Deliver sustainable services through asset development - Big Society & Localism - Workshop

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  • Andrew – Who are Wessex Reinvestment Trust
  • Deliver sustainable services through asset development - Big Society & Localism - Workshop

    1. 1. Working With Local Enterprises To Deliver Sustainable Services Through Asset Development Marcus Dixon South West Forum Understanding The Big Society Strategies Capability Finance
    2. 2. Community Enterprise Marcus Dixon South West Forum Understanding The Big Society 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
    3. 3. Marcus Dixon South West Forum Understanding The Big Society Lyme Regis Development Trust The Malt House Education Space St.Michael's Extension Field Studies Centre The Hub Children's Centre Fossil Festival Community consultation & planning St.Michael's Business Centre Affordable Housing The Library
    4. 4. Marcus Dixon South West Forum Understanding The Big Society Asset Development Strategy <ul><li>Physical Assets </li></ul><ul><ul><ul><ul><ul><li>Assets/Liabilities </li></ul></ul></ul></ul></ul><ul><li>Contractual Assets </li></ul><ul><li>Service Delivery/Service Support </li></ul><ul><li>Joint Ventures/Collaboration </li></ul><ul><li>Trading Subsidiaries </li></ul><ul><li>Project Development </li></ul>
    5. 5. Marcus Dixon South West Forum Understanding The Big Society Enterprise Culture Plan Big Idea Opportunity Finance Institutional capacity Social enterprise Skill set of staff team
    6. 6. Peter F. Drucker in Innovation and Opportunity : <ul><li>“ The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.” </li></ul>Marcus Dixon South West Forum Understanding The Big Society
    7. 7. Marcus Dixon South West Forum Understanding The Big Society Finance <ul><li>Loans </li></ul><ul><li>Grants </li></ul><ul><li>Equity </li></ul>
    8. 8. <ul><li>Wessex Reinvestment Trust </li></ul><ul><li>Established in 2002 as a Social Enterprise </li></ul><ul><li>Community Development Financial Institution </li></ul><ul><li>Filling gaps in finance provision in rural areas </li></ul><ul><li>Delivering financial inclusion for vulnerable groups </li></ul><ul><li>Creating “blended value”: financial & social returns </li></ul><ul><li>Delivering technical aid </li></ul>Marcus Dixon South West Forum Understanding The Big Society
    9. 9. Marcus Dixon South West Forum Understanding The Big Society Community asset development in Lyme Regis <ul><li>Wessex secured £100,000 grant for Lyme Regis Development Trust from ChangeUp </li></ul><ul><li>Wessex provided £13,000 loan </li></ul><ul><li>Wessex negotiated £35,000 Programme Related Investment from Community Foundation for Bournemouth, Dorset & Poole </li></ul>
    10. 10. 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, equity Gifts in kind Mezzanine debt (unsecured loans) Source: J.Ludlow, Venturesome
    11. 11. Equity Finance <ul><li>Loans (or debt finance) require interest payments and the repayment of the amount borrowed. </li></ul><ul><li>Equity, is investment in exchange for a stake in the organisation, in the form of shares. </li></ul><ul><li>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. </li></ul>Marcus Dixon South West Forum Understanding The Big Society
    12. 12. Raising Equity for Social Enterprises <ul><li>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. </li></ul>Marcus Dixon South West Forum Understanding The Big Society
    13. 13. Use of an IPS for raising equity <ul><li>However, Industrial & Provident Societies can be exempt from the Financial Promotions Regulations. </li></ul>Marcus Dixon South West Forum Understanding The Big Society
    14. 14. Recent community share offers Marcus Dixon South West Forum Understanding The Big Society 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
    15. 15. Marcus Dixon South West Forum Understanding The Big Society Wessex Community Assets: SW Share Issues Reg'n Date RAISED Jun-09 £26,450 West 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
    16. 16. Member engagement Marcus Dixon South West Forum Understanding The Big Society Members Activist Customer Volunteer Investor Service user Worker Supplier Director Expert
    17. 17. Contact: <ul><li>Marcus Dixon </li></ul><ul><li>[email_address] </li></ul><ul><li>www.lrdt.co.uk </li></ul>Marcus Dixon South West Forum Understanding The Big Society

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