Starting and running a social enterprise

Understanding problems

Before diving into solutions, it's crucial to have a deep understanding of the problem you're trying to solve. This section provides some resources that will help you explore the root causes of social and environmental issues, engage with affected communities, and identify pathways to create meaningful change.

Resources

Theaster Gates: How to revive a neighbourhood: with imagination, beauty and art

Theaster Gates, a potter by training and a social activist by calling, wanted to do something about his neighbourhood on the south side of Chicago. So he did, transforming abandoned buildings to create community hubs that connect and inspire those who live there. This is an inspiring talk that provides a story about how problems can be reframed as opportunities and how culture can be a catalyst for social transformation - there is something in it for everyone.

Problem Framing Canvas Workbook, Griffith Centre for System Innovation

This handbook from the team at Griffith's Centre for Systems Innovation helps you imagine better responses to ‘problems’. Based on their practical experiences, they have put together a selection of tools to help you frame problems more effectively, recognise different types of problems, and learn your way into responding to challenges.

Where good ideas come from, Steven Johnson

Steven Johnson is an innovation thinker and writer. In this short video, he outlines the main ideas from his book: 'Where do good ideas come from?'. He argues that innovation thrives in interconnected systems where ideas can mingle and evolve over time, often through accidental discoveries and slow hunches rather than sudden breakthroughs. He emphasises the importance of environments that encourage free exchange and connectivity.

The 'DIY Toolkit' from NESTA

NESTA is an independent charity based in the United Kingdom that works to increase innovation capacity in the UK. They have developed this toolkit to help people invent, adopt, or adapt ideas that can deliver impact. It features 30 practical social innovation tools that are quick to use and simple to apply.

'The Field Guide to Human-Centred Design', IDEO

IDEO is a global design agency known for its human-centred approach to design and innovation. This Field Guide to Human-Centred Design represents how IDEO thinks about design for social impact. It includes 57 clear-to-use design methods for new and experienced practitioners, and case studies of human-centred design in action. 

Impact Boom Blog and Podcast

Impact Boom has undertaken 100s of interviews with social entrepreneurs and change-makers from across Australia and around the world. Produced as podcasts and blogs, their platform provides an amazing range of impact insights and stories.

Business modelling

A solid business model is the foundation of any successful social enterprise. Here, you'll find resources to help you develop and evolve a business model that balances impact goals with financial sustainability. The resources will cover topics like start-up thinking, value propositions, customer segments, and importance of partnerships.

Resources

Business Model Canvas Explained, Strategyzer

A 2-minute introduction to the Business Model Canvas - a tool that helps people design and develop business models for new ventures. This method comes from Strategyzer's best selling management book Business Model Generation has been used by entrepreneurs and enterprises around the world. The video leads onto a series of other videos (within YouTube) by Strategyzer that explore different aspects of the canvas in detail.

'Using the Business Model Canvas for Social Enterprise Design', Ingrid Burkett

Moving beyond the Business Model Canvas as a general enterprise tool, this booklet outlines how Ingrid Burkett, an Australian-based social entrepreneur, applies the Canvas to the more specific needs of social enterprise. The guide is practice-based and gathers together the author’s experience of using the tool to design and grow social enterprises. 

'Why the Lean Start-up Changes Everything', Steve Blank, Havard Business Review, 2013

This is a pivotal article by entrepreneur and educator Steve Blank, published in the Harvard Business Review in 2013. The article introduces the lean startup methodology, which emphasises rapid experimentation, customer feedback, and iterative product development. Blank argues that this approach represents a fundamental shift in how startups are built and scaled, challenging traditional business planning and management practices.

The Lean Startup Summary, Eric Ries

The Business Model Canvas and the Lean Startup methodology are related but distinct concepts in the world of entrepreneurship and innovation. While the Business Model Canvas is a tool that helps people visualise and develop their business models, Lean Startup claims to offer an actionable methodology for developing businesses and products. This video outlines five key principles of Lean Startup: 1) the build-measure-learn feedback loop; 2) everything is a grand experiment; 3) different types of minimal viable products (MVPs); 4) the three engines of growth; and 5) pivot or persevere?

Social Startup Studio

Social Startup Studio is an initiative by Swinburne University of Technology in Melbourne, Australia. Its goal is to support and foster the development of social enterprises. The studio website offers a range of practical resources for social enterprise startups. 

Social Shifters

Social Shifters is an international charity helping the next generation of young leaders, innovators, and entrepreneurs to tackle the world’s most pressing social and environmental issues in new ways. Their website offers e-learning, videos and downloadable digital tools to support social enterprise startups.

'The Social Entrepreneur's Playbook', MacMillan and Thompson, 2013

This is a practical guide for aspiring and early-stage social entrepreneurs, written by Ian C. MacMillan and James D. Thompson and published in 2013. The book provides a step-by-step framework for launching and scaling a successful social enterprise, drawing on the authors' extensive experience in entrepreneurship and social innovation.

Measuring and managing impact

Demonstrating your social impact is essential for attracting funders, customers, and supporters. Understanding your impact is essential for learning and improving your approach. In this section, you'll find resources that will help you measure and manage your impact, and also good practices for reporting and communicating with your stakeholders.

Resources

Seedkit

Seedkit is a new nationwide project and platform that helps social enterprises measure and communicate their impact. Its self-managed reporting platform allows social enterprises to measure, track, and communicate operations and impacts via customised dashboards and reports.

'Now we are all measuring impact', Griffith Centre for Systems Innovation

A concise and rich introduction to the history of measurement and how different drivers have informed how we think about, and practice, impact measurement and evaluation today. Also includes some useful graphics that help distinguish different terms and approaches from each other.

‘Expanding Concepts of Scale’, Gord Tulloch

This blog by Gord Tulloch builds on Riddell and Moore’s earlier work (2015) to challenge a narrow view of ‘scale’, which often tends to be framed around volume and growth. In this expanded framework, there are five pathways to achieving scale, which can also be understood as different ways of having impact. Increasing numbers (scaling out), changing the rules (scaling up), changing beliefs (scaling deep), changing norms (scree-scaling), and changing the conditions that enable agency and distributed action.

Introduction to Theory of Change from the NESTA's DIY Toolkit

Every social enterprise should have a Theory of Change. A Theory of Change articulates the link between intentions, activities, outputs, and outcomes. It presents a hypothesis of how we think we can create change in the world and a tool to define goals and the pathways to reach them. Theories of change help:

• Develop a common understanding of what an intervention is trying to do 
• Strengthen the focus of interventions
• Provide a framework for tracking and assessing performance
• Enable the identification of complementary partners
• Support thinking and conversations around change
• Surface and make assumptions explicit.

There are a range of different frameworks used to develop Theories of Change. Most of them include similar elements and it is often a matter of preference as to what framework a social enterprise will choose to use. This short video from NESTA’s ‘DIY’ Toolkit outlines one option.

Theory of Change: Framework for Social Impact from SoPact

This video offers an alternative framework for creating a Theory of Change. It’s led by Chris Gaines from SoPact, a US-based social enterprise.

'Ventures at the Helm', Budzyna Et al.

This report provides an excellent guide to developing impact measurement and management strategies. Critically, it advocates for enterprises adopting different strategies depending on their stage of development versus a one-size-fits-all approach. Its key ideas are:

• Strategic: what can and should be measured depends on a venture’s visibility and control over impacts and how its business model and mission evolve.
• Adaptive: ventures cannot hold conditions constant or use the same metrics consistently because of their context, resources, and mission & strategy change.
• Iterative: along the impact measurement and management journey, there are ebbs and flows between sophisticated, multi-dimensional approaches, to simple and direct measures, and then back again.

The project also has a website that offers a range of templates and tools for both enterprises and investors. 

Common Approach to Impact Measurement

The Common Foundations from Canada provide easy-to-understand general guidance on measuring impact. The report focuses on five essential practices that comprise a minimum standard of impact measurement.

1. Describe your intended change.
2. Use indicators.
3. Collect useful information.
4. Gauge performance and impact.
5. Communicate and use results.

The authors recommend using The Common Foundations in collaboration with other tools and approaches, which they link to in the report.

Accessing finance

Securing 'the right' funding is a common challenge for social enterprises. This section will guide you through the different types of capital available, including grants, loans, equity investment, and crowdfunding. You'll also learn what's required to develop an investment case and build relationships with impact investors.

Resources

'Prepare for funding', SEFA

This document is a guide created by SEFA, a social finance organisation, outlining four key areas (Purpose, Plan, Profit, and Prudence) that social enterprises should focus on when preparing for funding. It provides practical advice on how to articulate an organisation's mission, demonstrate operational capabilities, showcase financial sustainability, and manage risks effectively. This guide offers insights into what funders and investors look for, and helps social enterprises position themselves for securing funding and building long-term partnerships that can support their growth and impact.

'Impact Investment Playbook', Impact Investing Hub

This resource is a free, self-directed Impact Investing Hub Playbook developed by the Social Impact Hub to support the Australian impact investing ecosystem. It's designed to build capacity for impact investors, advisors, and organisations seeking investment. The Playbook was created with input from the Social Impact Hub's Professional Impact Network, which consists of consultants and advisors with deep sector and technical expertise. The Playbook is structured in modules that can be accessed in any order, allowing users to focus on specific topics, case studies, activities, or templates based on their individual or organisational needs. Currently, the Playbook offers three modules: Impact Investing 101, Impact Measurement 101, and Diversifying Revenue 101 (which is specifically designed for Social Enterprises and Not-for-Profits). This comprehensive resource aims to enhance understanding and capabilities within the impact investing field in Australia.

The Funding Centre

The Funding Centre is a portal providing information on grants and fundraising in Australia. It is an initiative of Our Community, a social enterprise that provides advice, tools and training for Australia’s community sector, as well as services for business and government.

Social Investment Explained, Big Lottery Fund

"Social Investment Explained" was produced by the Big Lottery Fund and Social Enterprise UK. It aims to help community and social enterprises understand investment options and readiness requirements. It provides an overview of what social/impact investment is, why it's important, what types are available, and helps organisations determine if seeking investment is right for them and how to become "investment ready". The guide covers different scenarios for why organisations might seek investment and outlines various financing options. While it is primarily developed for the UK market, it is an accessible and excellent resource, and most content is transferable to the Australian context.

'Social Investment Manual: An Introduction for Social Entrepreneurs', Schwab Foundation for Social Entrepreneurship

This was published in 2011 but is still an excellent resource. The "Social Investment Manual" was developed by the Schwab Foundation for Social Entrepreneurship and technical experts. It provides guidance for social entrepreneurs on how to access and work with social investors, covering topics like types of financing instruments, finding investors, negotiating terms, and measuring impact. The manual also includes extensive listings of social investors, funding platforms, and other resources in the social investment landscape.

Raise Finance, BCCM

An introduction and resource portal on capital raising for cooperatives by BCCM, Australia's peak body for cooperatives and mutuals.

The Community Investment Handbook

The Community Investment Handbook is a guide for communities looking to establish co-operative enterprises that serve their needs and aspirations. It explains how cooperatives function as self-help organisations governed by national legislation, with the ability to raise funds similarly to companies. The handbook offers guidance for communities interested in forming cooperatives to create their own circular economy, as well as information for practitioners about the regulatory environment for cooperative fundraising.

Getting to market

To achieve your impact goals, you need to get your products or services into the hands of your target customers. In this section, you'll learn about market research, empathy mapping, brand building, the marketing and sales cycle, social procurement, and payments for outcomes. Many of the resources explore the unique market challenges and opportunities for social enterprises.

Resources

The Brand Pyramid and Keller's Brand Equity Model, branding frameworks

The Brand Pyramid and Keller's Brand Equity Model are complementary frameworks for understanding and building strong brands. The Brand Pyramid illustrates five stages customers go through in developing brand loyalty: Presence, Relevance, Performance, Advantage, and Bonding. Keller's model, depicted as a four-level pyramid, focuses on how companies can build brand equity: Brand Identity, Brand Meaning, Brand Response, and Brand Relationships. Both models emphasise the importance of understanding customer perceptions and emotions, and creating positive brand experiences. 

A Guide to Empathy Mapping, Atlassian Team Playbook

This resource provides a guide to conducting an Empathy Mapping exercise, a technique used by teams to better understand their customers' needs and experiences. It outlines a step-by-step process for creating empathy maps, including preparation, running the session, and determining actionable insights from the exercise. The guide emphasises the importance of basing the empathy map on real customer data rather than assumptions, and suggests ways to use the resulting insights to improve products or services.

A Beginner’s Friendly Guide On How To Conduct Market Research, Sloovi

This concise resource provides a comprehensive guide on how to conduct market research, aimed at beginners. It explains the importance of market research, outlines different types and methods, and offers a step-by-step process for conducting research. The guide emphasises the critical role of market research in understanding customer needs, identifying opportunities, and making informed business decisions. It also discusses the implications of ignoring market research and provides tips on effectively communicating research findings.

'Go-to Market Strategies', Harvard Innovation Labs

This is a long-form video lecture from Harvard Innovation Labs for conventional start-ups and business, but it provides a comprehensive framework for thinking about and planning 'go-to' market strategies. This includes developing a "brand essence" and integrating other key assets into a marketing and sales cycle. 

25 of the Best Marketing Strategies for Social Entrepreneurs

This website provides a concise guide and portal to 25 marketing strategies for social entrepreneurs, covering topics like social media marketing, content creation, SEO (search engine optimisation), email marketing, and paid advertising. It offers practical tips, best practices, and resources for each strategy to help social enterprises build their online presence, engage with their audience, and grow their impact. This guide provides actionable advice tailored to mission-driven organisations, helping them navigate the digital marketing landscape and effectively promote their cause while growing their business.

Social Procurement Fundamentals for Social Enterprises, Social Traders

This video tutorial covers what social procurement is, key drivers, how the Social Traders marketplace works, and what you need for your social enterprise to be ready for social procurement.​ It includes two parts. Part 1: Understanding what social procurement is, key drivers and how Social Traders’ marketplace works. Part 2: Understanding what you need for your social enterprise to be ready for social procurement.

'Social Procurement Document Library', Victorian Government

This web portal provides access to a library of documents related to Victoria's Social Procurement Framework, which governs how the Victorian Government undertakes social procurement when procuring goods, services and construction. It includes the framework itself, case studies, buyer guidance documents, and other resources. This information provides insight into how a government entity approaches social procurement. For social enterprises, it offers guidance on how to engage with government buyers, and demonstrates the types of social and sustainable outcomes a government is likely to be seeking to achieve through its procurement activities.

'Outcomes Funds: Explained', Centre for Social Impact

This guide by CSI explains what an outcomes fund is - a financing mechanism that pools funding to support organisations addressing social issues, with payments tied to achieving specific measurable outcomes. It outlines the key characteristics, benefits, and development process of outcomes funds and includes links to other resources. These types of funding mechanisms are likely to become more common over the coming years and could potentially expand revenue options for social enterprises. Learning about them will support thinking and planning around collecting data and adopting evidence-based approaches.

Coming soon

Stay tuned as we continue to build out "Starting and running a social enterprise". Other topics which will soon be included are:

• Legal and governance
• Communications and stakeholder engagement
• Pitching your business
• Building and managing teams
• Other useful learning platforms

Understorey points to a range of quality resources that help the sector to learn and exchange about social enterprise. Do you have a good resource you would like to recommend? Share it with us here.