While Social Enterprise was once a trendy buzz-word trying to be heard, it is now established as an integral part of the UK’s business language and landscape.

The original trailblazers in the field such as the mighty Big Issue magazine and Co-op, and more recently Divine chocolate, Café Direct and The Eden Project have paved the way for the 70,000 social enterprises operating today.

In a nutshell, social enterprises are for-profit organisations that use their business model to enable social or environmental good. The UK remains a global leader in social entrepreneurship, with a national body – SEUK (Social Enterprise UK), its own annual awards ceremony and a wealth of government support.

With a reach extending from healthcare to finance, investment and education as well as consumer facing businesses, British social enterprise is not only here to stay, but growing rapidly.

Could you and your business be part of this social explosion?

Hip to be square

It’s fair to say that incorporating a ‘do–good’ element into a business is a sure-fire way to attract customers.

Today’s consumers are far more ethically and ecologically aware than previous generations; we want to know where products sourced from and how, as well as if a business is reducing its carbon footprint and paying its taxes properly!

In fact, a philanthropic angle to a business is becoming a bona fide selling point and a new angle to brand appeal.

Take the hugely successful Californian brand Toms. A footwear company set up by Blake Mycoskie in 2006, it employs the simple ‘one for one’ model whereby, for every pair of the espadrille style shoes sold, a new pair of shoes is given to a child in poverty.

The simple perfection of the concept, as well as the shoes’ great design, has jettisoned the company to the heights of the fashion industry and the shoes have become a ubiquitous brand worn by celebrities and students alike.

Extending the model to eyewear, handbags and most recently coffee, with various ‘giving partners’ – Toms was valued at $625 million in 2014.

Here in the UK, the ‘brand appeal’ of social enterprise is fuelling some successful new businesses.

Bella Kinesis, for example, is attracting a lot of attention to its women’s sportswear brand. Set up by two young British Asian women, Roshni Assomull and Shaleena Chanrai, who were struggling to find sportswear that was ‘fun, supportive and well priced’, the company now sells a small but super-stylish range (think Sweaty Betty but affordable) and has adopted the ‘one for one’ concept.

Strangely enough, it was whilst reading Blake Mycoskie’s book ‘Start Something That Matters’ that Roshni came up with the concept for the Bella Kinesis social enterprise. For every sports item sold, the company funds a business education for a woman in rural India.

’Exercise not only makes women physically stronger, but also leaves them feeling more confident and empowered. We can give this same feeling to other women by helping them start their own businesses. As one woman shares her force with another, she creates a chain reaction. We call it ‘strength for strength’’ says Roshni.

The company has been courted by the press and has recently won the Theo Paphitits Small Business Sunday Award, The P.E.A. (People. Environment. Achievement) Award and were finalists in the Great British Entrepreneur Awards.

Other award winning British social enterprises include; the Two Fingers Brewing Co. who donate all the profits from sales of their artisan beer to Prostate Cancer UK; Meanwhile Space who have pioneered the interim use of empty buildings and unused land for the benefit of the community and landlords; and The Soap Co. whose profits are reinvested in the company to provide employment for the disabled or disadvantaged.

Besides the underlying good that these businesses do, they haven’t ignored the importance of a strong image and great design – all factors that draw in the modern, ethical consumer.

As a potential social entrepreneur – put together the complete package and you will give your standard business rivals a run for their money.

How to incorporate social good into your business

Whether you are thinking of starting a social enterprise, or hoping to bring some altruism to your existing business practices, there are a few things to consider.

Your first focus should be strategy: you need a viable business model to start with and only then can you look at how to incorporate your values or a social mission into the everyday practices of the enterprise.

Think about your customer base and what causes they might prefer, then look at the resources you have and contacts that may be of use to you.

Collaborating with a not-for-profit partner who specialise in the charitable aspect of your cause is a good first move.

Victoria Tsai who founded Tatcha skincare in the US, did just that in 2014 when she partnered with Room To Read. Enjoying success with her Geisha inspired beauty products, Tsai felt the need to give something back and now, for every full-sized skincare purchase her company funds one day of school for a girl in the developing world.

In an interview for Inc.com Tsai says: ‘I, as a woman and a mother of a daughter, have a problem with the idea of telling a woman that their sense of self worth should come from how their body or their face looks. I decided early on that if we were going to participate in this industry that we needed to bring a point of view that was in line with our value system.’

To date, Tatcha sales have provided 385, 091 days in school for under-privileged girls.

You don’t have to move heaven and earth to blend a social element into your business.

London’s Yogarise, for example, have successfully incorporated their passion for community into their thriving enterprise.

The Peckham based yoga studios offer easily accessible and affordable classes and have just won the Dot London Award for Best Business of 2015.

Part of their appeal, besides their beautifully designed studios and resident dog Misty, is the community spirit they foster. It may not seem a lot but free ‘Yoga flavoured’ tea and ‘community sessions’, that only charge a suggested donation of £6, go a long way to promoting the positive energy of their brand.

After winning the award, co-founder, Emma Hitzelberger said: ‘It’s amazing to be recognised by Londoners, but specifically by the people of Peckham, our home, which has such a wonderful sense of community.’

You could also, like Richard Robinson and Cemal Ezel of the Old Spike Roastery, keep it simple by focusing on your staff.

The coffee shop has recently joined forces with The Big Issue to create the brand Change Please which trains and employs homeless people as fully fledged baristas. The initiative will provide coffee trucks serving ethically sourced roasts from Tanzania, Rwanda and Columbia and looks to provide its employees a stepping stone into full time employment.

In a recent interview, Cemal Ezel said: ‘Some charities rely on grants and donations, but we are able to survive and be sustainable based on tradeable income.’

The future looks bright

It’s clear that the growing public awareness of social enterprise is a real boost to the marketing power of businesses with a social agenda. Roshni at Bella Kinesis agrees:

‘Having a social angle to your business, people talk about it more. Most of our sales are driven by word of mouth. Customers seem to become like cheerleaders for your brand when you’re working towards something bigger than profit’ she told The Guardian.

And while the costs of running a social enterprise may lead to a pricier product, don’t be put off. Many people are willing to pay more for something that sits well with their conscience.

Recent research conducted by Social Enterprise UK and the Cabinet Office, which surveyed 2,070 British adults, revealed that one in three people feel ashamed when purchasing from businesses known to be socially irresponsible, and 40 percent feel that there aren’t enough socially responsible businesses to buy from in the UK.

British business people should grab this opportunity with both hands. Entrepreneurs and business owners should shake off any pre-conceived notions of ‘charity’ (i.e. giving your money away) they may have associated with social enterprise, and see it as a real means to profitability.

The State of Social Enterprise Survey 2015 reports that 50% of social enterprises made a profit last year and that these businesses are actually fuelling economic recovery: 52% increased their turnover over the past year, compared with only 40% of ordinary SMEs.

It seems there is no better time than now to make the difference you’ve been dreaming of.

For practical support and resources, take a look at SEUK, The School of Social Entrepreneurs, Bright Ideas Trust and UnLtd.

By Nicky Tatley, Senior Writer at BusinessesForSale.com, the market-leading directory of business opportunities from Dynamis. Nicky writes for all titles in the Dynamis Stable including PropertySales.com and FranchiseSales.com.

This was posted in Bdaily's Members' News section by BusinessesForSale .