abc - innovation book for social enterprises

8/18/2019 ABC - Innovation Book for Social Enterprises

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ABCLAPPEENRANTA UNIVERSITY OF TECHNOLOGYLUT LAHTI

INNOVATION BOOK FOR

SOCIAL ENTERPRISES


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ABCLAPPEENRANTA UNIVERSITY OF TECHNOLOGYLUT LAHTI

INNOVATION BOOK FOR

SOCIAL ENTERPRISES


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AUTHORS

Virpi Koskela, Tuija Oikarinen, Suvi Konsti-Laakso,

Suvi-Jonna Martikainen, Helinä Melkas

GRAPHIC DESIGN AND COVER ILLUSTRATION

Petri Hurme, Vinkeä Design Oy

PHOTOGRAPHS

Virpi Koskela ja Suvi-Jonna Martikainen

TRANSLATION

Sophy Bergenheim, Aakkosto Oy

Lappeenranta University of Technology

LUT Lahti

LUT Scientific and Expertise Publications

Tutkimusraportit – Research Reports No. 31

ISSN-L 2243-3376

ISSN 2243-3376

ISBN 978-952-265-759-6 (PDF) (electronic publication)

Original Finnish version “YYAapinen –

yhteiskunnallisen yrittämisen innovaatiokirja” (2014)

ISBN 978-952-265-654-4 (printed publication)


Swedish version

“ABC – Innovationsbok för samhälleliga företag” (2015)


Lahti 2015


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Foreword 6

A

1. Innovation Dictionary of the ABC Book

for Social Enterprises 8

2. The History of Social Enterprises in Finland– A Short Version 12

3. Viewpoints on Social Enterprises 13

B

4. How to Get Started as a Social Entrepreneur 20

C

5. How to Maintain and

Disseminate Social Activities 26

6. Where Could the Path Lead? 32

Afterword 36


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Foreword

This innovation book for social enterprises furthers

the cause of sustainable development and holistic

innovation. It is aimed at everybody interested in

the activities of social enterprises. It can serve as

a resource for regional actors, such as municipali-

ties or organisations or funds for regional develop-ment. The book is intended to raise questions and

thoughts, rather than provide answers. It is meant

to inspire and encourage. Hopefully it will also

increase understanding of social enterprises and

their importance for readers who are not yet that

familiar with the concept.

The innovation book is also available in electronic

form at www.lut.fi/lut-lahti (“Julkaisut”, 2015).

Lahti, February 2015

The authors


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A


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1. Innovation Dictionary of theABC Book for Social Enterprises

Innovation = a product, service or

mode of operation that has been

adopted or realised.

Social enterprise = a company that focuses not only

on business activities, but also strives to solve socialor environmental problems through its activities.

Social enterprises can further their social goals both

through their own activities and by using most of their

profits in a way that furthers the cause.

www.avainlippu.fi/en/symbols/finnish-social-

enterprise-mark

Practice-based innovation = the idea

for a new product, idea or mode of

operation is born through a practical

(problem) situation, and often involves

the cooperation of experts from

different fields. The innovation itselfis born by experimenting, doing and

learning in collaboration at the intersec-

tion of different knowledge areas.

http://www.avainlippu.fi/en/symbols/finnish-social-enterprise-markhttp://www.avainlippu.fi/en/symbols/finnish-social-enterprise-markhttp://www.avainlippu.fi/en/symbols/finnish-social-enterprise-markhttp://www.avainlippu.fi/en/symbols/finnish-social-enterprise-mark


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Work integration social enterprise (WISE) = a social

enterprise that seeks to ease a difficult employment

situation by employing disabled and/or long-term

unemployed people. The activities of work integration

social enterprises are based on a law that came intoforce in 2004. The objective is to offer employment

opportunities for disabled and long-term unemployed

people. At least 30 per cent of a WISE’s employees

must be disabled or long-term unemployed. The

Ministry of Employment and the Economy maintains a

register of social enterprises.

www.tem.fi/en/enterprises/social_enterprises

Job bank = the job bank trial is a project run by the

Ministry of Social Affairs and Health, which involves

developing a business model to facilitate the employ-

ment of partially disabled and long-term unemployed

people, young people without a first degree and other

people who are at a potential disadvantage in the

labour market. The objective is to create business

terms and conditions and a common operating

principle for job banks, to integrate job pools as part

of job bank activities, to improve and develop work

incentives, to employ people who are in a difficult

position in the labour market, to assess the need

for public assistance in job bank activities, and to

organise job bank activities on a nationwide level. The

job bank trial is one way of organising and supporting

the creation of ‘common good’.

In Finland, the concepts of work integration social enterprise and social enterprise

are easily confused. The Finnish term for WISE is ‘sosiaalinen yritys’ (‘social

enterprise’), whereas social enterprise is ‘yhteiskunnallinen yritys’ (‘societal

enterprise’). The confusion stems from the English word ‘social’, which has the dual

meaning of social/societal, which often leads to translation difficulties. In this case, it often

raises the misconception that a social enterprise operates within the field of social care.

It could be useful to add definitions for social enterprises according to their field: an

environmental social enterprise, for example.

In other words, a social enterprise can operate within any field, just like any ‘ordinary’

company, but in addition to business operations, a social enterprise strives to produce

common or social ‘good’ for the environment or some community.

http://www.tem.fi/en/enterprises/social_enterpriseshttp://www.tem.fi/en/enterprises/social_enterprises


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Job bank enterprise = a limited company or

cooperative that engages in business activities

and employs people at a potential disadvantage in

the labour market (partially disabled, long-term

unemployed, young people without a first degree)in their own production, through subcontracting

or by leasing workers and finding job placements

at client companies. Job bank enterprises

canvass and strive to develop their workers’ skills

alongside their work duties and lease workers

according to the needs of client companies. The

employment relationship between the worker and

the job bank enterprise remains in force during

lease periods. When the worker is not working,

they can participate in education or training.www.tyopankki.fi/info (in Finnish)

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A social innovation can be defined in several

different ways. In this book, a social innovation

refers to a new mode of operation which addressesthe social needs of an individual or community,

and thus improves quality of life and well-being. A

social innovation is often the result of the creative

activities of an individual, group or community,

which combines existing provisions, practices and

know-how in a new way. In other words, a social

innovation means seeing a familiar thing from a

new perspective; a new kind of comprehensive

understanding, which teaches people to operate in a

new way. Examples of social innovations include the

maternity package, paternity leave, Nordic walking,

the Common Responsibility Campaign and free-of-

charge school meals.


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Sustainable development thinking is based on the

concern about inequality between people and the

vitality of ecosystems that form the basis for life.

Sustainable development focuses on three themes:

• ecological sustainability

• economic sustainability

• social and cultural sustainability.

Sustainable development is social change that

occurs and is guided on a global, regional and local

level. Its objective is to ensure that present and

future generations have the opportunity to have a

good life. Sustainable development has played an

important role in the strategies and programmes ofthe Finnish government since 1990.

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Social sustainability is one of the focal points of

sustainable development. Its purpose is to diminish

inequality between people, to ensure that every-

one’s basic needs (such as food, education, freedom

of speech) are met and to create preconditions that

allow individuals to take care of their own well-

being. Current social challenges in Finland include

unemployment, social exclusion, ensuring the

future activities of public services, and the growth

of income inequality.

As far as innovation is concerned, what is essential is to combine things in a

new way. A social enterprise is in itself a form of innovation, which combines

the creation of social good and entrepreneurship.

In the future, keep your eyes peeled and your ears to the ground: what is the

problem? Innovations spark new innovations; social enterprises could seize the

opportunity and sniff out new opportunities to create new practice-based innovations.


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2. The History of Social Enterprisesin Finland – A Short Version

Social enterprises are a relatively new and unknown phenomenon in

Finland. Around the world, social enterprises have been seen as a solution

for society’s ‘wicked problems’, such as unemployment, social exclusion or

environmental problems. A social enterprise is thus a broader concept than

the work integration social enterprise, which according to the law focuses

on social employment. There are different views on how the phenomenon of

social entrepreneurship was born and how the concept should be defined,

but the central issue is around maximising social value.

Even though the ‘social enterprise’ is a concept of the 21st century, theroots of the phenomenon date further back in time. The early 20th century

work centres, which later became Christian settlement houses, and rural

cooperation activities and cooperative social insurance funds were early

manifestations of the social mission. One of the most famous of these is

the Linnanmäki amusement park. In 1950, six associations engaged in

child welfare founded the Linnanmäki amusement park, and a few years

later, the Children’s Day Foundation. The purpose of the foundation is to

raise funds for child welfare work in Finland by maintaining and developing

the Linnanmäki amusement park. During the latest years, Linnanmäki

has raised an annual profit of 3 million Euros for its social mission. TheChildren’s Day Foundation was established by the Swedish-speaking

Barnavårdsföreningen i Finland (the Finnish Child Welfare Association), the

Federation of Mother and Child Homes and Shelters, the Central Union for

Child Welfare, the Mannerheim League for Child Welfare, Parasta Lapsille

(The Best for Children) and Save the Children.

The concept of social enterprise (sosiaalinen yritys) was coined in the

mid-1990s. Social enterprises were born out of business development

activities within social workshops and work cooperatives. The Act on Social

Enterprises entered into force in 2004. According to international definitions,these Finnish social enterprises are work integration social enterprises.

In 2011, the Finnish Social Enterprise Mark was launched as a result of work

by the Ministry of Employment and the Economy, and is governed by the

Association for Finnish Work. Holders of the mark commit themselves to

the criteria for social enterprises, which include, among others, restrictions

on profit distribution, transparency of activities and the generation of social

good. In 2014, nine social enterprises founded the Finnish Association for

Social Enterprises to represent and further the cause of social entrepreneur-

ship. The association is a member of the Confederation of Finnish Industries

(EK). Elsewhere in Europe, social enterprises have been attracting broader

interest for a long time; a similar development is probably coming in Finland.


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3. Viewpoints on Social Enterprises

Social enterprises are traditional enter-prises as well. What makes these enter-

prises social is the fact that the operation

of the companies focuses, in addition

to the traditional issues, on, e.g., social

sustainability or the renewal of society.

Social enterprises can also be based on a

philosophical viewpoint: a strong ethical

perspective, for example.

You need to master a lot of things as an entrepreneur.

Substantial know-how is paramount. In addition,

you need to know how to manage your business:

production, marketing, accounting and HR. You have

to be able to develop your business: envisage, set

goals, plan, organise and implement. Follow-up and

evaluate. You have to be a good business partner and

have good communication skills. You need to believe

in your own competence, be brave, take risks, take

the initiative. You must be independent, persevering

and goal-orientated. Oh, and of course you have to be

eager to learn new things!

3.1 Entrepreneurship

The direct and indirect implications of private enterprises on employment,

well-being and the success of our national economy are significant. New

means for supporting Finnish enterprises are being researched and devel-

oped, and there is much discussion regarding the topic. A great deal of effort

is being put into furthering the establishment of new companies and thegrowth and internationalisation of existing companies (see, for example, EK’s

website: ek.fi/mita-teemme/yrittajyys/, in Finnish).

Being an entrepreneur is a tough job – but also very rewarding at its best.

When entrepreneurship and companies’ business activities are observed

from the perspective of an ‘ordinary’ company, it is clear that many traits are

needed in order to be successful.


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The same skill set requirements apply to a social entrepreneur as well. The

business activities of a social enterprise and a regular enterprise can be very

similar. However, the important difference is that a social enterprise does not

only seek to generate profit for its owners, but acts as a tool for doing some-

thing beyond that: generating social good. The results of a social enterprise

cannot be evaluated using the same indicators as a regular company.

What, then, is required of a social entrepreneur, compared to an ordinary

entrepreneur? In Finland, the criteria of the Association for Finnish Work are

usually used for defining social enterprises (www.avainlippu.fi/en/symbols/

finnish-social-enterprise-mark). The most internationally recognised

definition has been formed by the EMES European Research Network:

» commercial production of products and/or services → distinction

from the third sector (activities of associations and organisations)

»

freedom of decision-making → the company cannot be under thecontrol of an outside owner or the public sector

» economic risk → the operations must generate enough profit to

finance production costs

» wage paid for made work → business activities cannot be based

solely on volunteer work or business support

According to EMES, the criteria for a social enterprise are:

» the objective is to generate benefits for the community

» the activities have started as a joint effort and shared objective

of a community (group)

» rights to make decisions are not tied to ownership

» engaging decision-making practices, shared leadership

» restrictions on profit distribution

Even one person can establish a social

enterprise by themselves to further

their goals. Is it still important that the

objectives and values of the enterprise

are taken into account and shared with the

employees at the time of recruitment or as

the activities are kicked off, at the latest?

http://www.avainlippu.fi/en/symbols/finnish-social-enterprise-markhttp://www.avainlippu.fi/en/symbols/finnish-social-enterprise-markhttp://www.avainlippu.fi/en/symbols/finnish-social-enterprise-markhttp://www.avainlippu.fi/en/symbols/finnish-social-enterprise-mark


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Well, by engaging the people

who are truly affected by the

enterprise’s cause as soon as the

starting phase…

By paying special attention to

making sure that the workers can

both perform their work in a mean-

ingful way and develop their work.

I jumped here from page 32.

There’s a whole lot going on about

these big issues in the rest of the

book. Hey: keep on reading!

I heard that social enterprises

can be used for solving society’s

wicked problems… Oh yeah: how?

… and by genuinely working

together. Without clutching on tothe role of the heroic entrepreneur

and individual performance!

By seeing to the quality of work life.In everyday work life, it is important

to pay attention to the personnel’s

well-being and equality.


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3.2 The challenges of reforming society

Our society is in a state of constant and rapid change. There are more

challenges than we have time to address – with conventional means. How will

we solve the challenges and problems related to unemployment, the ageing

population, loneliness and pollution? These ‘wicked’ problems are multi-

faceted, and it is challenging to develop sustainable solutions. Social enter-

prises can act now and in the future as one of the keys for finding solutions.

The changes occurring in Finnish society are not only about reforming thesocial and health care sector, for example, but about taking into account

everything that is going on around us and in our environment. Many

organisations are more and more aware of how they can participate in

the surrounding world through their own values and actions. The ‘neigh-

bourhoods’ within enterprise and organisation fields and local actors are

increasingly important partners – good neighbours have become a part of

the brand and profile of every self-respecting company. Social and ecolog-

ical viewpoints have gained foothold in business strategies.

The procurement rules of orderer-producer services are undergoingchanges which are to the benefit of social enterprises in Finland as well,

where services form the largest share of total production. We are seeing,

and will be seeing, the birth of new, less hierarchical organisations, which

are not governed by the rules of economic profit maximisation, but are

based on more sustainable values, transparent modes of operation and

flexible employment. At the same time, consumers have grown to be

increasingly aware of the value choices made by service producers. Indi-

vidual municipalities and organisations operating within municipalities and

regions also make themselves known to consumers through their values.

A consumer operating from a sustainable perspective puts thought into

their selection of a company when they need a service or product. Has the

company taken account of social sustainability (e.g. the social exclusion risk

of young people, or the growing unemployment rate) or other perspectives

of sustainable development (e.g. climate change or biodiversity)? What kind

of energy does the company use; do they recycle or favour local production?

Is the service or product that the company offers a practice-based innova-

tion, created collaboratively to address genuine ‘grassroots-level needs’?

Does this product cater to the needs of the consumer, who is often looking

for solutions to practical problems?

So it seems that all this change and

turmoil in society is a million-dollar

question for social enterprises…


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Society is thus changing on many levels – in terms of individuals’ values,

attitudes and methods of action, organisations and sectors, nationally and

globally. In a thoroughly networked world everybody’s choices and modes

of action affect the whole.

3.3 The philosophical perspective

From the philosophical perspective of sustainable development, social

entrepreneurship is linked with socially, ecologically, culturally, economi-

cally and spiritually sustainable values – and ethics. The metaphor that can

be used to describe this relationship is one of the world’s oldest symbols:

The Tree of Life. The figures that gather under and around the Tree of Life

represent the kind of ‘common good’ that everyone living on this planet

needs now – in a time of deforestation, climate change, pollution, erosion,

famine, inequality, wars and diseases – maybe more than ever.

The perspective linked

with the Tree of Life

is connected to an

environmental or eco

philosophy that deals

with the interaction

between man and nature. In order for the

human race to survive, ‘ego philosophy’ must

turn into ‘eco philosophy’. We need a paradigm

leap from accumulating personal wealth and

utilising natural resources to a more plane-

tary, wholesome way of living – a leap from

exploitation to collaboration.

The Tree of Life way of thinking originates from native people and old

cultures. It has been revived in recent years to develop the innovativeness

and leadership of organisations, among other things. Now, in an era

of crisis, we are also experiencing a time of communal and ecological

convergence, as if we were ‘waking up from a dream’.

Life on this planet is sacred, and maintaining life makes our existence

meaningful. This philosophically virtuous and ethical concept is beginning

to replace the mechanistic conception of the human as a mere cog in the

machine. People who have had enough of the treadmill have noticed how

the experience of meaningfulness strengthens commitment and creates

more sustainable attitudes and methods of action, with regard to work as

well as everyday life in general.

Social entrepreneurship is suited to a Tree of Life way of thinking, since the

space for common sharing (which we will talk more about in Section 5.3)

I can see far into the future from

the branches of the Tree of Life! All

the way to my, my children’s and my

grandchildren’s future.

Woof! Woof!


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required for creating and running a social enterprise is a circular, demo-

cratic, socially and ecologically sustainable ‘space’, in which the ‘common

good’ is taken into account – just as with the Tree of Life.

The Tree of Life represents the heart that has a multifaceted connection

with its surroundings. All of its parts are equally important: the seeds,sprouts, trunk, roots, branches, leaves, flowers and fruits. Cultures that

led a more sustainable life than current generations have for thousands of

years gathered around large trees (‘wise professors’) to teach, learn and

spread information – experience, in other words.

In our current everyday work life, the space for common

sharing by living organisms, organisations, is a concrete

example of such a ‘common log fire’ or ‘cross-pollination’

that is needed for observing things globally from the

perspective of shared life.

How does your workplace/organisation/job take the

‘Tree of Life’ into account? In what ways do you further

the ‘common good’?

How could the ‘common good’ be measured?

In work life and entrepreneurship we value the

head. We think with our mind, even if it is matters

close to our hearts that we are willing to fight for.

If your heart says one thing and your mind the other,I suggest that you choose whichever furthers life.


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B


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The ‘Dreams and Fears’ workshop

run by the preliminary board,

summer 2012, before the actual

business idea workshops.

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4. How to Get Startedas a Social Entrepreneur

Establishing a social enterprise is not necessarily that different from

establishing a regular company, but on the other hand it can involve a

significantly different process. There are many kinds of variations. Social

enterprises differ, for example, in their recruitment processes and in how

they initiate the founding process.

The following describes the first phases of the foundation of a social

enterprise; where it all began and how the ideas for the business were

gathered. Among its differences from an ordinary company, in our example,

the process was not initiated by an entrepreneur with a business idea whichwas entirely deliberate. Instead, hundreds of mental health care rehabil-

itation clients were asked to throw in ideas about what kind of company

they might want to start. In order to bring up, distribute and develop ideas

from such a large and heterogeneous group, non-conventional working and

innovation methods were needed. Functional expression methods were

utilised to process the business ideas created at the common workshops.


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An example of founding a social enterprise:Business idea workshops at the Beefor Common Economy

During 2012–2013 in Lahti, a social enterprise was planned in cooperation

with mental health care rehabilitation clients and the Bee for Common

Economy (Yhteisen talouden talkoot), i.e. four third-sector actors. The

Social Psychiatric Foundation

of Päijät-Häme (Päijät-Hämeen

sosiaalipsykiatrinen säätiö), the

Family Association Promoting

Mental Health and Lahti

Clubhouse gathered business

ideas from their members in

workshops organised by the

Lahti School of Innovation of Lappeenranta University of Tech-

nology during autumn 2012. Applied art and silence methods,sharing personal experiences and developing these ideas

further in groups were selected as the means for gathering the

Could opportunities and new work-

places be created on the basis of a

community’s know-how and passions?

What if having a sense for such things

is having a true nose for business?

The workshops for innovating social enter-

prises worked on the participants’ own

dreams regarding future businesses, among

other things. Here is one dream collage.


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Testing and developing ideas in the

business idea workshop, autumn 2012.

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ideas. Engaging exercises helped participants to detach from conventional,

mind-focused brainstorming and instead adopt new perspectives – andreach a state of common innovation. Six workshops lasted one afternoon

each, with 10–30 participants per workshop.

The following pages describe the basic structure of the workshops, which

shows how creative, functional methods are well-suited for finding new

ideas. Throwing around ideas is not a matter of a dialogue inside one’s head,

or a discussion within a group, but involves the whole human life experience,

and first and foremost, experiences of meaningfulness. The workshops

aimed to bring out every participant’s own experience of where, how and

why they had felt they were doing ‘something meaningful’. This also facili-

tated identifying people’s own inner potential, since the ‘business opportu-

nity’ is closely linked to the moments and experiences of human life.

The ideas born during the workshops were gathered on both the ‘idea wall’

and the ‘idea form’ specially crafted for the business idea hunt. The work-

shops generated over a hundred business ideas. The par ticipants them-

selves selected the ideas that they wanted to develop further. During 2013,

two ideas progressed further, one of which went all the way to planning

the business model and the testing phase. In 2014, it was time for the pilot

phase, which turned out to be successful. Now, on the basis of the pilot, a

Lahti-based social enterprise is about to see the light of day. It offers peer

support services for mental health care rehabilitation clients.


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WORKSHOP MODEL FOR THE BUSINESS IDEA HUNT

Opening the workshop

1. Introduction

2. Warm-up

3. Orientation

4. Improvisation

5. Silence

6. Opening up to one’s own experiences /

mental exercise

7. Sharing experiences /

developing ideas further

8. Presenting business ideas

Detailed description of the content:

1. Introduction:

The ‘person in charge’ of the project

and the leaders of the workshopintroduce the idea of the afternoon,

i.e. ‘leave your brain in the cloakroom’,

in order to open up the participants’

experiences and imagination to finding

new perspectives and ideas.

2. Warm-up:

Who am I and where do I come from?

What mood am I in today? What have I

brought along?a. Suggestion: the ‘creative child’ intro-

duction: Introduce yourself ‘with the

wrong hand’, ‘new name’ and ‘new

title’. Your new name consists of your

own second name and your mother’s

maiden name; your title stems from

your childhood idol (for example,

what did you play as a child? Who

did you admire)? For example:

‘Alice Jones, country singer’. Every

participant introduces themselves to

the group in turn.

b. Suggestion: ‘The Finnish map’

exercise: The participants form an

invisible map of Finland on the floor:

where am I from? (The leader marks

south and north for the participants;

chatting with the other participants,

everyone locates their own spot on

the ‘map’.)

Variation 1: The same exercise, with

the following addition: ‘my roots andhow local people have affected me’.

For example, whose memory do you

cherish and why?

Variation 2: A typical description of

your home region / share a memory

related to the place. Group discus-

sion, after which the group leader

highlights a few experiences which

focus on today’s theme.

3. Orientation to the theme:

Inspiration is sought from ‘work

pictures’. The participants choose

from a picture selection compiled for

the workshop a picture that repre-

sents their own vision: what picture

illustrates what it could be like to

work in the company being planned?

The participants are then divided into

groups based on the pictures. Groupdiscussion: what kind of company

could the people in the pictures form?

Thereafter the groups play statues

that form a still picture. The picture

illustrates a situation from the future:

what is happening in the company on

an ordinary Wednesday at 10.45 a.m.?

As each group plays statues, the other

participants discuss what is going on

with the statues and give the statues(and company?) names.


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4. Improvisation:

According to Keith Johnstone’s

improvisation philosophy, creativity is

born when people’s ordinary thoughts

encounter each other in an accepting

atmosphere. In this way, thoughts caninteract and change in the interaction.

Improvisation is the background

behind the ‘Yes, and …’ exercise, which

serves as a basic principle and rule for

throwing ideas about and commenting

on others’ ideas. The objective of the

exercise is to accept every idea raised

within the group with enthusiasm, and

to take it further with one’s own idea,

all the time adjusting to new ideas in

an accepting way. The magic words

are ‘Yes, and …’ Simply put: “I have

an idea about a café …” “Yes, and you

could organise fly tying workshops

there …” (not: “I don’t know, I think

there are too many cafés as it is, but

you could sell fishing equipment …”)

The goal is to reach the source of

creative thinking without press and asa group joint effort.

5. Silence:

The leader asks the participants to

close their eyes and seek a position

they can maintain without moving for a

while. People either sit in their chairs

or lie on their back on the floor, hands

and feet relaxed, but with a straight

spine. Breathe in deep breaths and

guide your breathing and conscious-

ness to the lower abdomen. Create an

image of breathing ‘in and out of your

navel’ to the rhythm of your natural

breathing. Release all tension in the

body. If you notice thoughts coming,

just let them come and go: do not

hang onto them. Once you concentrate

on following the movement of your

breathing, the thoughts will dissolve.Continue for 10–20 minutes. Try to

stay as still and quiet as possible.

6. Opening up to one’s own experiences

/ mental exercise:

The leader asks the participants,

who are still in a state of stillness

and silence, to let images rise to their

mind: images of moments when theyfeel they have done something with

such enthusiasm that they forgot

about themselves, something that was

enjoyable, something ‘meaningful’:

Think about experiences when

you have done something that felt

meaningful, when you have been

truly present in what you do. Observe

your memories and experiences and

choose one to share with the group.

Pay attention to the details of the

experience: What? Where? When?

With whom? Why? The meaning-

fulness and relevance of work are

important criteria for the quality of

work. In this exercise, the participants

bring to mind their experiences of

meaningful doing and work.

7. Sharing experiences /developing ideas further:

The participants write down their

experiences and the ideas that arose

from them on post-it notes, which are

gathered on a large wall. When the

wall is complete, all of the participants

can move and divide the notes with

similar themes into groups. Once

the grouping has been done, the

participants form groups according to

the groups formed by the notes. This

section of the workshop is called the

‘space for common sharing’, which

was mentioned previously.

8. Business ideas and improvisation:

The groups develop common expe-

riences and ideas into business ideas,

which are then presented to the other

groups through posters or adverts.At this stage, it might be useful to

remember the ‘Yes, and …’ principle.


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C


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5. How to Maintain andDisseminate Social Activities

A social enterprise must get by in the market through its own competitive

advantages, just like a traditional company. A social enterprise must also

reform itself, just like a traditional company. And being innovative is not any

easier in a social enterprise than it is in other kinds of enterprise. How do

you maintain the drive and passion for social entrepreneurship, then? How

can continuous innovation support the vitality of social enterprises?

5.1 Identify and communicatethe impact of social entrepreneurship

It is not always easy to identify impact. We get easily caught up in what

we want to do. We may even recognise what results our actions have. But

what do these actions and results affect, in the end? Who benefits and

how? It is central to argue how you believe your company will achieve the

desired results: what is the connection between actions and effects? What

benefits are sought through the social enterprise, from the perspective of

the entrepreneur, employee, community, partners, region, branch, Finland,

Europe or the whole world?

Social enterprises can be pioneers that grab hold of new things as society

changes, and do things differently. In order to create innovation, you must

first identify the effect you wish to have, and then work out how this can

be achieved. Social enterprises should brace themselves for being asked

about their impact and how it can be demonstrated. Once you know what

you affect and how, your business becomes more meaningful for yourself, it

is easy to share your viewpoint with your clients, and you can demonstrate

the effects of your business to interest groups.

What is the engine of your field of operation?

What kind of drive would be needed within

your field? And what about our common field of

operation, the whole planet?

How do you keep your own passion alive? How

can you spark that passion in your clients and

interest groups?


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The benefits and impact of my bistro? You

mean in addition to providing fun work for my

employees and myself?

Mary wants to become an entrepreneur in the restaurant business and employ

herself. She wants her restaurant to act as a meeting place for the local commu-

nity and thus create community spirit. Her wish is to create a space for presenting

young artists’ artwork. She wants to offer people healthy food, whose preparation

creates jobs for people who are in a difficult position on the labour market and

immigrants, as well as internships for students. Regarding raw materials, shewishes to employ local food producers, which would also keep the transportation

distance short.

Mary’s bistro’s impact on the city:

» the company’s tax revenue balances

the city’s economy

» unemployed citizens get jobs; income

support expenditure and social

exclusion is decreased

» increases well-being and communality

» develops multiculturalism

» promotes equality

» improves the cityscape and the

city’s image

» inspires others to start their own

social enterprise

» enlivens the local culture and

art life and highlights the skills

of art students

Mary’s bistro’s impact on the employee:

» work and income

» learning and developing skills

» mental well-being, an experience of

meaningfulness, a sense of belonging

» facilitates young people entering the

labour market

» helps immigrants to integrate

into society

» gives a partially disabled person the

opportunity to work according to their

own strength, or a person who is soon

to retire the opportunity to ease their

workload gradually

» according to some studies, having

meaningful things to do is one of the

most important factors contributing

to happiness!Source: Workshop organised by LUT LSI(20.3.2014), discussion between the facilitatorJaana Merenmies and the participants on how toidentify impacts.

C a s e s

t u d y : ‘ M a r y ’ s b i s t r o ’


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5.2 Familiarise yourself and understand theprocurements and strategies of your field

Social enterprises are client-orientated and engaging by definition. In inno-

vation activities, the client is a central, if not the most important, source

of information – after all, it is the client who decides whether a product

or service is worth buying. It is therefore advisable to take the client into

account from the very beginning; to try to understand the client’s world as

accurately as possible and to develop solutions for their problems. User

orientation also includes observation and, for example, stopping to think

about client feedback. What lies behind the words?

Where consumers and private companies are the masters of their own

funds, the public sector is a special case as a client. The procurement

activities of the public sector, such as municipalities and cities, are regu-lated by the relevant legislation, rules and regulations. When a company

receives a procurement request from the public sector, the process is

practically already hammered through and the only thing left is to see

that everything happens in accordance with the law. The process is like a

long-distance train pushing through, with no extra stops.

However, the procurement process is being reformed. The objective is

to update procurement methods so that they create opportunities and

encourage innovative procurements. Public procurements can affect young,

growing fields of business, in particular. In terms of efficiency and impact,for example, the social and health care sector needs innovative solutions.

However, the challenge for the municipal procurement organisation is to

recognise where services can be bought. It is important to develop new

approaches and to utilise networks to address this challenge. One new

approach is HankintaSampo.

HankintaSampo is a data-

base-based discussion and

communication platform,

through which even smallprocurements can be organ-

ised. However, the authorities

who are in charge of procure-

ments are not always aware of

how what seems like a small

amount of money to them can

be a vital deal for a small local

business. This is where good,

clear communication comes

into play.

Just a tip: build networks, inform

yourself about the municipality’s

strategy and use it to justify the

importance of your business.Identify your clients’ – e.g. the

social and health care field –

procurement practices and the

objectives of their procurement

programmes. Observe and

listen to the client. Engage your

employees in innovation and

development work. Participate in

your clients’ development projects

yourself. And try out new things,

learn from them, and try again!


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Also see the description

of the business idea hunt

workshop on page 23.

29

5.3 Utilise new methods

Finding new solutions requires new methods. The starting point for the

following method is a space for common sharing. The space for common

sharing refers to circumstances that allow equal sharing of experiences and

the fact that a shared understanding is formed and developed. The space forcommon sharing consists of the dialogue between engagement, participation

and involvement, in which everybody’s voice and experience is heard.

The space for common sharing comes in handy, for example, when you want

to change or develop the activities of a work team, community or organi-

sation. It facilitates a group-orientated, so-called new leadership, and the

employees’ stronger involvement in the organisation’s activities. And as has

been seen previously, these are often key components of a social enterprise!

The space for common sharing can be described as a three-stage process

as follows (adapted from Kaarina Mönkkönen):

1. Building a shared understanding

involves sharing experiences of the work organisation; its current

situation, its challenges and its successes. Through the sharing of

experiences, a so-called ‘shared understanding’ or ‘shared space’ is

formed, in which everyone is easily able to hear, listen and be heard.

2. Challenging through dialogue

involves pondering and addressing the arisen questions in a construc-tive manner, respecting and without judging others’ opinions and

experiences, even if they are very different from your own. This is

the only way to reach a sufficient level of understanding in order to

change modes of action.

3. Sufficient understanding

means challenging new perspectives and practising new ideas, for

example by starting a concrete change process – in collaboration.

Everyone is ‘in the same boat’ and committed to whatever happens next.


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Examples of different techniques for creatinga space for common sharing

The following section describes some methods

which can be used for finding new solutions.

Innovation session

The central issue in the innovation session method are ‘outside’ experts –

people who are not cooperation partners, but with whom a collaborative

relationship could have potential. The objective is thus to find completely

new viewpoints and solutions, maybe even radical innovations, by

combining fields of expertise in a new way. The innovation session is a

challenging method, because reaching a shared understanding between

experts and fields of expertise which are far apart requires hard work:

questioning and re-evaluating one’s own self-evident truths and premises.The ‘moderator’ or ‘chair’ plays an important role: their task is to foster a

fruitful dialogue between the different participants, which requires both

cognitive and social skills.

The client’s voice

Client orientation is the cornerstone for developing business activities.

But how can a company involve its clients in development work? And who

is the client? After all, the user and buyer of a service are not always the

same person or organisation. In such cases, both parties’ voices shouldbe heard in the development work. Traditionally, client orientation has

translated into companies asking for their clients’ opinions and feedback

on the company’s existing business and services. But what if you wish to

create something entirely new? The client cannot necessarily formulate

what service they would need, if they are not familiar with the latest tech-

nological development or what services and service providers exist, for

instance. To create new products and services, and modes of operation,

a process of collaborative creating is needed; a process that involves end

users, buyers, service providers and other potential partners innovating

together in a ‘yes, and …’ atmosphere and building a shared understandingof the possibilities of tomorrow.

The client parliament

When a service or product has awakened interest, clients who have experi-

ence of it are invited to the client parliament. They are interviewed and asked

to talk about concrete examples of their user experiences. The story theatre

method can be used for making experienced knowledge visible and heard.

Actors interpret and portray the clients’ experiences and thus provide a basis

and development method for the common discussion. The client parliamenthas been used for developing home care for the elderly and for making the

voices of the clients of adult education centres heard, among others.


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The talking stick

The participants are settled in a circle, seated or standing, around which

the talking stick, which gives its holder the floor, circulates from one

participant to the next. The length of comments is agreed upon beforehand,

and every participant must stick to the time limit. Everyone listens to the

person with the talking stick, without interrupting, commenting or judging.

This method enables even the quiet ones to get their voices heard. Respec-

tively, the more vocal ones learn to listen when others speak, without

interruption or other reactions.

Press-free innovation

The method for innovating is open acceptance: things do not have to be

‘either-or’; they can also be ‘both-and’. Remember ‘Yes, and …’!

Detective agency of non-clients

Non-clients are asked to find factors that could wake their interest for

trying or using a service. The non-clients also create a profile of them-

selves, for example on the basis of mini biography questions.

Finding the source of meaningfulness/relevance

The method’s objective is to find sources of meaningfulness by utilising

silence, meditation or writing (see, for example, the mini biography ques-

tions). Ponder what business activities could be like, if they were based onmeaningfulness.

Mini biography questions

The mini biography questions can guide individuals to their personal

sources of meaningfulness (the questions are based on the work of

everyday explorer and collective artiste Meiju Niskala):

1. The …

… best news …… most delicious meal …

… greatest idols …

… most communal experience of my life?

2. Realised dreams?

3. Dreams that have yet to become reality?

4. The greatest lesson I’ve learned?

5. My biggest accomplishment?

6. A life guideline or wisdom I believe in?

7. I get strength from … (write a list)


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6. Where Could the Path Lead?

This chapter attempts to map the future a little, largely through the words

of social enterprises themselves. Could you become a social entrepreneur

or a worker at a social enterprise? If you already are, what could you do

differently? Or how could you support social enterprises? What good could

they generate in the future?

The objective of businesses is to increase

growth, enter international markets, become

highly competitive and generate profits for their

owners…

What a leap, all the way from page 15! Dear reader,

now that you have come this far in this book, you

can answer the following question: is the purpose

of business different when it is evaluated from

the perspective of sustainable principles? Do the

goals change?

The primary criteria for a social enterprise are generating

social good, transparency of operations and restrictions on

profit distribution. Could the above-mentioned criteria form the

selling point of social enterprises? Do they attract clients?

Choose your image and brand so that they are

meaningful to you; so that you stand behind them

solid as a rock. What do you want to further?


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The image of business – what kind of ideas andpractices do you want to create and further?

The world changes and reforms, as do people’s attitudes and perspectives.

Ordinary people are becoming more and more aware of the powers and

choices that affect the environment, themselves and their communities.

People appreciate reliable, easily recognised brands and images that are

based on a comprehensive understanding of people’s everyday lives, values

and surrounding reality. It is already known that every mundane act and

action has an impact on the whole.

Workplaces and firms that take such things into account are the ones that

give birth and raise the future new life; a life very welcome in the business

world, as well.

Test your socialentrepreneurship potential

» Do you think something should be done about an issue you find important?

» Do you / your organisation / your network have concrete experience in

the matter?

» Could the idea be combined with the establishment of a social enterprise?

» Are you ready to share your ideas and thoughts with members of your

network who have similar viewpoints?

» Could you create a so-called ‘space for common sharing’ for gathering

thoughts and ideas?

» Do you want to send out a message that you can be trusted?

If you answered ‘yes’ to all or most of the questions above, you are a potential

(social) entrepreneur – and this book did not end up in your hands by coincidence.

The following pages envision the future, content and meanings of social enter-prises in 2024, according to social enterprises and entrepreneurs themselves.

Which branch will you climb onto?

Why don’t you

give it a try?


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In 2024, there are no

more divisions between

people! All kinds of

people are equally

represented and part of

the group.

Everyone who wants to

live communally gets to

join the community.

… people live in small

community houses or

housing estates, which

are social enterprises.

All companies, or at least

most companies, are

social enterprises!

Work life includes flexible

decision-making.

Environmental crises

force us to develop new

solutions…

Virtues and generating

good instead of material

things become the status

symbols!

People buy things only

for true needs and

things that are compre-

hensively good, not

only cheap.

People recycle, move

and travel sustainably

and are able to choosetheir services on

sustainable grounds.

For example, a bank or

insurance company!

Cooperation creates

sustainability in as many

life areas as possible.

In 2024

34


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… and there are other

kinds of funding than

project funding or

business support.

Everybody wins: the

individual, the company

and society!

The worker gets real pay

for a real job.

Sales work means

genuine communicationand interaction.

Companies are

profitable and have

their own personal

characteristics…

It is trendy and cool

to work in a social

enterprise.

The buyer and seller

work together for a

shared cause and goal.

Source: Workshop organised

by LUT LSI (14.5.2014), groupwork envisioning the future.

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Afterword

This book is the result of two projects by the Lahti School of Innovation at

Lappeenranta University of Technology. The Social Entrepreneurship in

Innovative Value Creation (SOCENT) project (2013–2014) was funded by Tekes

and was implemented in collaboration with the LUT School of Business. The

Päijät-Häme as the Leading Area of Practice-Based Innovation Activities

(Päijät-Häme maailman johtavaksi käytäntölähtöisen innovaatiotoiminnan

alueeksi) project (2011–2014) was funded by the European Regional Develop-

ment Fund, the Regional Council of Päijät-Häme and the City of Lahti.

The objective of the SOCENT project was to increase the understanding

of the operating environment and special characteristics of social enter-

prises, to offer participatory innovation support for social enterprises, and

to support the strategies and politicians who wish to support and further

the development and utilisation of the unused or underused intangible

capital of social enterprises and their employees.

The SOCENT project group at the Lahti School of Innovation consisted of

Senior Researcher Tuija Oikarinen and Project Researchers Virpi Koskela

and Suvi Konsti-Laakso. Professor Helinä Melkas acted as the responsible

director. Project Coordinator Suvi-Jonna Martikainen from the Lahti School

of Innovation also contributed to the creation of this book. In the early

stages, Project Coordinator Laura Mellanen participated in the project; wewish to thank her for documenting the workshops and for planning the book

and its visual appearance. Project Coordinator Hilkka Laakso has been a

valuable support in creating this book and throughout the project.

The authors of the book wish to send a warm thank you to Tekes – in

particular the supervisors of the SOCENT project, Mervi Pulkkanen

and Christopher Palmberg, as well as Minna Suutari, who acted as the

supervisor in the project’s early phase. In addition, we would like to thank

Kaisu Puumalainen, Helena Sjögrén and Pasi Syrjä, who participated in

implementing the SOCENT project at the LUT School of Business. Wealso wish to thank the steering group and the company and organisation

representatives who participated in the network event for social enter-

prises and the related three innovation workshops at Lahti in spring 2014.

A special thanks goes to the workshop facilitators, Jaana Merenmies

(Impact House), Minna Halonen (City of Lahti) and Jukka Lindberg (VATES-


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säätiö). These meetings clarified for us which themes we should select

for this book. The members of the steering group at the end of 2014 were

Tiina Hanhike (Ministry of Employment and the Economy), Jari Huovinen

(EK), Sami Metsäranta (the Social Psychiatric Foundation of Päijät-Häme

PHSPS), Kimmo Nekkula (the Association for Finnish Work), Harri Niuk-

kanen (Tramel Oy) and the representatives of Tekes, Mervi Pulkkanen

and Christopher Palmberg. A large thank you goes to Sami Metsäranta,

Christian Lilius and Mervi Piiroinen from the Soteho group of the Bee for

Common Economy for letting us participate in the foundation of a new

social enterprise.

“A dream for which we are ready to work together, generates good and

does not exploit anybody, is bound to become real” (J.L. Padilla)


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Literature

Defourny, J. (2001) From Third Sector to Social Enterprise, in Borzaga, C. & Defourny, J.(eds), The Emergence of Social Enterprise. Routledge, London & New York, 1–28.

Defourny, J. & Nyssens, M. (2006) Defining social enterprise, in Nyssens, M. (ed.),Social enterprise. Routledge, Abingdon.

Demos Helsinki (2010) Parempi diili . Available at: http://www.demoshelsinki.fi/ julkaisut/(viewed 13.8.2014).

EMES International Research Network (2014) www.emes.net

EU (2013) Social economy and social entrepreneurship – Social Europe guide – Volume 4.Publications Off ice of the European Union, Luxembourg.

Galera, G. & Borzaga, C. (2009) Social enterprise: An international overview of itsconceptual evolution and legal implementation. Social Enterprise Journal, 5 (3), 210–228.

Innopakki - käytäntölähtöisen innovaatiotoiminnan käsikirja (2012) Available at:

www.lut.fi/innovationJohnstone, K. (1979) Impro. Improvisation and the theatre. Methuen Drama, London.

Melkas, H. & Harmaakorpi, V. (eds) (2012) Practice-based innovation: Insights, applicationsand policy implications. Springer, Berlin & Heidelberg.

Mönkkönen, K. (2013) Dialogisuus - hyvä sana, mutta vaativa laji , presentation at theNational Meeting for Social Work for Adults 21.5.2013. Website:http://timelessflow.wordpress.com

Playbook for strategic foresight and innovation (2013) Available at: www.lut.fi/innovation

Scharmer, O. & Kaufer, K. (2013) Leading from the Emerging Future - From Ego-System toEco-System Economies. Berrett-Koehler Publishers, San Francisco.

Sveiby, K.-E. & Skuthorpe, T. (2006) Treading lightly – the hidden wisdom of the world´soldest people. Allen & Unwin, Australia.

Työ- ja elinkeinoministeriö (2011) Yhteiskunnallisen yrityksen toimintamallin kehittäminen.Online publication. Available at: www.tem.fi/files/29202/4_2011_web.pdf

Yhteiskunnallisen yritystoiminnan tutkimusverkosto FinSERN (2014) www.finsern.fi

http://www.demoshelsinki.fi/http://www.emes.net/http://www.lut.fi/innovationhttp://timelessflow.wordpress.com/http://www.lut.fi/innovationhttp://www.tem.fi/files/29202/4_2011_web.pdfhttp://www.tem.fi/files/29202/4_2011_web.pdfhttp://www.tem.fi/files/29202/4_2011_web.pdfhttp://www.finsern.fi/http://www.finsern.fi/http://www.tem.fi/files/29202/4_2011_web.pdfhttp://www.lut.fi/innovationhttp://timelessflow.wordpress.com/http://www.lut.fi/innovationhttp://www.emes.net/http://www.demoshelsinki.fi/


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The innovation book for social enterprisesfurthers the cause of sustainable development

and holistic innovation. It is aimed at everybodyinterested in social enterprises. The bookis intended to raise questions and thoughts,rather than provide answers. It is meant toinspire and encourage. Hopefully it will alsoincrease understanding of social enterprisesand their importance for readers who are notyet that familiar with the concept.

abc - innovation book for social enterprises

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