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APPENDIX 2: CASE STUDIES
COPE
Cothrom
Edinburgh Cyrenians
The Shirlie Project
The Clean Close Company
Community Food Initiative North East
The Venture Trust
Spruce Carpets
Caberfeidh Horizons
The E-bility Trust
COPE
The Investment
COPE is a social firm that provides supported employment to people with disabilities on the Shetland Islands. It does this through operating commercial trading subsidiaries such as the Shetland Soap Company, Cope Pet Supplies, the Shetland Coffee Company, Cope Catering, and the Fair Trade shop Karibuni.
A Seedcorn Fund grant of £22,000 was awarded to enable COPE to identify and establish new trading opportunities through partnerships with social businesses operating in Eastern Europe.
Activity and Progress
The Futurebuilders grant was used to cover the costs of market research and travel, the purchase of trial trading products, and the production sample products.
A variety of products were sourced from Eastern Europe. These included bees wax, honey, dog coats, hen houses, wooden compost bins, oak barrels, etc. These were products that required finishing (thereby creating training and employment opportunities for COPE clients) and were unique to the Scottish market.
Emerging Outcomes
As a result of the grant, COPE is now better connected and better positioned to take advantage of trading opportunities.
The investment has helped to build relationships with trading partners in Eastern Europe. This has provided an opportunity to export locally produced products ( e.g. Shetland Soap products in Poland) and has led to trading relationships with other countries outside of the EU ( e.g. South Africa).
New product lines have been trialled in retail outlets owned by COPE and others, to varying degrees of difficulty and success. In the case of Ukrainian honey, the market potential has been demonstrated and a new trading company set up.
Earned income has grown as a result. Although difficult to quantify and attribute the direct impact Seedcorn Fund support, trading income as a proportion of overall income to COPE has increased from 20% to 45% over the last three years.
This has led to benefits for people with disabilities. As product lines have diversified and sales increased, this has created further and more interesting employment and training opportunities. These have been targeted at people with disabilities.
Prospects and Sustainability
The Seedcorn grant has afforded COPE the time, resources, and confidence to build up its portfolio of trading activity. This is contributing to the profitability of COPE trading subsidiaries and it is anticipated that in turn this will contribute to the overall financial sustainability of COPE.
Further potential for development has been identified. The plan for COPE is to continue to extend its remit, trading relationships, product lines, and earned income. The feasibility of establishing a small import agency to serve like-minded social enterprises is also being considered.
Cothrom
The Investment
Cothrom Ltd is a social economy organisation that provides community-based learning and vocational training opportunities to people in the Western Isles.
An Investment Fund grant of £175,000 was awarded towards the construction of a new purpose-built learning centre at Ormiclate, South Uist. This formed part of a £1.1 million package of grant funding for the development.
Activity and Progress
The Futurebuilders grant funding contributed to the professional fees and construction costs of the facility.
The learning centre was constructed over a period of 12 months. The development went largely to plan, aided by the project management expertise of a local firm of architects.
The building, which opened on 23rd August 2007, provides multi-purpose training facilities, a skills workshop, a nursery, and office accommodation. It is powered using its own renewable energy source and has acted as hub for a broadband network for local communities.
Emerging Outcomes
The grant has provided a major investment in the learning infrastructure of the Western Isles and strengthened the capacity of Cothrom.
The development has meant that Cothrom is able to centralise its operations from three locations into a single building. This brings with it associated operational efficiencies, improvements in management arrangements, and cost savings.
As a result of the asset, Cothrom predicts a 10% annual increase in turnover each year over a three year period. New earned income streams have been introduced including: the rental from office and training space; fees from childcare places; and fees associated with additional training places.
The new centre has trebled the physical capacity of Cothrom to deliver training to local people, and enabled the organisation to introduce new training programmes within a higher quality learning environment. Its central location will also make learning more accessible to local communities.
Prospects and Sustainability
As a result of the grant, Cothrom has established an important community asset, which is likely to improve the long-term sustainability of the organisation. It is expected that earned income from fees and contracts will rise to 50% of all income (from a starting point of 20%) by 2009.
With the new facility open to learners Cothrom now intends to continue to extend the learning available to local people, groups, and businesses.
Edinburgh Cyrenians
The Investment
Edinburgh Cyrenians supports people who are homeless or at risk of homelessness in Edinburgh and Livingston. It provides residential care, housing and resettlement support, health improvement, training, and employment advice.
Investment of £33,000 from the Seedcorn Fund was required to review existing projects, develop new business propositions, and expand the range of social enterprise activity being undertaken.
Activities and Progress
The funding from Futurebuilders enabled Edinburgh Cyrenians to employ a senior Business Development Manager for a period of one year.
Once employed, the Business Development Manager was central to a review of the purpose and structure of the organisation and to determining its approach to trading. A significant amount of development work was also carried out to develop new social enterprise opportunities and to grow existing ones.
Emerging outcomes
As a result of the investment, Edinburgh Cyrenians has significantly strengthened its social enterprise approach and activities.
As a result of the development activity there is a more entrepreneurial culture throughout the organisation. It has resulted in new ways of thinking and new ways of working, and an increased openness to trading.
Edinburgh Cyrenians has also established a Community Interest Company. This new company structure will enable Cyrenians to better manage its social enterprise activities and pursue new trading opportunities.
The approach is helping to open up new income opportunities from existing services. For example, it is examining opportunities to generate earned income from its currently free Food Redistribution Scheme.
It has also developed the commercial potential of Cyrenians Farm. The focus of this established social firm is being diversified in secondary produce (jams, honey, chutney, etc.), composting, and corporate events. In doing so new training and employment opportunities for homeless people are being created.
Prospects and Sustainability
The Seedcorn Fund grant has afforded Edinburgh Cyrenians the time, resources, skills, and confidence to develop its commercial potential. Although it is still early days, new income streams have already been introduced, which over the longer-term will help to create a more diverse and stable funding base.
There are now ambitious plans to develop the commercial potential of Cyrenians Farm even further (increasing annual trading income from around £4,000 to £200,000 over five years). Further products and services will continue to be introduced relating to food production and property services.
The Shirlie Project
The Investment
The Shirlie Project has been operating for over thirteen years in the Highlands. It provides supported employment services to people with a disability or other support needs.
A grant of £149,543 was awarded through from the Futurebuilders Investment Fund to meet the increasing demand for services across the Highlands and to develop services in Ross-shire.
Activity and Progress
This investment enabled the Shirlie Project to take on two additional Job Coaches for a period of 18 months, introduce new IT systems to support the delivery of services, and purchase of premises in Ross-shire.
The programme of development activity has progressed as anticipated, leading to the planned investment in premises, people, and systems.
Emerging outcomes
As a result of the investment the Shirlie Project has quickly built up its delivery capacity, services, and potential to secure public contracts.
The infrastructure investment is making a difference. A physical presence in Ross-shire has enabled the organisation to develop its contacts with local employers and clients. Improved IT systems have enabled the organisation to facilitate remote access to services via laptops. These factors have driven down the cost of delivering services to rural communities and have enabled it to reach more clients.
The capacity of Shirley to deliver services has increased. Since the Futurebuilders award was made, staff numbers have increased from 20 to 40. Partnership working with Job Centre Plus and others has also been strengthened.
The services and client base of the Shirlie Project have developed significantly. The number of clients has grown from 200 to 500 since the investment, and positive outcomes for clients in the Highlands area have risen from 30% to 65%.
The organisation is now better placed to generate income from contracts. A more businesslike approach has been introduced together with an agreed approach to taking on public contracts. A new service has also been successfully piloted in Skye and will now form the basis for future Highlands and Islands Enterprise contracts.
Prospects and Sustainability
The development process has strengthened the prospects for financial sustainability of the Shirlie Project. The premises in Ross-shire have provided an important new financial asset, and delivery capacity has increased to such an extent that the organisation is in a position to become financially self-sustaining through public service contracts in the short to medium term.
The future prospects for the Shirlie Project are very positive, with plans in place to continue to build its profile, presence, and client base in remote and rural areas across the Highlands.
The Clean Close Company
The Investment
The Clean Close Company is a social enterprise that provides cleaning, maintenance and environmental services to people living in Stobswell's Victorian tenements.
Support of £87,500 from the Futurebuilders Investment Fund was awarded to allow the business to expand by purchasing premises and transport.
Activity and Progress
The Clean Close Company has used the funding to purchase and renovate two derelict shop units that are now used as central office base. It also rents an industrial unit to store larger items of equipment and cleaning materials.
In addition, the grant has been used to purchase a vehicle and other equipment that has been used to deliver existing and new services.
Emerging outcomes
The investment from Futurebuilders has given rise to business expansion along the lines originally envisaged.
The new premises have enabled the organisation to move out of cramped premises. In the short term this has brought significant cost savings when compared to the rental paid for the former accommodation. Over the longer term the premises will provide an important asset against which to borrow.
The business expansion has created new jobs. The workforce of the Clean Close Company has grown from 4.5 to 14.5 full time equivalent posts as a result of the investment. Almost two-thirds of employees are drawn from the local area.
The vehicle and other equipment purchased has enabled the company to expand its services into: cleaning voids, ground keeping, graffiti removal, furniture cleaning, carpet cleaning, car park maintenance, office cleaning.
The number, variety, and value of contracts have also grown. Contracts are now delivered on behalf of Dundee City Council, Registered Social Landlords, private builders, and private landlords.
Feedback from local residents is also positive. There has been a reported improvement in the local environment, with less graffiti, less refuse, and less fly tipping.
Prospects and Sustainability
The prospects for financial sustainability have improved greatly as a result of the investment. Based on the level of contracts being secured and income being generated the organisation is now trading in a financially viable manner.
The immediate priority for the Clean Close Company is to consolidate its operations after a period of rapid growth. Future expansion is possible, but may require further investment.
Community Food Initiative North East ( CFINE)
The Investment
Community Food Initiatives North East ( CFINE) promotes health and addresses food poverty by increasing access to affordable, healthy food. It achieves this through supporting Community Food outlets and providing a 'Fast Fruit' service to schools, nurseries and other community facilities.
A grant of £40,000 was awarded through the Futurebuilders Scotland Seedcorn Fund in order to develop the trading potential of CFINE.
Activity and Progress
The funding enabled CFINE to employ a development worker to review its business plan, produce promotional materials, and secure trading contracts. It also enabled CFINE to employ a driver/storeperson, lease a van, and adapt its premises.
The package of investment in CFINE was used as agreed to develop the capacity and trading potential of the organisation.
Emerging outcomes
As a direct result of the investment CFINE has significantly expanded the scope and scale of its trading operations.
The customer base of CFINE has grown. From one service contract in November 2004 the organisation now delivers 15. These range in value from £1,000 to £7,000 per month.
The increase in trading has created a range of new employment and training opportunities. The development worker and driver/storeperson recruited with grant support have been retained. The number of volunteers working in local food outlets has increased to 35. Further supported volunteering and work placements have been created through the Project Scotland and New Deal programmes.
Earned income from trading is growing. As a proportion of overall income, sales have grown from 12% in 2005/06 to 20% in 2006/07. On the basis of the current growth in trading it is likely that trading income will reach 71% of all income by 2009/10, and public funding accounting for a decreasing share of income.
The expansion of CFINE's commercial arm has enabled a parallel expansion in its charitable work through community food outlets. The number of outlets has increased from 7 to 40, with an associated increase in the number of disadvantaged residents that have gained access to healthy, nutritious and affordable food.
Prospects and Sustainability
Futurebuilders support has provided a launch pad for CFINE's social enterprise activities. It is quickly putting operations onto a financially sustainable footing. The priority is now to consolidate the rapid growth in trading.
With a major grant from the Big Lottery's Growing Community Assets Fund recently secured the prospects for CFINE now look extremely promising. This will enable the purchase of premises and improve the financial position of the organisation further.
The Venture Trust
The Investment
The Venture Trust exists to provide opportunities and support for disadvantaged young people outside of education, employment and training. It runs a programme of 10-day and 3-week residential courses, to engender a greater sense of personal responsibility and self-worth.
A grant of £153,587 was awarded from the Futurebuilders Investment Fund to enable the Venture Trust to introduce a mobile service.
Activity and Progress
The Futurebuilders grant has been used to purchase a large, specially equipped vehicle for outdoor adventure and overnight accommodation.
Challenges occurred in the sourcing, outfitting and delivery of the vehicle, which led to delays in delivering anticipated activities. This impacted on the ability to deliver on contracts already secured. After a period of planning, negotiation and agreement with funders and purchasers difficulties were avoided.
Emerging outcomes
The vehicle has provided the opportunity to offer more and better services, and represents a major income-generating asset for the Venture Trust.
It has enabled the Venture Trust to take services to new partners, new customers and new client groups. Customers include major charities ( e.g. Turning Point), public bodies ( e.g. the Scottish Prison Service), and companies ( e.g.KPMG).
The vehicle has enabled the delivery of new services. Pilot projects have been tested ( e.g. a wilderness project for long-term prisoners in Dundee) and are being developed further. It has increased the number of courses that can be delivered.
The mobile service has extended the geographic reach of the organisation. Outdoor adventure course are no longer restricted to the Venture Trust's Residential Centre at Applecross, and can be delivered across Scotland.
As a result, the Venture Trust is securing major new contracts. For example, a three-year contract (£200,000 per year for 3 years) has been secured to work with high tariff male offenders on probation. Further contracts are being negotiated with major charities and businesses.
Prospects and Sustainability
The investment by Futurebuilders has put the Venture Trust in an increasingly strong financial position. Earned income has increased significantly, an improved track record in delivering service contracts is evident, and the organisation's reliance on public grant subsidy has declined.
Plans are in place to develop further pilot projects and services over the next 12 months. Given the level of demand forecast, it is likely that the Venture Trust will be in a position to purchase further vehicles of this type and to expand the level of trading income accordingly.
Spruce Carpets
The Investment
Spruce Carpets is a social enterprise that recycles domestic carpets and sells these on at low prices. In doing so it creates volunteering, employment, and training opportunities for people from disadvantaged groups.
A grant of £72,000 was awarded from the Futurebuilders Investment Fund to help to set up a carpet tile re-use project.
Activity and Progress
The funding was used to support the start-up costs of the venture, including capital and revenue costs.
Capital funding enabled Spruce Carpets to take on additional warehouse capacity and to purchase required equipment. Revenue costs enabled the organisation to recruit three staff (a manager, warehouse person, and a carpet fitter) and to cover their salary costs for a period of six months.
Emerging outcomes
The support from Futurebuilders has enabled Spruce Carpets to begin trading and to widen its funding base and income streams.
The organisation has increased its capacity to deliver services. In addition to the staffing, equipment, and warehousing introduced, new training opportunities have been created for young people aged 16 to 25.
The services were developed and taken to market as anticipated. Indeed the investment has enabled Spruce Carpets to offer new services in addition to those originally planned (the supply and fitting of carpet tiles); these include 'filling in', 'stripping out', and cleaning carpets.
As a result, Spruce Carpets has been able to widen its customer base of voluntary sector organisations and small businesses. New customers include architects, builders, universities, community groups, etc. Increasing word of mouth and customer satisfaction have been reported.
The new services have generated a small but growing level of income for Spruce Carpets, although this has been somewhat below initial projections. This reflects the time required to build up a sufficient customer base and trade viably.
Prospects and Sustainability
The first full year of trading has been an overall success for the new services of Spruce Carpets. Through these and other commercial activities, the ambition is for the organisation to become entirely self-financing by 2009.
Spruce Carpets now has ambitions to take on additional expertise and capacity in key areas such as sales/marketing and warehousing. Further volunteering and training opportunities will be developed, as will the support available to volunteers.
Caberfeidh Horizons
The Investment
Caberfeidh Horizons is a social enterprise based in Kingussie, which provides training, support and employment to adults with learning disabilities and mental health difficulties.
A one-off grant of £35,000 from the Futurebuilders Seedcorn Fund was awarded to enable Caberfeidh Horizons to set up a bookshop to operate as a Social Firm.
Activity and Progress
The Futurebuilders grant was used to part-fund the purchase, refurbishment and fit-out of shop front premises to accommodate the book shop.
The funding enabled the organisation to unlock further start-up funding from Highland Council, the Robertson Trust, Cairngorms Leader+ Partnership, and the Scottish Co-operative Dividend Fund.
The building was purchased in May 2005 and went according to plan, resulting in the opening of the book shop in August 2005. The bookshop is now open three days per week.
Emerging outcomes
The Futurebuilders grant has now enabled the venture to get off to a promising start and is creating a number of outcomes.
The confidence and capacity of Caberfeidh Horizons has grown. The process has developed additional business skills among the management group, and has required the group to adopt a more business-like approach. New financial systems and business processes have been introduced as a result.
The book shop is now generating a modest income for the organisation. The donation of used books to the shop has been steady and growing. Book sales have been steadily improving. However, the book shop cafe is not yet trading in line with expectations.
The book shop itself has created volunteering opportunities for people with learning disabilities. Voluntary work in the bookshop has provided a therapeutic and socially worthwhile role for volunteers.
Prospects and Sustainability
The grant funding provided through Futurebuilders Scotland has been instrumental in enabling this project to proceed. The outright purchase of the premises has provided Caberfeidh Horizons with an important financial asset.
A feasibility study has now been carried out to examine the potential for future development. It is anticipated that the book shop will increase its opening hours and level of trading. There are also plans to take over the adjoining shop unit in order to set up an IT suite that will be open to the general public.
The E-bility Trust
The Investment
The E-bility Trust is a newly established social enterprise. It aims to improve the awareness and use of information communications technology ( ICT) by voluntary organisations operating in Glasgow and throughout the west of Scotland.
A one-off Seedcorn Fund investment of £41,765 was provided to assist the start-up of the E-bility Trust. This grant included the salary costs of employing a full-time Project Manager for one year, together with associated overhead costs.
Activity and Progress
With start-up funding from Futurebuilders, the E-bility Trust put in place a founding board, recruited a staff member, secured premises, developed internal procedures, and prepared a business plan. It was formed as a charitable company in April 2005.
Subsidised ICT support services were developed and tested with support from the European Social Fund, and in partnership with Clydebank College. A grant from the Big Lottery also helped to pilot an innovative software support scheme.
In parallel, the organisation has vigorously promoted its affordable IT technical support packages and training to the voluntary sector, as well as the sale of discounted software and hardware products.
Emerging Outcomes
As a result of the support from Futurebuilders Scotland the E-bility Trust has been able to establish its operations and to develop credibility in the marketplace.
Organisational capacity and credibility is growing. Following its initial period of grant funding, the organisation has retained its manager and has added a further two part-time technician posts. Services have been tested and refined. It has also built productive private sector relationships, gaining 'certified partner' and 'reseller' status with major companies such as Microsoft and Symantec.
It is making a difference to clients. Independent evaluations of the pilot phase of the venture have demonstrated strong client satisfaction, and positive impacts on the efficiency and effectiveness of the voluntary organisations assisted.
New earned income streams have been introduced (from technical support, training, and product sales) and a growing number of technical support and training contracts have been secured. Income in its first full year in operation reached almost £100K, with 40% of this income from sales and contracts.
Prospects and Sustainability
At this stage, the prospects for the fledgling E-bility Trust appear positive. The investment from Futurebuilders Scotland has afforded the time to develop, and to has provided a platform for future growth and sustainability.
The E-bility Trust now plans to steadily build its profile, service offering, customer base, and income. The target is to treble turnover during the next two years and to bring about a corresponding increase in staffing levels. This will contribute to a reducing dependence on grant subsidy and improved financial sustainability.
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