Social firms are trading enterprises that provide employment for people facing a disadvantage in the labour market - usually disabled people.
In order to be successful and sustainable, social firms need to find the right balance of care, support and business acumen.
In setting up a social firm we recommend that agencies:
Establish a mission statement
Define what the product or service will be
Assess the market for the product or service
Carry out a feasibility study
Choose a suitable legal structure
Create a meaningful, reliable business plan
Identify transport or retail opportunities
Locate suitable premises
Develop a marketing strategy
Access appropriate funding
Consider stakeholder issues such as benefits
Draw together a procedures manual for workers
In addressing these issues, it is possible to prepare for many of the potential pitfalls encountered by emerging businesses. Taking a planned approach can make the difference between success and failure.
Carrying out a feasibility process can save money in the long term as a suitable product or service is identified rather than investing time and resources in one that is not sustainable.
Clarification of mission statement and identification of key objectives
Market research
Feasibility Studies
Business development advice
Business Planning
Advice on legal structures
Stakeholder involvement mechanisms
Product and customer diversification strategies
Advice and assistance with accessing funding and finance
Assistance with negotiation
Development of policies and procedures
Development of induction programmes and training plans
Past success working with social firms
Experience of the issues affecting small and micro enterprises in the social economy.
Successful establishment of over 100 enterprises
Experience of key issues from working with local, regional and national social firm development bodies
Regular contact with key finance and funding bodies
A commitment to stakeholder involvement
For Essex CDA, CAN facilitated the establishment of the first social firm in Essex, Millrace Furniture Restoration Co-operative. Millrace carries out furniture restoration and production whilst providing training and employment for people recovering from mental health issues. An appropriate legal structure was identified, a business plan developed, and European funding accessed to provide training and equipment.
For Southampton Area CDA, CAN provided development workers to deliver a training course taking staff and service users through the development of a business plan for Southampton Social Services. The CAN team facilitated the production of a workers handbook, the resulting co-operative "Branching Out" was registered as a company and is delivering garden services.
Other related information sheets in the CAN portfolio
Community Business Development
Updated May 2002