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Marcus Dixon South West Forum Understanding The Big Society
Working With Local Enterprises To Deliver Sustainable Services Through Working With Local Enterprises To Deliver Sustainable Services Through
Asset DevelopmentAsset Development
Strategies
Capability
Finance
Marcus Dixon South West Forum Understanding The Big Society
Community EnterpriseCommunity Enterprise
Social purpose organisations are a growing business and employment sector contributing over £2.5billion annually to South West economy and around 4% of paid workforce. In some local areas the sectors contribution is proportionally higher.
Recognised that social enterprise is an increasingly attractive sustainable business model for the delivery of public and community services and innovation in the low carbon, environment and the developing sectors
Marcus Dixon South West Forum Understanding The Big Society
Lyme Regis Development Trust
The Malt House
Education Space
St.Michael'sExtension
Field Studies Centre
The Hub
Children's Centre
Fossil Festival
Community consultation & planning
St.Michael's Business Centre
Affordable Housing
The Library
Marcus Dixon South West Forum Understanding The Big Society
Asset Development StrategyAsset Development Strategy
•Physical Assets
Assets/Liabilities
•Contractual Assets
Service Delivery/Service Support
•Joint Ventures/Collaboration
•Trading Subsidiaries
•Project Development
Marcus Dixon South West Forum Understanding The Big Society
Finance
Institutional capacity
Social enterprise
Skill set of staff team
Enterprise Culture
Plan Big Idea
Opportunity
Marcus Dixon South West Forum Understanding The Big Society
Peter F. Drucker in Innovation and Opportunity:
• “The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.”
Marcus Dixon South West Forum Understanding The Big Society
Finance
•Loans
•Grants
•Equity
Marcus Dixon South West Forum Understanding The Big Society
Wessex Reinvestment Trust
• Established in 2002 as a Social Enterprise• Community Development Financial Institution• Filling gaps in finance provision in rural areas• Delivering financial inclusion for vulnerable
groups • Creating “blended value”: financial & social
returns• Delivering technical aid
Marcus Dixon South West Forum Understanding The Big Society
Community asset development in Lyme Regis
• Wessex secured £100,000 grant for Lyme Regis Development Trust from ChangeUp
• Wessex provided £13,000 loan
• Wessex negotiated £35,000 Programme Related Investment from Community Foundation for Bournemouth, Dorset & Poole
Marcus Dixon South West Forum Understanding The Big Society
High Risk
Low Risk
Pre-planning Piloting/partnership development
Infrastructure
development
Sales
Senior
debt
Grants, donation,
equityGifts in
kind
Mezzanine debt
(unsecured loans)
Source: J.Ludlow, Venturesome
Marcus Dixon South West Forum Understanding The Big Society
Equity Finance
• Loans (or debt finance) require interest payments and the repayment of the amount borrowed.
• Equity, is investment in exchange for a stake in the organisation, in the form of shares.
• Equity finance can be useful in the early stages of growth or when developing a new product or service. Unlike a loan, investors providing equity finance are effectively sharing the risk with the organisation and are likely to defer any expectation of a financial return for some time.
Marcus Dixon South West Forum Understanding The Big Society
Raising Equity for Social Enterprises
• If a company undertakes a share issue, the costs of issuing a prospectus are usually very high (at least £50,000) because of the due diligence requirements demanded by the Financial Promotions Regulations. This layer of cost presently exists for all share companies, including Community Interest Companies, seeking investments from the public.
Marcus Dixon South West Forum Understanding The Big Society
Use of an IPS for raising equity
• However, Industrial & Provident Societies can be exempt from the Financial Promotions Regulations.
Marcus Dixon South West Forum Understanding The Big Society
Recent community share offers
Share capital £
No. of member
Av. £ per member
The Cochabamba Project 623,003 89 7,000
Sustainable Hockerton 167,550 41 4,100
Ecological Land Co-operative 123,000 38 3,200
Hudswell Community Pub 219,100 151 1,450
Go! Co-operative 58,006 70 830
Motcombe Community Shop 70,000 100 700
Topsham Ales 35,000 55 640
Busy Bee Toyshop Co-operative 32,250 102 300
Fairtraders Co-operative 85,000 370 230
Slaithwaite Co-operative 15,000 121 120
Dunbar Community Bakery 23,000 230 100
Marcus Dixon South West Forum Understanding The Big Society
Reg'n Date RAISED
Jun-09 £26,450West Oxford Community Renewables Limited
Aug-09 £50,000 Red Brick Building Centre Limited
Oct-09 £5,000 en10ergy limited
Dec-09 £155,000 Exeter Local Food Limited
Mar-10 £88,000 Stockport Hydro Limited
Feb-10 £1,800 Somerset Land for Food
Jul-10 £122,000 The Community Farm
Nov-10 current Buckland Food Growers
8 to date £448,255 raised
Wessex Community Assets: SW Share Issues
Marcus Dixon South West Forum Understanding The Big Society
Members
Member engagement
Activist
CustomerVolunteer
Investor
Service user
Worker
SupplierDirector
Expert
Marcus Dixon South West Forum Understanding The Big Society
Contact:
Marcus Dixon
www.lrdt.co.uk