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Social Enterprise Development Worksheet

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Social Enterprise Development Worksheet

A social enterprise earns income by selling goods or services while working towards a social or environmental purpose. Read the case study, then investigate how an idea can become a practical, sustainable enterprise. Use evidence from the case and explain your reasoning.

Case file: Second Chance Cycles

In a regional Australian town, many unwanted bicycles are left unused or sent to landfill. At the same time, some young people are looking for practical work experience. A local team proposes Second Chance Cycles, a social enterprise that collects donated bikes, repairs them and sells safe, affordable bicycles. It will offer basic bike-repair workshops and invite local young people to learn maintenance skills with a qualified mechanic. The team plans to sell refurbished bikes and accessories, and use any surplus to pay for training and tools. Before launching, they need to check demand, safety requirements, repair costs and whether enough bikes can be sourced.

Identify the purpose

Use the case file to answer questions about the enterprise’s social purpose and business model.

1.Which option best explains why Second Chance Cycles is a social enterprise rather than only a charity or an ordinary bike shop?

It sells refurbished bikes and directs surplus towards training and tools while addressing community needs.
It gives away every bicycle and does not need income.
It sells new bikes mainly to maximise returns for owners.
It runs workshops but has no way to earn revenue.

2.Name two groups or causes that could benefit from this enterprise, and explain one benefit for each.

3.Write a one-sentence mission statement for Second Chance Cycles. Include what it does and the change it aims to create.

Test the idea

A good purpose needs a workable plan. Consider customers, costs, income and evidence of impact.

4.Before spending money on a launch, which action would give the team the most useful evidence about local demand?

Survey potential customers and ask local organisations about interest in affordable bikes and workshops.
Choose a logo and assume people will buy the bikes.
Buy a large stock of tools before checking repair needs.
Set a high price without asking customers what they can afford.

5.A refurbished bike sells for $120. Parts cost $35 and the allocated workshop and labour cost is $45 per bike. Calculate the surplus from this sale before other business costs.

6.The team repairs 20 bikes in a month and earns $40 surplus on each before other costs. How much surplus is available in total before rent, insurance and other overheads?

7.Give one realistic way the enterprise could earn income besides selling refurbished bikes, and explain how that income could support its mission.

8.Match each proposed measure with the kind of success it mainly tracks.

Number of bikes kept in use rather than discarded
Number of young people completing a skills program
Monthly income compared with monthly expenses

Social impact
Financial sustainability
Environmental impact

Make a development decision

Enterprise development involves balancing mission, feasibility and responsible operations.

9.True or false: If the enterprise earns a surplus, it has automatically achieved its social mission.

TrueFalse

10.Identify one risk for Second Chance Cycles and suggest a practical way to reduce it. Consider safety, supply, costs or demand.

11.Propose one first step the team should take before launching. Explain what information or resource it would provide and how that would help the enterprise stay both financially workable and true to its mission.