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Financing the growth of successful social enterprises

Presentation by Jonathan Bland

Social Business International

Aims and Context

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•Why do you want social enterprise growth? •Jobs, services ?•How do conceptualise SE in your context•Where might that growth happen?•What are the routes for growth?•Importance of a systemic approach

Success Depends on 3 Ms

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It is the interrelationship between them that is important!

MARKETSMARKETS

MONEY MONEY

MODELSMODELS

Models: Plurality and Alternatives

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• Social Enterprise Model

• Business trading for a social purpose; profits principally re-invested

• Many different approaches and legal models in different countries

• They develop in different ways

Money

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Grants: start-up, innovation

Debt: short-term working capital, property

Equity: patient risk-taking finance for growth

Many similarities to all SMEs, but some big differences, due to not maximising shareholder value.

What exists and where are the gaps

Filling the gaps

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•Grant programmes – to stimulate business

•Generalist banks as lenders and investors – need to build understanding – market potential, particular needs

•Specialist funds – that can fill gaps, market building

•Innovative tools – e.g. community share issues, participating loans etc.

How to fill the gaps

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Who does what?

Government is not usually good at providing support directly – a role for intermediaries.

Grant Providers

Social Investment funds: debt and equity

Examples

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•The Big Lottery and Unlimited

•Unity Trust Bank

•The Banca Prossima

•The Social Enterprise Investment Fund

•Bridges Ventures

Growing a market for social investment in the UK

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Big Society Capital

Social Impact Bonds

A social stock exchange

Many issues – key one is Measuring Impact

Opportunities presented by the SBI

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•EU Financial Instrument

•Structural Funds

•Social Entrepreneurship Funds

•Also measurement and wider understanding/visibility

Moving Forward

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• Window of influence for EU funds

•Clarity of focus

•Fit with creating a wider ecosystem for social entrepreneurship

Contact

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Jonathan.Bland@socialbusinessint.com

www.socialbusinessint.com

“Growing Successful Social Enterprise”Kettering UK 4-5 March 2013