PHASE 2. FORMALISING THE WORK-INTEGRATION SOCIAL ENTERPRISE MODEL

PHASE 2. FORMALISING THE WORK-INTEGRATION SOCIAL ENTERPRISE MODEL

Insights from the case study Suggested actions

MAIN ACTORS Self-assessment questions

An important Italian company with more than 2 million euros in turnover and owner of 7 clothing brands sold in over 50 countries9 . An Italian philanthropic foundation originated by the abovementioned Italian multi-brand clothing company and which allocates contributions to organizations which undertake schooling, human and professional training projects worldwide. Another Italian philanthropic foundation originated by a national insurance company with the aim of providing funds to territorial enterprises with a strong social orientation. At this stage, the initial group of strongly motivated project developers started to expand and included the first 3 women with fragilities which were directly employed by the newly founded Quid social cooperative. A local district prison where a tailoring laboratory previously managed by the social cooperative mentioned in Phase 1 carried out a training program for female prisoners. Local textile industries providing Quid with discarded fabrics.  Engage strategic players that can provide funding and market access (i.e., banks, philanthropic foundations, companies)  Once the enterprise starts to take-off, reach out to the people with fragilities you intend to re-integrate in the workforce: begin with job training and, eventually, offering them job contracts. Start with few people at first: your business idea is still at the start-up phase.  Are there strategic players (banks, philanthropic foundations, companies, …) that can provide funding and market access?  Does the business idea have the means to begin employing new people, including people with fragilities you intend to re-integrate in the workforce, hence enlarging its initial team?  Begin mapping and expanding your local network of suppliers

MAIN RESOURCES

Project developers’ capacity to communicate the business idea and vision. A well-planned and convincing Business Plan already tested on the local market. In the start-up phase of the project idea, the support of the multi-brand Italian clothing company was fundamental. The company provided 15.000 euros for the first year of project  Rely on a well-built Business Plan in order to effectively communicate your business idea and vision to potential funders, investors, suppliers and partners.  Build on the results of the first market test to convince potential funders, investors, suppliers and partners that there is a wider market  Is the Business Plan well-planned, piloted and able to convince potential investors of the soundness and economic sustainability of the business idea?

 Can the results of the first market test convince the potential investors that there is a wider market opportunity to scale-up the business

9 As of 2020.

experimentation, with the understanding that, if successful, the project idea could count on further support in the future. The support wasn’t only in terms of funding: the company provided textile, sewing machines as well as unused spaces within their manufacturing plants and retail shops. It also allowed the access to market networks, namely, partners and suppliers. Hence, the company’s support in the first year was totally donated. Relatively large product orders by the two philanthropic foundations which, therefore, provided an important “commercial” support (market demand) along with smaller grant funding. Wealthy and socially engaged clients. Discarded fabrics intercepted and recovered from the local textile industry. An already set up tailoring laboratory program within the female section of a local district prison.

opportunity to scale-up the business idea.  Manage to engage important market players who can support your business idea in terms of funding, but also in broader terms, for example, in providing means of production, commodity supply, partnerships and retail shops. idea?

 Are there important economic players willing to bet on the business idea and donate a first support in terms of funding, but also, for example, means of production, commodity supply, market networks and retail shops?  Are there financial players that can provide, apart from funding support, commercial support in the form of demand for consistent product orders?  Can the cost of material supply be cut down through reuse and recovering strategies (e.g., circular economy model)?  Is there a market demand for the product and its vision?

MAIN ACTIVITIES

Quid founder managed to reach and engage an Italian important multi-brand clothing company. Thanks to her communicative capacity and a strong and tested Business Plan, she managed to convince the company to provide a one-year crucial support, which, conditional on the project’s success, could be extended in the future. Thanks to this initial support, Quid social cooperative was founded. The first collection of clothing and accessories was produced and sold in the first local temporary stores allowing for business growth. In the start-up phase, the first network of partnerships and collaboration with suppliers and retailers were established. In particular, in order to cut down on the cost of textile supply, in line with the Business Plan and with the envisaged circular economy model, discarded fabrics were intercepted from the local textile industry. This phase, hence, required a door-to-door outreach and advocacy activity on the part of the project developers.  Relying on your strong Business Plan and the experience of your first market test, engage important market players and convince them to provide economic support in order to start-off with your enterprise (i.e., production of goods/ provision of services).  Formalize your business idea in a legal form which recognizes its social/environmental mission: i.e., Work Integration Social

Enterprise, social cooperative or other forms of enterprise which can benefit from an ad hoc fiscal and regulatory regime and recognition for its social mission.

 Keep your costs low. For example, look for lower cost/cost-free first solutions to place your products/services in the market (i.e., temporary stores, agreements for the use of pre-existing shops or unused spaces, etc.), look for local industries which could provide low-cost or cost-free supply of raw material/commodity as  Can the business idea be effectively communicated and delivered in order to engage big economic players and to convince them to bet on its success?  Is the business idea ready to be formalized in a legal form recognizing its social/environmental mission (i.e., social enterprise, social cooperative or other forms of enterprise which can benefit from an ad hoc fiscal and regulatory regime and recognition for their social mission)? If not, which legal form in your local context is the best suited for the start-up of the entrepreneurial idea and its social/environmental mission?

 Are there lower cost/cost-free first solutions to place your products/services in the market (i.e., temporary stores, agreements for the use of preexisting shops or unused spaces, etc.)?  Which solutions could cut your social enterprise costs? For example, are there local industries

The closing of the social cooperative mentioned in Phase 1 left the managing of the tailoring laboratory program in the local district prison to Quid. inputs for the business model. This not only would allow to cut supply cost, but also to set up a sustainable circular business model. that can provide low-cost or cost-free supply of raw material/commodity as inputs for the business model? Are there lower cost/cost-free first solutions to place your products/services in the market (i.e., temporary stores, agreements for the use of pre-existing shops or unused spaces, etc.)?