1. THE UK APPROACH TO GROWING A SOCIAL INVESTMENT MARKET
Sarah Hickey, Social Investment & Finance Team
Cabinet Office, UK
JULY 2014
UNCLASSIFIED
November 18

2. #SOCINV
The UK Government works with partners to grow a private market increasing
social impact
Why What How

3. Opportunity Barrier Solution
#SOCINV
Social impact investment brings together innovative enterprise with investors who want to do more with their capital
Opportunity Barrier Solution

4. #SOCINV Social enterprises are businesses with a social mission
They gain income from trade
They channel profits towards a good cause
for example GLL
November 18
DRAFT VERSION
UNCLASSIFIED

5. Government saw that it could help a new market to grow further, faster
#SOCINV
Government saw that it could help a new market to grow further, faster
In doing this, they support both growth and social innovation
growth; tax and jobs
social innovation: entrepreneurial solutions to intractable social issues
E.g. blue sky regeneration
November 18
DRAFT VERSION
UNCLASSIFIED

6. #SOCINV However, this sector struggles to access finance to scale
x% said this was the biggest barrier, compared with X% of mainstream SMEs
because of information asymmetries on both sides
for example bank said it took four times as long to process a deal from a charity borrower
November 18
DRAFT VERSION
UNCLASSIFIED

7. #SOCINV

8. #SOCINV
The social investment team works with partners to support supply, demand, and an enabling environment
DEMAND
SUPPLY
ENVIRONMENT

9. Growing supply means increasing and diversifying the investor base
#SOCINV
Growing supply means increasing and diversifying the investor base
Big Society Capital Design principles Results
Social investment invests money on the basis of both social and financial return
Rather than giving money away through philanthropy
Or lending purely on the basis of commercial returns
Social investment about doing both – achieving sustainable social impact
November 18
DRAFT VERSION
UNCLASSIFIED

10. #SOCINV
Growing amount of deals
November 18
DRAFT VERSION
UNCLASSIFIED

11. Growing demand means enabling enterprises to become investable
#SOCINV
Growing demand means enabling enterprises to become investable
Investment Readiness Design principles Results

12. #SOCINV
November 18
DRAFT VERSION

13. Legislation Design principles Results
#SOCINV
Creating an enabling environment means making it easier for investors and enterprises to come together
Legislation Design principles Results

14. 30% social investment tax relief
#SOCINV
Social Value Act
Social Value Act
30% social investment tax relief
November 18
DRAFT VERSION

15. Market building has led to growth.
#SOCINV
Market building has led to growth.
Now we’re thinking about how to mainstream
Crowd funding Global market Development finance
November 18
DRAFT VERSION

16. #SOCINV
Thank you
UNCLASSIFIED