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

2. 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?

3. 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

4. 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

5. Prospects for the future

6. 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

7. 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

8. 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

9. 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

10. CONTACT DETAILS
Elaine McCorriston
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Twitter: @seeastofengland