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Chapter 14 - Social Enterprise
A New Vision for the Print Shop
Based on the Strategic Review, a new vision was developed in late 2005 to build on the experience and strengths of the Print Shop operation and address the weaknesses. The three-year vision seeks to increase to 30 the number of annual training opportunities for youth, while maintaining a firm commitment to reach self-sufficiency by covering 100% of the business costs. The vision also includes a commitment to a triple bottom line (social, economic and environmental).
The new vision has four main elements:
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Team
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Programs and Services:
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Marketing and Sales
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Equipment and premises
Team:
The program team will be increased to full-time to provide the time and expertise necessary to fully develop the training program and the business model.
Programs and services:
The youth program will be redesigned to have two stages: training and apprenticeship.
The training stage will offer 30 youth per year (a tremendous increase from 12-15 youth currently) the opportunity to build a foundation of skill, knowledge and commitment in the graphic communications industry. This stage would last for a period of 3 months, during which the trainees would not receive a salary, (but may be eligible for support through other programs).
Once they have successfully completed the training program, the youth would be hired as “apprentices” at $9.00/hour. This is a more intense, on-the-job training experience in a supportive environment that culminates with a co-op and entry into the graphic communications sector. The flow between trainees and apprentices will provide the business side of the Print Shop with a stable supply of trained staff. Youth who have completed their apprenticeships would be eligible to apply for employment with the Phoenix Print Shop or other commercial print shops.
The business services part of the operation seeks to serve two purposes: to generate revenue to sustain the social program, and to provide a positive work experience for the youth trainees and apprentices.

Marketing and sales:
Phoenix Print Shop has set some challenging goals to work towards self-sufficiency on the business side of its operation. Some of the main strategies the Print Shop will employ to achieve these goals are the following:
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Targeting “cornerstone customers” – these are the current customers which have the greatest potential to generate the largest increase in volumes of printing.
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Developing a steady base of customers in the social service sector.
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Developing targeted marketing materials that are tailored to specific target audiences:
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Youth need to be sold on the program model. Printing is not a field that many would automatically think of as a career choice, and the new training model is going to demand a high level of commitment from the youth, so there will need to be some special effort directed to this group;
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Employers need to understand the benefits of this model and what they stand to gain by supporting it. The Print Shop wants the active involvement of employers to provide co-op placements; in return, employers get a chance to “try out” potential future employees for a period of time;
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Customers need to understand that when they give their business to the Phoenix Print Shop, they are supporting a bigger social project;
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Donors need to understand how the business and training model works, and the important role they can play, especially as the Print Shop moves away from government support. The Toronto Enterprise Fund (whose purpose is to support social enterprise) has been very supportive, as has RBC, among others.
Equipment and premises:
In order to reach its social and economic goals, the Phoenix Print Shop has determined that it needs to acquire more space and more up-to-date equipment over the next three years.
The role of the Advisory Board
Jim Neate knows the printing industry inside out. He has had 30 years of experience working for a number of suppliers, as well as in sales, marketing, and business development. He has broad connections across the industry. In summary, he is fairly typical of the business people that the Phoenix Print Shop has been able to attract to its Advisory Board.
He got involved – as did many of his colleagues – for two reasons: First, he sees the printing industry as a large employer that is in need of young people with knowledge and enthusiasm. The industry understands the outcomes that Eva’s Phoenix is trying to generate through the Print Shop; they are clear and achievable, and something that the industry really needs. Second, he sees opportunities in the industry for young people to get good jobs with potential for advancement and good careers. In short, he considers the relationship between the Print Shop and the printing industry as a win-win strategy.
The Advisory Board performs a number of important roles. They provide industry-specific advice and business coaching. “High rollers” on the committee help to open the doors to major customers. Perhaps most importantly, the business people on the committee create the awareness that this project is a real business proposition. Those who have experience in launching new businesses can add a note of realism and enthusiasm to the discussions. Andrew Macdonald, Manager of Social Enterprise says, ”One of the most important contributions of the Advisory Committee is knowing that people in the field actually find your work valuable, and they will work to help find the revenues to make the project work.”
Jim Neate is a strong supporter of the Print Shop. He feels they have demonstrated clear results: they have been successful in placing their graduates in the workforce and they have a saleable product that generates revenues. He has talked with trainees in the Print Shop about where they can go in the industry, and has participated in fundraisers to help the organization. He actively promotes the Print Shop among his colleagues in the industry. Of social enterprise, he says, “This is way more challenging than any business. In business your duty is to your customers. In a social enterprise you are “selling” to the youth, to employers in the field, and to your customers.”
Lessons Learned
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Social enterprises can be a strategy to reduce dependence on government funding, but they are not a panacea. They require an enormous amount of commitment, as well as work to bring on other partners.
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The challenges in working towards sustainability cannot be overstated. In addition to the regular challenges in running a business, social enterprises have challenges that regular businesses do not have to face. One of these major challenges is the development of an initiative that supports the re-integration of a marginalized population into the community. There are clear compromises involved in balancing between a social mission and economic profitability.
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It is extremely important to study the feasibility of any social enterprise before trying to implement it. The enterprise needs to be viable from a business perspective (i.e. there is sufficient demand for the good or service to be produced, and enough people willing to pay for it), as well as from a social perspective (the field needs to produce good entry level jobs for the youth trainees).
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It is also important to distinguish between the training and the business elements of the social enterprise. Those managing the enterprise need to know what is required to produce a high quality training experience, and the resources that are required to do this. They need to be equally aware of what is required to run a business that will be successful in generating revenue. Finally, they must be aware of when they are tempted to compromise one element for the other. It is very helpful to separate the business and training costs and revenues in your budget and financial statements to clarify how each part of the operation is performing.
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Getting good advice and support is essential. Involve people from the industry who can help with technical issues, marketing, and the development of a business plan. It may also be helpful to get advice from other social enterprise practitioners who are familiar with how to balance competing social and economic goals.
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