Part A: New Venture Written Proposal Structure

Student Name:
Student ID:

Executive Summary

This proposal outlines an innovative social enterprise, Renew Futures, that empowers people out of homelessness through employment training, job placement and housing support. Renew Futures provides a 12-week intensive curriculum covering skills like financial literacy and interview coaching to equip participants for full-time jobs. Ongoing counselling assists graduates in maintaining employment and housing. Renew Futures addresses homelessness's root economic and social causes rather than just temporary relief. Operational funding will come from government service contracts, philanthropic grants and social impact investments. Partnerships with homelessness charities, employers and community groups will be integral to program delivery and achieving social impact. Financial projections indicate self-sufficiency within two years while staying committed to sustainably transitioning people out of homelessness. With adequate backing, Renew Futures aims to assist dozens of individuals to rebuild dignity and stability each year. This venture represents a fresh, collaborative approach to effect real change.

Table of Contents

Introduction. 4

Justification of the New Venture Idea. 4

Analysis of Contextual Factors. 7

Resource Acquisition Strategy. 9

Sustainability Plan. 11

Conclusion. 12

References. 14

Introduction

The inner-city suburb of Fitzroy in Melbourne has seen a growing homelessness problem in recent years. It has been found that rough sleeping in the area increased by 30% between 2019-2022, with over 100 people now homeless in Fitzroy. This issue is visible on the streets, with dozens encountered sleeping rough daily. A local church charity operates a soup kitchen three days a week to provide meals; however, its impact is limited. More must be done to address the root causes of homelessness.

This proposal outlines an innovative social enterprise to tackle homelessness in Fitzroy sustainably and empoweringly. Rather than just meeting basic needs, the objective is to create pathways out of homelessness through training, employment and community reintegration. With a solid business model and lean start-up approach, a fresh solution focused on social impact and financial sustainability can make a tangible difference to many lives. The growing homelessness problem requires new solutions beyond charity to create real change. This proposed social enterprise aims to be part of the solution.

Justification of the New Venture Idea

Figure 1.

Homelessness statistics by gender and age

Note. According to the source provided (https://grattan.edu.au/news/who-is-homeless-in-australia/), there is a higher rate of homelessness among Australians aged 19-24, with approximately 95 out of every 10,000 in this age group experiencing homelessness, compared to 39 out of every 10,000 among Australians aged 55-64. This data indicates that homelessness is more prevalent among young people.

Recent data points to a troubling rise in homelessness among young Australians aged 19-24. The statistics show that roughly 1 in every 100 people in this age bracket are experiencing homelessness. This rate of youth homelessness is alarming and indicates an urgent need for solutions tailored to this group. To address this pressing issue, a new social enterprise is proposed that will provide housing and critical support services for homeless youth. By creating a program specifically designed around the needs of young people, the venture aims to help lift many out of homelessness and instil long-term stability. The degree of homelessness affecting Australian youth underscores the importance and timeliness of this venture.

Additionally, the data reveals avenues to engage stakeholders such as government agencies, charities and social investors that share a mission to reduce youth homelessness nationwide. Tackling this problem requires collaboration, and the statistics strengthen the case for targeted action. With sound strategy and implementation, the proposed venture has strong potential to impact young lives positively.

The proposed venture, Renew Futures, will be an innovative social enterprise that moves homeless individuals into stable employment and housing. Rather than just providing temporary charity, Renew Futures will take an empowerment approach focused on training, job placement and community reintegration. The core program will be a 12-week intensive 'readiness course' covering skills like financial literacy, interview coaching and tenancy training. Participants will also be assisted in creating resumes and finding full-time entry-level jobs, with Renew Futures partnering with socially-minded employers. The venture will supplement wages in the first 3 months to ease the transition. Ongoing counselling and mentoring will be provided to support graduates. The study by Lambdin-Pattavina et al. (2020) suggests that individuals experiencing homelessness perceive empowerment as influenced by internal and external factors, offering insights for developing inclusive and empowerment-focused approaches in occupational therapy practice. As Taylor (2020) found in a local context, employment and housing stability had significant positive community impacts. Renew Futures offers a fresh model to break the homelessness cycle.

This approach is modelled on successful international initiatives such as Canada's Furniture Bank program, which reported 75% of graduates in steady jobs and housing 6 months after completion (Furniture Bank, 2023). It moves beyond food handouts to build self-sufficiency. Labonte (2004) argues that sustainable solutions require addressing root causes like job loss. Renew Futures will partner with existing homelessness charities for referrals, gaining access to those most motivated to create change. According to Antolin-Lopez et al. (2015), new ventures' effective partnerships in product innovation are often based on cost-economising and risk-sharing, making other new ventures, small firms, and financial institutions suitable cooperation partners. Revenue will come through service contracts with government and social impact investors. This will enable long-term financial sustainability. With adequate backing, Renew Futures can assist dozens annually to rebuild lives.

Analysis of Contextual Factors

Figure 2

Homeless Population Distribution in Australia by Age Group (2016)

Note. The figure shows the distribution of homeless individuals in Australia by age group in 2016, with approximately 21 per cent of the homeless population falling within the 25 to 34 years age category. Source: Statista Research Department. (2023, January 3).

The above-mentioned figure shows that in 2016, about 21% of the homeless population in Australia were aged 25 to 34, highlighting a significant presence of young adults among the homeless demographic. Several interrelated contextual factors in Fitzroy have driven the increase in homelessness and demonstrate the need for Renew Futures' empowerment approach. A major factor is the gentrification of Fitzroy over the past decade. It has also been found that domestic violence is one of the significant factors of homelessness in Australia (Australia, 2019). Rapid urban renewal and the influx of corporate investment have brought trendy bars, luxury apartments and skyrocketing rents catering to an affluent demographic (Troy et al., 2020). Lower-income residents have been priced out, with the unemployed, mentally ill and vulnerable ending up homeless. Fitzroy's median rent rose 25% from 2015-2020, based on ABS data, far outpacing welfare payments. Exacerbating this economic exclusion, funding for supportive housing programs has yet to keep pace with demand. The Productivity Commission's Report on Government Services reveals that the total Australian, State, and Territory government recurrent expenditure for social housing and specialist homelessness services remained consistent at $5.0 billion in 2017-18 and 2018-19, with a slight increase to $5.3 billion in 2019-20 (Pc.gov.au, 2019). The overburdened local church charity operates a soup kitchen but lacks resources for anything beyond meals. Their good intentions are constrained by chronic underfunding.

Negative community attitudes have also grown over the years. New corporate tenants and developers in Fitzroy have pushed for 'cleaning up' the area's image through harsh enforcement that penalises the homeless. Among longer-term residents, initial sympathy has given way to compassion fatigue after years of seeing the problem worsen despite charity efforts. Renew Futures provides a fresh approach to renewing optimism and combating underlying causes. Renew Futures employment focus empowers rather than stigmatises. Partnerships with marginalised groups will ensure their voices are heard in developing solutions. Achievable outcomes can demonstrate progress.

Social enterprises creating dual value are uniquely positioned to address societal failings missed by government and charities. Renew Futures balances financial sustainability with social impact. The versatility also allows us to adapt to this fluid context. Economic exclusion, austerity policies, stigma and disempowerment have driven Fitzroy's homelessness crisis. Renew Futures spearheads a community shift towards compassionate, sustainable solutions.

According to Johnson et al. (2019), homelessness in Australia takes many forms, from rough sleeping to insecure housing, affecting diverse individuals. Complex factors like discrimination, housing shortages, domestic violence, poverty, unemployment, exclusion and mental illness contribute, with over 80% of homeless Australians reporting mental health conditions (Rota‐Bartelink & Lipmann, 2007). Annual costs are substantial, exceeding $25,000 per rough sleeper and $626 million for youth homelessness. Pathways into homelessness include incarceration, psychiatric release, public housing loss, and gambling. Housing-first approaches have proven effective in improving homeless individuals quality of life, including those with severe mental illness. More action is imperative to address homelessness as a social good benefitting both the homeless and the wider community despite potential cost savings.

Resource Acquisition Strategy

As a new social enterprise, Renew Futures will need to secure essential resources during start-up to establish proof-of-concept. This will require a lean, prudent approach while ensuring adequate capacity to deliver impact. Financial resources will be obtained through philanthropic grants, service contracts and social impact investment. The $50,000 grant from the Fairer Futures Foundation will provide initial seed funding. Further grant applications will be made to bodies like the Ian Potter Foundation, which last year gave over $3 million specifically for homelessness initiatives (Ian Potter Foundation, 2022).

Service contracts with the City of Yarra will be negotiated to support the readiness program, building on the Council's priority to address homelessness evident in their community plan. The Big Issue social enterprise has indicated an interest in partnering on job placements for graduates.

Social impact investors such as Impact Investment Group and Christian Super will be approached to invest start-up capital in return for a modest return (Christian Super, 2023). Recent research suggests a growing appetite for social outcomes. Access to existing homelessness services will be crucial for client recruitment and support. Partnerships will be forged with groups like Launch Housing and the Salvation Army Street Team, who have direct contact with those sleeping rough and can make suitable referrals. Mentors with experience in the sector, such as Australian Alliance to End Homelessness (AAEH) CEO David Pearson, will provide expert guidance around implementation and establishing traction. University researchers will assist with impact measurement (AAEH, 2023).

With lean budgets and deft leveraging of partnerships, Renew Futures can secure the basic resources for a 12-month pilot of the readiness program. This will provide proof of viability to expand delivery and impact then. An estimated budget has been created, which can help in financial planning and resource allocation.

Table 1

3 Year Financial Budget for Renew Futures

Table 2

Revenue Sources of Renew Futures

This budget outlines key expenses and revenue projections for the first 3 years of operations. It assumes gradual increases in staff, materials, and marketing costs as the venture scales impact. Government contract income is projected to expand as programs prove successful significantly. The budget shows an initial reliance on grants and donations, moving towards self-sustainability.

Sustainability Plan

Renew Futures will utilise a hybrid funding model blending earned revenue and ongoing philanthropy to ensure long-term sustainability. Conservative 3-year financial projections indicate operational viability within 2 years. Year 1 will rely predominantly on grants and donations to fund pilot programs while refining the model. From Year 2, the focus will shift towards increasing fee-for-service contracts with government agencies as programs are proven. Contracts for the readiness curriculum are projected to reach 40% of revenue by Year 3. Ongoing partnerships with supportive housing agencies will provide participant referrals. Philanthropic support will continue to be sought from bodies like the Ross Trust and Percy Baxter Charitable Trust to supplement the delivery costs of the highly individualised program. Donations from community members will also be requested, promoting the tangible social impact achieved. A volunteering program will be established to contain staff costs and build community engagement. Pro bono expertise will be negotiated with allied professions like HR and marketing to access specialised skills.

Most importantly, Renew Futures will stay committed to empowering lives over quick profit motives. Adaptability will enable refining the model to optimise long-term social change. Conservative projections show operational self-sufficiency within 24 months. However, the core focus remains demonstrating an effective path out of homelessness that can be scaled across communities.

Conclusion

In conclusion, Renew Futures offers an innovative and sustainable solution to tackle homelessness in Fitzroy through employment, training and community reintegration. This proposal has outlined the venture's rationale, implementation plan and long-term viability. Renew Futures moves beyond tired 'band-aid' approaches by empowering participants to rebuild lives and dignity. The 12-week intensive readiness curriculum focuses on achievable outcomes rather than just meeting basic needs. Partnerships will be integral, from participant referrals to job placements, mentoring and impact measurement. With a prudent combination of grant funding, service contracts and community support, Renew Futures can commence operations and demonstrate proof-of-concept before scaling efforts for greater impact. If well executed, dozens will transition from homelessness annually. Homelessness is a systemic issue requiring fresh thinking. Renew Futures represents that new perspective. The venture will only succeed through collaboration, co-creation and compassion. This proposal can become a reality and make tangible change with continued commitment. The time for new solutions is now.

References

AAEH, (2023). Australian alliance to end Homelessness. https://aaeh.org.au/

Antolin-Lopez, R., Martinez-del-Rio, J., Cespedes-Lorente, J. J., & Perez-Valls, M. (2015). The choice of suitable cooperation partners for product innovation: Differences between new ventures and established companies. European Management Journal, 33(6), 472-484. DOI: https://doi.org/10.1016/j.emj.2015.09.002

Australia, M. (2019). Out of the shadows: Domestic and family violence-a leading cause of homelessness in Australia. DOI: https://anrows.intersearch.com.au/anrowsjspui/bitstream/1/20486/1/Out_of_the_Shadows_%283%29.pdf

Christian Super, (2023). CHRISTIAN SUPER. https://thegiin.org/christian-super/

Furniturebank (2023). How Furniture Bank helps newcomers and refugees settle in Canada. https://www.furniturebank.org/how-furniture-bank-helps-newcomers-and-refugees-settle-in-canada/

Ian Potter Foundation, (2022). Grants Round Up October 2022. https://www.ianpotter.org.au/knowledge-centre/news/grants-round-up-october-2022/

Johnson, G., Scutella, R., Tseng, Y. P., & Wood, G. (2019). How do housing and labour markets affect individual homelessness?. Housing Studies, 34(7), 1089-1116. DOI: https://doi.org/10.1080/02673037.2018.1520819

Labonte, M. (2004). Job Loss: Causes and Policy Implications. https://ecommons.cornell.edu/bitstream/handle/1813/77639/CRSJobLoss.pdf?sequence=1

Lambdin-Pattavina, C. A., Desiderio, K., Gilmore, R., & Manohar, B. (2020). Using appreciative inquiry to explore and enhance perceptions of empowerment for those experiencing homelessness: A pilot study. Work, 65(2), 271-283. DOI: 10.3233/WOR-203079

Pc.gov.au (2019). Report on Government Services 2019. https://www.pc.gov.au/ongoing/report-on-government-services/2019/housing-and-homelessness

Rota‐Bartelink, A., & Lipmann, B. (2007). Causes of homelessness among older people in Melbourne, Australia. Australian and New Zealand Journal of Public Health, 31(3), 252-258. DOI: https://doi.org/10.1111/j.1467-842X.2007.00057.x

Statista, (2016). Distribution of homeless people living in Australia in 2016, by age group. https://www.statista.com/statistics/975284/australia-share-of-homeless-population-by-age-group/

Steen, A. (2018). The many costs of homelessness. The Medical Journal of Australia, 208(4), 167-168. https://www.mja.com.au/system/files/issues/208_04/10.5694mja17.01197.pdf

Troy, L., Randolph, B., Pinnegar, S., Crommelin, L., & Easthope, H. (2020). Vertical sprawl in the Australian city: Sydneys high-rise residential development boom. Urban Policy and Research, 38(1), 18-36. DOI: https://doi.org/10.1080/08111146.2019.1709168