Tag: social investment

Big Issue Invest supports local enterprise Homes For Good

  • Social investor reports supporting 184 social enterprises in past year
  • In turn, investees supported over 1 million people across the UK
  • Social investor outlines new strategic direction with ambitious target to increase the assets under BII management and advisory to over £500 million by 2030

Big Issue Invest (BII) has launched its 2020-2021 Impact Report.

The report revealed that the social investment arm of The Big Issue, supported 184 social enterprises across the UK with £39.7 million Assets Under Management (AUM) at March 2021*.

The report detailed how, in turn, those 184 social enterprises were able to support over 1.16 million customers across the UK in the same period.

The organisation reported that, of BII’s total investment portfolio, over 62% of the 184 investees of the past year are based in areas of high deprivation**, where capital can have the greatest social and economic benefits, including London, the North East and North West.

20% of BII’s total portfolio is invested into organisations directly tackling inequality in the UK in order to improve health, education and job outcomes in deprived areas.

BII’s investments in Scotland, the North East, East Midlands and the East of England have significantly increased during the period.

For example, £5 million was invested in Scotland- based social ventures with a major investment in the social lettings agency Homes For Good.

£1.7 million of investment was made into social enterprises in the East of England, with a change in value percentage of 667%.

Of the total number of investments, 16% support people living in poverty and/or financial exclusion, 11% support people living in precarious housing or who are homeless, 12% support vulnerable young people, 11% support people experiencing unemployment and 9% support people with mental health needs and conditions.

The top five Sustainable Development Goals contributed to by BII’s investees were: Good Health and Wellbeing (31%), Decent Work and Economic Growth (17.4%), Sustainable Cities and Communities (16.3%), Quality Education (10.3%) and Reduced Inequalities (8.2%).

The report showed that 9,490 people are employed by BII’s investees across the UK and provide 6,900 volunteering opportunities for people in local communities. It also revealed that 76% of investees focused their impact at a local rather than national level.

The report detailed BII’s support of social enterprises during the pandemic. BII provided £3.2 million of grants to 118 grantees across England as part of the National Lottery Community Fund’s ‘Social Enterprise Support Fund’ and supported the Resilience and Recovery Loan Fund to disburse £5.5 million through the Coronavirus Business Interruption Loan Scheme.

It also provided 61% investees with repayment holidays. Over 50% of BII’s investees managed to grow or maintain their work during the Pandemic.

The report also laid out the foundations of the new BII strategy: We Back Human Potential.  BII’s new strategy, which includes an ambitious target to increase the assets under BII management and advisory to over £500 million by 2030.

Danyal Sattar, CEO of Big Issue Invest, said: “In the past year, we have been inspired by the way that social enterprises and charities across the UK have responded to the unprecedented challenges faced by their communities whilst also overcoming challenges within their organisations.

“I am proud of the Big Issue Invest team who have worked tirelessly in supporting our investees to keep the lights on, adapt to new operating environments and to continue to deliver impact to their customers.

“We were part of two major sector responses to the pandemic: the Social Enterprise Support Fund and the Resilience and Recovery Loan Fund. On top of this, we continued to support over 180 organisations with £39.7 million of investment.

“During this period, we have launched a brand new strategy as an impact investor. Driving everything we do, we will champion impact-first investing; we will push for social equality and we will provide a broader range of support that is ‘more than money’.

“Over the last 12 months, BII has continued to prioritise improving diversity, equity, and inclusion in our work. We would like to take this opportunity to thank our investees for their engagement on this issue, as well as our many partners and the networks in the sector who continue to push the social investment and social sectors to be more inclusive and accessible to social purpose organisations and the wider communities they support.”

BII-IMPACT-Report-20-21-NEWDownload

For more information and to download the 2021 Impact Report, please visit:

www.bigissueinvest.com.

Foundation Scotland introduces social investment funding

Major funder announces integration with Resilient Scotland creating significant social investment opportunities to help Scotland recover

Foundation Scotland, Scotland’s community foundation, is extending its dedicated support for the third sector.  The major grant funder now offers innovative social investment opportunities to social enterprises in Scotland.

The move comes as Foundation Scotland and Resilient Scotland announce their integration.  Social investment, offered through the experienced Resilient Scotland team, will expand on the community foundation’s core grantmaking services providing access to a greater range of funding options.

The new ‘Investing in Enterprise Fund’ offers between £10,000 and £500,000 to social enterprises as blended finance. Up to 50% of the funding will be through grants with the remainder through loans, enabling them to become more sustainable, accessing opportunities less reliant on grant funding. Support will help successful applicants to raise funds and only repay part of the total sum. Foundation Scotland will reinvest all returned funds for additional social investment.

Chris Holloway, formerly Head of Resilient Scotland and now Head of Social Investment at Foundation Scotland, said: “The integration of Resilient Scotland into Foundation Scotland makes perfect sense for us as an organisation.  However, most importantly, the move will offer significant benefits to Scotland’s thriving social enterprises. 

“Collectively our knowledge, support and experience will enhance the holistic support provided to Scotland’s social enterprises.  Groups will be able to come to Foundation Scotland for traditional grants, which they continue to need, and now also innovative investment opportunities. 

“This is great timing for us as we paused all new support through the pandemic; instead, we have focussed our support on our existing investees.  A huge thanks to the National Lottery Community Fund for their continued support over the past 9 years.

“For now, it’s business as usual for our current investees, and we very much look forward to opening our doors to new investees.”

Giles Ruck, Chief Executive of Foundation Scotland, said: “Across the last few years, we have witnessed a shift change from our donors.  They have understood that the funding landscape is changing, and they’ve shown an increased appetite to provide communities with wider, longer-lasting funding opportunities. 

“Across our 25-year history, we’ve never been needed more.  We understand that the sector needs our committed, innovative support to  help them build back better.  Our integration with Resilient Scotland will support this and will bring many benefits to the third sector. 

“We are encouraging all social enterprises that are looking for additional investment to visit our website or contact our team directly to discuss your eligibility”. 

Foundation Scotland is offering new social investment opportunities across 13 of the most disadvantaged local authority areas across Scotland. The Foundation expects to extend the service to the whole of Scotland at a later date, and welcome even more new enterprises to Foundation Scotland.

Later this month, the Foundation will be publishing a full evaluation highlighting the impact of Resilient Scotland’s social investments since 2012.

For more information, including details on how to apply for the Investing in Enterprise Fund visit: foundationscotland.org.uk/social-investment

£30 million for charities and social enterprise

A new £30 million fund is being established to support small businesses within the third sector, helping them to grow as Scotland recovers from the impacts of coronavirus.

The fund will be designed to respond to a need for third sector organisations to access loans to help grow and explore new forms of social investment and finance. It will also help support the sector to meet the challenge of the pandemic and to become more sustainable in the long-term.

Communities Secretary Aileen Campbell said: “We have worked hard to support the third sector throughout the pandemic. This new fund will focus on those organisations with the potential to grow, contributing to jobs and making a positive contribution to our communities and the wellbeing economy. 

“It also goes some way towards our commitment to explore other strands of social investment, including capital loans, to build upon Scotland’s world leading position in social enterprise.

“The fund will help this sector to ensure that it not only supports our communities, but is at the very forefront of our recovery, leading our communities and our country through recovery.”

Yvonne Greeves, Board member at Firstport & Chair of Catalyst Fund, said: “The Catalyst Fund is an exciting new addition to the social investment arena in Scotland.

“The patient, revenue-based repayment model is well placed to help certain social enterprises obtain the capital they need to start-up and grow, whilst offering them a more flexible repayment approach to match their ambitions.

“We welcome the support from the Scottish Government in backing this innovative model and we look forward to supporting social enterprises with potential for high-growth to enter new markets and deliver significant social impact.”

The Third Sector Growth Fund will build on more than £1 billion which has been invested in communities since the start of the pandemic, which includes a recent commitment to a further £14 million to allow the Communities and Third Sector Recovery Programme to continue to the end of June.

The Third Sector Growth Fund will have three elements:

  • The Social Catalyst fund, which totals £15 million, will help growing organisations which are not able to access finance through standard loans, offering investment which can be repaid based on turnover, rather than growing interest rates. This would suit small businesses and start-ups whose income is variable.
  • The Circular Economy Fund will support activity which builds on sustainability of social enterprises and enables growth through investment loans. Together with The Long Term Third Sector Finance Fund which will offer loans for social enterprises and Third Sector organisations over a period of 18-24 months. a total of £10 million will be available.
  • The Social Impact Venture Portfolio will offer investments of equity into mission-driven businesses, encouraging organisations to adopt a social enterprise model. This is worth £5 million.

The delivery partners are The Social Impact Venture Portfolio and Social Investment Scotland, a social enterprise and a charity offering loan funding and business support across the sector to make a positive impact on lives, society and the environment.

Social Investment Scotland will manage The Circular Economy Social Enterprise Fund and Long Term Third Sector Finance Fund.

The Impact Investment Partnership Scotland (IIPS), an entity owned equally by Firstport and Social Enterprise Scotland (SES), will manage the Social Catalyst Fund.  

Access to the funds will be by application. Further details of the funds and how to apply will be published on the partner organisations websites later this Spring. 

Nationwide invites housing charities to bid for social investment cash

Community housing projects and charities are being urged to put their case forward as Nationwide – the UK’s biggest building society – makes £250,000 available to help make a difference across communities in Scotland. Continue reading Nationwide invites housing charities to bid for social investment cash

Swinney scores with Social Growth Fund at Spartans

john swinney at the spartans2

John Swinney launches new £16 million fund at Spartans

Cabinet Secretary John Swinney and Social Investment Scotland (SIS) visited The Spartans Community Football Academy on Thursday to formally announce the launch of a new £16m Social Growth Fund.

The Social Growth Fund, run by Social Investment Scotland (SIS), brings together an investment of £8m from the Scottish Government and a further £8m from Big Society Capital, the independent financial institution set up to develop social investment in the UK.

SIS is using the fund to expand existing investment activity within Scotland’s third sector, and to launch a new risk capital product for the Scottish social investment marketplace. This will provide long-term finance from £10,000 to £1m with repayments tailored to each organisation’s needs.

Alastair Davis, chief executive of SIS, said the new fund will enable it to provide considerably more support to social enterprises and community businesses across Scotland.

He said: “This funding support will in turn help these local organisations improve the lives of people within their communities by making them much more self-sufficient and sustainable.”

John Swinney said Spartans, which currently receives SIS support, is a good example of how this kind of funding works to better communities.

The Cabinet Secretary said: “I am delighted that the new Social Growth Fund for Scotland is now open for applications. This is an exciting opportunity for third sector organisations in Scotland, allowing them to continue their vital work within our local communities.

“Today I have seen the great work that has been achieved by the Spartans Community Football Academy in the local area, with police and youth groups noting a huge reduction in call outs and antisocial behaviour. The facilities here at Spartans show what can be done with the type of funding the Social Growth Fund will provide.

“Through schemes such as this, social enterprises will be able to have a greater role going forward, bringing more benefits to the communities they serve.”

In tandem with this new funding, SIS has also launched a Great Social Enterprise Tour – visiting five cities in five days next week – to raise awareness of the Social Growth Fund amongst local social enterprises across Scotland. The events will provide social enterprises with a chance to speak directly to an investment manager about how social investment can support the sustainability of their business.

Monday 12 May – Glasgow: The Lighthouse, 10am till 12pm

Tuesday 13 May – Edinburgh: Out Of The Blue, 10.30am till 12.30pm

Wednesday 14 May – Inverness: The Spectrum Centre, 1 – 3pm

Thursday 15 May – Aberdeen: Transition Extreme, 12.30 – 2.30pm

Friday 16 May – Dundee: The Factory Skatepark – 12.30pm till 2.30pm.

Alastair Davis, Chief Executive of Social Investment Scotland, added: “The Social Growth Fund will enable us to provide considerably more support to social enterprises and community businesses across Scotland. This funding support will in turn help these local organisations improve the lives of people within their communities by making them much more self-sufficient and sustainable.

“However, we also recognise that applying for funding can be a daunting prospect for many organisations, as it frequently represents a change in the way they do business, moving from grant dependency to a mix of income streams. Our Great Social Enterprise Tour is aimed at addressing this uncertainty by providing social enterprises with the answers they need to start moving their organisations on to the next level to create longer lasting social impacts.”

Nick O’Donohoe, Chief Executive of Big Society Capital, added: “Social Investment Scotland is a leading example of how regional social finance managers can play an important role in helping charities and social enterprises to access social investment, through their deep knowledge of the needs and challenges of a local area. They have an exceptional track record of delivering social investment support to organisations in Scotland, and we are pleased to have been able to help them to continue doing this.”

Big Society Capital’s investment in Social Investment Scotland is the first of its kind in Scotland since its formation last year, and will increase Social Investment Scotland’s funds under management by a third. It is the largest investment in SIS for twelve years and the largest ever investment by an external organisation.

Organisations who are looking for investment should call a member of SIS’ investment team on 0131 558 7706 to discuss possible funding or support.

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Case Study: Spartans Community Football Academy

The Spartans Community Football Academy is a social enterprise and charity located at Ainslie Park in North Edinburgh which uses sport to deliver social change. Their local community includes some of the most deprived post codes in Scotland. With support from Social Investment Scotland, the Spartans have invested £4.5m in the last 5 years to build first class facilities and services which generate commercial income, the profits from which are re-invested to deliver their charitable objectives.

In the past 15 months, Spartans business has continued to grow, enabling them to increase their social impact. Some recent highlights are:

  • Delivery of 1000+ hours of youth work based provision in 2013, including the Friday FooTEA club, where young people can enjoy a ‘hot meal’, take part in various activities and develop/grow at their own pace (a model which has been rolled-out & replicated elsewhere across the country)
  • Delivery of 850+ physical activity and coaching sessions in local schools in 2013, helping them to meet their 2 hours of PE target per week
  • Creation of 4 x Homework Clubs – using a ‘Game of 2 Halves’ model – in local primary schools, helping local schools to increase academic attainment levels
  • Over 1200 sign-ups for our community coaching programmes in 2013, catering for recreational -> elite players
  • Over 100,000 users of our range of Academy facilities in 2013
  • Runner up in the Scottish Social Enterprise of the Year 2013 awards

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