Developing a Social Enterprise

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Looking back, moving forward is a therapy service for people looking for social support. Social support can be conceptualized from two perspectives, a quantitative-structural and a qualitative-functional one. The first evaluates the amount of links or relationships that the individual establishes with his social network, which would correspond to the social support received. While the second focuses on the existence of relationships

And the subjective assessment or assessment that the individual makes of the adequacy of the support received, would correspond to the perceived social support (Barra, 2004; Escobar, Puga & Martín, 2008).

Among the supports received, the family is one of the resources that provide the greatest benefit to the person, by providing care and protection in the physical and mental processes they go through, especially when the person does not have the support of Formal networks (Domínguez, Espín & Bayorre, 2001). Thus, it has been found that older adults who live with their relatives have higher levels of mental, physical and emotional health compared to those who live alone (Bozo, Toksabay & Kürüm, 2009). Within the family, it has been observed that marriage is a fundamental support, especially for men, since these, in addition to presenting a smaller social network, depend on their wives in carrying out activities (Reyes, Camacho, Eschbach & Markides, 2006). Garrido and Alvaro (1993) observed that the presence of social support in young people in unemployment, or in search of work, considerably diminished the experienced levels of stress. In the same way they were able to verify how the inactivity and the loss of social relations after the retirement, accelerated the symptoms of aging in the people. In labor relations, according to the aforementioned NTP nº 439, “social support is manifested as an important element to help people to live healthier even in the presence of stressful situations, an issue that is sometimes unavoidable.”

In this context, this paper emerges as a tool that can be useful for the creation of social enterprise, as an instrument to facilitate all those persons, technicians and persons in charge of social, economic, business, which have the possibility of creating support environment through the task of setting up a social enterprise. The implementation of these types of enterprises, as well as providing economic wealth to their territories, contributes to a no less important goal, social cohesion, with work experiences that demonstrate that it is possible to act as a bridge between exclusion and integration. Social enterprises are one more step in building socially and economically sustainable territories.

The definition of what is social enterprise must, on the one hand, pick up all those aspects that identify them as such; and, on the other hand, be internalized by the team that will carry out the business project. If this is not the case, there is no point in moving forward, since it may easily fail to meet the objective set forth from its inception (Alter, 2007).

Social enterprise like Looking Back, Moving Forward is a supportive and talking therapy service which works closely with other professional services.

The agency provides a supportive service which is tailor made for your needs.

Like any other company, it also pretends to be in a condition of economic viability, but its templates are formed by a certain percentage of people who are in processes of socio-labour insertion (this is what we call social objective) (Alter, 2007). Public Entities or Non-Profit Private Entities promote them. It is a production and / or service space where the external characteristics of any other company (production, performance, standards, contracts, dismissals, holidays, jobs, professional categories, collective agreements, training, Etc.) and their own internal characteristics (skills and competences development, skills, habits, training according to needs, teamwork, balances on different performance, empowerment of a positive and rehabilitating work climate, people centred, remuneration dignified and just, stimulation and increase of autonomy and responsibilities, participation, exchange and social integration, opportunities, etc) (Alter, 2007). Social support has been associated with psychological well-being and absence of depression, and its absence is directly related to certain physical diseases (Berkman and Syme, 1979, House et al., 1982, Schwarzer and Leppin, 1992), and with the appearance of diseases Such as depression or neurosis.

It should be defined in which legal framework is intended to develop social entrepreneurship. This framework has two aspects (Lyon and Ramsden, 2006):

  • The mercantile, which can give legal coverage to the business activity:
    • Property communities
    • Civil society
    • Limited partnerships
    • Anonymous Societies
    • Cooperatives
    • Limited labour partnerships
    • Corporations
  • The legal, which covers the corporate purpose of the company:
    • Therapy Centres
    • Insertion companies (IC)

Social enterprises can be framed in any of the companies listed in the first group. Basically there are two ways in which this support can be expressed: with instrumental support, reference is made to a behavior that directly helps the person in need, examples of which may be, to help someone to do a job, or provide a partner with important information to perform a task. The emotional support is textually defined in said NTP, like that aid “it includes empathy, caring, love, trust, and appears to be one of the most important types of support.” He then added the note: “these types have to be considered as potential forms of support and their ability to have influence on health has to be considered in an empirical way.”

The general legal framework chosen for Looking back, moving forward conditions the possibilities of control over the foundational object, the decision-making systems, the responsibilities of the parties, the subsidies that can be accessed.

If it is desired to qualify, and subsequent application of specific public subsidies for the corporate purpose, it must be registered as social enterprise. To constitute Looking back, moving forward, it is necessary to comply with all the requirements that the Law of social enterprise poses, in the absence of the British Law being a reality and adding new restrictions. As elements of greater possibility of conflict, which are not unique, we highlight (Lyon and Ramsden, 2006):

  • No sharing of benefits.
  • Limitation on groups defined as exclusion.
  • Need for a Promoter that, among other conditions, participates in the capital of the IE.
  • Obligation of a minimum of people of exclusion in the total of the company’s staff.
  • Requirement of Accompanying Technical Staff.

The ordinary general legal framework chosen may not be the most appropriate according to which groups and what approach is proposed for management. The most democratic management models may encounter the problem of unprotecting the objective that creates the company and end up losing the qualification obtained and even the foundational purpose itself. The less democratic frameworks do not facilitate a transit approach of the company as a unit towards the ordinary market, an interesting variant of integration (Lyon and Ramsden, 2006).

A correct definition of the Looking back, moving forward model is the premise for an appropriate choice of the general legal framework to be adopted. The key elements of identification are:

  • The model: transit, finalist, insertion of the company and its personnel.
  • Inability to change the corporate purpose of the company
  • The need for subsidies to achieve the level of integration that is considered optimal for the company.
  • Responsibilities derived from the business action that the partners are prepared to assume.

Depending on how we stand in the face of these parameters, we will decide the legal framework.

The collaboration with the Social Services of the area generates the possibility of working in the space that allows the Law of IE, when it speaks of any person who, in the opinion of the Social Services, is in this situation (Article 4, section h). The need for a Promoting Entity is a real need for work to follow an I.I and this can be solved in different ways. We can start from a promoter that creates the company, or search for our company an entity that solves this need. The Law centres on conflict in the control of capital (Smallbone et al 2001).

The solution adopted in this matter will be more or less flexible, according to where it has not been able to resolve the conflict. The choice of a framework such as the SL for the constitution of a company does not have to be without democratic management, since this framework does not prohibit it. The achievement of a grant, if it is a necessary condition for our project, is inflexible, or is met or not, with no other options. The final assessment, therefore, on the importance of unresolved conflicts, cannot be anticipated, but will always be done on the casuistry of each project.

Looking back, moving forward includes the characteristics and conditions that the workplace must have, depending on the characteristics of the workers who will be part of it.

Therefore, this section briefly includes elements that must be taken into account when designing the space in which not only the work will be performed but also the space in which the workers are going to remain throughout their working day at Looking back, moving forward (Smallbone et al 2001).

It is important, therefore, to have all those elements that make stay in the company as comfortable and accessible as possible, covering, therefore, all needs, both professional and personal.

Regardless of the existing legislation on equipment and infrastructures included in Law 38/1999 of 5 November on Building Management, aspects such as (Smallbone et al 2001):

  • Accessible work centre for disabled people should be assessed.
  • Communications and sufficient public transport so that workers’ access is fluid.
  • It is important that workers have a physical space that allows them to socialize between work shifts, during meals, or throughout their stay in the company.
  • Whenever possible, not only economically but also from the point of view of the physical space with which the company can count, it would be necessary to have a training room for courses, both internal and compulsory courses Company, such as Occupational Hazard Prevention courses. It is important that these classrooms have new technologies, such as computers with an Internet connection.
  • Lockers where they can deposit their personal belongings, work equipment, etc. In order also to acquire higher levels of responsibility.
  • Toilets / changing rooms that, depending on the company’s own sector should have showers. This will inevitably support learning through the I.I of hygiene habits, health, etc.
  • Depending on the sector of the company, it is important to have adjacent infrastructures that allow workers to improve their level of employability. Thus, a transportation company could have a vehicle repair shop, a gardening company, a machine repair shop, etc.
  • A room where you can hold business meetings.

On the other hand, it should not be forgotten that the people who are part of the structure of the company, must have individual dispatches that allow them to carry out their work effectively. Special mention must be made in the case of the TA, since it will be essential that it have an office, where it can hold meetings with the workers, in order to follow up the I.I of these. This office must preserve, at all times, the privacy of people, avoiding locating it in a very busy or common use space.

It is possible that the Looking back, moving forward does not have sufficient budgetary allocation to allow access to a facility with all the points previously reflected, or, on the contrary, that, having this one, they have not made a correct design underutilized the space (Leadbeater, 2007). The proportionality between the spaces destined for the production area and those destined for the social area should be maintained, and the space of the social area should not be allowed to be relegated, because the productivity of the company requires it.

Looking back, moving forward has the possibility of accessing subsidies promoted by the Public Administrations in the field of infrastructure, which can cover, in whole or in part, the expenses arising from the start-up of business activities with these characteristics. Importance and Flexibility of the Solution although some of the spaces previously collected are important, but not essential for the company, it should not be ceded to:

  • Offices intended for the follow-up of the I.I and for those actions of a private nature.
  • The dining room, which can be used as a meeting or training room, is indispensable.
  • There should be no architectural barriers that hinder the access or performance of the company’s own task.
  • It is of vital importance and deserves special mention of the place of work, which must have the best access in public transport.
  • Personal hygiene areas.

Social enterprises have as a foundational condition the social character. This can also be extended and consolidated by the implementation of the CSR plan. From this nature, a field of financing is opened parallel to the ordinary financial structures and tools, namely the one of the ethical and solidary financing.

In the economic feasibility study, the financing needs and the most appropriate proposals to address these needs are recognized. Being part of the Solidarity Economy, opens new possibilities that are exposed here, besides being consistent with the work and the end of the company (Peattie and Morley, 2008).

The restrictions that can be found to access financial and ethical financial resources, have already been raised when talking about CSR. Even for certain tools, only with the social enterprise condition is sufficient. Consequently, there are no new restrictions to be taken into account.

It is necessary to resolve the initial capital allocation for the creation of Looking back, moving, knowing that it must include even the eligible amounts that will take to become liquid money for the company, as a result of the late payment by the Administration. Lines of financing should be obtained from the cash that is subsidized, and from that used to finance the customers (Peattie and Morley, 2008). The amounts increase proportionally to the volume of the activity, since there will always be a significant part of the income, which will not have capacity for affection. Normally, it will start from Entities with few means and without patrimony, that, hardly, they can provide the necessary guarantees to obtain financing.

To the solutions of the ordinary market, which we have already defined and proposed in the ordinary feasibility study, we must put as an alternative and complement (Peattie and Morley, 2008):

  • Issuance of shares of Looking back, moving itself that can be offered for sale to natural and legal persons willing to participate In a project, which adds to its economic profitability, a great social profitability. These shares may be sold directly to the company, or part of them in a social capital venture (an entity whose corporate purpose is to become a shareholder in the capital of social enterprises that contribute to a joint positive social and economic performance) .
  • Issuance of private solidarity deposits. They usually pay with the CPI and do not normally require guarantees or guarantees of their own or third parties. Upon maturity, the principal is repaid with agreed interest.
  • Ethical Banking Products. In UK many banks work, which finance projects that ensure an ethical use of money. These institutions comply with the same rules as any Bank and, therefore, offer the same securities as the former. They are banks that work from the transparency of their management, and that value projects and their entrepreneurs when making a risk assessment of any operation.
  • Products of ethical financial corporations not constituted, and therefore, not regulated by the banking legislation.
  • Financial products of the social works of the savings banks. It can be accessed: microcredits, loans to entities, social risk capital, participatory loans, participated accounts.

All of these proposed financing systems belong to the field of ethical and solidarity financing, which is why they propose a non-speculative financial system, which makes it possible to finance solidarity entrepreneurship, from the real value of it (Defourny and Nyssens, 2008). The existence of these financial products makes it possible for all responsible economists to place their money in accordance with principles that they assume as their own. Working with ethical funding is also a way of reducing the exclusionary character of the economic system, the source of the difficulty for these people, when it comes to finding a job. The conditions for access to this funding are different. This opens up more possibilities for financing the IC and the EWC.

The economic viability plan of the company, which is a necessary condition to carry out a project, and has been carried out in parallel to the social feasibility study, must include the required adaptations that, throughout the guide, have been In addition, it will have to propose systems to control and monitor the impact of social value on economic activity (Defourny and Nyssens, 2008).

The corporate purpose of the Looking back, moving has repercussions on its operating account, which must be clearly and differentiated in relation to what would be ordinary exploitation. The evolution of the ratios that regulate the level of social complexity that the company is prepared to absorb must be monitored.

Looking back, moving must measure its social result, so that its valuation allows it to establish criteria of adequacy of the social result obtained, in relation to the excess of expenses generated by these people in their labour integration processes. The application of the benefits to the items that allow working for the corporate purpose of the company cannot represent the total of the same if we have to consolidate and grow the company. The management of the information received by the entrepreneur should serve to better adapt the business management to the service of the social object and offer at the same time, a sustainable economic viability.

All the work of collecting and managing the information required, represents an extraordinary expense that will affect the result of economic activity. Both the technical staff of the company and the management need knowledge of the processes of insertion and its impact on each item of the farm, to know how to interpret the information received and resolve correctly.

There is no methodology for evaluating the company’s social results. Although the laws already speak of the need to present a Social Balance to the social enterprise in different autonomous communities, there are no official or theoretical models.

The achievement of the social objective, measured as the number of people who find a solution to their labour problem in these companies, demands a growth of the same, provided there is no external help that allows us to assume higher percentages of people in the target group, At the same time an efficiency and efficiency in the use of this job. In an important percentage, the growth of the company will be the one that improves the social result. New funding and expansion of corporate assets is required (Borzaga and Defourny, 2004).

The contrast between the social benefit achieved and the extraordinary expenditure for this social character, must contribute a positive result so that the activity of the social enterprise is correct. The valuation of social benefit, which allows comparing its magnitude with extraordinary cost, is currently under investigation and, within a period of no more than three years, since the publication of this guide, it should be resolved. In the meantime, you will be able to (Nyssens, 2007):

  • The ratio of people in the process of insertion, by people of standardized template that supports the company.
  • The ratio of coverage of public subsidies, if any, on the extraordinary expenses of the company.

In any case, it may be established that the subsidies,

If any, have actually served to increase the social work carried out by the company and which is done in such a way that the subsidy is applied to its purpose, covering the extraordinary expenses provoked by the social value.

 

The growth of the project, in the case of subsidies, will be realized as in any company by application of the benefits that, thanks to the public support, no longer need to be the ones that cover the extraordinary expenses. In the absence of subsidies, growth will require a greater indebtedness of the company, and perhaps a reduction of the ratio of people in the process of insertion that allows growth also on the funds. The option of Social Risk Capital will be a possibility that, as the size of the company grows, is easier to adopt.

 

 

References

Alter, K., 2007. Social enterprise typology. Virtue Ventures LLC12, pp.1-124.

Borzaga, C. and Defourny, J., 2004. The emergence of social enterprise (Vol. 4). Psychology Press.

Defourny, J. and Nyssens, M., 2008. Social enterprise in Europe: recent trends and developments. Social enterprise journal4(3), pp.202-228.

Lyon, F. and Ramsden, M., 2006. Developing fledgling social enterprises? A study of the support required and means of delivering it. Social Enterprise Journal2(1), pp.27-41.

Leadbeater, C., 2007. Social enterprise and social innovation: Strategies for the next ten years. A social enterprise think piece for the Cabinet Office of the Third Sector.

Nyssens, M. ed., 2007. Social enterprise: At the crossroads of market, public policies and civil society. Routledge.

Peattie, K. and Morley, A., 2008. Eight paradoxes of the social enterprise research agenda. Social enterprise journal4(2), pp.91-107.

Smallbone, D., Evans, M., Ekanem, I. and Butters, S., 2001. Researching social enterprise. Small Business Service, London.

 

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