1. COMMON CAPITAL
Mutual and social enterprise
Funding and finance
Policy and practice
SOCIAL INVESTMENT PROMISE AND POSSIBILITY
Dan Gregory, November 2012

2. PERSPECTIVE
Social investment
vs.
Access to finance

3. DEFINITION
• Impact investment vs. social investment
(Zweck / Wert)
• Funding (revenue / income) vs. finance
(capital / investment)
• Repayable vs. non repayable
• By socially minded or in socially minded
• Tens of millions or billions?
• Equity, debt + hybrids
• Social considerations?
• Sub-commercial?

4. UNDERCAPITALISED?
• Unequal distribution of
capital
• Relatively underleveraged

5. INVESTMENT READINESS
• Almost half simply not interested
• Those who already have investment mainly
have asset backed loans
• Appetite for <£100k long-term sub-
commercial risk capital

6. BARRIERS?
“little evidence that social
enterprises are either riskier or less
well understood ... no significant
difference between social
enterprises and mainstream
businesses in the number that had
been rejected.”
“4% of social enterprises sought to
issue equity… less than 3% of SMEs
seek equity finance”

7. JUST TURN ON THE TAPS!?
Business models in
areas of market and
government failure

8. INNOVATION / TRADITION
If innovation is the application of old ideas in
a new context
• Stock exchange
• Investment bank
• Private finance initiative (PFI)
Or old ideas coming back into fashion
• Community shares
• Old-fashioned banking
• Disintermediation

9. METRICS
Instrumentalist / McKinsey / Blairite ‘what works’ /
deterministic / evidence Taliban (Zweck?)
vs.
Trust / governance / ownership / participative
capitalism / engagement (Wert?)

10. RHETORIC AND REALITY
“There aren’t actually any
social investors are there?”