Social Investment Support Programme 19th May 2017 Research findings Nicky Stevenson

Research questions What is the current size and profile of social enterprises in Essex? What use has been made of social investment finance and what demand is there for future use?

Methodology Target group – larger and more established voluntary organisations that are trading and social enterprises An on line questionnaire – completed by 122 eligible respondents Sample of 20 respondents for telephone interview

Quality of sample 52% identified as social enterprises or charities that are trading 44% identified as charities that are seeking to trade 9.8% are not seeking to trade 52% of income generated through trading 13% had sought social investment Half of the interview sample were more likely than not to apply for social investment finance

Prospects for the future

Business support 33% had received external business support Mostly accountants & solicitors, also some funded support Majority had paid for support Networks and peers most popular source In house skills of trustees/boards Knowledge of social enterprise is important Main gap is strategic planning “getting from here to there” Use of networks and peers Skills of trustees/boards of directors Knowledge of social enterprise issues valued Some dissatisfaction with commercial business mentoring

Social investment Numbers of questionnaire respondents who had sought social investment 13% (12 organisations) had applied for loan finance 11 had been successful 1 had not Range of social and commercial investors Some had used combination of lenders 9 had borrowed to fund a capital asset 2 had borrowed for cash flow & general development 8 had considered a loan and not taken one

Social investment Knowledge of the market Varied knowledge of models and providers Half of interviewees more likely than not to borrow in future 13/20 interviewees had borrowed/actively trying to borrow/very interested in borrowing Interviewees using private/community investment (individual member and community bonds) No mention of Social Impact Bonds Some SEs are using profits to support their own development Some SEs are supporting the development of others

Recommendations Support in business planning and finance to help organisations assess risk Raising awareness of the Social Investment offer to help to grow the market Providers bringing knowledge in to help increase awareness and competition Peer to peer support to help disseminate existing knowledge and experience Longer contracts from public sector customers to help financial planning for growth Trustee involvement in training and development to help them become less risk averse

CONTACT DETAILS Elaine McCorriston Email: admin@seee.co.uk Mobile: 077301 30437 Website: www.seee.co.uk Twitter: @seeastofengland