1 Social Enterprise Guide Educational Module for Social Entrepreneurs Authors: Baltic Institute for Regional and European Concern (BISER): Poland Magda Leszczyna-Rzucidło Anna Fornalska-Skurczyńska Witold Toczyski Bartosz Atroszko COBUCE: Russia Maxim Mikhaylov Social innovation centre: Latvia Anita Stirāne Jevgenija Kondurova Renāte Lukjanska Social Entrepreneurs in Denmark: Denmark Gitte Kirkeby Per Bach 2018 This publication is part of the project “Social entrepreneurship development in the Baltic Sea region”, co- financed by Nordic Council of Ministers Programme, project identification number 17055. Responsible for the content solely publisher/presenter; it does not reflect the views of Nordic Council of Ministers and any related financial body. Those institutions do not bear responsibility for the information set out in the material. 2 Contents 1. Introduction in Social Entrepreneurship ................................................................................... 7 1.1. A general introduction to social entrepreneurship ................................................... 7 1.1.1. What is social entrepreneurship and social enterprises about? ............. 7 1.1.2. What is social value, and why is it important? ..................................................... 8 1.1.3. Social entrepreneurship works in and between sectors ............................... 8 1.1.4. Social entrepreneurship - charity work and traditional enterprise work ..................................................................................................................................................................... 9 1.1.5. Cases - Social enterprises from practice................................................................. 10 1.2. The UN Sustainable Development Goals, SDG’s ........................................................ 13 1.2.1. The history behind the UN Sustainable Development Goals ................... 13 1.2.2. The 17 Goals ................................................................................................................................... 14 1.2.3. Why are the goals important for social entrepreneurs? ............................ 15 1.2.4. How can social entrepreneurs use the goals and help fulfil them by 2030? ................................................................................................................................................................ 16 1.2.5. Cases - How social entrepreneurs work with the SDG’s ............................. 16 1.3. How to spot how social problems become social business opportunities .................................................................................................................................................................................... 19 1.3.1. The concepts of social problems and social enterprise ............................... 19 1.3.2. What is social problems about? ..................................................................................... 19 1.3.3. What is social enterprise about? ................................................................................... 20 1.3.4. Social enterprises: Examples of a mixed or specific target groups ... 20 1.4. Social Entrepreneurship in The Baltic .............................................................................. 24 1.4.1. Social Entrepreneurship in Latvia ............................................................................... 24 1.4.2. Social Entrepreneurship in Poland .......................................................................... 26 1.4.3. Social Entrepreneurship in Russia ............................................................................. 28 2. Themes ................................................................................................................................................................ 31 2.1. Making a social enterprise by developing a social business plan ................. 31 2.1.1. Business planning - why do we need it? ................................................................... 31 2.1.2. Business model ........................................................................................................................... 31 2.1.3. Elements of the business model and business modeling tools to help you ....................................................................................................................................................................... 32 2.2. Product development ..................................................................................................................... 37 2.2.1. Product development process ......................................................................................... 37 2.2.2. Design thinking .......................................................................................................................... 38 2.2.3. Value proposition ..................................................................................................................... 40 3 2.2.4. Kano model ................................................................................................................................... 41 2.3. Financing and fundraising .................................................................................................................... 44 2.3.1. Introduction .................................................................................................................................. 44 2.3.2. Different funding ways ........................................................................................................ 44 2.3.3. Financing and fundraising in Latvia ......................................................................... 46 2.3.4. Financing and fundraising in Poland ....................................................................... 47 2.3.5. Financing and fundraising in Russia ........................................................................ 49 2.4. Social Impact measurement ..................................................................................................... 52 2.4.1. Definition of Social Impact ............................................................................................... 52 2.4.2. Theory of Change ...................................................................................................................... 52 2.4.3. Activities, outcomes and outcome indicators .................................................... 53 2.4.4. Outcome indicators ................................................................................................................ 54 2.4.5. How to set the right outcome indicator? ................................................................ 54 2.4.6. Baseline............................................................................................................................................ 54 2.4.7. Point of reference ..................................................................................................................... 54 2.5. Marketing, communications and technologies .......................................................... 56 2.5.1. What is marketing? ................................................................................................................. 56 2.5.2. Marketing mix ............................................................................................................................. 56 2.5.3. Branding .......................................................................................................................................... 58 2.5.4. Customer experience ............................................................................................................. 58 2.5.5. Social media for external and internal communications .......................... 59 2.6. Leadership and teambuilding in social enterprises ............................................... 62 2.6.1. Leadership ...................................................................................................................................... 62 2.6.2. Building a management team ......................................................................................... 62 2.6.3. Delegation and succession ................................................................................................ 63 2.6.4. Balancing and integrating ................................................................................................. 63 2.6.5. Personal and professional development ................................................................ 63 2.7. Network, partnership, and cooperation .......................................................................... 65 2.7.1 Why cooperation is important in the social economy? ................................. 65 2.7.2. Types and forms of cooperation ................................................................................... 66 2.7.3. Opportunities offered by cooperation ...................................................................... 67 2.7.4. Threats related to cooperation ...................................................................................... 69 2.7.5. Conditions for establishing cooperation ................................................................ 69 2.8. Employing people and using volunteers in the Baltic ........................................... 71 2.8.1. Employing people and using volunteers in Latvia .......................................... 71 4 2.8.2. Employing people and using