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1 SOCIAL ENTERPRISE AOTEAROA INSIGHTS AND OPPORTUNITIES December 2015 “Te kai a te rangaira, he kōrero. What is the food of chiefs, it is dialogue, he kōrero.’’ Paper prepared by Annette Culpan

Transcript of SOCIAL ENTERPRISE AOTEAROA - WordPress.com · business was to social enterprise. There was a sense...

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SOCIALENTERPRISEAOTEAROAINSIGHTSANDOPPORTUNITIES

December2015

“Tekaiaterangaira,hekōrero.

Whatisthefoodofchiefs,itisdialogue,hekōrero.’’

PaperpreparedbyAnnetteCulpan

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BACKGROUND

Earlylastyear,IvisitedIndia,tolookatsocialenterpriseorganisationsandintermediaries.The

experiencewasinspiringandpromptedreflection.HowmightIbringmyuniqueexperience,

skillsandnetworkstosupportsocialenterpriseinAotearoa?Thisquestioningwastheseedfor

thispaper,whichisanindependentthinkpieceexploringthepotentialofsocialenterprisein

NewZealand.

Iaminterestedinsustainableapproachestotackletheissuesofourtime-leveragingthe

wisdomandvaluesofindigenousmodelsandothernewervehicles.Socialenterprisesutilise

businessmodelsandtoolstodeliversocialorenvironmentalimpact.Ithinkofsocialenterprise

as‘businessforgood’.Thevehicleisamoresustainablealternativetotraditionalcharitable

approaches,whicharetypicallydependentongrantincome.

WearefacingsomemassiveissuesgloballyandinourbeautifulhomeofAotearoa.Issuessuch

aschildpoverty,inequalityandclimatechange.Ifwearetoseeashift-andwemustseea

shift–thenwemustbehavedifferently.Moresustainableapproachestotackleoursignificant

challengesmustbeconsidered,investedinandimplemented.Weneedtobebraveandtake

action.Thatmeansbringinginthebestofwhatiscurrentlyworkingandtryingsomenew

approaches.Beingokaywithfailingsomeofthetime.Capturinglearningalongtheway.

Celebratingsuccess.Andmostimportantlypushingforwardforsystemicchange.

Ibelieveintherichnessofbringingtogetherdiversemindsandseeingwhatweavestogether.

Betweenmid2014andearly2015,Iinterviewed25leadersnationallyacrossphilanthropy,

socialenterprise,intermediariesandgovernment.IspokewithCEO’sofsocialenterprises,

changemakers,leadersinphilanthropyandintermediaryorganisations(capacitybuildersand

financiers).TheseinterviewsexploredthecurrentstateofsocialenterpriseinAotearoa;

strengths;responsefromtraditionalbusiness;acceptanceoftheKiwipsyche;andwhatmakes

thecontextinAotearoaunique.Further,theinterviewsexploredtheopportunitiesto

strengthensocialenterpriseinthiscountry;theuntappedpotentialandrealmofpossibility;

risksandthreats;wheresupportexists;gapsinsupport;andtheinvestmentopportunity.

Theinsightsthatemergedfromtheseinterviewsarerichandreflecttheindividualand

collectivewisdomofthoseinterviewedandtheuniquecontexthere.Iamgratefultoevery

oneoftheleadersIspokewith.EveryoneIinterviewedwasthoughtfulandgenerous.

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Ineachsectionofthispaper,themostdominantthemeswiththehighestnumberofmentions

arepresentedfirst.Basedontheinsightsfromthispaper,Ihavedevelopedaseriesof

recommendations.Theserecommendationsareastartingpointandmayassistinpositioning

thesocialenterprisesectortomorestronglythriveinourbeautifulcountryofAotearoa.

Kitearohametewhakawhetai,

Withloveandthanks,

AnnetteCulpan

https://twitter.com/AnnetteCulpan1

annetteculpan.wordpress.com

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ACKNOWLEDGEMENTS

Thankyoutothe25leaderswhogavetheirtimegenerouslythroughtheinterviewprocessand

sharedtheirdiverseperspectives,insightsandwisdom.

AfraAbdeen,changemaker

AlexHannant,CEOĀkinaFoundation

AlisonTaylor,HeadoftheCentreforSocialImpact

AmandaJudd,DirectorandDesignerLovenotes

BillyMatheson,PrincipleAdvisorofSocialEntrepreneurship,AucklandCouncil1

DebbieDavisandNgahauDavis,TeamLeaders,TeManaONgapuhiKowhaoRau

ElizabethGoodwin,ManagerSKIPandDirectorofLifehack,MinistryofSocialDevelopment

GlenSaunders,ExecutiveChairPrometheus2

GuyRyan,CEOInspiringStoriesTrust,FestivalfortheFuture,theFutureFund

HannahSmith,MASTERSinSocialEntrepreneurship

JenniferGill,CEOFoundationNorth3

JohnMcCarthy,ManagerTindallFoundation

JoshuaVial,FounderofEnspiralFoundation

JulietArnott,FoundationandDirectorRekindle

KateFrykberg,ChairofPhilanthropyNewZealand

LaniEvans,ChairofThank-youCharitableTrustandManagerVodafoneNewZealand

Foundation

LizGibbs,CEOPhilanthropyNewZealand

LouiseMarra,Director,SpiritedLeadership

1BillyMathesonhasmovedonfromAucklandCouncil2Betweeninterviewsandfinaldraftingofthispaper,PrometheusFinancehasgoneintoreceivership3 ASBCommunityTrusthasrebrandedasFoundationNorth

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MalcolmCameron,founderMalcamTrust

MikeFiszer,AssociateProVice-ChancellorExecutiveEducationandEnterprise,Massey

University

ReneaMackie,Co-CreatoroftheKohknowcoInnovationFrameworkandandFacilitatorAo

TawhitiUnlimitedDiscoverySchool

RickyHoughton,CEOHeKorowaiTrust

SilviaZuur,CEOofChalkleandDirectorofEnspiralFoundation

TrevorGray,SpecialProjectsManagerTindallFoundation

SpecialacknowledgementtoAlisonSykoraforgenerouslysub-editingthisthinkpiece,Ben

Birksforhisinsightful(andstrategic)peerreviewandDavidCarringtonforhisinputregarding

SocialImpactInvesting.ThankyoutoHaimonaWaititiforreviewingfromaMāoriperspective-

Ialwayslearnheapsfromyou.Thankyoutoalltheotherswhokindlyreviewedandshared

theirwisdomKateFrykberg,TrevorGray,JoelUmaliandJamieNewth.ThankyoutoJohn

Maddenforadviceonlay-outandallthecrewwhocontributedbeautiful(!)images.

AcknowledgementtotheVodafoneNewZealandFoundation,whocontributedpaidvolunteer

leaveforthepreparationofaspectsofthispaper(howcoolisthat,thatanorganisationvalues

volunteeringsomuch,theypayyouforit!).ThankyoutoRosieWalfordandRichardAlderson

wholedmyJourneytoIndiawhichinadvertentlyseededtheconceptforthispaperandto

SteveFergussonmyencouragingKiwijourneybuddy(andinspiringbusinessmind).Thankyou

tomyfamilyandeveryonewhohasencouragedmealongtheway-especiallymymumand

dad–foryoursteadfastencouragementandbeingmyfirstteachersonsocialjustice.

Finally,acknowledgementtoallofthesocialenterprisepioneersinthiscountry,whohaveled

thewayandcarvedauniquepathforAotearoa.

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CONTENTS

Definitionsandlanguage P7

EXECUTIVESUMMARY P9

1.ThecurrentstateofsocialenterpriseinAotearoa P11

2.StrengthsofsocialenterpriseinAotearoa P18

3.ResponsivenessoftraditionalNewZealandbusiness P23

4.NewZealandcultureandpsyche P28

5.WhatisuniqueaboutsocialenterpriseinAotearoa P30

6.Learningareasandopportunitiestostrengthen P33

7.Untappedpotentialforgreatestimpact P40

8.Risksandthreats P47

9.Pastsupport P54

10.Currentsupport P59

11.Gapsinsupport P63

12.Thefundingandinvestmentopportunity P68

13.Particularareasorprojectstoconsiderforfunding P73

Insightsandrecommendations P80

Abouttheauthor P84

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DEFINITIONSANDLANGUAGEI’veincludedafewdefinitionsbelowthatmaybehelfpulasyou

readthispaper(notetherearelotsofdefinitionsfortheseterms,

I’vejustincludedsomethatIfeelareclearandsimple).

Socialenterprise

SocialEnterpriseUKdescribesocialenterpriseas,‘businessesthatarechangingtheworldfor

thebetter’.Andexplain,‘Socialenterprisesarebusinessesthattradetotacklesocialproblems,

improvecommunities,people’slifechances,ortheenvironment.Theymaketheirmoney

fromsellinggoodsandservicesintheopenmarket,buttheyreinvesttheirprofitsbackintothe

businessorthelocalcommunity.Andsowhentheyprofit,societyprofits’.

SeetheSocialEnterpriseUKwebsiteformore.Ilikethatthissitekeepsthingssimple.

SocialImpactInvesting

DavidCarrington(UKbasedsocialimpactinvestmentleader)describedSocialImpactInvesting

(SII)onhisrecenttriptoAotearoa,‘WhatdoImeanwhenIusethetermSocialImpact

Investing?…Forme,it’swhatitsaysonthetin:theinvestmentoffundsinanenterprisewith

thedeliberateintentionthatthosefundswillhelptosecureaclear,positiveandmeasurable

socialoutcome,apublicbenefit,whilealsogeneratingafinancialreturntotheinvestor,

enablingthefundstoberecycledandusedagaintosupportfurtheractivities.’

KateFrykberginher2012paper,‘SocialEnterprise&SocialFinanceinAotearoaNewZealand’

talksaboutaspectrumoffinancialtoolsincludingresponsibleinvestment,missionrelated

equitiesandbonds,socialloans,grantstosocialenterprisesandtraditionalgrants.

Socialprocurement

SocialTraders(Australia)explainsocialprocurementontheirwebsite,‘Buyingfromasocial

enterpriseisoneoftheeasiestandmosteffectivewaysofgeneratingsocialvaluethatcan

helpbreakthecycleofdisadvantageandstrengthens…communities.Thestrategicpowerof

socialprocurementmeansthateverytimegoodsandservicesareboughtfromasocial

enterprisethepotentialforpositivesocialchangeisalsocreated.’Theyalso‘connectbuyers

fromcorporate,governmentandconsumerstosocialenterprises’.

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Ecosystem

Ecosystemisatermusedthroughoutthispaper.TheStandfordSocialInnovationReview

explaintheimportanceofecosystemapproachesandunderstandingthebroadenvironment

forsocialentrepreneursinthisarticle‘CultivateYourEcosystem’.

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EXECUTIVESUMMARY

ThecurrentstateofsocialenterpriseinAoteraoawasdescribedasatimeofincreasing

interest;earlystageandlackinginfrastructure;governmenthavingakeyroletoplayinsetting

theconditions;therewasseentobean‘oldguard’and‘newguard’;andawarenessofsocial

enterpriseislimited.

StrengthsofthesectorweredescribedasMāorisocialenterprise(seenasalignedtoMāori

valuesandthecriticalroleofkaitiaki/guardians);Kiwiingenuity;smallsizeenabling

connectionandAotearoahavingvariousexamplesofsuccessfulsocialenterprises.

Thoseinterviewedwereaskedhowresponsive/understandingtraditionalNewZealand

businesswastosocialenterprise.Therewasasensefrommanythatunderstandingand

supportofsocialenterprisefromlocalbusiness(includingcorporatesandSME’s)wasminimal,

somefeltthatshiftswerebeginningandothersgaveexampleswhereasupportiverelationship

existed.Intervieweestalkedaboutthedichotomousrelationshipbetweenbeingseenas

‘either’charity‘or’business-withlittleunderstandingofthespacesinbetweensuchas

cooperatives(astrengthinNZ),socialpurposeenterprisesandsociallyresponsiblebusinesses.

IntervieweeswereaskediftheNewZealandcultureandpsycheisacceptingofsocial

enterprise.MāorivaluesandenterprisewasseenasalignedtosocialenterpriseandKiwi’s

generallyweredescribedasnaturallyentrepreneurial.Somerespondentscommentedona

cultureoftallpoppiesthatisunhelpfulandcandetractfromsuccess.Further,oldmodelsand

mindsetswereseenasholdingsocialenterprisebackinthiscountry.

UniqueaspectsofsocialenterpriseinAotearoaweredescribedasthesectorbeing

undevelopedandhavinghighpotential;manyintervieweescitedMāoricultureandtheMāori

economyasauniqueaspectaswasthesmallsizeandconnectednessofAotearoa.

OpportunitiestostrengthensocialenterpriseinAotearoaincludedaccesstofundingand

socialimpactinvesting,capacitybuildingandinvestinglongtermintheecosystem,celebrating

localsuccessstoriestoincreaseawarenessandtheimportanceofbuildingbusinessknowledge

andcapabilityifsocialenterprisesaretobesuccessful.Afurtheropportunitywithsignificant

potentialwassocialprocurement.

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Theuntappedpotentialforgreatestimpactwasdescribedasthepotentialofcommunity

ownedassetsandsupportinglocalinitiatives;youthasasignificantforcetotackleissues;the

potentialintheworldofTeAoMāori;potentialforincreasedimpactonkeyissuesfacing

Aotearoa;crossdisciplinaryapproachesandcollaborationwithbusiness.

RisksandthreatsfacingsocialenterpriseinAotearoaidentifiedwerethelackofanecosystem

andlongtermthinking;lackofinvestment;riskadversityandlowfailuretolerance;a

perceptionthatsocialenterpriseis‘easy’;andalackofbusinessskills.

PastsupportforsocialenterpriseinAotearoawasdescribedascomingfromphilanthropy

(TindallFoundationreceivemostmentions),somesupportcomingfromindividuals,

intermediaryorganisations(suchasEnspiralandĀkina)andviagovernment.Currentsupports

weredescribedasprimarilythroughintermediaryorganisations;withsomesupportthrough

governmentandphilanthropy.

Supportgapsidentifiedwerefundingandaccesstocapital;capabilityandsupporttogrowthis;

limitedsupportiveinfrastructure;lackofawareness;andbusinessprocurement.Insupportof

socialenterprise,funderswereencouragedtowardsincreasinglyinnovativeandflexiblestyles

ofworking;lookingatsocialimpactinvestmentapproaches(suchassocialloans)and

supportingcapabilityandsectordevelopment.

Investinginthesupportiveinfrastructurewasidentifiedasapriorityareaandsignificant

opportunitywasseenininvestinginlocalprojects,communitydevelopmentandyouth.

Finally,aseriesofinsightsandrecommendationsaredocumentedbasedonthethemes

documentedinthispaper.Opportunityexistsacrossarangeofareas.

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1.ThecurrentstateofsocialenterpriseinAotearoaThoseinterviewedwereaskedtodescribethecurrentstateof

socialenterpriseinAotearoa.Intervieweesdescribedthe

currentstateasatimeofincreasinginterestandinvestment;

beingearlystageindevelopment(laggingbehindother

marketswashighlightedasriskingNewZealand’s

competitiveness)andlackinginfrastructuresupport;governmentwereseenashavingan

importantroleinsettingtheconditionstoenablesocialenterprisetothrive;therewasseento

bean‘oldguard’and‘newguard’;definitionsregardingsocialenterprisevariedandawareness

ofwhatsocialenterpriseiswaslow.

Interest,legitimacyandinvestmentisontherisebutstilla‘waytogo’

Therewasacknowledgementfrommanyinterviewedthatitisatimeofpotencyand

increasinginterestinsocialenterprise;atimeofreorganisation;andwhileinvestmentisonthe

risethereisa‘waytogo.’

‘Theinterestismuchhighernowthanithasbeenoverthelastcoupleofyears.’

‘Kindofpotent.Anunrealisedpotency…it’slikeweareonacuspthatcouldgiveway.It’s

buildingup…Iseethesystemtalkingaboutitalot.BythesystemImeanthegovernment

system…‘

‘NowwehaveĀkina,PrometheusandothersliketheGuyRyan’sanditfeelslikeweareata

pointofre-organisationwhichisgood.’

‘Therearelotsofreallygoodconversationaboutithappeningatthemoment.Itisslowlybeing

recognisedasarealformofbusiness.Thoseconversationsarelendinglegitimacytothework

thatpeoplearedoing.’

‘…re-emergenceisthemainthingthatcomestomind.Itfeelssimilartothetimeinthe90’s

whenIwasinvolvedinasocialenterpriseinthefarnorth,settingitup,therewasaglobal

movement,peoplecomingfromoverseas...Nowitfeelslikeacohortofyoungpeoplecoming

throughwhojustwanttodogood…’

‘Weseemtohaveaclimatethatisgrowingamongsttheentrepreneurialworld,theclimateis

right.’

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‘I’dsaythatitwasanemergentsector…’

‘Inthelast18monthstherehasbeenasignificantincreaseininvestmentbutwehaveawayto

go.’

Earlystageandinfrastructuredevelopment

Intervieweesdescribedthesocialenterprisesectorhereasearlystageandlackingan

ecosystem,nationalbody,infrastructure,investmentandacademicsupport.Further,itwas

highlightedthatifNewZealandlagsbehindothercountriesthatwillreducecompetitiveness.

‘Weareearlystageandwedon’thaveallthepiecesoftheeco-systeminplace.’

‘InNewZealandwearemissingacoherentnationalbodyoragotoplace.Alsoabeliefinthe

socialenterprisesectorforfundingtobeflowingin.’

‘Thereisanabsenceofstructuredsupportorinfrastructure…alotcouldchangequitequickly

withtherightkindofinputsandsupports.’

‘…thereisn’treallytheinfrastructureandtheinvestmentinfrastructure…’

‘Therearealotofpeoplecomingupwithsocialenterpriseideas,buttheyarefindingit

difficulttomonetisethings.Findingitdifficulttomakethemfinanciallysustainable.’

‘….thereisalotofgroundlevelactivity.Lotsofinterestingpeopledoinginterestingthings,

butstrugglingtogetpastthoseearlyprototypingphases.’

‘Wearemissingsomecriticalelements;alackofacademicdevelopmentinthisspace…’

‘Ifoursocialenterpriselacksbehindeveryoneelse,itreducesourcompetitiveness.Ifwedon’t

haveworldleadingsocialenterprisesthenwewon’thaveworldleadingbusinesses.That

wouldputoureconomicfutureinjeopardy.’

Theroleofgovernment

Intervieweessawgovernmentashavinganimportantroleinsettingtheconditionstoenable

socialenterprisetothriveinAotearoa.Opportunitiesincludereviewingthelegalformofsocial

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enterprise;provisionofincentivesincludingtaxbreaks(lookingtointernationalmarketsfor

guidance);andincreasinginvestment.OneintervieweecommentedthattheMinistryof

Business,InnovationandEmploymentshouldhavealeadrole.

‘Ifgovernmentisseriousaboutsocialenterprisetheyshouldbeputtingthingsinplacetohelp

it,alongthelinesofScotland,CanadaandtheUnitedKingdom.Specialistlegalstructuresfor

example.Thecurrentgovernmentlookslikeitwantssocialenterprisetoflourishsoitcanpass

servicesontothem,butitneedstoallowthoseenterprisestofitintoaspacethatbestsuits

themratherthansqueezethemintoastructurethatdoesn’twork.Ireckonthecurrentlegal

structuresheredonotsupportsocialenterprise.Therearebetterstructuresoverseasthatwe

couldandshouldhaveinNewZealand.’

‘Scotlandhasalotmoreofanamenablepolicyframeworkfromgovernment,wehaveawayto

gohere.InScotlandthereareincentives.’

‘ThereisnolegalstructureforsocialenterprisehereinNewZealand,thatisanopportunityto

strengthen.Thereareabunchofuswhoallidentifyassocialenterprisesbutwearesetup

legallyasbusinesses.’

‘Fromagovernmentperspectiveweareprettyfarbehindtherestoftheworld.Thestructural

understandingandsupportinNewZealandisverylimited,forexamplethereisnolegalform

forsocialenterprise.Therearepeopleonthegroundwhoaredoingstuff,butifthestructures

werethere,thatwouldmaketheirlivessomucheasier.’

‘…alackofgovernmentinvestment(we’veseenchangerecently)…‘

‘Therearenotaxbreaks.’

‘ItwastheMinisterfortheCommunitywhocameoutinsupportofsocialenterprise;itshould

havereallybeentheMinistryofBusiness(MB).’

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Ataleoftwoperspectives

SocialenterpriseinAotearoawasdescribedashavingan‘oldguard’(longstandingwell

establishedsocialenterprisesandsectorchampions)and‘newguard’(newstartupsandmore

recentlyestablishedsupportingintermediaryorganisations).Whilesomesocialenterprisesin

NewZealandhavebeenoperatingsuccessfullyfordecades,thereisanewwaveofsocial

enterprises(inparticulartechfocused)andthesectorasawholeisatanearlyphaseinits

development.Further,oneintervieweecommentedthattherewerethreecommunitiesnot

necessarilyseeingeachother–thestartupcommunity,enterprisingarmsofnotforprofits

andMāorisocialenterprise.

‘…therearelotsoflayersright,socialenterprisesthathavebeengoingfor50or100yearsand

arewellestablished.Thentherearethoseinthestart-upphaseparticularlyintechrelated

fields(likeus).’

‘Thereistheoldguard…newguardthing(Enspiraletc).’

‘…inthissocialenterprisespace,wearetalkingaboutitasifitisanewdiscovery.Thereare

peopleouttherewhohavebeendoingthisforyearsandyearsandyears,andthey’venever

calleditthat…‘

‘Itfeelsinsomewayslikewearequitenearthebeginning,intermsofthepotentialimpact

beingnurturedandgrowntoitsfullpotential.Butontheotherhandtherearesomeexisting

socialenterprisesthathavebeenaroundalongtime,thataredoingwonderfulthings.…

SomethinglikeKilmarnockEnterprisesinChristchurchorCargillEnterprisesinDunedin-that

supportmainlypeoplewithintellectualimpairmenttoworkinrewardingandhighqualitywork

experiences.’

‘Therearethreedifferentcommunitiesthatarenotnecessarilyseeingeachother.Thereisthe

startupcommunity(Enspiral,Ākina,etc)mostofthoseareentrepreneurialandhaveagood

socialconscience.Thereare…notforprofitssuchastheSalvationArmyopshops…comingat

itfromanotherway.ThenthereisthethirdlenswhichisMāorienterprise.Youcouldprobably

sayMāorienterpriseisusuallysocialenterpriseasitusuallyhasthegoodoftheiwi-current

generationsandfuturegenerations-atitsheart.WhatyoucanseeinsomethinglikeWhale

WatchisaverysmartenterprisewhichhasentirelyturnedthecommunityofKaikoura

around.’

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CargillEnterprisesisthetradingarmoftheDisabledCitizensSocietyinOtago

‘…weareaveryearlystage,thatmainlytiestothelackofsignificantinvestmentincreatingthe

sector,whichhashappenedinmostotherwesterndevelopednations.Theproblemwiththat

storyiswealsohavequitealongandrichhistoryofsocialentrepreneurs…Thosearethetwo

storiestotellandtheyarealittlebitcontradictory.’

Awarenessandunderstandingofsocialenterpriseislimited

Anumberofpeopleinterviewedcommentedonthelowawarenessandlackofvisibilityof

socialenterprisewithinAotearoa(onepersonfeltAotearoamaybeonacuspof

understanding).Inaddition,therearedifferingviewsregardingdefinitionandsomesocial

enterprisesdonotrefertothemselvesassuch.Raisingawarenesswasidentifiedasapriority.

‘Thereisalotofstuffhappeningonthegroundthatisnotseen.Howdowemakeitmore

visible?’

‘Weareatthecuspofarobustunderstandingofsocialenterprisehereandthatitisdifferent

totraditionalcharityandtraditionalbusiness.’

‘Therearemanythingsthatcallthemselvessocialenterprisesthatarenot.Ifyouwanttoknow

ifsomethingisasocialenterprise,talktoabusinesspersonandtheywillthinkitisacharity,

talktoacharityandtheywillthinkitisabusiness.’

‘Socialenterprisedependsonwhoyoutalkto.Ithasalotofdifferentstrands,people’sviews

onitvaryalot.Ifyouweretoaskmewhatitmeans,essentiallyitmeansoursolutionsaren’t

goingtocomeoutofWellingtonorthroughbenefits.’

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‘Isometimesquestionifcharitiesdevelopingarevenuestreamandbusinessesdonatingfor

socialgoodissocialenterprise.Formetheanswerismoredeep-rooted.Whywasthebusiness

founded?Chalklewasfoundedduetosocialimpact.Formeasocialenterpriseisfounded

uponsocialimpactvalues.’

Fire-allclassesusingchalkle.com

‘Thereisacontinuum.Thereisadifferencebetweenasocialenterpriseandabusinessthat

doescorporatesocialresponsibility(andabusinessthatdoesn’t).Iseesomedebatebetween

socialenterpriseandsocialbusiness.Maybethereisroomtomoveallbusinesses,towhere

theyallhavesocialgoodaspartoftheiraimsandobjectives.’

‘Northlandisoneofthoseareasthatishighdeprivation.Thewholeideaofsocialenterprise

isn’tnecessarilythelanguage,it’sdifficulttoworkwithifyouusethatterm.Alotofthingswe

didwerearoundgenerosity,tosurvive,andthat’scultural,mahitahi.Wecomefromthe

perspectivenotjustofwhereweliveinourlocation.It’sbeenaroundworkingwithwhowe

know,creatingthenetworks,creatingtherelationships.Wewouldn’tusethetermsocial

entrepreneurs,thatisthekorero,butweworkfromabaseofcommunitybasedneed…’

‘IfIwastosetapriority,Iwouldmakeitthateveryoneknewwhatsocialentrepreneurship

was.Theneveryonewouldhaveastartingpoint.Youwouldseetherealpotentialandwhat

canbeachievedhereinAotearoa.’

‘Theideahastobesocialisedthrougheducationandawarenessraising.’

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Lessdevelopedthanoverseas

SocialenterpriseherewasdescribedaslessdevelopedthanothercountriessuchasScotland

andIreland.

‘Socialenterprisehereisnotaswelldevelopedasinmanyplacesoverseas…intermsofwhat

youseesayintheUK,weareabout15yearsbehind.’

‘…comparedtowhereitmightbeinScotlandprobablytenorfifteenyearsago,Irelandten

yearsago...InScotlandyou’vealsogottheSocialEnterpriseAcademywhichsupportshigh

endleadershipandmanagementandinfrastructure…thissectorisnowthelargestemployer

…itgetsquitealotofspaceintheScottishparliament.’

Thecurrentsystemisnotworking

Therewereviewsthatthecurrentsystemisnotworkingandsocialenterpriseisan

opportunitytoconnecttheumbilicalcordbacktocommunityandwhānau.

‘…atthegovernmentlevel,paymentforservicesisn’tmakingmuchchange.Thesepeopleare

lookingatabusinessenterpriseapproachtosolvesomeoftheseproblems.Thosethingsare

combiningtoanewappetiteforsocialenterprise…’

‘Socialenterpriseisreallyconnectingtheumbilicalcordbacktocommunityandbackto

whānau…WhathashappenedistheStatehastakentheplaceoffamily.WhenIgrewup,ifmy

mumanddadwereintrouble(Ididn’tknowtheywereintroubleofcourse),mycousinsand

auntiesanduncleswouldcomeoverandhelpout.WhathappenedisWINZtooktheplaceof

family.Todaywhenafamilygetsintrouble,insteadofgoingtofamily,theygotoWINZ.What

socialenterprisedoesisitreconnectstheumbilicalcordbacktowhānau.’

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2.StrengthsofsocialenterpriseinAotearoaThoseinterviewedwereaskedtodescribethestrengthsofsocialentepriseinAotearoa.

StrengthsincludedMāorisocialenterprise(seenasalignedtoMāorivaluesandtheimportant

roleofkaitiaki/guardians);Kiwiingenuityandinnovation;thesmallsizeofthesectorenabling

connectionand;numerousexistingexamplesofsuccessfulsocialenterprisesinthiscountry.

FurtherstrengthsincludeNewZealand’svastnaturalresourcebase,havingaccessto

internationalexpertiseandacommunityofpeoplewhoarejust‘gettingonanddoingit’.

Māorisocialenterprise

Māorisocialenterprisewasdescribedashavingastrongandlonghistorythatalignednaturally

toMāorivalues,culture,theroleofkaitiakitanga/guardianshipandtakingalongterm

perspective.CloserelationshipbetweenMāoriandnon-Māoriandaccesstoculturewascited

asastrength,aswasthecollectivenatureofPacifica.Oneparticipantcommentedonthe

enormityofsocialissuesfacingMāoriandtheimportanceofsocialenterpriseforthis

community.

Oneofmyreviewers,whocomesfromaMāoriperspective,commentedthat‘whileMāori

valuesarebetteralignedwithsocialenterprise,therearestillcorebusinessvaluesthatarein

conflictwithMāorivalues.ThekeyforMāoriistotryandworkourwherethebalanceisand

howdoyounotcompromiseonthekeyMāorivaluesorworkitsotheycangotogether.Thisis

hardbecauseMāoriidentitywithinpeoplecanvarygreatly’.

‘…weweredoingsocialenterprisebeforeitwascalledthat.Naturallyit’showwethinkabout

thingsintermsofbeinganyway.Everyoneistryingtofigureouthowwecandevelopthisand

getalivingfromitandsupportallthethingsinourcommunity.It’showwearebuilt.Itcomes

naturallytousas.Thisstuffisold.’

‘MāorisocialenterpriseisarealstrengthhereinAotearoaandalotofMāorihave

connectednesstothesocialneeds.Theyhaveexperienceditfirsthand…’

‘IthinkthereissomethinguniqueaboutthevaluesembodiedinMāoriculture.Around

kaitiakitangaandintergenerationalresponsibility.Atriple(quadruple)bottomlinebusiness

propositionalignswellwiththesevalues.’

‘Māorihavealwayshadanenterprisingcomponenttowhattheydo.’

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‘MyimpressionisthatMāoricultureandtheinfluenceinNewZealandisarealstrengthin

termsoftheimpactthathas,intermsofbusinessesthataremoreintegrated.Thatnatural

longtermperspectiveandwhatishappeninginthecommunityisarealstrength.’

‘IthinkthatweareclosertoourindigenouspeoplehereinNewZealandandbecauseweare

closerwehaveaccesstoitandthatisahugestrength.’

‘BecauseofthenatureoftheNewZealandpopulationandourrelationshipwithiwiandthe

collectivenatureofPacifica,theideaofcollectivityisdeeplyingrained...SomethinglikeWhale

Watch,whichlinkedbeautifullyintotheNgaiTahusettlement,thegroundisfertilefor

enterpriseswhichcomeupoutofcommunity…’

Kiwiingenuityandinnovation

OtherstrengthsweredescribedasKiwis‘giveitago’mojo;beinggoodatinnovation;havinga

smallbusinessmindset;justgettingonwithitandhavinga‘doityourselfculturehereinNew

Zealand.’

Bikemaintenance-allclassesusingchalkle.com

‘Thereisa‘giveitago’mojohereinNewZealand.’

‘Ithinkculturallywearegoodatinnovationandthatisabigstrength.’

‘InNewZealand,thestrengthsarethefactthatitisemergent,Kiwishavearealcando

attitude,thattherearesomeusefulearlystageexamplestocheckout.’

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‘Ithinkinnovation…GoodoldKiwiingenuityisquitestrongwiththingslikeLoomio…People

thinkingoutsideofthebox.’

‘Ourstrengthsareoursmallbusinessmindset.Justgettingonanddoingit…andwehave

networksandcommunitiesofpeoplewhoarejustgettingonwithit-thatisreallypowerfulfor

thesectortograbsomeinspirationfrom.’

‘ThereisadoityourselfculturehereinNewZealand.’

Thecontexthereissmallandinsomewaysconnected

ThesocialenterprisecommunityinNewZealandwasdescribedassmall;supportive;andin

somewaysconnected.Althoughtheopportunityexistsforstrongerconnections,especiallyin

theoverlappingofnetworks.

‘Thestrengthsareweareasmallernationsoweareconnected…alotofpeopleknoweach

other.’

‘…wearearelativelysmallcommunity.Startingamovementforsocialenterpriseisprobably

reasonablyeasytodoacrosssmallnetworks.’

‘Ialsothinkstrengthissomethingaroundthesupportiveness,theabilitytoeasilyadoptstuff.I

feelthatinmyexperienceanyway,peopleareso,‘that’sgreatthatyouaredoingwhatyouare

doing,ofcoursewe’llsignup’.Peoplearewillingtogivestuffatry.’

‘…Ithinkthetechsectorisreallywellconnectedtoeachother,thesocialservicessectorhas

somegoodconnections(aswellassomestrongbarriers),andtherearelotsofverystrong

networkswithinthecountry.Thosenetworksdon’talwaysoverlapenough.’

Aotearoahassomegreatexamplesoflocalsuccess

AfurtherstrengthwasthatAotearoahassomegreatexamplesofsuccessfulsocialenterprises,

someofthosementionedincludedtheNewZealandHousingFoundation;Loomio;CBEC

(CommunityBusinessandEnvironmentCentre);People’sCoffee;Hospice;4Trades;andthe

ColvilleStoreCoromandel.

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TheNewZealandHousingFoundation

‘SotheNewZealandHousingFoundationtheyaretryingtobuildgoodhousesefficientlyina

waythatwillmakethemaffordableandgetpeopleintoqualityhousing,andactuallybuilding

communities.Oneofthepitfallsofaffordablehousingisyoubuildinstantslums.NewZealand

Housingdoesn’tdothat.Thatistheirbusinessanditpaysforitself.Theydogetsomefunding

fromtheNewZealandgovernmentbutfundamentallytheyarebuildinghousesandselling

them,buttheyaredoingitinadifferentwaytoacommercialpropertydeveloper.’

Loomio

‘Loomioisdoingwell,theyhavemanagedtogettomarket,theyaregrowingreallyquicklyand

internationally.’

CBEC(CommunityBusinessandEnvironmentCentre)

‘…intheenvironmentalspace.CBECisagoodexample’.

People’sCoffee

‘Therearealsoalotofenterprisesthathavebeenalwaysoperatinginasocialenterpriseway,

buthaven’teverusedthatlanguagebefore,suchasPeople’sCoffee…theyareWellington

based,whohavegonebeyondFairTradeandhaveWorldFairTradeStatus.Theyruntraining

anddevelopmentworkshopsfortheirpartners.Itisgenuinelyworkingtohavethebiggest

socialimpactthroughthesupplychain…’

Hospice

‘TheotherreallyinterestingexampleistheHospiceshopshere.TheMercyHospiceshopshave

takenthatoldideaofanopshopandturneditintoahighmarketproduct.Theyhaveapoolof

volunteers,apoolofpeoplewhoaredyingandleavingthings.Theyemployprofessional

windowdresses.Thatisanexampleofasocialenterprise.Peopledieandwhatdoyouthink

whenyouarecleaningoutgrannieshouse,youthinkHospice.’

4Trades

‘In2001westartedanemploymentprogrammedownhereinDunedincalled4Trades.At

MalcamTrustwewerelookingatthoseyoungpeoplewhoweredisconnectedbuthadthe

abilitytocompleteatrade,butdidn’tnecessarilyhavetheskillstodoit.Wesetitupwiththe

Mayor’sTaskforce(supportedbyTindall)andwegrewitwith89apprenticesandwestilldo

employthemandwehirethemout.Ourgoalwastoemploythoseatrisk…Wewantedto

createemploymentopportunitiesacross20differenttradesandsupportthem,weusedour

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socialenterprisemodeltodealwithalltheissuestheyhad,itcouldbeanger;dealingwiththe

court;itcouldbeowingmoney;alcoholanddrugs;literacyandnumeracy;itcouldbeanability

tocompletetheassignments;gettothejobontime…Wearestillrunningatabouta90%

successrate…weareself-sustaining…Todaywehaveabout60fulltimeapprentices…We

runapartnershipwiththeOtagoPolytechnic.’

ColvilleStoreCoromandel

‘TheothersocialenterpriseIliketothinkaboutistheColvilleStoreintheCoromandel.Itwas

startedbyabunchofhippies…Colvilleisathrivingtown,partlybecauseofthecommunes

there;it’sareallyinterestingtown.Theyhaveatraditionalgeneralstore,thatsellsgoat’s

cheeseandquinoa,andthereisnowacafénextdoor.It’saninterestingcasestudy,againit

goesback40yearsanditoperatesinawaythatamumandpopbusinesswouldhavefallen

overlongago.Theprofitsgobackintoacollective’.

Otherstrengths

OtherstrengthsofsocialenterpriseinAotearoaincludethecountriesnaturalresourcebase;

accesstointernationalexpertiselocally;andamovementofyoungerpeoplewhoarejust

gettingonanddoingit.

‘Wealsohaveahugeamountofdistributednaturalassetsthatcreateagoodresourcebaseto

createsocialenterprises.’

‘Ithinktherearesomepeoplenowinthesectorwhohaveexperiencedoingitinotherpartsof

theworld,wearefortunatetohavethosepeopletohelpusdevelopthesector.’

‘Thereisamovementofyoungerpeople,manyofwhomweknowandlove,whoarejustdoing

itthemselves;usingtechnologyanddifferentwaysofworkingtocreatesocialbusinessesand

thatisreallyexciting.’

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3.ResponsivenessoftraditionalNewZealandbusiness

Thoseinterviewedwereaskedhowresponsive/understandingtraditionalNewZealand

business(suchascorporatesandSME’s)weretosocialenterprise.Responsestothisquestion

weremixed.Therewasasensefrommanythatunderstandingandsupportwasminimal,some

feltthatshiftswerebeginningandothersgaveexampleswhereasupportiverelationship

existed.IntervieweestalkedaboutthedichotomousrelationshipinAotearoabetweenbeing

seenas‘either’charity‘or’business-withlittleunderstandingofthespacesinbetween.Some

respondentstalkedabouttraditionalbusinessesperceivingsocialenterpriseascompetition.

Socialprocurementwasseenasanareaofsignificantopportunity.

Socialprocurementisasignficiantopportunity

Businessunderstandingandresponsivenessisdiverse

Therewasasensefrommanyofthoseinterviewedthattherewaslimitedunderstandingand

supportofsocialenterprisefromNewZealandbusiness,includingbanks.Somefeltthatshifts

werebeginningtobefeltandothersgaveexampleswhereSME’sandcorporateswere

supportive.Onerespondentsawbusinessstrugglingwithunderstandingsocialenterpriseand

anon-mainstreamsystemofeconomicsthatencompassedsocialandfinancialoutcomes.

‘Ithinkitwouldradicallyacceptit,ifitknewreallywhatitwas,it’sthatunrealisedpotency.

Thebusinesssectoronceitrealiseswouldgo‘wowthatisfantastictakingabusinessmodel

andusingthattomakeadifference’…NewZealandbusinesswouldacceptitifitunderstood

whatsocialenterprisewas-itwouldintuitivelymakesense.’

‘Idon’tthinktheyreallyknowaboutit.IfyoustoppedtenpeopleonQueenStreetandtenon

LambtonQuayrightnow,mostwouldnothaveheardofit…Talkingtootherstakeholderslike

government,somearealittlebitfamiliar,pocketsintheMinistryofBusiness,pocketsin

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Treasury.Onceyoudoexplainittopeople,peoplegenerallygetitquitequicklyandare

generallyquitesupportive.’

‘Theydon’t’getit.WheneverIgototraditionalbusinesses,theysay,‘whyareyoudoingthat’.

Thereisademarcation.Thereistheblackandwhitemarketapproachoftraditional

businesses.Thereisnotmuchunderstanding…ourcommercialdealsatEnspiralarejustthat,

commercialdeals.’

‘Idon’tthinkbusinessesinherentlyunderstandsocialenterprisemodelsandyetwearea

countryofSME’s.’

‘TheNGOandgovernmentsectorisreallystartingtogetit,thecorporatesectorlessso.It’s

stilltoo‘what’sinitforme’-corporateshaven’tinternalisedsharedvalue.Somearebutit’s

notwidespread.’

‘Ithinkthatisvery,verymixed.Myexperienceofithasbeenverylittleinthemiddleground.

It’sbeeneitherveryreceptiveandenthusiasticorincrediblydisinterested.Bothofthose

experiencesareverypowerful.Itisquitepolarised.Therearealotoftraditionalbusiness

ownerswhodon’tseethevalueorunderstandwhatwearedoingorwhywewouldchooseto

dothis.Andthentherearepeoplewhogetitimmediately.’

‘Astheownerofasmallsocialenterprise,frommyexperienceSME’sareamixedbag.Ifthe

valuesarethereitissupereasy.Theyarelowerhangingfruit.Theyaresmall,nimbleand

quick.Iftheyliketheideaandhavethevaluesthentheywillrespond...Ioftenfind,people

willsupportmeandLovenotes,because…theywanttosupporttheirlocalyoungpeople.’

‘WehadsomeearlierdiscussionswhentheASBCommunityTrustandTindallcommissioned

thepieceGlennSaundersdidonsociallending.Glenntalkedtothemaintradingbanksabout

sociallendingandtheywerereallydifficulttoengage,asapotentialfundingstream.Ido

wonderifthatisn’tshiftinginthelast6to12months…ifwehadthosesameconversations

perhapstheywouldfallonslightlymorefertileground.’

‘Somedo,obviouslyContactEnergyaresponsoringĀkinaandKPMGhasbeeninvolvedwith

Ākinaforalongtime.ButIwouldarguethatisdowntoindividuals.It’snotinstitutionally

embeddedinmostcorporates.Mostwouldstruggletocomprehendsocialenterprise.’

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‘…ingenerallocalbusinessesaresupportive,theyaregood,reallyneatpeople.Notonlydo

theysupportourorganisation,theysupportthefamilies.Theyseethefamiliestryingtohelp

themselves.Wehadtencondemnedhouses,thelocalbusinessesgaveusproduct,thereal

estateagentgaveusjib,andthepaintshopgaveuspaint.OprahWinfreysentme75

tradesmencopsfromaroundtheworldtorepairhomes.Wehavehadlocalsupport,regional

andinternationalsupport.That’sgooday.’

‘Generallybusinessesandbigcorporatesaresettingupsocialenterpriseincubators,and

lookingatmentoringopportunitiesfortheirstafftoworkalongsidesocialentrepreneurs,

becausetheyrealiseit’sgoodforjobsatisfactionifanythingelse.’

‘Thereareafewlittleglimmersonthehorizon.Itisstillaveryimmaturemodelanditisnotyet

wellunderstood…thereissometranslationworktodointothecorporateworld,toseethat

thereisamarketthatisworthinvestingin.Thereisnotmuchaction,muchconcretethathas

comeoutofit.However,Iknowatleastonebankthatbelievesthereisamarketforsocial

enterprise–againledlargelybythoseyounger,emergententrepreneurs.’

‘Whenyouhaveaneconomicstructureit’saroundanindividual,orcorporationdoingreally

well,gettingwealthy,getmore,havemore,moreassetsandthenthehigherIaminthe

ladder.Whenyoustarttalkingaboutitfromsocial,beinggenerous,it’sbuiltongenerosity.We

alldowell,weallfeelthegoodofthis.Wearebroughtupfromschoolage,thismainstream

economicview,alotofpeoplestrugglegettingtheirheadaroundcreatingasustainable

processofeconomics.’

Charityversusbusiness-beingseenas‘either,or’

IntervieweestalkedaboutthedichotomousrelationshipinAotearoabetweenbeingseenas

‘either’charity‘or’business(withlittleunderstandingoftheplacesinbetweensuchas

cooperativesandsocialenterprise),aswellasalackofconnectionacrosssectors.

‘Ifindmyselfinthisstartupcommunity,hangingoutwithstartsup.Theyseeusastwothings

eithermoreonthecharitable‘dogood’sideofthings(thatdon’treallyhaverobustbusiness

models),ortheyseeusasactuallylikeallbusinesswithanextrafocusonthesocial.Wehave

tobecarefulofpolarisingit-betweencharityandbusiness-asthereisawholelotofstuffin

between.Everyoneneedstocomeintothemiddlespace.Charitiesneedtobecomemore

business-likeandbusinessneedstobecomemoresociallyminded.’

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‘Idon’tthinkit’scleartopeoplewhatsocialenterpriseis.Peopletendtogetstuckinthisnot

forprofitmindsetandweshouldbelookingmoreathowdowemakethingsmoresustainable

andhowdowemonetisethem.Therearewaystomakethingssustainableandprofitable.I

don’tthinkmonetisationshouldbelookedatinabadway.’

‘Wedon’tconnectwellinNewZealandacrossdifferentsectors-acrossbusiness,notfor

profit,publicsector-therearedivides.Itdoesn’thappennaturallyoreasily.’

Movingbeyondcorporateresponsibility

Someintervieweessawscopeinbusinessmovingbeyondcorporatesocialresponsibilityinto

areassuchassocialprocurement-whichcouldhave‘gamechanging’impact.

‘…intheUnitedKingdomandotherpartsoftheworld,whereitisamuchmoreestablished

sector,thereisastrongervaluepropositionaroundtheprocurementstuff.Marketschooseto

buyfromsocialenterprisesratherthanothers.Thereisalotofscopehere.’

‘Thebigopportunitiesaheadofusarewhenwegobeyondcorporatesocialresponsibilityand

skilledvolunteering-whenwethinkaboutmarkets,investment,socialprocurement-those

thingsaretherealgamechangers.’

Competitiveview

Respondentstalkedaboutsometraditionalbusinessesperceivingsocialenterpriseas

competitionandnotbeingseenas‘realbusiness’.Onerespondenttalkedaboutthe

importanceofbuildingcomplementeryratherthancompetitiverelationshipswithlocal

businesses.

‘Ithinkbusinessfrommyperspectiveanyways,theyseeusascompetition…Businessesfeel

theyneedtocompetequiteruthlesslywithsocialenterprise.’

‘Ononeleveltheyaresupportive,partlybecausethereisabeliefifyoucanbringmore

businesswaysofworkingintothesocialsectoryouwillgetbetterresults…onotherlevels

thereareconcerns,istherealevelplayingfield.Socialenterprisesthatarecharitable…There

istaxrelief.Competitorsdon’tthinkitisfair.Theycanseethatveryrobustsocialenterprises

cancompetemoreeffectively.’

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‘Theyareresponsivebecausewespendtimetalkingwiththemsowhenwelooktodothe

gardensstuff,wetalkedtothemaincontractorshere,andsaidwearenottryingtodoyour

jobwearetrainingpeopleandwewillgiveyouthefirstchoiceofthetrainees…youhaveto

communicatewiththem.Ittakestimebutit’sworththeeffortandit’sreallyimportant.

Otherwiseyouareseenasastraightoutbusinesscompetitor…’

Theinvestmentopportunity

AnopportunityexistsinNewZealandforphilanthropy,governmentandotherstothink

beyondtraditonalgrantmakingandtowardssocialimpactinvestment(investingforpositive

environmentalorsocialbenefitalongsidepossiblereturnsforinvestors).

‘Asocialenterprisemightneedsomegrantfundingearlyon,whichcomesinasaformof

capital.Whatsocialenterprisefundamentallyneedsisinvestment.Whatcorporatesaredoing,

mainly,(andit’sdoneingoodfaith)thereisamarketingorreputationalaspecttoit.Theyare

lookingathowtheycangivemoneyaway,whichismucheasierthaninvestinginsocial

enterprises…Thesolutionisyoufindintermediarieswhocanbridgethegapbetweenthe

corporateandsocialenterprise.Thatwilldevelophere.’

‘Wearealsoacountryofhugeinvestmentinnotforprofitorganisationsandthatcouldbe

reframedaroundsocialenterprise.’

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4.NewZealandcultureandpsycheThoseinterviewedwereaskediftheNewZealandcultureandpsycheisacceptingofsocial

enterprise.Responsestothisquestionvaried.Māorivaluesandenterprisewasseenasaligned

tosocialenterpriseandKiwi’sgenerallyweredescribedasentrepreneurial.Somerespondents

commentedonacultureoftallpoppiesthatdetractsfromsuccess.Further,oldmodelsand

mindsetswereseenasholdingsocialenterprisebackinthiscountry.Thisincludesalackof

diversityonboardslimitingknowledgeofsocialenterpriseatgovernancelevel.

Māorienterprise

Māorivalues,communitymindednessandlongtermthinkingwasseenasalignedtosocial

enterpriseanda‘richopportunity’.

‘…Ifyoustarttalkingaboutsocialcontextintermsofenterprise,thatiswherewecomefrom,

thatisourroots.Thatisoneofthebiggestchallenges,whenIamwithCouncil,withpoliticians.

ThisregioninNorthland…wehavesomethingtoadd,tobalancethingsout,thinkingaround

whānau,andhowwedoitcooperativelythatisourstuff…Therearevalueswecanbringto

thisthatbringvaluetoenterprise.’

‘…ifyoulookatalotoftheMāorienterprises,theyaresocialenterprisesfundamentally;they

arebuiltoutofcommunitywellbeing.WiththeTreatysettlements,Māoriarecomingupwith

socialenterprises.Wehavethosesocialenterprisesallaroundus…’

‘…ifyoulookatMāoriandthewaytheyusuallythinklongtermandhowtheythinkabout

theirpeople,thatisarichopportunity.’

Kiwisarenaturallyentrepreneurialandaligned

Kiwisweredescribedasnaturallyentrepreneurial,havinganumbereightwirementalityanda

countryofsmallbusinessesandwithhighvolunteerismrates.

‘IthinkKiwi’sarenaturallyentrepreneurialandinnovative.Wedon’tgettootiedupwith

traditionalmodelsunnecessarily…Ithinkthereisayoungergroupofpeoplecomingthrough,

seeingtheworldinadifferentway.’

‘…Thenumbereightwirementality,peoplejustgetonanddostuff.Thatisastrongattribute

withinNewZealand.’

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‘…NewZealandcultureisverysociallyawareofissuesinthecountryspecifically,suchas

domesticviolence,childpoverty.ThereisKiwiingenuityintheNewZealandpsyche.Social

enterpriseisbasicallypeoplegettingonandfixingstuff,notwaitingformoreimportantpeople

tocomeanddoit,‘yeahwecandothat’.’

‘YesbecauseIthinkinthemainNewZealandersdocareabouttheirneighboursandtheyare

interestedindifferentandsometimesquirkywaysofdoingthings.’

‘YeahIdo.IsaythatfromtheperspectivethatIamconstantlysurroundedbypeoplewho

totallybuzzonthisstuff.ButIhavememories,IhaveexperienceswhereIrunintopeople

completelyconventionalandtheyfullygetintoit.Ithinkingeneral,itmightnotbeeveryone’s

norm,butcertainlypeoplewarmtoit.Ialsothinkfactslikethatwehavethehighestnumber

ofcharitiespercapitaintheworldandmassivenumbersofvolunteeringkindofreflectthatas

well.’

Oldmodelsandmind-sets

Tallpoppysyndromewasseenasanissue,aswasasuspicioninNewZealandaroundmaking

profitoutofsocialissuesandtakingan‘either,or’view(eithercharityorbusiness).One

personcommentedonthe‘practicalmenproblem’andalackofdiversityandunderstanding

ofsocialenterpriseatgovernancelevel,whichwasabarrier.

‘…yesandno.Thewholetallpoppythingisdefinitelyanissue…intraditionalenterprisein

NewZealand,peopledon’twanttogettoobigortoosuccessful.Itstiflesmassivesuccess.’

‘…wehaveamentalmodelthatbusinessisverygoodatgettingthingsdonebutthatit

essentiallyexiststomaximisebenefitsforitsowners,andthereisaviewthatcharityistheway

thatwe‘dogood’…Thereisareservationthatyoucanpointabusinessmodelatsomething

thatisinservicetothecommunity-thatyoucangenerateprofitandbepurposedriven.’

‘MyviewhasalwaysbeenKiwisarepracticalpeoplewhoaresociallyminded,sotheyshould

besuckersforsocialenterprise,whichleadsmetothequestionwhyhasitnotdevelopedhere

asithasoverseas.IthinkwehaveaproblemwhichIwouldcallthepracticalmenproblem,

whobelievetheyknoweverything,andtheydon’tbelieveinthis.Ithinkthatisamajor

impedimenthere.Thereisacohortofpeoplewhoallsitondifferentboardsandallknoweach

other,andtheydon’treallyhavetheexperienceofhavingseenwhathasdevelopedoverseas.

Thatisablock…’

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5.WhatisuniqueaboutsocialenterpriseinAotearoa

Intervieweeswereaskedwhatisuniqueaboutthesocial

enterpriselandscapeinAotearoa.Thiswasdescribedas

undevelopedandhavinghighpotential;manyinterviewees

citedMāoricultureandtheMāorieconomyasaunique

aspect;aswasthesmallsizeandconnectednessof

Aotearoa.

SocialenterpriseinNewZealandisundevelopedandthereishugepotential

Thesocialenterpriselandscapewasdescribedasearlystage,undevelopedandemergent;led

byasmallnumberofpeople;fragile;ledoutofcommunityratherthanbygovernment

(differingtoothermarketssuchasAustraliaandtheUK);requiringinvestment(beyondgrants

anddonations);andrepresentinghugeopportunity.

‘It’squiteemergingandit’snotformed.It’sindividuallydriven.Downtoliterallyahandfulof

individualswhohaveahugeamountofpassionandcommitment.Butthatisoftentypicalof

newmovementsisn’tit?’

‘Itisverysmallandundeveloped.Oneofthethings,ifIlookathowitdevelopedinEuropeand

theUS,thereweretwoparalleldevelopmentsgoingon.Onewasthesocialenterprise.The

othersidewasthesocialinvestmententities,raisingfundsandinvestinginsocialenterprises.

Youalmosthavetohavebothinparallel.’

‘Thesizeofit.Thereareadvantagesanddisadvantagesinoursmallness.Perhapstheother

thingthatisuniqueisthesectorisledbyaverysmallnumberofpeople.It’scomingoutofthe

communityasitshould,andthesmallbusinessarea,it’snotledbygovernment,andIknow

thatisdifferenttohowithasbeenintheUKandAustraliawherethegovernmenthasbeena

bigplayer.Wearestillverymuchemergentinthatsense.Oursizeandourscalereally,andour

relianceonhalfadozenindividuals…’

‘Ithinkjusthowfewgenuinesocialenterprisestherearethathavemanagedtosetupand

sustainandgrowtoanysize.Thatisdefinitelythecasecomparedtoothercountries.Howfew

theyareandfragiletheyare.Andthepolicyframeworkisnotcompletelyamenable.Accessto

appropriatecapitalhasnotreallytakenoffinNewZealand,wedon’thaveasocialbanklike

TriodosintheUKandothers.Thereseemstobeareluctanceformainstreaminvestmentand

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philanthropytoinvest.Capitaliswhatsocialenterprisesreallyneed,notjustgrantsand

donations.Theyarebusinesses.’

‘Therearemassiveopportunities.Alsoweforgettolookatinfrastructure,socialinfrastructure

aswell.We’veseenithappeninMumbai.Therearehugeentrepreneurialopportunitiesinthe

massurbanisationofAuckland…’

Māoricultureandeconomy

Māoriculture,initiativesandenterpriseweredescribedasuniqueaspectsofsocialenterprise

inAotearoa.Further,onepersoninterviewedcommentedonthereconciliationandthelinking

ofcapitalto‘coreMāorivalues’.Furtheroneintervieweedescribedtheoverlapbetweensocial

enterpriseandMāoriandPacificaculturalnorms.

‘Māoricultureandindigenousenterprisewouldbethemostuniquething.’

‘…iwiinitiativeswhichobviouslymakeusuniqueworldwide.’

‘Māorisocialenterprise.IngeneralwhatmakesAotearoaNewZealanduniquehereisour

heritageandoutlook.’

‘TheobviousoneisMāoricultureandtheMāorieconomy.Particularlyintermsofalargepart

ofoursocietywhohavebeentoadegreeoppressedandunderserved,arenowgettingtoa

pointofreconciliationwhichisbringingcapitalandwhenthatisalignedtocorevalues…that

createsauniqueopportunityforMāoridomandNewZealand.’

‘ThatpotentialforoverlapwithMāoriandPacificIslandculturalnorms.Caringforthe

environmentandfuturegenerations…Therearehugethingsthere.Doingthingsforus,notfor

me.’

Aotearoaissmall,agreatplaceto‘trystuff’andconnected

Otheruniqueaspectsincludethesmallsizeofthecountry(andeaseofconnectiondueto

smallsize),Kiwisdesiretohelp,NewZealandisanexcellentcountrytotrialthingsandthereis

anempathicculturetowards‘goodforall’.

‘Ireckonthatwhatisuniqueisthatsocialenterprisehere,rightatthebottomoftheworld,

nothingisimpossible…whatisuniqueabouttheaverageKiwionthestreetistheyarekeento

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help,theywanttohelp.Itissomethingwecanallbeveryproudof.Theyjustwanttoknow

how.’

‘It’sthatconnectedness.IthinkNewZealandisanexcellentplacetotrialthings.Wearesmall

enoughthatifyou’vegotagoodideaitcantakeoffprettyquickly.’

‘Ithinkthatconnectivityisabigthing,weareasmallcountry.BetweenAucklandand

Wellingtonyouareabletoenhancethatconnectivity.Therearelessuniversitiesherethan

internationally,it’sasmallerlandscape.’

‘Thereisarealempathytheretowardswhatisgoodforall;thereisastrongfeelingof

empathyinNewZealandcomparedtosomeothercultures,someothercountries.It’s

connectivity,topeople.Inalotofcountriestheyjustdon’thavethataccess,whereinNew

Zealandifsomethinghasagreatideaandreallywanttodoit,it’seasytoconnecthighupin

organisations,nothingisimpossiblehere.IntheUSit’smuchhardertocreatediverse

professionalnetworks.Wedon’treallyhavethosebarriershereinNewZealand.’

HistoryofthewelfareState

OneintervieweecommentedonthehistoryofthewelfareStateandhowthishascreateda

cultureofdependence.

‘ThehistoryofthewelfareState…AsmuchasthegovernmenthasrolledbacktheState,there

isasensethatweneedtobelookedafterandsocialenterpriseIthinkisathirdcentury

versionofthewelfareState,butitismarketbased…alotofKiwishaveissuewithit,they

wanttofeelthattheStatehasgottheirback.’

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6.LearningareasandopportunitiestostrengthenThoseinterviewedwereaskedwhatthelearningareas/opportunitiestostrengthensocial

enterpriseareinAotearoa.Thestrongestthemeherewasaccesstofundingincludingsocial

impactinvestment(investingforpositiveenvironmentalorsocialbenefitalongsidepossible

returnsforinvestors).Furtheropportunitiestostrengthenincludedcapacitybuildingand

investinglongterminthesocialenterpriseecosystem.Thiscouldincludecreatinganational

network/bodyandinvestinginleadership,capabilityandintermediaries.Celebratinglocal

successstorieswasidentifiedasanopportunity.Afurtherthemewastheimportanceof

commercialknowledgeandcapabilityforsocialenterprisestobesuccessful.Other

opportunitiesincludedsocialprocurement;supportforyoungpeople;andoneparticipant

citedanopportunityforcollaborationwithNewZealandbusiness.

SocialImpactInvesting

ThestrongestareaforlearningandopportunitytostrengthensocialenterpriseinNewZealand

wasidentifiedassocialimpactinvestment.Thisisrequiredinanareadescribedas‘under

financed’;accesstocapitalisrequiredatvariousstagesofdevelopment(startupphaseand

beyond);andphilanthropyandgovernmenthaveanopportunitytoimplementmorediverse

andfitforpurposeinvestmentmodelsandbuildasocial‘impactinvestmentcommunity’.

Philanthropywasdescribedas‘illequippedtoconsidertheinvestment’.

‘…thereisstillheapsofpotentialwithengagingpotentialinvestors,inthatconceptofimpact

investment.’

‘Wehavetoinvestinsocialenterprise.Thatisthething,wearejustlookingatstartingupa

businessatthemoment,thisguyhasdevelopedamodelofwoodfiresandsettingupa

factory.Thebankwouldnotgiveusaloan,ourbottomlinewasnodifferent,butbecauseyou

getgrantsandcontractsfromallovertheplace,thebankwassayingnowewanttowatchyou

foranotheryearbeforewegiveyoualoantopurchasea$60,000building.Wehavecloseto

halfamilliondollarsworthofassets…theyhavecomefromafeardrivenplace,nothingever

happensunlessthereareriskelements.Weareunderfinanced.’

‘Therearebiglearningsacrosslocalgovernment…throughhowitdistributesitsfunding.The

termsitputsaroundthat.’

‘…increasethesourceofthefinancelookingatthistypeofinvestment.’

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‘Themissingpieceofthepuzzleiswhatistheroleoffunders.’

‘…Ithinkfundingisabigissue.InaresearchpaperIdidthreeyearsago,oneorganisation

CBECtoldustheywereconsideredtoocommercialforagrantandtoosocialforabank.

Workingouthowwecanbetterfundsocialenterpriseisstilldefinitelyonthetable.’

‘…makemorefundingavailableforsocialenterprisesthatareintheirsecondorthirdyear,that

havevalidatedtheirmarketandnowneedsupporttosolidify.Chalkleislookingatgoingfor

somefundingatthemoment,butthereisnocheckboxforsocialimpactfundingwithin

governmentgrantopportunities.’

‘IntheUKthereisfundingtoenableinvestmentintoinnovationinthesocialsector.Weneed

anindependentstand-alonesocialinnovationfund,notadministeredbyanyoneorganisation

withavestedinterest.Itshouldbepartisan,independentlyrun,thatcouldenableleveraged

fundingfromprivate,government,philanthropicandbusinessinvestors.’

‘Ithinkaccesstocapitalissomethingthatisonmymindatthemoment.Thereistheearly

stagenostringsattachedstartupgranttypepiece.Lotsofsmall$5,000grantstotrystuffout,

experimentandthenattheotherendofthecontinuumtheearlystageloanbasedfinance.

Maybeinterestfreeloansorevennegativeinterestloanswhereyouhavetopaymostofit

back.’

‘Thereisbiglearningaroundthesocialfinancestuff.Atdifferentstages.Wheredoesmoney

comefrom,whofrom,whatlevelisneededatdifferentstages.Whatarethetypesof

investmentsatdifferentstages?Ithinkgovernmenthasbeentryingtofigureouttheirroleand

wheretheysit.’

‘Myexperienceisthatthereisareallycriticalperiod,afterayearortwoyears,theremaybea

coupleofpaidstaff,butit’snotatthatpointofbeingselfsustaining.Thatiswherealotof

socialenterprisesfalter…‘

‘Thephilanthropicsectorcouldmakeahugedifferenceinthewaytheyactandfund.’

‘Weallneedthatfundingelementsorted.Astablewaytogetfunding,abetterinvestment

model.Notsomuch‘givemeagrant’,more,‘investinmybusiness,ithaspotential’.’

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‘Philanthropylikestheideaofsocialenterprise,butisillequippedtoconsidertheinvestment.

Thereisnoactiveimpactinvestmentcommunity.’

Longtermleadershipandcapacitybuildingofthesector

Longtermleadershipandcapacitybuildingofthesectorwasseenasasignificantareaof

learning.Supportingleaders,investinginlongtermapproaches,growingtheecosystem,

supportinganationalnetwork,creationofmorephysicalenvironmentstonurturesocial

enterprisesandtraining.

‘Whatitrequiresismoreleadershipandmoreinvestmentinlong-termdevelopment.The

biggestriskisshort-termism.’

‘It’sabitlikeeatinganelephant.Doitinlittlebites.WhatVodafoneisdoingwithWorldof

Differencethatwasoneofthebestthingsthateverhappenedtome,intermsofgettingme

outofthestartingblocks.Ihaven’tgotanyschoolqualifications.Iwasabletousethataward

onmyorganisationandpersonallyanditopeneddoorsanddidthingsforme.’

‘Therearesomepassionateandinnovativethinkers.Butthosepeopleneedtobesupported

tooandthatishardwhenitisanotonlystartinganeworganisationbutawholedifferentway

ofoperating.Theinfrastructureisneededtosupportthoseindividuals.’

‘Rememberthereisenterpriseinsocial.Youcangetenrapturedinthesocialpart,let’smakea

difference.Thereisariskoflosingtheenterprisepartandyouneedtheinfrastructurearound

it.’

‘Howyouputthewholeecosystemtogether.It’ssuchanimmaturemodelyet,thattherearea

fewpeoplewhoarebeginningtogetorganisedbutI’mnotsurethecoordinationbetweenthe

variouspartsarequiteconnectedupyet.’

‘Ithinkmaybebuildingevenmoreanationalnetwork…anationalbodythatcouldsupport

somemarketingaroundtheconcept.Itwouldneedtocaptureeveryone.’

‘Oneofthethingswehavestruggledwith,itisnotclearwhohasthevoiceofsocialenterprise

andwhoprovidesthehub. Ākinaareanincubatorandacceleratorandthatisnotthe

equivalentofsayPhilanthropyNewZealandforfunders.Thereismoreworktodoregarding

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whospeaksforthesector.ThereisalsotheCommunityEconomicDevelopmentlensandthe

workofDiJennings.’

‘TheotheropportunityIthinkalotaboutisthephysicalspace-thesocialequivalentofthe

Icehouse.’

‘Ithinkcreatingacommunity…Spreadingthemessage,spreadingtheinspiration,sharingthe

message,mentoringpeople,communicating,thatgivesushugeopportunity.’

‘Socialenterprisesuccessdependsonafundamentallyentrepreneurialattitude.Theycanget

capacitybuilding,butifyouarenotfundamentallyentrepreneurialitwon’twork.Youcango

to101courses,bementoredandalltherestofit.’

Raisingawarenessandsharingsuccess

UnderstandingofsocialenterpriseinNewZealandislimited–anopportunityexiststoraise

awarenessandsharetangiblestoriesoflocalsuccess.Thiswouldhelpincreaseunderstanding,

learning,knowledgeandpride.

‘Thereneedstobemarketingtogetawarenessoutthere.’

‘Thereisworktobedone,definitely,aroundsimplifyingthelanguageandhelpingpeople

understanditandhavetangibleexamples.Thereisabigpieceofworkthatneedstobedone

aroundthat.Whilstnoteveryonegetsitatthemoment,therearesomekeyinfluencerswho

arestartingtogetitacrossdifferentsectors…’

‘…createexamplesandpublishthem,sharesuccessstories,andthenpeopleseetheminthe

concrete.Thenpeopleearlyonintheircareercanseeitandsay‘thatiswhatIwanttodo’.

Concreteexamplesspeaktoentrepreneurs…’

‘…wecouldlearnalotbylookingatstuffthatisalreadygoingwell.Likethereisacamping

groundontheWestCoastthathasbeenusingfundsgeneratedfor50yearstoreinvestprofits

backintocommunityprojects.Acommunitymemberbroughtthatland,it’scommunityasset

based…‘

‘Thereareexamplesherethathavedonewellfor15or20years.Peoplehavenotgonebackin

andlookedatthesuccessfactors.ForexamplethereisagroupintheWaikatocalledtheWise

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Groupwhichisoftenquotedasasuccessfulexampleofasocialenterprise.ThereistheCBEC

inthenorth,it’sbeengoingforabout20years,itdoesalotofenterprisethings.Community

recyclinggroupsthathavehunginanddonewelllikeWanakaWasteBusters.’

‘Weneedtolearnhowtoplagiariseothersexperience,wedon’thavetoinventitallourselves

…Recognition.Getthemonthetelevision,beproud.Weneedsomegoodnewssocially.’

Businessskillsrequiredevelopment

Businessideas,knowledgeandskillswereseenasakeylearningarea-particularlyfor

individualscomingfromacharitableparadigmwhichrequiresadifferentsetofskills.Afurther

learningareawascollaborativedialogueandhavingaccesstoskillswheregapsexistand

evidenceofwhatworks.Onepersoncautionedthatwhileinthiscountrywecanlearnfrom

businessmodelsthathaveworkedinternationally,thelocalenvironmentisunique.

‘Fundamentallysocialenterpriseisaboutrunningabusinessandthereisquiteabitofbusiness

knowledgethatIthinkneedstobelearntfirstofall.’

‘Itisgoingtogrowwheretherearevalidbusinessideas…theyhavetostandontheirownas

businessideas.’

‘Thelearningopportunitywouldbeaboutsharingbusinessmodels,sharinglearningabout

whatworksandwhatdoesn’t,creatingopportunitiesforsocialenterpriseandentrepreneurs

tocometogether…’

‘…whenitcomestoexecutingandrunningasocialenterprise,therearealotofpeopleinthat

spacethathavecomefromacharitableparadigm.Thereisawholelotofrelearningaround

money,social,psychological,howweaccessmoney,conversationswithphilanthropic

organisations,figuringoutsocialfinancing,thatisabigspacewehavetolearnlotsin.Ifeelwe

areagreatplacetodothat…NewZealandissomewhatablankcanvas.’

‘Youalsohavetochangethecapacity.Managethebalancesheet,managethecashflowand

youneedtobemoreofabusinesspersonthanoldschoolcharity.’

‘Insocialenterprisesyougetpeoplewithapassionanddrivetodosomethingthatcancreate

anincomeaswellaschangetheworld.Buttheyarenotnecessarilythebestpeoplefor

systems,andtheydon’tknowaboutdevelopingcontracts(thenutsandboltsstuff).Theycan

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spendalotoftimedoingstufftheydon’tactuallydonaturally.Gettingtherightkindof

supportaroundthis…theguywhoinventedthewoodburnerwearelookingtomanufacture.

It’stakenhimfouryearstogetthroughthebureaucracytogetabrandapproved.Eventhe

brandpeoplesaidhehasagreatproduct,heisabrilliantinventor,heisnotgoodatworking

withbureaucracy.Thatiswhythewholecollaborativedialoguehavingothersintherewhocan

bringthenutsandboltstoit.’

‘Learningareasarearoundprovenandeffectivebusinessmodelsthatareviable,thatare

scalable.Ithinkwecanlearnalotfrominternationalexamples…Thereisadangertothinkwe

cantakethoseexactframeworksandrollthemoutherewhenwehavequiteaunique

landscape.’

Thesocialprocurementopportunity

Socialprocurementandleveragingpurchasingpowerforgoodwasidentifiedasa‘big

opportunity.’

‘…wehavealotofworktodoinNewZealandintermsofthatfilteringthrough,intermsof

changesofprocurementpoliciesandhowpeoplethinkabouttheirpurchasingdecisions.So

creatingmarketsfortheproductsofsocialenterprises…’

‘WhenIthinkaboutlargeorganisationsIthinktheirinterestcanbepurchasingformsocial

enterprises,partnerships,campaigns,projects…’

‘Thereisabigopportunityaroundprocurementcontractsaroundgovernmentandcity

councilsinparticular.Anyorganisationthathasasocialmandateshouldhaveaclear

procurementpolicy.Thiswouldmakeabigdifference.’

Youth

Targetingandsupportingyouthintosocialenterprise(includingrealexperiencegoingtowards

qualifications)wasseenasalearningopportunity.Thiswouldreadythenextgenerationof

leadersandreduceunemploymentdownthetrack.

‘Ithinkthatgettinginyoung,gettinghighschoolkidsorevenyoungerinvolved.’

‘Iwonderifit’saboutincreasingthepipelineforsocialentrepreneurship?IfIhadmoneyand

structureIwouldincreasethepipelineforyoungpeople…’

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‘Thethingswehavedonesomeworkonislookingatasecondhandstorecaféwhereweuse

thestaff,students,givethemtheopportunitytorunitonashorttermbasisaspartoftheir

qualifications.Trainthembeforetheybecomeunemployedanddoitinaveryrealsense.They

canlookatfoodcertificates,marketing,thefullmonty.Mygoalistosaylet’sdoityounger,

whiletheyarestillintheschoolsystem,neverletthemonthedole.’

Oneofmyreviewersnotedthatthereissomegoodstuffhappeningwithintertiaryinstitutions,

includingtheUniversityofAucklandwhichhas‘embeddedsocialenterprisedevelopmentas

partoftheSparkChallenge,haveafewprofessorsresearchingonindigenoussocialenterprises

andseveralstudentclubsfocusingonsocialenterpriseandinnovation.’

Other

Otherlearningareasreferencedincludedtheopportunitytocollaboratewiththebusiness

sector;developmentoftrainingandaccreditation;utilisingsocialenterpriseasatoolto

resolvekeyissuesfacingMāoriandPacifica;andresearchingtheefficacyoflocalsocial

enterprise.

‘Thereneedstobealotmorecollaborationwiththebusinesssector..eventswiththe

ChamberofCommerceandsocialentrepreneurs,somesortofplatform…forthosegroupsto

cometogetheranddiscussideas…sometimesthebusinesssectorisn’tparticularlyclearon

whatsocialenterpriseisandwhatsocialenterpriseistryingtoachieveandtheyseeitassome

sortofdo-gooderideathatisnotgoingtogenerateanymoney.Thosetwogroupsneedto

cometogether,collaborate;therecouldbealotofpartnershipsthatcomeoutofthat.’

‘Withsocialenterprise,puttingsomesortofaccreditationaroundit…Buildtheunits.Buildthe

qualification.Buildthecomponentsthatmakeupthatqualification.’

‘DefinitelyMāoriandPacific,I’vespenttwoyearsdevelopingtheMāoriDevelopmentStrategy,

reallylookingatpostsettlementeraandMāorigettingtheirmojobackandenterprise,really

focusingonenterprise.Ithinktherecouldbehugethingsoutofthat.Becausewehavesome

realissuesinNewZealandwehavetoresolve…’

‘…wehaven’tquitecaughtupwithotherplacesintermsofourresearcharoundefficacyof

socialenterprise.’

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7.Untappedpotentialforgreatestimpact

Thoseinterviewedwereaskedwheretheuntappedpotentialforgreatestimpactsitsforsocial

enterpriseinAotearoa.Keythemesfromrespondentsincludedthepotentialofcommunity

ownedassetsandlocalmodels;youthasasignificantforcetotackleissues;thepotentialinthe

worldofTeAoMāoriandtheMāorieconomy;potentialforincreasedimpactonkeyissues

facingNewZealand;crossdisciplinaryapproachesandcollaborationwithbusiness;taking

successfullocalexamplesoverseas;investmentinsocialenterprise;andacademic

development.Otherpossibilitiesexistinarangeofareas-suchascelebrating‘peopledoing

awesomethingsinthesocialenterprisespace’andtheopportunityforNewZealandto

showcasetotheworldwhatasustainablesocietycouldlooklike.

Communityownedassetsandlocalservicedelivery

Communityownedassets,communitydevelopment,localservicedeliveryandempowerment

oflocalcommunitieswasseenasaprimeareaofuntappedpotentialinthesocialenterprise

space-includingleveragingoflocaltalent.Therewerebenefitscitedintheareasoflocal

employment,environmentalimpact,communitydevelopment,tacklinglocalissues,supporting

indigenouscommunitiesandretainingmoneyincommunitieslocally.

KilmarnockEnterprises(Christchurch)

‘Communityownedassets’.

‘…lookingatcommunityandsocialdevelopment.AgoodexampleisWhaleWatchinKaikoura,

whichhasaTrustaboveitthatisspecificallyfocusedonMāoridom,employmentandcreating

arichersocialcontextandgeneratingfundsforsocialprogrammes…investingineducational

achievementthatsortofthing…’

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‘Itiscertainlyintheenvironmentalspacebecauseyoucandoitinacommunitybasedway…if

youtaketheCBECexampletheyhaveacontractforwastemanagementfromtheFarNorth

DistrictCouncil,andonetomanagetheCouncilpoolsinplaceslikeKaitaiaandKawakawa.

Theydoitforamarginof$15,000peryear.It’snotamarginthatifyouorIsetupabusiness,

thatwecoulddeliveritfor.ThereisalotofpotentialforsayservicedeliverywithlocalCouncil.

Becauseasocialenterprisehastheabilitytotakealowermargin.’

‘…it’sineverycommunity,therearehugesocialenterpriseopportunities…wecanrevitalise

alotofoursmallcommunitiesthroughsocialenterpriseactivitiesandpartnershipswith

farmersandcommunities…Thelandcanbeusedforallsortsofwonderfulreasons.’

‘Ithinkthereisroomforsettingupincommunitiesorbiggerareasasabeginner,abitofan

advisory,giftedadviserstoworkwithsmallertrustsandhelpthemresolvetheirissues.’

‘Anotheropportunityaretheregions,whichareunderservedinNewZealanddespitehaving

muchneedandoftenhugeamountsofnaturalassets.’

‘Inindigenouscommunitiesthereispotentialthereforthemtoownsomeofthethings,

developbusinesses,it’scrazythatwearelettingsomeourrubbishcontractstomultinationals

withtheCouncilandthingslikethat…Ifyouhaveonecompanydeliveringthatnationally,that

willnevergrowlocalownershipandcommunities…Peopleholdingtheirheaduphigh,

developingtheircommunities,themoneystayingintheircommunities…‘

Youthandtheagingpopulation

Youthwascitedasanareaof‘massive’potentialanddescribedasa‘significantforce’;youth

couldbeinvolved‘throughalearningprocesswheretheycontribute’;youngentrepreneurs

wereseenasalready‘gettingonanddoingit’;youthwereseenashavingthepotentialto

tacklekeyissues(suchaskeepingtheplanet‘fitforpurpose’)throughinnovativeapproaches;

andhighereducationwasseenas‘lowhangingfruit’.Twopeopleinterviewedinadditionto

youth,alsosawuntappedpotentialintheagingpopulation.

‘…thereisamassiveopportunityinyoungpeople.WehaveamillionyoungNewZealanders-

thatisasignificantforcetobereckonedwith.’

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‘Itsitsparticularlyinyoungpeople,particularlythosethataregoingtostayhere.Young

technologistsandinnovators…Itbelongstothenewmillennialgenerationtorealisethatthe

planetneedstobekeptfitforpurpose.’

‘Forusit’sinouryoungpeople.Forourregion,whentheylookatMāoriandyouth,it’san

issue.Formetheyareourfuture.Ifyoudon’tknowhowtocreatealearningprocesswhere

theycontribute,theywillbethedeficit.Theyhavepotentialandyouneedtoharnessthat…

Workingwithyoungpeople,thatisourfocus,thatismybackgroundworkingwithyoung

people.Findingtheirpassion,takingitandgivingitanoutlet.’

‘Ithinkthegreatestpotentialjustliesinthatgroupofyoungentrepreneurswhoarejust

gettingondoingitanyway.ThereisanorganicnaturetothatwhichIreallylike.Thereare

somecleverandsmartpeopleinvolvedinthat.’

‘Noinnovationcomesifpeoplearenotletlooseintheareaoftheirpassion.Creatingthenew

worldthatiswhatwearetalkingabout.Weneedtosustainwhatwehaveandpushpeople

intotheirownpassion…Ourneedsbecomeouranswersgoingforward.Youngpeoplewith

innovationwillcreateopportunitiestodealwiththeproblemsthatwehave...Ourneedscan

beouropportunitiesinthefutureandweneedtomakesureouryoungpeopleareuptoit.’

‘Obviousonesincludeyouth…Highereducationisalow-hangingopportunity–anaccessible

placewherehugevolumesofpeoplearekeentolearn,enthusiastictoexperiment,theyhave

theirwholelivesaheadofthem.’

‘Thereisuntappedpotentialinyoungpeopleandinpeopleofretirementage.Wemustn’t

forgetwehaveanagingpopulation,andtheirexperience.Serialentrepreneurswhoarein

their60’sand70’s.Wehavesomepeoplewhoarefairlywelloffandretiringandarethinking,

‘whatamIgoingtodointhenext30yearsofmylife?’Maybeit’sthatintergenerational

entrepreneurialthing.’

‘Thatisliketheholygrailquestionisn’tit…WhenIthinkaboutimpactarea,theeasyansweris

tosayworkwithyoungpeopleastheyhavetheirownlivesaheadofthem.Iseesome

interestingstuffhappeningwithagingpopulations.Thatisahugetimebomb.’

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PotentialwithinTeAoMāori

PotentialforgreatimpactwasdescribedasexistingwithinTeAoMāori,theMāorieconomy,

creationofemploymentandconnectingMāoritotheirresourcebase.Thispotentialwould

manifestinincreasedemploymentforMāoriandpositiveflowoneffectsacrossvariousareas.

‘ThereisalotofuntappedpotentialinTeAoMāori,thewholeMāorieconomyisreally

beginningtogettraction.Scalingupsomeofthereallypromisingthingsthatarehappening

andshowinghowsuccessfulthingscanbe.’

‘…EstablishingMāoribusinesses.Givingworkwhereitisneeded.’

‘Māoridomhastheresources.Thereareover1100maraeinthiscountry;wehavealanguage

thatisrecognised.Wehaveakohangareomovement,kurakaupapa,ourwayofpraying.

Everythingisthere.IfIwasreallygoingtobeasocialenterpriseambassadorandaMāori

entrepreneur,Iwouldbeconnectingtotheirresourcesandsay,‘allyouhavetodoisstart

usingthem’.’

Tacklingkeyissues

Thoseinterviewedsawuntappedpotentialforsocialenterprisetotacklekeyissuesfacing

Aotearoasuchasaffordablehousing,childpoverty,theprisonpopulation,issuesofinequality,

challengesfacingPacificacommunities,healthandeducation.

‘…affordablehousingandsocialhousingisonearea.ForexampleyouhaveintheUKthriving

HousingAssociations.InEuropeaswell.Wehavevirtuallynothinglikethathere,notofthat

scaleandtype.Someofthechronicsocialissueswhereabitofinnovationmightbehelpful.’

‘NewZealandshouldfocusonchildpovertyandtheprisonpopulation.Issuesofinequality.’

‘Ithinkintermsoftypesofissues…thereisaPacificachildcaregroupupinAucklandandit

hasaverygoodguywhostandsbehindit.Heisfinanciallyverysavvyandentrepreneurial…

Thathasdevelopedreallywell.Developingreallygoodqualitychildcarethatiscomfortablefor

thePacificacommunity.Thatwasanunmetneed.Therearemanyexamplesofthattypeof

thing.Whereeverthereissomethingnotworking,youwillfindopportunities.’

‘Iwouldhavethoughthealth,education,justice.Thebigspendareas.Idon’tknowhowwe

dealwithsuperannuation…’

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Collaboration

Variousintervieweessawuntappedpotentialincollaboration,includingcross-sectoral

approachesthatbuildcapability.

‘…makingconnectionsbetweendisciplinessothatsocialneedislistenedtobythosewith

creativegeniusandfinancialnous,tobeabletoproblemsolve.Ithinkthereisuntapped

potentialforsocialenterprisetocomeoutofcollaborativeprojectsbetweensaydesignand

business…It’saroundcollaborationandinterdisciplinaryconnection.’

‘Thereissuchimportantworktobedonearoundbuildingcohesioninanemergentsectorin

quiteascatteredsector.Buildingacoherentcross-sectoralapproach,tobuildsocialenterprise

capability.’

‘It’sinthecomingtogether,thecollaborationbetweensocialenterpriseandbusiness.’

‘Collaborationbetweencorporatesandsocialenterprise.Wearenotdoingthatwellenough…

IthasbeeninterestinglearningaboutUnilever,theyflippedtheirstrategytohave

sustainabilityattheircore,andeverythingisbuiltaroundit.TheirChiefExecutiveispartofthe

foundinggroupoftheBTeam.’

Takesuccessfullocalmodelsoverseas

Twoofthoseinterviewedsawopportunitiesintakinglocalexamplesofwhathasworked

overseas.ThiswouldplaceNewZealandontheinternationalstage,accessnewmarkets,drive

uprevenuecomingintothecountryandstrengtheninternationalconnections.

‘Wecouldbeleveragingsometechnologybasedstuffinternationally.’

‘Thereispotentialtotakesomeofthesmartstuffwedooverseas.ForexampleConscious

Consumerswehavebeenaskedbysevendifferentcities,whowanttousethemodel.Ittakes

alotofmoneyandtimetohelpsetsomethingupinanothercountry.Thatisuntapped

potentialtoo.’

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ConsciousConsumersfindandsupportlocalbusinessesdoinggood

Academicleadership

Untappedpotentialwasseenintheareaofacademicleadershiptosupportsocial

entrepreneurshipandinthinkingstrategicallyaboutwhatskillsareneeded.

‘…thereisstillabunchofworktodointermsofhowourUniversitiesteachbusiness.It’s

happeningslowly.Thereareheapsofareas.I’dlovetoseeinnovationschools.I’dlovetosee

somethinghappeningwhereyougivestudentssay$1000andsay‘dowhatyoulike,butcome

backwith$2,000.’

‘Thereispotentialtogrowstronger,tohavesomeproperacademicprogrammestosupport

peoplewhowanttodevelopsocialenterprise.Wearereallylackingthat.Wheredoyougo?

Thatwillrequirestrongleadershipfromsomeacademicinstitutes.It’snogoodturningoutall

theselawyersandpsychologists…therearenojobsforthem!Wedon’tthinkstrategically

aboutwhatweneed.’

Celebratingawesomeness

Untappedpotentialwasseenintheareaofcelebratingawesomehumansdoingawesome

thingsinsocialenterprise.

‘Ialsothinkcelebration.Thereisuntappedpotentialintermsofculturesetting.Howdowe

celebratepeopledoingawesomethingsinthesocialenterprisespace,andpromotethemas

beingsuccessfulhumans.’

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Otherareasofpotential

PotentialwasseeninotherareassuchasNewZealandmodelingwhatasustainablesociety

couldlooklike;potentialwithingovernmentandbusiness;intheutilisationofdesignthinking;

inNewZealandbeingatestbedfornewideas;andgrowingthetalentpool.

‘OtherareasareforNewZealandtomodelwhatasustainablesocietylookslike.Whenyou

lookatglobalcivilisationsit’scompletelybroken.NewZealandisnotthatbig,theideaof

figuringoutwhatasustainablesocietylookslike.Howdowegetawholevehiclefleetrunning

offelectricity?ThatismoreofapossibilityhereinNewZealand.Wecouldshowcasehowa

countrycouldorganisesustainability.’

‘Māori,Pacifica,NGOsector,philanthropysector.AndthewholediversityofAucklandhasreal

potentialtoignitethatdifferently.’

‘Iaminterestedintheintrapreneursandgovernmentandbusiness.PeoplelikeElizabeth

GoodwinwhoinitiatedtheLifehackproject,sheisbrilliant.Whatwouldmoreinitiativeslike

Lifehacklooklike,championedbypeoplelikeElizabeth…’

‘Everywhere!FormewhenIlookattheworld,everythingcouldbesocialenterprise,every

business,product,service.…Idofeelparticularlystrongaroundthepotentialindesign…I

thinkwecantakedesignthinkingandapplyittoeverythingtoredesigneverythingintheway

weshowupintheworld…Everythingcouldberedesigned,tobeenvironmentallyandsocially

awesome.…WithinLovenoteswehavehadlotsofconversationsaroundthisandwehave

redesignedthebusinessaroundit.’

‘InatinylittlecountrylikeNewZealand,wehaveauniqueopportunitytomakeNewZealanda

testbedforalotofthis.Iamafanoftheideathatbecauseofthesizeandgeographyofour

beautifullittlecountry,wehaveanamazingnetworktoconnectup,collaborate,trystuff,

whilestillbeingabletolearnfromsomeofthebestexamplesintheworld.’

‘Embeddingandgettingmoretalent-Thereisgreattalentbutamongstfewindividuals…

Someofthethingsthatarecriticallymissingincludetalentandmentoringsupport.Capacity

andinfrastructuresupportintoorganisationsandindividualsthathavethattalent.’

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8.RisksandthreatsThoseinterviewedwereaskedwhatrisksandthreatsfacesocialenterpriseinAotearoa.The

risksandthreatsidentifiedincludehavingnoecosystemorlongtermthinking;lackof

investment;riskadversityandlowtoleranceforfailure(andgivenmostbusinessesfailthis

tolerancemustshift);andaperceptionthatsocialenterpriseis‘easy’whilemanylackthe

businessskillstomakeitwork.Otherrisksincludelackofanappropriatelegalstructurefor

socialenterprise;old‘one-dimensional’thinkingfocusingonproblemmanagementratherthan

systemicchange;theriskof‘alltalkandnoaction’;predatorycompetitivereactionby

establishedbusiness;andnotdevelopingthenextgenerationofyoungpeopleadequately.

Earlystageandlackingcollectiveownership

RisksidentifiedincludesocialenterpriseinAotearoabeinglessmaturethanotherpartsofthe

world;operatingwithisolatedactivityandlackingcollectiveownership;havingashortterm

focusandrequiring‘sustainableleadership’andlongtermthinking;reliantonasmallnumber

ofindividuals;and‘ifitbecomestooinsular’.

‘NewZealandnotmovingasfastastherestoftheworld.Wearemuchmoreimmature.Ifour

socialenterpriselagsbehindeveryoneelse,itreducesourcompetitiveness.’

‘Ifwedon’thaveasystemthatworksreallywell.Ifeellikethewheelsarenotturning

together,thingsarehappeninginisolation.Somethingneedstohappentobringitall

together.’

‘Whoisholdingthewholething?’

‘Howdoyougetsomeconsciousnesstothemovementsotheenergycanbeharnessed?

Communitiesofpractice,sopeopledon’tfeelalone.Ithinkthereissomethingthathastoshift

inthecorporatesectorandingovernment.Theriskisthatweendupwithunrealisedpotential

aswedon’tcreateenoughenergyandsupportandcollectiveownership.’

‘Ithinkshort-termism.Itbecomesyesterday’sshinynewthing.Ifwedon’tgrowsome

sustainableleadershipandchampionsallthesethingscanfallover.’

‘Developingthesocialenterprisesector/ecosystemshouldbeframedasatenyearproject.

Fundingandinvestmentneedstoreflectthis…WhathashappenedintheUKisfarfrom

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perfectbuttheyhaveachievedacriticalmassbecausetheytookalong-termapproach…

Strongleadershipisrequiredtosay,‘wetrustthisenoughtotakealongtermapproach’.’

‘IfwearegoingtoinvestinbuildingasocialenterprisecultureinNewZealand,weneedto

buildthislongterm.It’snotgoingtosustainitselfinlongevityintwoyears.Weneedtoinvest

inlongtermthinkingarounditandappropriatescaffolding.’

‘…therearemaybehalfadozenkeyindividualsinvolvedinthisarea,iftheygooffandfind

somethingelsetodowiththeirlivesthatwouldbeprettydevastating…’

‘Therearesignificantrisksatthemoment,becauseitissoearlystageandallthosethings

(infrastructure,individualsandcapability)aren’tinplace.Theriskliesinthatnoneofthat

exists.Orifitdoesexistit’sdowntooneindividualororganisation…’

‘Ifitbecomestooinsular,ifyoudoonlyhavethosecertaingroupsofpeoplecomingtogether

allthetime,reflectingontheirownviews.’

Lackofinvestmentandlackoftherighttypeofinvestmentattherighttime

Anotherthemewastheriskandthreatoflackofinvestmentinsocialenterprise;lackofthe

righttypeofinvestment(thinkingbeyondtraditionalgrants),‘whetheritisloansorstartup

grantsorwhatever’;andlackofinvestmentattherighttimeincludingurgentstartupcapital

andlookingatwhatisrequiredateachdifferentstageofdevelopment.

‘…theurgentrequirementofsocialenterprisesforstart-upcapital,notjustgrants’

‘Thereisariskthatwedon’tinvestinitproperly…Whathappenswhenyougettothestage

thatyouneedinvestors.Whenthosetestedmodelsarereadyforinvestment.Whoisgoingto

invest–isitgovernment,business,philanthropy?Thereisariskofnoinvestment.’

‘Thereisallthistalkbutverylittleresourcegoingin.Thethreatiswetalkaboutit,wedon’t

investinit,andthenwhenitdoesn’twork,werationalizefailurebysaying‘itwasafad’when

reallyitwastheresultofunderinvestment.’

‘Thedangeriswesay,‘theremustbeanothergrouplookingafterthat.’

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‘Ithinkariskandthreatisnotbeingabletosecurethecapitaltosupporttheseenterprises.

Theriskiswehavelotsofgoodideasandexpectantentrepreneursbutnoonewhoiswillingor

abletoinvestinthemandthethingwilljustwitheranddie.’

‘Oneofthethreatswillthelackofanappropriatefundingmechanism,whetheritisloansor

startupgrantsorwhatever.Thatisnotwellenoughthoughtthroughyet.’

‘Thereisathreataroundnothavingaccesstotherightlevelofinvestmentattherightstages–

thedevelopmentofthesectoritselfandthedevelopmentofventuresthathavepotential.’

‘Itnotbeingtakenseriouslyenoughandnotbeinginvestedinatalevelthatshowsitsimpact.

Ifpeoplekeepteeteringaroundtheedgeitwillremainaniceidea.ButIthinkthatischanging.

It’sthatstuffaroundgettingfundingattherighttime…Theriskispeoplenotunderstanding

thatwhenyouinvestinsocialenterpriseyouareinvestinginamorerobust,longerterm

solutionandthattakeslongertoachieve.TheguyfromSocialTraderstalkaboutittakingfive

yearstogetsomethingofftheground,andit’simportantpeopleunderstandthat.’

‘ForsomethinglikeChalkle,fundingitisreallyhard.Wedon’tsitinthecharitablespace.We

don’thaveabigreturnthatangelinvestorsarelookingfor.Idon’tbelievemoneyshould

alwaysbethebiggestbarrier.WehaveChalkletwoyearsdownthetracknowwithnoexternal

investmentandonlynowarewelookingforexternalinvestment.’

‘Ithinkriskismoneyfactor.Asapersonwhohascomefromacharitableperspectivethathas

learnedhowtocreateabusiness…weneedtolookatfinancingtotakeaquantumleap,

wheredowegetthecapital.Theconventionalreturnoninvestmentisnothighenough,but

fromasocialandenvironmentalreturnitisgood.Wearetoooldforphilanthropy-theyare

toointerestedinnewideas,gettingthemofftheground.It’salmostlikewearefiveyearstoo

early…Iffinancingcannotbemet,thentheseorganisationsmightworktheirbuttsofforfive

years,andnotbeabletocontinue...’

Riskaversionandfailurefear

Anotherthemewasthethreatofriskaversionwhen‘businessisarisk’andmostnew

businessesfail.Variousintervieweesmentionedtheimportanceofacceptingthattherewillbe

failure,theimportanceofbeing‘okay’withthis.Further,thatriskaversefundercultureneeds

toshift.

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‘Ithinksocialenterpriseisonlyanygoodifyoutakearisk.Thatishalfthebattle.Ifyouwantit

wrappedincottonwoolthendon’tgothere.Businessisarisk.Socialenterpriseisarisk.’

‘Ifit’sgoingtowork,it’slikesettingupasmallbusiness,threeoutoffourfail.Thechallengeis

thereisnopipelineforgrowth.Thereislittleinvestmenttogetbeyondstartupstage.’

‘Ithinkthereisariskofitfailing.Obviously.Buttheriskorconsequenceofitfailingisthat

everybodygetsabadname.Noteverysocialenterpriseisgoingtowork,inthesamewaythat

noteverybusinessisgoingtowork.Weneedsometoleranceforthat.’

‘Thesecondaryriskistheyfail,andparticularlyifit’spublicmoney,theywillfailpublicly.

Peopleneedtogettheirheadsaroundthatsocialenterprisesarelikelytohaveasimilarfail

ratetootherbusinesses…Wehavetogettoaplacewherethatisokay.’

‘Thereisathreatofhowthingsthatdon’twork,getshotdown.Ifmoneyisputintosomestuff

(andlet’sfaceit80%ofnewbusinessesfail),wearegoingtohavetolearntolivewithfailure

andnotgiveupbecausefailurefeelstoohard.’

‘Idon’twanttohearaboutyourfirstyear,Ialwayssay,Iwanttohearaboutyoursecondyear,

whereisthemoneygoingtocomefrom?Youhavetoplanyourrisksandtakeyourrisks.’

‘Ahugeproportionofsmallandmediumbusinessesfail,andoneassumethatsocial

enterpriseswillfaceexactlythesamebusinessrisks,astheytryandstartup.Successisno

moreguaranteedinthissectorthanifyouweresettinguparegularsmallbusiness.’

‘Theriskaversecultureinfundingneedstobestirredup.’

Theriskofthinkingsocialenterpriseis‘easy’

Furtherrisksincludeperceptionbysomethatsocialenterpriseiseasy,whenitis‘bloodyhard

work’.Further,commercialskillsarecriticaltosuccessand‘oftenpeopledrivenbysocial

motives,don’thavethebusinessexpertiseandtenacitytopullitoff.’

‘Oneofthebigrisksisthatpeoplethinkthisisareallyeasything,butit’sabloodytoughgame

anddemandsnewtypesofskillsandexpertise.’

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‘Thechallengeofjustmakingitwork.Itisnoteasy.Youareaskingpeopletodosomethingthat

isreallydifficult.’

‘…ispeoplewhocomefromanoldercultureoffundraiseandspend,thinkthisiseasyandit’s

noteasy,thentheygetoutoftheirdepthquickly.Thentheysay,‘thisdoesn’twork’.Itdoes

work.Thereistheissueofoverreaching.Theculturalshiftisnottoeasytodo.Youneedknew

peoplecomingforwardwhowanttodothingsinadifferentway.’

‘Frompersonalexperienceitisbloodyhardwork…youworkyourgutsouttosetsomething

upasabusinesspersonwould-butyouwalkawaywithnoequitypersonally.Allthatsacrifice

isnotrewardedinthetraditionalsense…Oftenpeopledrivenbysocialmotives,don’thave

thebusinessexpertiseandtenacitytopullitoff.’

Noplaceforsocialenterprise

TherewasaperceptionfrommanythatinNewZealandyouarepositionedeitherasabusiness

oracharity-withnomiddlespaceforotherapproaches.Whetheryoustructureasacharityor

businesswasidentifiedascarrying‘massive’risk.Further,therewasaperceptionthatthereis

nosuitablelegalmodelheretosupportsocialenterprise.Onepersoninterviewedcommented

ontheriskofthecharitablemodelfosteringdependence.

Oneofmyreviewersnoted‘theUSisalsomilesaheadintheinstitutionalsupportforsocial

enterpriseincludingonthelegalincorporationside.Thiswebsitehasjustbeenlaunchedto

tracktheadoptionofsocialenterpriselegislationacrosstheUShttp://socentlawtracker.org’

‘It’sreallyhardworkandyouarenotabusinessandyouarenotacharityandyouarealways

tryingtovalidateyourself.Everyoneislookingtoustryingtofigureoutwhatweare.Weare

tryingtomakeasustainablebusiness,andprioritisesocialimpactovereverythingelse.Itgets

tiring.’

‘Wedon’thavealegalmodelherethatworksforsocialenterprise,thereareissuesaroundtax.

Thereisn’tactuallyasocialbusinesslegalmodel.Thatneedstobethoughtabout.Inother

countriestherearemodelsforthefourthsector.’

‘Howyoustructureisarisk.Itisamassiveproblem,doyousetupasacharityorabusiness.’

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‘Thedangerisalsogivingpeoplefishratherthanteachingthemtofish.Yougetco-

dependency.Ifyouendupwiththewrongmodel.Charity.Youcangrowacultureofrightsto

that,aninappropriateco-dependence.’

Oldapproachesarenotdealingwiththeissueatasystemlevelorenablinginnovation

Oneintervieweenotedtheriskofmanagingissuesratherthandealingwithrootcauses.A

secondintervieweesawriskinthetraditionalparadigmoffundingandfeltashiftwasneeded

towardsgreaterflexibility.

‘Theriskiswhenpeoplearemanagingtheproblemsthinkingtheyareactuallychangingthings.

Welivetherewithourprisonsystem.Alotofmoneyisgoingtowasteandnotactuallydealing

withtheproblems.Thatformeisthehugerisk.Whenwecan’tdealwiththeproblem,we

managethem…Askingthehardquestions,whatdowereallyneedtodo.Whenpeoplesayto

uslet’stalkaboutpovertyIwouldsay,‘let’stalkaboutgreed’…Nooneisdealingwithwhatis

causingit.’

‘Theoldwayoffundingsocialchangeisdeterminingoverarchingneedsandpreferred

outcomes(thisisfromgovernmentandphilanthropy),andthenfundingtheorganisations,

communities,andactivitiesthatarecompatible.Thatistheparadigmofthewaysocialchange

isfunded-thosewhohaveresourcedeterminewhatisimportantandwhatgetsfunded.

Whenyouwantsocialinnovationandprovideatrulyenablingenvironment,youhavetotakea

leapoffaithandallowpeopletodeterminewhattheybelievetobeimportant–thisrequiresa

capabilitybuildingapproachandworkingwithcomplexity,ofdiscoverywhereresourceisin

servicetotalentratherthanviceversa.Thisisverychallengingforfunderswhoholdresource

andpower,andwhoareusedtoworkinginamorestaticuniversewhereyouworkfromthe

outcomesbackward.It’ssymbolicofawholeshiftwehavetomake…’

Theriskofnoise

Someofthoseinterviewedcitedtheriskofthesectornotdevelopinghereasitcould,dueto

inactionandalackofbusinessskills.

‘Thefirstthreatisnoise.Theminutethebusisleavinganawfullotofpeopletryingtogetonit

andalltryingtoclaimtobeexpertsinsocialenterpriseorsocialfinance.’

‘Ithinkthebiggestriskisitstaysalltalkandnoaction…’

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‘Ithinkover-expectationsisone.Theexcitementthatthisisanexcitingnewthingtodo

withoutthedeeperunderstandingofwhatwillmakeitwork.Lackofsolid,substantialbusiness

plansandunderstandingofwhattheyare…‘

Predatorycompetitivereactionbyestablishedbusiness

‘…theriskofpredatorycompetitivereactionbyestablishedbusinesswhensocialenterprise

becomestoosuccessfulandchallengestheirdominance.’

Oneofmypaperreviewers,sharedarecentexamplewhereCBEClostit’swastecontractinthe

FarNorthbecauseafor-profitcompanyputinaprice1/3ofwhatCBECcould(whohaddone

thisworkfor7yearsandseekminimalprofit,sotheirtenderedpricewasverysharp).Thelocal

Councildidn’tpricethesocialbenefitsoftheCBECbidtocoverthatdifferencesotheygaveitto

privateenterprise.

Notadequatelypreparingouryoungpeople

Afinalriskidentifiedwasnotadequatelydevelopingandgrowingthenextgenerationof

enterprisingyouth.

‘Areweteachingouryoungpeopleaboutcourage?Thesearesystemic.Yesyouneedmaths,

yesyouneedliteracy,butthevaluesbasedstuff,thatdriveshowyouuseforgood…Oneof

thebiggestrisksforusasanorganisation,andwe’regettingtoitnowkindoflate,is

developingthenextgenerationofenterprisingyoungpeople.Theyaredifferenttous…Bring

youngpeoplethrough,letgo.Andletthemwalkinandletthemfigureoutstuff,make

mistakes.Keepthatinasafeenvironment,butnotsosafethattheydon’trisk…Formethat

riskisthatwedon’tletgoandletthemgrowbesideus.’

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9.PastsupportforsocialenterpriseThoseinterviewedwereaskedwhatsupporttherehasbeeninthepasttosupportsocial

enterpriseinAotearoa.Pastsupportwasdescribedascomingfromphilanthropy(theTindall

Foundationreceivemostmentions);somesupportcomingfromindividualsand

intermediaries;andsomethroughgovernment.

Philanthropicsupport(past)

Philanthropywasrepeatedlydescribedashavingsupportedsocialenterpriseinthepast-in

particulartheTindallFoundationwhoreceivedthegreatestnumberofmentionsandwere

describedas‘leaders’.OtherphilanthropicorganisationsmentionedincludedASBCommunity

Trust(nowFoundationNorth),theVodafoneNewZealandFoundation,theToddFoundation

andthecommunitytrusts.

TheTindallFoundationhassupportedvarioussocialenterprisesincludingtheNZHousingFoundation

‘TheTindallFoundationhasbeenaleaderinthisandtheyhavedonealotofreallygoodwork.’

‘Tindallprobablytalkedabouttheirsocialentrepreneurthingandthereweresomegood

learningsthere.Itwasaprettycoolthingthattheydid.’

‘AttheTindallFoundationwesupportedtheSocialEntrepreneurFellowship,manyworkedin

socialenterprises,wesupported15peopleforfiveyears.IntheendIreckonthatonlyabout

threeorfourweregenuinelyinvolvedinsocialenterprisesofscale.Thelearning’swerethatit

ishardwork,itisauniquepositiontotake,ittakesspecialpeopletomakeitwork,theymust

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beveryentrepreneurialandtherearenotmanyofthem.Wehaveaspecificstrategytosocial

enterpriseandwehavealwaysbeenopentothem…’

‘Tindallweretheinitialsupportersofour4TradesApprenticeshipProgramme.Wereally

appreciatedthat.Thatwastrulyvaluable.TheonlyothersupportwastheSocialEnterprise

Fellowship.Tindall,ToddandASBwereinvolvedinthat.Wemettwoorthreetimesayear,

thatwasinvaluable.’

‘ASBCommunityTrusthasbeenamazing.Forphilanthropy,wehavedeveloped,Tindallwill

alwaystalkabout‘handupnothandout’.ButIthinkthenextgenerationforphilanthropyis

aboutrelationships.Realstrongcommunityrelationships.Notcominginfromtheoutside

saying‘heywegotthemoney’.Formingrelationshipsandpartnerships.’

‘ASBCommunityTrustandToddFoundationhassupported.Notmanyinvestinsocial

enterprise.’

‘TherehavebeengroupsliketheSocialEntrepreneursFellowship,thatwasanopportunityfor

awholerangeofpeopletocometogetheroverafouryearperiodtotalkaboutissuesrelated

totheircommunityandevenonawiderscale.’

‘Somephilanthropistshavesupportedit…Someofthecommunitytrustshavesupported

socialenterprise.’

‘Someofthephilanthropicshaveinvestedovertheyears.TheTindallFoundationand

VodafoneFoundationhavebeensignificant.CanterburyCommunityTrust4.AucklandCity

Councilnowhasapodthere,butwhattheyhavedoneintermsofactivelyinvestingIamnot

aware.’

‘WhatVodafoneisdoingwithWorldofDifferencethatwasoneofthebestthingsthatever

happenedtome,intermsofgettingmeoutofthestartingblocks.Ihaven’tgotanyschool

qualifications.Iwasabletousethataward…itopeneddoors…’

4CanterburyCommunityTrusthasrebrandedasRātāFoundation

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Individualsandintermediarysupport(past)

VariousindividualssuchasVivienneHutchinson,DiJennings,LindsayJeffs,GuyRyanand

DianaSuggatewerementionedashavingsupportedsocialenterpriseinthepast.

IntermediariesEnspiralandĀkinareceivedmultiplementions.

‘TheearliestsupportsthatIknowofwhatVivienneHutchinsondoingsomeworkwiththe

SocialEntrepreneursFellowshiptotryandbuildacommunity…ThatishowIcameacross

MalcolmCameron.Weareabsolutelyreadyforthenextgenerationofthatnow.’

‘DefinitelyagainEnspiral,havingacollectiveoflikemindedsocialenterprisetypepeople

hangingoutinthespace,helpedamplifytheinterestinthespace.’

‘…DiJennings,theworkshewasdoing,ontheedgesofsocialenterprisecertainly.Anditwas

superinterestingattheendofthesocialenterpriseconferenceinWellingtonin2013,runby

ĀkinaandEnspiral.’

‘IhadsomecontactwithLindsayJeffs.Hehasbeenaquiet,strongandknowledgeable.Outof

everybody,byfar,Ihavefoundhehasbeentheonewiththemostknowledgeandexperience

insocialenterprise…Heisverymodest,quietlyinthebackground.Thereisanewwavewhich

isawesomebutthelanguageoftheolderpeopleinthespaceisabitdifferent.’

‘Thestrengthofsocialenterpriseisprobablygoingtocomefromindividuals,andsmallgroups,

notbigorganisations.It’stheGuyRyan’sandtheIgnites.Allthosesortofpeople.’

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‘Idon’tthinktherehasbeenalotofconcertedorcontinuoussupport.Peoplehavebeen

broughtoutfromScotlandandAustraliainthe90’s.We’vehadafewconferencesrecently,Di

Jenningsputoneon…ThereseemstobemorenowwithĀkinareceivingsomegovernment

funding,we’lljustseehowthatgoes.IthinkthatpeoplelikeDianaSuggatewhowaswiththe

OfficeoftheCommunityandvoluntarySector(nowDIA)workedhardtogiveitvisibilityand

validitywithingovernment.Ofcourseyou’vehadvisitingFellowscomeoutaswell,Laura

BenedictandMJKaplan.Theyhavecomeanddonestudiesofwhatispossiblehere.’

‘Therehasn’tbeenthatmuchsupportinaconsistentcoherentsortofway.Therearea

numberofpeoplewhoworkedprettyhardtogetasocialenterpriseframeworksetupinNew

Zealandfiveorsixyearsago,thesupportotherthanfromgrassroots,itwasn’treallythere.

Anditkindofpeteredout,buttheydidlaythegroundworkforthenextlotofpeopletocome

through…‘

‘It’sslowlygrowing.AtEnspiralwe’vedoneeverythingonourown,we’vehadalittlebitof

supportfromtheCouncilinWellington.’

‘ThereisĀkina(whoweren’tsetuptodosocialenterprisebutthatiswhattheyaredoing

now).ThereisEnspiral.TheworkthatMJKaplandid.DiJennings…MasseyUniversity.There

havebeenallsortsofinitiativesandnoonehasquitehadthetractiontheyneeded.Ithas

beensomewhatfragmented.’

‘Thesupporthasbeenprettyskeletal.It’sonlyinthelast18months. Ākinahaveonlyjust

becomeanationalsocialintermediary.It’sveryearlydays…It’sprettyemergent.Whathas

happenedismoreinformal.’

Governmentsupport(past)

Asmallnumberofthoseinterviewedcitedpastgovernmentsupportforsocialenterprisesuch

asthroughtheDepartmentofLabour,theCommunityEconomicDevelopmentcompetitions

andmorerecentlytheDepartmentofInternalAffairs(DIA).Anumberofthoseinterviewed

perceivedthegovernmenthadnotinvestedmuchinthepast.

‘YoucangorightbacktotheDepartmentofLabourandtheGELS(GroupEmploymentLiaison)

Schemeandthentherewasanotherschemethatgotcancelledonthebasisoftheso-called

hiphoptrip.Thatgovernment‘easytogetgrant’pieceismissing.’

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‘IguessthereistheCommunityEconomicDevelopmentcompetitionsthathadasocial

enterpriseDragon’sDenaspartofthatin2011.Thatplayedareallyimportantrole,intermsof

communityinitiativesbeingseenasenterprises.Ithinkalotofconversationsgrewoutofthat.’

‘ClearlytheDIAandthefundingcommitmenttoĀkina…Thatwasthefirsttimegovernment

hadinvested.’

‘Thegovernmenthasnotbeenintoitupuntilthispoint.’

‘Idon’tthinkthegovernmenthasdonemuch.’

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10.CurrentsupportIntervieweeswereaskedwhatsupportcurrentlyexistsforsocialenterpriseinAotearoa.This

wasdescribedasprimarilythroughintermediaryorganisationssuchasĀkinaandEnspiral;

throughgovernment(inparticularAucklandCouncilandtheDepartmentofInternalAffairs);

andthroughphilanthropy.Othersupportsincludesviaeducationalinstitutesaswellas

organisationsandindividualswhoreceiveasinglemention.Supportfromintermediaries(current)TheprimarycurrentsupportforsocialenterpriseinAotearoawasseenascomingthrough

intermediaryorganisationssuchasĀkina,EnspiralandInspiringStoriesTrust(whichseeded

theLivetheDreamaccelerator).InadditionPrometheusFinancereceivedtwomentionsasan

intermediarysociallender5.

AspiringyoungsocialentrepreneursfromInspiringStories'accelerator,LivetheDream

‘Ākinaaredoingsomegreatwork.’

‘TheothertypeofsupportwhichIsawrichly,isEnspiral,theinkindsupport,theplace,the

opportunitytohaveaphysicallocationandmeetotherpeoplewhoaretryingthings.Iampart

oftheirGoogleplusnetworkandtheconversationsgoingonarephenomenal.Theyhave

crackedsupportinthedigitalenvironmentforthemillennialgeneration.Whatdopeoplewho

wanttodosomethingpositivewiththeirlives,howdotheymeet,whatdotheydo.Ihave

neverencounteredsuchanextraordinarycommunity…’

5PrometheusFinancehasgoneintoreceivership

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‘…theworkthatĀkinaisdoing,InspiringStoriesandFestivalfortheFuture,Enspiral.Thereare

theseentitiesandorganisationssayingwe’dliketosupportsocialenterpriseandtheyare

doingitofftheirownbat.’

‘MainlyinvestmentintoĀkinaandGuyhashadsomefundingfortheincubatorthings…

Individualswhohavetakenonandnurturedtheirpeers(theEnspiralmodel)…’

‘WellIsupposewehavesomeorganisationsthatarestartingtodeveloptoprovideabitofa

pathwayintoandthroughthedevelopmentofsocialenterprises.Asanexample,peoplelike

GuyRyanworkingataprettygrassrootslevel,creatingplacesforpeopletocomeandpresent,

developtheirinitialideasandincubatetoacertainlevel…NowĀkinaaredevelopedto

supportmoreofanincubationprocess,capabilitybuildingandsoon.Forsometheywillbea

keypartofthesupportstructure.ThentherearesomesociallenderssuchasPrometheus…’

TheĀkinaTeam(photocareofsocialimpactphotographerBevMeldrum)

‘YouhaveĀkinacomingthrough,IthinktheCentreforSocialImpact…PrometheusSocial

Lendingservicescanprovidefinanceadviceandaccesstocapital.Thereseemstobeabit

moresupportofsocialenterprise…‘

Supportfromgovernment(current)

Perceptionregardingcurrentsupportofsocialenterprisefromgovernmentwasmixed.Some

intervieweescitedexamplesofwherecentralandlocalgovernmentweresupporting-

AucklandCouncilreceivedmultiplementionsandtheirsocialprocurementpracticewas

highlighted.TheDepartmentofInternalAffairs(DIA)granttointermediaryĀkinareceived

mention.Someofthoseinterviewedsawminimalfinancialsupportcomingfromgovernment

anditwassuggestedgovernmenthadanopportunitytoinvestdifferently.

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‘AucklandCouncil’ssocialenterprisestrategyisalsoencouragingpeopletocomeforwardinto

thiswayofoperating.’

‘IthinktheworkthatBillyMathesonisdoinginAucklandisawesome,heisplayingan

awesomesupportrole.’

‘InAucklandIfeellocalgovernmentsupport.Andforusthathasbeeninthebestwaypossible,

adoptingourservices,likeAucklandCouncilandtheyweresoeasytoworkwith.Thatishow

supportivetheywere,theywerelike‘yesweneedtodothis,weneedtogetsocialenterprises

onourvendorslist’.Icouldn’tbelieveit.Iwasexpectingittobeahardprocessanditwasthe

completeopposite.’

‘Therearepods.AlittleoutMB(MinistryofBusiness,InnovationandEmployment),outofDIA

(DepartmentofInternalAffairs),outofAucklandCityCouncil…’

‘IjustknowabouttheĀkinastuffthatwe’vemanagedtogettheDIAmovingon.Thereisjust

notenoughofit.’

‘TherewasthegovernmentfundingforĀkina.ThevisionforLifehackisthatitbecomesasocial

enterpriselongterm.Wedidn’tfundittobecomethatbutitbecameapparentthatitcouldbe

one.’

‘…theMinistryoftheEnvironment,theyliketofundsocialenterprisesbutdon’thavea

deliberateapproachtodoingso.’

‘Fairlyrecentlyithasbeenstartedtoberecognisedbygovernment,therehasnotbeenmuch

inthepast…Thegovernmentistryingtofindawaytocontractwithserviceproviders

differently,theybelievethewaytheydoitnowispartoftheproblem,andtheybelievethey

shouldfreethatupbuttheyarenotsurehowtodoit.Ifgovernmentcouldcontractdifferently

withentrepreneurialsocialenterprises,thatwouldbeveryuseful.’

Currentsupportfromphilanthropyandtheinvestmentopportunity

Someofthoseinterviewedcitedexamplesofcurrentphilanthropicsupportincludingfrom

CanterburyCommunityTrust,TindallFoundation,ToddFoundationandASBCommunityTrust.

Thestrongerthemewasthatoftheinvestmentopportunityandtheimportanceof

philanthropy(andgovernment)becomingmoreintentionallyfocusedhere.

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‘ThereistheSocialEnterpriseFundthattheCanterburyCommunityTrustintroduced.’

‘Thereareoddfunders,likeTindall,usASBCommunityTrust.’

‘ASB,Todd,Tindall.’

‘Ithinkthephilanthropicthingaswell,thereismoneyaroundbutIamnotclearonwhothatis

for,howaccessibleitisandwhatthatlookslike.’

‘SotheToddFoundationwillfundsocialenterprisesbutnotthroughanamed‘social

enterprise’fund...Thereissomesupporttherebutintermsofintentionalprogrammestoget

peopleengagedandimproveperformance,toscale,improveaccesstotherightcapitalatthe

righttime,itdoesn’texistyet.’

‘Ihavealwaysfoundithardtogetsupportforsocialenterprise…Thereisafear,whenyoutalk

tosomeofthefunders,it’sliketheyaretakingtherisk,butit’stheorganisationorthe

individualtakingtherisk.Thebigriskiswesay,‘I’mgoingtodoitanyway’.Thereisnopipeof

investment.’

Supportfromeducation(current)

Somesupportwasidentifiedascomingfromeducatorsandtertiaryinstitutes.

‘AUT….haveaclubthatisspecificallyforstartingupsocialenterprises.’

‘SomeUniversitieshavesomecourses,somepapers…Someofthestudentclubsandgroups.’

‘…thereisthecoursethatLindsayJeffsteaches...’

Othersupports(current)

OthersupportsmentionedincludedMalcolmCameronfromDunedinandtheMinistryof

AwesomebasedoutofChristchurch.

‘…peoplelikeMalcolmCameronwhohavehelpedothers…’

‘…inChristchurchthereisMinistryofAwesome.’

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11.SupportgapsThoseinterviewedwereaskedwherethesupportgapsexistforsocialenterpriseinAotearoa.

Thestrongestthemesidentifiedherewerethegapsinaccesstofunding;capabilityand

supporttogrowthis;nonationalnetworkandlimitedsupportiveinfrastructure;lackof

awarenessandstorytelling;andbusinessprocurement.

Investmentandreadinessofinvestors

Availabilityoffundingandaccesstoaffordablecapitalwasidentifiedasadominantgap.

Further,banksneedtounderstandandcatertosocialenterprise;andsocialimpactinvestment

knowledge/trainingisagapforpossibleinvestors.

‘Thereisafundinggap.’

‘Oneofthegapsistheavailabilityoffunding,Istillthinkthatisthebigchallenge.Howisthe

sectorgoingtobeabletoraisethecapitaltosupportthesefledglingenterprises.It’sthebig

challengeamongahostofchallenges.Thebiggapisinmoney,wherearethefunders.’

‘Socialenterprisesstruggletogetoffthegroundbecausetheydon’thaveanycapital.’

‘…theavailabilityofaffordablecapital,ontermsthatsuitsocialenterprise.Affordableand/or

accessiblecapital(especiallystart-upcapital)isarealissue.’

‘AtRekindlewedon’thavethecapitalweneedandweprobablydidn’thaveenoughsupport

earlyon…Wehavebeenfunctioningbeyondourcapabilityforsometime.Wehavecome

fromsuchanunder-capitalisedspace.’

‘Fundingismassiveit’slikethebanksinthatareaaswell.Actuallyfindingaconsiderationfor

modelsthatcouldwork.Traditionalbanksneedtocatertotheneedsofsocialenterprise.

Socialenterprisesareagoodmarketopportunitybutthebanksdon’tseeitandsomeone

needstogettheirattentionandspeakthelanguageofthebanks.’

‘Definitelytrainingandsupportofimpactinvestors.Weneedsomeonetoputtheirhandup

andputtogetheraninvestmentnetwork.Supportforinvestment.’

Gapsincapabilityandsupporttogrowcapability

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Gapsincapacitybuildingsupportwereidentified.Thisincludedtheneedformoresupporting

intermediaryorganisations;buildingbusinessknowledgeandcapability;knowledgeofwhat

initiativesaresuitedtosocialenterprise;developingleadersandnetworks(usingtheSocial

EntrepreneursFellowshipasanexample);takingideastothenextstage;andmentoring.

‘Therearegapsintermsoftheacceleratorprogramme,thereisLivetheDreamandĀkinabut

thereneedstobemuchmore.’

‘Therearefarmoregapsthannotgaps…wehavetoaskwhatsupportscurrentlyexistforeach

stage.Therearedifferentsupportsavailable,buttheyareveryfragmentedandpossiblynot

greatquality…Wehavetothinkaboutdevelopingaconsistent,coherentandjoined-up

infrastructure–andprovidetheappropriatesupportsateachphase,fromideationrightupto

investment.Thesemustbehighqualityandconsistentlyaccessiblewhetheryouarein

InvercargillorAuckland.’

‘It’speople…growingtheknowledge.Youcanreadamilliongoodbooksbutthereal

experiencecomesfromthedoing.It’sthesimplethings.Somanypeopleareouttherewith

goodideaswhodon’thaveanyideahowtogetthemstarted.Ihelpthembutyougettired

eventually.’

‘…amoreacuteunderstandingofwhatsortofinitiativessuitsocialenterprisesandwhat

don’t.Itisnotjustacure-all,apanaceaforeverything,anotherincomestreamforanalready

strugglingcharitableorganisation.Ithinkthatishowquiteafewofcharitiesseeit,anddon’t

fullyunderstandtheriskstheytakeon,orthechangesinhowtheymustwork.’

‘…maybetheyneedmoretrainingaroundhowbusinessesgetofftheground.Iftheylooked

attheirbusinessmodelandfocusedonhowitcouldactuallymakemoneythatcouldsolve

someofthoseproblems.Therecanbealotofnaivety…Therecouldbeabitmoretraining

aroundhowbusinesseswork.’

‘TheTindallFoundationdidreallywellinthesocialentrepreneurfundingthattheydidandwe

reallybenefitedfromthat…WhatwasIdisappointedwithwasitpeteredoutattheendand

therewasn’tamodeltocarryiton…Itwouldbeofhugepotentialforthecountry.’

‘…Iwouldimaginethegapsareaboutenoughsupporttodevelopideas,takethemtothenext

stage…’

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‘…Isuspectaroundmentoring.’

Thegapinconnectedness

Thoseinterviewedidentifiedfurthergapswithregardstoconnectednessincludingthegapof

anationalnetworkbody;andgapsin‘joinedtogetherness’and‘intentionalthinking’.

‘Iaminterestedinwhatanationwidenetworkwouldlooklikeandatthesametimeyoudon’t

wantittobetopdown.’

‘Havingthatonenetworkthatcouldrepresentus.’

‘Joiningthedotsandparticularlybringingtogetherthedifferentcommunities,thatareisolated

fromeachother.’

‘Joined-upness,joinedtogetherness.’

‘Therearegapsaroundintentionalthinking…’

Gapsinunderstanding,awarenessandstorytelling

Understandingandawarenessofsocialenterprisewasseenasagap,aswasthesharingof

storiesofsuccess.

‘…thereisstillagapinunderstanding,underlyingalotofthereasonwhytheremightnotbe

fullsupport…‘

‘Themarketisnotfamiliarenoughwiththeconceptandbenefitsofsocialenterprisetobe

marketready.’

‘Therearelotofpeoplenewtothesector.WeshouldtalktopeoplelikethefoundersofWhale

Watch,WallyStoneandCliffColhounfromCBEC.’

‘Thegapisthatsortofrichwell-definedsetofexamplesofsuccessfulsocialenterprises.There

aresomegoodonesandthosestoriesshouldbetold,theyshouldbepropagated.Forexample

theNewZealandHousingFoundation(theirfundamentalpurposeistodevelophighquality

affordablehousing)…Theyhavemigratedfrombeingagrant-basedorganisationtobeinga

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socialfinancebasedorganisation.Theirprojectsarehighlysuccessfulandifyoulookatthem

asapropertydeveloper,theyareverygood.Theyalsoworkforaffordablehousing.Another

exampleisLittleBirdOrganics.Theyhaveaverygoodentrepreneur.Thebusinessisorganic

foodinawaythatisfundamentallycommercial.AthirdexamplewouldbeEnspiralin

Wellington…theyhavebeenabletobeabletobeafoundationforanumberofother

interestinginitiatives.’

Theprocurementgap

Procurementandpurchasingfromsocialenterpriseswasidentifiedasagap.

‘Bigbusiness.Whenitcomestocorporatesandbigbusiness,therearepartsofourbusiness

thatscarescorporates.Inmyareabigbusinessisagap.IknowAucklandCouncilaretryingto

changetheirprocurementpoliciestoincludesocialenterprise.’

‘Theotheroneistheprocurementstuff.’

Governmentsupport

Itwassuggestedgovernmenthasanopportunitytolookattheframeworkforsocialenterprise

inAotearoa,tomakeitmorefriendlyandencouragegrowth.Furthergovernmenthasan

opportunitytosupportsocialenterpriseasa‘legitimatesectorworthyofsupport’6.

‘Changingpolicysettings,thatisabiggap.ItisgoodthatgovernmentsupportsĀkina,butif

theygrowwithinanunfriendlyorlessfriendlypolicyframeworkthenwhatistheuse?It’s

hardlyworthit.Thosechangesinpolicy-intentionallylookingatchangesinpolicywouldbe

onegap.’

‘Theothergapiswhereisgovernmentinthis–issocialenterpriseseenasalegitimatesector

worthyofsupportandscaling.’

Gapsinsupportofyoungpeople

Supportingyoungpeoplethroughanactionlearningprocesswasidentifiedasagap.

‘Massivegapsforsupportofyoungpeopleathighschool,tertiary,thosewhohaveaninterest

inthisstuffwhodon’thavethelevelofbusinessnousthatmatureorganisationsmighthave.

6 InSeptember2015theDepartmentofInternalAffairsputtogethera‘strategicgroup’tolookatsupportforsocialenterpriseinNewZealandandreportbyMarch2016

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Thereissuchabigneedtosupportyoungpeoplethroughanactionlearningprocess.Learning

fromthebestinthegametodevelopandgrowtheirideas.…MJKaplan’sworkoveratBrown

University,theygiveoutsummerFellowshipsandsixmonthfundingforrunwaytoreallycrank

it.’

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12.ThefundingandinvestmentopportunityThoseinterviewedwereaskedwhattheopportunityisforfunders,tosupportsocialenterprise

withinAotearoa.Funderswereencouragedtowardsincreasinglyinnovativeandflexiblestyles

ofworking;newwaysofinvesting;andsupportingcapabilityandsectordevelopment.

Newwaysofworkingandenabling

Fundingstylewasseenasanimportantopportunityforfunders.Therewasanopportunityfor

funderstobecomeincreasinglyflexible,relaxingcriteria,experimental,innovative,

collaborative,thinkinglongterm,expansiveinthinkingandapproaches,creative,embracingof

riskandabletospotopportunitiestotransformlives.Thisshiftinfundingstylewouldenable

innovationandtransformation.

‘Ithinkthatcriteriaandrulesreallyneedtoberelaxedabit.Theremightbesomerandomidea

outtherethatmightnotnecessarilyfitthecriteria.I’dliketoseemorefreedomforpeopleto

getinthereandtrysomethingdifferent.Freedomtogetrightoutsidethesystemandseewhat

ispossible.’

‘Ithinkit’stogetbetteroutcomes,togetbetterandquickerinnovationandreduce

dependency.Andtoworkmoreinapartnershipacrossfunders,thatiswhatIseethereisreal

potentialfor.Tobemoreconsciousaboutthismovementandhowwe’regoingtosupportit…

Socialenterprisehassomuchmorepotentialforlongevityinit.’

‘Ifyouareinterestedinfundingyouthprojects,fund$1000toindividualstocomebackwith

$2000…Maybesomeexperiments.Lookatfivedifferentmodelsofsocialenterpriseandfund

oneofeachofthose.Tryabunchofdifferentthings.Experiment,takearisk…Thesocial

enterprisesandcommunitysectorparadigmthatisfunctioningatthemomentisnotworking

…Hereisanotherwaytotry.’

‘Theopportunityissignificantbutitneedstobeoneofcoordinationandcollaboration.The

philanthropicsectorisnotthatbig…Thereispotentialformorespecialisedfunding.…the

pipelineneedstobewelldevelopedandsupported…Thereneedstobealongertermstrategy

inphilanthropyaboutthis.Thereneedstobeasharedunderstanding.’

‘…linkingpeopleinandgettingpeopletogether.Sharinginformation,seeingiftherearesome

jointfundinginitiatives,thereareopportunitiesforcollaboration…’

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‘IlovewhatyouguysattheVodafoneFoundationdowithWorldofDifference.Ithinkthereis

anopportunitytheretoworkcloserinpartnerships.’

‘Theopportunitiesforfundersistomakesurewedon’tgetboggeddowninrules.Oneofthe

thingsthathashadperverseconsequencesintheUKisthehardconstraintsaroundsocial

enterpriseshavingtoreinvestspecificpercentagesbackintocoreoperations…itmaybe

bettertoexpandourthinkingandapproachesandhaveagreaterdiversityoffundsthat

recognisethatimpactisthemaingoalandit’snotonesizefitsall.TheRudolfSteiner

Foundationisagoodexampleofthis.Theyhaveaninvestmentfundfornotforprofitsocial

enterpriseandoneforfor-profitsocialenterprises.’

‘Ithinktheopportunityistobeinnovative…I’vebeeninthesocialandhealthservicesfor

about30years.Themodelswewereusing30yearsagohaven’tprogressedenormously,in

manycasesthey’vefailed.Theyhaven’tmadethebigdifferenceintheareasofbigsocial

challenge.Howdoesafunderreallyhaveimpact?Perhapsfundinganotherbunchofsocial

serviceinterventionsisnottherightwayforward.WhatIlikeaboutsocialenterpriseisit

bringstogetherthatbusinessthinkingandsocialthinking–thereisacreativitythatcomes

withthat.Thatleadstoadifferentwayoflookingattheworld.Thereisanopportunitytobe

innovativeaboutthewayinwhichwetryandachieveouroutcomesasfunders,withasocial

purpose.’

‘Forphilanthropyit’saboutinnovation,somanyorganisationsgetcomfortablewithlongterm

fundingfromphilanthropy.Weneedtobemuchmoreinnovative.InNewZealandwecompare

wherewefitintheworldandwherewesitontheOECDlist.Idon’tcarewhereweareaton

thelist,Ijustwantustobenumberoneandwecanbe.’

‘Weneedphilanthropistswhoareopportunityspotters.Philanthropycouldspottheonething

thatcouldtransformthelivesofmorethanoneperson.’

AshifttoSocialImpactInvesting

Fundersacrossphilanthropyandgovernmentwereencouragedtomovebeyondtraditional

‘handout’approachesandconsidernewwaysofsocialimpactinvesting(suchasloans)and

working(suchasbecomingmorecommercial)whichstrengthensocialenterprise.Oneperson

commented‘theopportunityistodesignsomeawesomefundingthatoptimallysupports

socialenterprise.’Inaddition,fundingatdifferentstagesofdevelopmentwasseenas

important.Oneintervieweecommentedontheimportanceofrelationship,citingthe

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VodafoneFoundationWorldofDifferenceProgrammeasauniqueresponsetogrowth

challenges.

‘ThatpaperIdid…itlookedatthesocialenterprisespectrumandthesocialinvestment

spectrum.Forinvestments,youhaveagrantatoneendandatraditionalmaximised

sustainablereturnontheother…Whatistheroleofphilanthropyinsupportingsocial

enterprise?Thereisaroleforgrants(particularlyinsetupandexpansionphases),thereisa

roleforsocialloans,therearerolesforsocialinvestmentsinequity(althoughassumingthe

socialenterpriseisstructuredasacharityyoucan’treallytakeanequitystake)…Whatwedid

atToddFoundation,wedidn’twanttodosocialloansbutwedidseegrantsasappropriatein

therightcircumstances.’

‘…thereisthepotentialforinvestmentratherthanfunding.Theymaywanttolendmoney

ratherthangrantmoney.Thereisanopportunitytoexploredifferentwaysoffinancingthe

effortthatisgoingintoaddressingsomeofourbigsocialconcerns.Forpeopletomoveoutof

agrantmakingandintomoreofaninvestmentmentalityisoneofthenextsteps.’

‘Theimportantthingisphilanthropistsshouldstopthinkingpurelyintermsofgivingmoney

awayandstartthinkingaboutinvestmentwhichstrengthenssocialenterprises.Grant

donationcanweakenorganisations.Youcanseeoverseas,organisationshavemovedinto

venturephilanthropy,becausetherewasenoughevidencethatitmadestrongerinitiatives.’

‘Therearefactorswithinthewaythatfundersandphilanthropycurrentlyworksthatarenot

welcomingordon’tsuittheneedsofsocialenterprise,suchasalotofthecommunitytrusts

willnotgivesocialenterprisecapitalorsocialloans,theywillonlygivegrants.Theyonlysee

themascharitablerecipients.Ithinkthatiswrongbecauseyouimmediatelyturnthemintoa

socialrecipient,andyoudon’tputfinancialrigouronbothparties,tobeabletopaybacka

loan…’

‘Thereisanopportunityforseedfunding,tofundbusinessmodels,thatdon’thavethat

reliancementality.Thereisanopportunitywithsocialimpactinvestment.Lookingatimpact

fundingandnotcharitabledonations.Forfunderslookingatgrants,tofulfillsocialgood,use

thegranttomakeasustainablebusinessmodel.Puttinginabusinessmodelfromthevery

beginning.’

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‘Ithinktheopportunityistofigureout,todesignsomenewformsoffunding.Itmightnotbe

thetraditionalgrant,orcashinjection,itcouldbeacombinationofinterestfreeloans,Idon’t

know.Theopportunityistodesignsomeawesomefundingthatoptimallysupportssocial

enterprises.’

‘Torealisetherearedifferenttypesofmoney.Thereneedstobedifferentpotsofmoneythat

areaccessibleatthosedifferentstagesofsupportandthatbyworkingtogetherisawaytoget

biggerimpact.’

‘…creatingsalariesforpeopleinthestartupphase,fundingforadhocsupport,likepeople

whocancomeinandcoverorhelpgrowthings.Thereissuchaworryaboutsecurity.Getinto

themeatofthatabitmore.Don’tjustaskaboutbalancesheets.Gettoknowpeople,whichI

expectisreally,reallydifficult.TheVodafoneFoundationWorldofDifferenceisareallyunique

responsetogrowthchallengesforsocialimpactorganisations.’

Growsectorcapabilityandsupportintermediaries

Opportunitiesweredescribedingrowingthecapabilityofthesector(includingsocialimpact

investmenttrainingforfundersandbecomingmorecommerciallyminded),lookingatthe

supportiveinfrastructure(thiswouldhelppreventburnout)andsupportingintermediary

organisations(‘thereneedtobemoreintermediaries’)andtrustingthemindelivery.

‘Ifeellikethepathlinefordevelopingprojectsismovingaheadtheabilityofinvestorsto

resource.Thereneedstobeimpactinvestmenttraining.’

‘Imeanthebigone,isthesameoneforgovernmentinaway,it’sthechallengeofbecoming

morecommercial.Howcanphilanthropystartinvestinginsocialventuresthatprovidea

financialreturn?’

‘Formethereissomethingaroundlookingbeyondtheindividualsocialenterprises,lookingat

teams,networks,thesupportiveinfrastructurethathelpsstuffgrow,helpspeoplenotburn

out.Thedifferencebetweensocialenterpriseandregularentrepreneurs,isthesocial

imperativeyouaretryingtofix,issomassivepeoplewillsacrificethemselvesinordertoget

there.’

‘Thereareopportunitieshere,thereneedtobemoreintermediaries…toprovidethebridge.’

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‘…trustintermediariesindelivery.’

Investinresearchanddrawoninternationalevidence

Opportunitieswereidentifiedtoinvestinresearch(topromotelearningand‘whatworks’and

alsoexplorehowsuccessmaybemeasured).Further,toinvestigateifanarticulatedbusiness

caseforsocialimpactinvestmentexists,bylookingatinternationalmarketssuchasScotland

andtheUK.

‘Thereisanopportunitytofundsomeresearch,thatwouldbegreat;itwouldlookatwhatwe

canlearnfromotherpeople.’

‘Theotherspaceisaboutlearning.Howdoweinvestinlearningandhowdowemeasurethe

differenceitmightmake?Seeingthatisimportant.’

‘Theproblemisthereisnotmuchdemonstratedsuccessatscalehere.Philanthropic

organisationsgenerallyhaveahigherappetiteforrisk.Butforcommercialinvestors,thatisa

toughone.Isthereanarticulatedbusinesscaseforinvestmentthatarticulatesthe

opportunity.LookingatScotlandandtheUK,clearlythisworksinothermarkets.’

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13.ParticularareasorprojectstoconsiderforfundingThoseinterviewedwereaskediftherewereanyparticularareasorprojectsthatshouldbe

lookedatforfunding.Themostdominantthemeherewastheopportunitytoinvestinthe

supportiveinfrastructure-supportingnetworks,collaboration,buildingcapabilityand

leadership.Thesecondthemewasthatofinvestinginregionalandlocalsocialenterprise

projectsandcommunitydevelopment.Thethirdwastheopportunitytoinvestinyoung

peopleincludingthoseofschoolageandwithintertiaryinstitutesandsupportingstudent

networks.Withregardstofundingstyleitwasnotedfundersneedtobeincreasinglyflexible,

innovativeandactionoriented.Variousissues,organisationsandprojectswereidentifiedfor

possibleinvestment.

Investingrowingsectorcapacity

Investingingrowingsectorcapacitysuchasdevelopinganetworkinfrastructure,supporting

collaborativeapproachesandgrowingsectorleadershipwereidentifiedasareasforpossible

investment.

‘Howdowedevelopanetworkinfrastructure?Wedon’twanttojustproliferateafewbig

organisationsthatwillthenprovideaone-sizefitsallsolutionforthewholecountry.Itneeds

tobemorefluidthanthat. Ākinawillbefarmoreeffectiveatworkingdynamicallyand

supportingotherversionsofourselvesthatareconcernedwiththeirowncommunities,oron

specificissues,and,critically,connectingthemtogether,thanjusttryingtogrowintosome

sortofsocialenterprisebehemoth.’

‘Socialenterprisehereismissingthisthingwherewecandosomethingtogetheryouknow,we

areoperatinginsomanysiloseventhoughweknoweachother,andthatjustmakesitreally

difficult.’

‘LeadershipNewZealandtheiralumnaemeetallthetime.Wehavehadsevenoreight

generations.Weneedtobegeneratingthatconversationaroundthenation.Urban,rural.

Acrosscultures.Therealityismakingsurewehavediversityofthinkingintheroom…wehave

gottofigureouthowtodothis,notjustMāori,notjustnonMāori,everybody,wehaveto

workouthowtodothistogether.Andwhenwegettogether,wewillchangetheworld…The

whakatauweusealot,‘Tekaiaterangaira,hekōrero.Whatisthefoodofchiefs,itis

dialogue,hekōrero.’’

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‘…howdowegetthistobeamoreconsciousmovement,withallthefundersand

government?Idon’thaveananswer.Butitwouldbeworthputtingsomeofthesectorand

philanthropiststodoadesignthinkingonit.’

‘Thereisalwaysthisdebatewhatcomesfirst,supplyofcapitalorthedevelopmentof

capability.Ofcoursethetruthistheybotharemutuallyreinforcing.’

Regionalandcommunityinitiatives

Supportinglocalcommunityinitiativeswasidentifiedasanopportunityforinvestment.

‘Communityledinitiatives.’

‘…someoftheservicesinregionalcentresthatmightbestrugglingtohaveafor-profitreturn.

Butasasocialenterprisetheycanbemadetowork,throughacooperativeorsomethinglike

that.Itmightbethelocalstorethatisgoingtoshutdown.’

‘Givemelotsofmoneytobuymylocalsupermarket!’

Developingyouth

Investmentopportunitywasseenindevelopingyoungpeople–providinghandsonexperience

insocialenterprise;creatinglearningenvironments‘rightthrough’;supportattertiary;

growinglearningcommunities;andreframingfailureaslearningopportunity.

TheDevelopsterTeamatAoTawhitiUnlimitedDiscoverySchool

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‘Weneedtostartdoingthisearlier.WorkingwithkidsinschoolorPolytech,engageearlyso

theyneverenduponthebenefit.ThewholecommunityhastohelpinthatprocessandIthink

theschoolsarereadytoacceptthatnow(theyweren’tafewyearsago).Aclassicexampleof

that,isourworkinhighschools.Socialenterpriseisoneofthebestwaystobuildonthat.That

modeltherestaurantsecondhandthing,involveyoungpeopleaspartoftheirschooling.If

theyaredoingeconomics,marketing,thereareprojectsthatselfsustain.Thensuddenlyyou

havepeoplegettingNZQAresultsthatarereallypractical.’

‘Projectsaroundlearning…it’sdifficultforphilanthropiststogetinvolvedbecausethe

MinistryofEducationshouldbedoingit,buttheyarenot.Creatinglearningenvironments

rightthrough…thatactuallycreateskills,developideas,innovation.Howdowesetupthese

learningspaces?TheyshouldbeinPolytech’sbuttheyareprettyscripted.Placestohelp

developinnovationandrecognisetheneedofthestudentstheyareworkingwith.’

‘Thereismassivelowhangingfruitinthetertiarysector/highereducation.Thereisprecedent

forthis.WhatUnLtdhavedoneintheUK,theycreatedacommonawardspot,common

capabilitybuildingresourcesandtoolkits,thenworkedwithinstitutionstosetuptheirown

programmesandthenthenetworkthemalltogether…’

‘Definitelythestudentnetworks…ThestudentshavegoneontocreateSocialInnovation

Aotearoa.’

‘Learningcommunities,investinginentrepreneurs,taketheseyoungpeople,takethemto

placeswherepeoplecanconnect,liketheNewZealandFellowship,creatingmoreFellowships

whereyoucanbringpeopletogetheroveralongperiod.Exposethemtoawholerangeof

otherthinking.’

‘Youngpeoplearelookingformeaningmorethanever.Thesocialenterprisespaceisripefor

youngpeopledevelopingstuff.Enspiralisamazing;theyoungpeoplehaveawholedifferent

setofvalues.Theywanttodosomethingmeaningful.Theycollaborateinthatspace.Our22

yearolddaughterhassaid‘Idon’twanttoworkanymore,Iwanttovolunteer.ButIcan’tlive

withoutmoney’.Moreandmoreyoungpeopleareinthatspace…it’saboutencouraging

them.It’sabouttryingthings…Theeducationsystemiscentredon‘youcan’tfail’.Learningis

aboutmakingmistakes.’

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Fundingstyle

Intervieweescommentedontheimportanceoffundingstyle–forphilanthropytobeaction

oriented;strategic;abletothinkwithinacontext;andflexible.

‘Justallofit.Iguess,formesocialenterpriseisanareaphilanthropyshouldlookto.Theyare

lookingbutit’sjustlooking,let’sdosomedoing.’

‘Haveanoverallstrategictrustandthenseetheopportunities,don’tmakeittoo

programmatic.’

‘…thefundingenvironmentisveryspecific…OnthegroundIthinkwhatwehavetodoistry

andseducethefunderintothinkingwithinacontext.Thatisnotalwayseasy.Whenyouthink

withinacontext…youthinkcollaboration,youthinkawin-winforeverybody.Alotofthings

areintangible,andyoucan’tmeasurethem.Anexampleisyoucancounthowmanytimesa

childhasbeentoadoctor,butifyoufixsanitationinahouse;youwillneverbeableto

determineifyouhavebeenabletostophepatitisandotherlongtermdiseases.’

‘Asocialbusinesscouldloseitsindependencethroughfunding.WithĀkina,theyhavedifferent

funderswhoexpectdifferentthings.Andtheyhavetochoosebasedonthosedeliverablesand

thatbringsinlimitationsinitself.’

Issues

Arangeofissuesforpossibleinvestmentwereidentifiedincludingsupportforemployment;

conservation,recyclingandenergy;housing;earlychildhood;andtheagingpopulation.

‘Thereisunemploymentinthecountry.Creatingbusinessesthatemployyoungpeople.’

‘…lookingatemploymentdifferentlyandopportunitiesforemployment.Secondlythere

seemstobeanaturalemergenceofbusinessesforgoodthatarelookingtodogoodthingsin

theconservationandenvironmentarea.Thereareopportunitiesthere.Maybeineducation…

Therehavealsobeensomegreatsuccessesinthehousingarea,forexampletheNewZealand

HousingFoundation’sworkwithlow-incomefamilies.’

‘Ithinkthewholeareaofrecycling,wastedisposalisalogicalareatolookat.Partlybecause

youhaveastrongvaluesalignment.Youcouldn’thaveasocialenterpriseinanareawhere

therewasn’tavalueproposition.’

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‘TheotheroneIwouldsaythatwouldbeworthinvestingindevelopingregional,localenergy

projects.Especiallywhereyouhaveplaceswhereitcostsmoretodeliverpowertosmall

communities.Theycoulddeveloptheirownenergysupplynetwork.Evenplacesthatareon

thegrid,thatcouldsetupsolarfarmsorwindfarms.Powersmallercommunities.’

‘Anythingthatwouldhelptoincreasethestandardoflivingandwellbeingofpeoplein

general.’

‘Investinginhealthorearlychildhoodeducation.Ifyouinvestinthefirstthreeyears,thereis

seventeenfoldreturnoninvestment.Earlyinterventionshaveareallystrongreturn.’

‘Thereareincreasingnumbersofoldpeople…thewaywearesupportingthemisbecoming

moreandmoreinstitutionalisedandweareputtingtheminthesegreatbigretirement

villages.Ibelievethereisawaytosupportthemthatisalotmorecommunitybased,anddoes

goodforalotmorepeople,notjustthem.’

Organisationsandprojects

SpecificorganisationsandprojectsmentionedforpossibleinvestmentincludedLoomio,

Enspiral,Ākina,Lifehack,WikiHouse,OOOBY,ConsciousConsumers,CBEC(Community

BusinessandEnvironmentCentre)andCYDP(CanterburyYouthDevelopmentProgramme).

‘Ifeelthisnewwayofsocialenterprisesisgreat,buttherearemassiveexistingsocial

enterprisesthatreallywarrantattentionandshouldbeconsideredfirst.ThingslikeWiki

House,socialhousing,youthemploymentrelatedinitiativeslikeCanterburyYouth

DevelopmentProgramme…’

‘IthinkthestuffcomingoutofEnspiralisreallyexciting.Therearesomepeopleinthat

organisation,acorebunch,ofallwhomItotallyrate…ThestufftheyaredoingwithLifehackis

verycool.AndLoomio,thatisgenuinelyaworld-classinnovationcomingoutofalittleroomin

Wellington.Therewasamassivecrowdfundinground,andtheygotover$100,000butthey

stillfindtheycan’tdowhattheywanttodo.Peoplefromaroundtheworldaresaying,‘we

reallyneedthisproduct’.Peoplearecallingforit.Againanunbelievableteamofpeople.An

opportunityforNewZealandtobeontheworldstage…’

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14.Benefitsofsocialenterprise

Manyofthoseinterviewedcommentedonthebenefitsofsocialenterprisethroughoutthe

interviewprocess.Benefitsincludemoneybeingretainedinlocalcommunities;social

outcomeshavingbenefitforbusiness;everyonecanshareinthebenefits;beingasoundand

moresustainableeconomicmodel;andbeingamodelthatteachesindependence.

‘JoePublicneedstoseethebenefits,thefruitsofwhatsocialenterprisecando…For

Northlanditisthewayofthefuture…Northlanddoesn’tfitwithinthenormaleconomic

model,butifyoustarttousesocialenterprisethinking,thereareheapsofopportunities.The

keyvalueisnotaboutmebecomingamillionaire,it’sabouthowweshare,weasacommunity

allshareinthegood.It’saboutreframingthethinkingaboutwhatissustainable,whatislong

term.Whatwetreasuremost.Nothavingthebigflashcar.It’saboutfamilies,youngpeople

beingabletofollowtheirpassions,notassets…Moneygoingaroundtwoorthreetimesin

onecommunity,wherebeforeitwouldjustleavethecommunity,gotoanothercountry.’

‘Thefunnythingaboutsocialenterprise,itisnotnecessarilyascompetitiveasbusinesses

withinacommunityandyoucangettogetherwitharangeofnotforprofits,wherepeople

aren’tseeingcompetitiontheyareseeingcollaborationandtheyareseeinghowwecanmake

goodchangesinthecommunity.Alotofthecompanieswanttodosocialgood…theycan

comeoutlookingreallygoodaswell.Andachievetheirfinancialoutcomesaswell.’

‘Whereeverybodycanshareinthis,everyoneispartofthis,changethepsycheofonlyafew

benefiting.Whereit’sabouteverybodybeingabletoshare,playtheirpart,everybodybeing

valued.Wehaveahierarchicalstructurearoundbusiness,ifyouareonthelowerscaleyouare

treateddifferently.’

‘Withsocialenterpriseeverypieceisdependentoneachother,howyougrowanddevelop,it’s

notabout‘whatcanIgetfromthatemployee’.It’sawholenewwayofthinking.Businesses

outsourceandgooverseas,chasingtheprofitmargins,thesocialelementwaslost.Howdowe

dothistogether,createenterprise,keepitlocal,andkeepitathome.Butalsobepartofthe

globalmarket,theglobalmovement?Alotofcountrieshavetorethink,Americabeingoneof

them,theyoutsourcedeverythingandnowtheyarefacingalltheseproblems.’

‘…theeconomicmodelofsocialenterprisestandsupwhereeveryougointheworld.There

aredifferentindigenousflavours,ImeanMāori,ImeanAfricanAmerican.Indigenous

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communitieswillhaveadifferentflavour.Themodelissoundandittakesonadifferent

flavourdependingonwhousesit.’

‘Wewillreinvestprofitsbackintothecommunitythatisagoodmodelwhereeveryougo.The

modelsweuseherearearoundreinvestingbackintothecommunity.Wedon’thavebigChief

Executivesonhugewages.It’sdonemorecooperativelythancorporately.’

‘Wehadoneenterprisethatwedidthathadalotofbenefitonthehealthside,benefitsacross

theboard-youcanbringdifferentgroupstogether.WecoverthewholeofNorthlandfrom

thetiptoDargaville.Forthattohappenitbroughtawholelotofgroupstogether-health,

philanthropy,business–withavisionforwarmerhealthierhomes,cutdownhospitalisationof

youngchildren.Allofusboughtintoit.One,weallliveinNorthland.Weallshareinthis.This

wayofdoingthingswherewehaveourownownershipascitizens,gettingbetterbangfor

buck,it’sdoneamazingwork,whatwecallourgovernancegroup–PHP,iwi,businesses,we

cametogethertodevelopthis,gethousesrefittedintheregion.ASBCommunityTrustcomes

inwithphilanthropy.Wecangetwayabovewhatonegovernmentdepartmentwouldhave

everdone.Aswellasemploymentforlocalpeople.Hugebenefits.Thatshouldbetheway

goingforward.InNorthlandweneedtodomoreofthis.It’saboutdevelopingrelationships

throughthedifferentsilos–commercial,government,iwi.Hugeopportunitiesforthecrossing

ofinformation.’

‘It’snotgoodtogiveafishaway,butifyougiveanetandshowthemhowtofish,theycan

feedtheirfamily.Socialenterpriseislikethat…’

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INSIGHTSANDRECOMMENDATIONS

1.Governmenthasaroleinsettingtheconditions

Insight:Governmenthasakeyroleinsettingtheconditionsforsocialenterprisetothrive(I

likenittopreparingthesoiltoensureit’snutrientrichbeforeplanting).

Recommendation

Government-inacollaborativepartnershipwiththesector-hasanopportunitytoreviewand

refinetheconditionsinAotearoaforsocialenterprisetooptimallythrive(theDepartmentof

InternalAffairshasalreadyinitiatedworklookingathowgovernmentmightsupport).Looking

tocountriessuchastheUK,ScotlandandCanadaforinspirationandideas.Thismayinclude

reviewingthelegalstructure(makingiteasiertoinvestinsocialenterprise),provisionof

incentives(includingstartupfundingandtaxbreaks),incentivesforfinancialintermediariesto

supportthesectoranddoinganythingelsetomakethesocialenterpriseenvironmenthere

trulyenabling.AimtomaketheconditionsheresostrongthatothercountrieslooktotheNew

Zealandcontextasanexampleofbestpracticeandinnovation.Investmentisalsoapriority

areaforgovernment(referInvestmentsectionbelow)

2.LeveragethestrengthofMāorisocialenterprise

Insight:Māorisocialenterpriseisakeystrengthanduniqueaspectofsocialenterprisein

Aotearoa.Thereisanopportunitytoplaytothisstrengthandmagnifythisforgreatergood.

Recommendations

1.FundersspecificallylooktoMāorisocialenterpriseasapriorityareaforinvestment(and

ensurethatMāoriareincludedinfundergovernancestructuresandselectionprocesses)

2.BringtogetheranetworkofleadersfromwithinMāorisocialenterprisetoexplorefurther

opportunitiesforgreatergood.Thesemayincludesharingstoriesofsuccessandlearning;

documentingandsharingthesestorieslocallyandinternationallyincludingwithindigenous

communities;furtherexploringhowsocialenteprisecouldbenefitMāoriandimpactonissues

specifictoMāori;andexploringhowiwiandhapu7governancestructurescouldsupportsocial

enterpriseinitiatives

3.MāorisocialenterprisetofeatureintheSocialEnterpriseWorldForumbeinghostedin

Christchurchin2017

7 Tribeandsub-tribe

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3.Createanationalnetworkbody

Insight:NewZealandisasmallcountryenablingeaseofconnection,yetnonetworkbody

existsforsocialenterpriseandthisisagap.

Recommendation

Bringtogetheradiversenetworkofleadersfromwithinsocialenterprisetoexploreandcreate

anationalnetworkbody.Againlookingtomodelsofwhathasworkedinternationallyto

leverage.Thiswouldrequirefundingtocovertravel,facilitation,eventandotherdevelopment

costs.

4.Storytellingandcelebrating

Insight:AwarenessofsocialenterpriseinAotearoaislimited(includingwithinNZbusiness)

andthereisanopportunitytosharestoriesofsuccessandlearning.

Recommendation

Let'sleveragethegreatmahi/workhappeninginthesocialenterprisespaceandshareMORE

storiesoflocalsuccessandlearnings–includingintentionallysharingstoriesofsuccessful

Māorisocialentrepreneursandyoungsocialentrepreneurs.Wecanallplayaproactiverolein

this(philanthropy,government,otherinvestors,intermediaryorganisations,socialenterprises

themselves,NZbusinessandgenerouschampionswhojustlikesharinggoodstuff).Allofus

canproactivelyusethecommunicationschannelswealreadyhaveinplace(suchassocial

mediaandprint)…andmaybefundsomeadditionalstuffto,toreallygetthemessageout

(particularlytargetingNZbusinesswhocouldsupportsocialenterprisethroughforexample

sharingofbusinessskills,aspartnersandinsocialprocurementetc).Agoodstartingpoint

wouldbetoproactivelysharesomeofthestoriesofsocialenterprisesreferencedthroughout

thispaper.

5.SocialImpactInvestmentTraining

Insight:NZfunders(philanthropy,governmentandothers)requiretrainingintheareaofsocial

impactinvestment,tobecomeequippedtoinvestinsocialenterprise.

Recommendations

1.Capacitybuilding/trainingisrequiredforfunders,specificallyintheareaofsocialimpact

investing.PhilanthropyNewZealandhasalreadybegunworkinthisareaandwouldbewell

placedtoleadthis.8

2.CreateafunderSocialImpactInvestmentNetworknationally(againPhilanthropyNew

Zealandhasotherfundernetworksoperatingandwouldbewellpositionedtoleadthis).

8I’macurrentBoardmemberofPhilanthropyNewZealand,sohaveaconflictofinteresthere

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6.Investment

Insights:Accesstofundingisakeyopportunityifsocialenterpriseistothrive.Funders(across

philanthropy,governmentandothers)needtofocusinvestmentonareasidentifiedasa

priority(includingthesupportiveinfrastructure)anduntappedpotentialandbepreparedto

investlongterm.Banksandfinancialintermediariesareasupportgapthatneedsaddressing.

Recommendations

1.Itisrecommendedthatallfundersreviewtheirfundingtosocialenterpriseandspecific

fundingismadeavailableinsupportofsocialenterprise(includinggrantsandutilisingother

socialimpactinvestmenttools);andthisfundingbeaccessibleandflexibleandembracingof

risk(andreframingfailureasanopportunityforlearning).

2.Focusinvestmentlongtermonidentifiedpriorityareasanduntappedpotentialincluding

thesupportiveinfrastructure/capacitybuildingofthesector(seesectionbelow),supporting

localsocialenterpriseinitiatives,communityownedassets,Māorisocialenterprise(refer

sectionabove)anddevelopingyouthasasignificantforcetotacklekeyissues.

3.Exploretheneedsofsocialenterprisesastheymaturetobetterunderstandinvestment

requirementsandpositiontheseorganisationsforlongtermsustainability.Startupcapitalis

crucial,asisfundingatdifferentstagesofdevelopment

4.Governmenttoreviewthelevelofgovernmentinvestmentintosocialenterprisemadein

othermarketswhereitisthriving(suchastheUKandScotland)atdifferentstagesof

developmentandinvestatsimilarlevels(adjustingforpopulationdifferences)

5.Investinapieceofresearchexploringtheroleoffinancialintermediariesandbanks

internationallyinsupportofsocialenterpriseandwhatisneededhere.Thiscouldinclude

incentivesfromgovernmentforfinancialintermediariestoinvestinsocialenterprise(as

suggestedintheGovernmentsectionabove).

7.Capacitybuildingofthesector

Insight:Strengtheningandcapacitybuildingofthesectorisagapandopportunity.The

intermediaryorganisationswedohavearepioneers,buttheyarefewandfragileandrequire

support.Newintermediaryorganisationswillrequireinvestmenttoo.Thesocialenterprise

eco-systemhererequiresstrengthening.

Recommendation

Fundersincreasinglyinvestinsocialenterpriseincludinginexistingintermediaries(suchas

Enspiral,ĀkinaandSocialEnterpriseAuckland)andnewintermediaries,developmentof

regionalandnationalnetworks,connectingthesector/collaboration(ensuringthereare

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diversevoicesintheroom),supportingeducationandknowledgegrowth,growingcommercial

knowledge(includingsupportwithbusinesscasedevelopment),research(localand

international)andsupportingleadershipdevelopmentandcommunitiesofpractice.

8.SocialProcurement

Insight-Thereissignificantopportunitytosupportsocialenterpriseandpositiveoutcomes

throughsocialprocurement

Recommendation

AucklandCouncilandothersareinnovatinginthisspacealreadyandusingtheirbuyingpower

forgood.Whatcanbelearnedfromthem?Governmentandbusinesscoulddrawonthis

experienceandtakeaction.SocialTradersinAustralia‘connectbuyersfromfromcorporate,

governmentandconsumerstosocialenterprises’–whomightleadthispieceofworkforNew

Zealand?Howmightyouasaconsumermakeamazingbuyingchoicesandpromote‘good’

organisations?Weallhavearoletoplay.

9.Learnfromoverseas

Insight:Othermarketsarefurtheralongthissocialenterprisejourneythanusandthere’san

opportunitytolearnfromthosewhoareleadingtheway

Recommendation

Leverageinternationalknowledgeandexperience.Bringoutinternationalleadersinsocial

enterprise,intentionallyformstrategicrelationshipsandpartnerships,supportstudytoursand

learningsabbaticals,investinresearch(what’sworking,whatarethelearnings,wheredoes

NewZealandsitrelativetoothercountries),training,mentoring…trysomestuff(andalso

makeittwoway,wehavesomewonderfulexperiencestoshareaswell).TheSocialEnterprise

WorldForumbeinghostedinChristchurchin2017representsasignificantleverage

opportunity.

10.Articulatetheposition

Insight:Nosectorpositionstatementexists

Recommendation:

Developasectorpositionstatementonsocialenterpriseandit’splaceinNewZealandsociety.

Thiswouldbewellledoutofthenewlycreatednationalnetworkbody.

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ABOUTTHEAUTHORAnnetteCulpanhasabackgroundinphilanthropy,businessandnot

forprofit.ShemanagedtheVodafoneNewZealandFoundationfor

nineyears,sitsontheBoardofDirectorsforPhilanthropyNew

ZealandandtheGriefCentreAucklandandco-leadsanadvisory

groupfortheVodafoneNewZealandFoundation.Annetteis

passionateaboutbusinessforgoodandcommunityled

collaborativeapproachestodrivesocialchange.Annettebelievesin

theabilityofordinarypeopletoachieveextraordinaryoutcomes

throughgenerosityandaction.In2014AnnettevisitedIndiatolook

atsocialenterprisemodelsandincubators,andseeshuge

opportunityinsocialenterprisewithinthecontextofAotearoa.

https://twitter.com/AnnetteCulpan1

annetteculpan.wordpress.com

ArtworkbyMelissaJadeMcMahon


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