Presentation by Cliff prior at the ERC Annual conference 2016

1. GROWING SOCIAL VENTURES
Cliff Prior, Chief Executive, Big Society Capital
@cliffprior
@BigSocietyCap

2. ABOUT BIG SOCIETY CAPITAL
Big Society Capital is an independent financial
institution with a social mission, set up to help to
develop social investment in the UK.
Champion for
Social Investment
Wholesale
Social Investor

3. AS A CHAMPION
Business Impact
Challenge
GET IT Public service
reform
Transparency
Research
Council
Charity Bonds Social Pensions Crowd Funding
Working with
charities & social
enterprises
Working with
investors
Social impact tools
CURRENT PROJECTS
CORE ACTIVITIES

4. AS AN INVESTOR
Co-development
Applications
Drawn down by
charities and
social enterprisesInvestment into
intermediaries
£289 million
+ £505 million co-investment £110 million
+ £175 million
co-investment

5. OUR FOCUS
Finance for small &
medium-sized
charities & other
social sector
organisations
Capital that allows
innovation in tackling
social problems to
quickly grow and
replicate
Mass participation in
social investment
.
Greater financial
scale in order to
finance social issues

6. THE SOCIAL CHALLENGE IN THE UK
Housing & local
facilities
Communities Education
Income & financial
inclusion
Health &
social care
Employment &
training
Family, friends and
relationships
Criminal justice
Arts, heritage, sport
and faith

7. WHAT IS SOCIAL INVESTMENT?
Social investment is repayable money to help charities and social
enterprises to do more of their important work.

8. ONE TOOL FOR SOCIAL VENTURES
Trading Donations
Bank
Finance
Contracts/ Payment
By Results
Social
Investment
FINANCIAL TOOLKIT
To build innovation, growth and sustainability

9. EXAMPLES OF HOW IT WORKS
9

10. SOCIAL SECTOR INFO
10
£39bn income
£38bn spend
declined since 2007
peak of £41bn
900k civil society orgs
161k charities
70k social enterprises
Social enterprises contribute
£24bn to economy
and employ 1mpeople
Charities & social enterprises
are regulated organisations:
asset locked / (part) profit locked
52% of social enterprises grew in last year
40% of mainstream sme’s grew in same year

11. SOCIAL INVESTMENT MARKET SIZE
11

12. 13
£39bn income
£38bn spend
declined since 2007
peak of £41bn

13. THE RISE OF THE MISSION LED BUSINESS
14

14. CONTROVERSIES
15

15. CONTROVERSIES
16
Regulated, no/limited private gain
Can’t give equity investment – slows
down growth
Will they still be
social tomorrow?

16. CONTROVERSIES
17
Regulated, no/limited private gain
Can’t give equity investment – slows
down growth
Will they still be
social tomorrow?
?

17. 18

18. 19

19. 20

20. BUSINESS FINANCE IN DISADVANTAGED AREAS
21
Banks still not reaching
disadvantaged areas enough.
CDFIs help but are poorly
supported and reliant on
EU funds/guarantees which
will disappear with Brexit

21. A CALL TO ACTION
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• Traditional social sector is struggling but resilient
• Social investment can help some to do more
• Growing movement of social entrepreneurs and
profit with purpose businesses
• Increasing interest in inclusive business
• New social needs including the people “left behind”
• SME business finance in disadvantaged areas
needs an urgent reboot

22. www.bigsocietycapital.com
Big Society Capital Limited is registered in England and Wales at Companies House number 07599565. Our registered office is 4th Floor, New Fetter Place,
8-10 New Fetter Lane, London EC4A 1AZ. Big Society Capital is authorised and regulated by Financial Conduct Authority number 568940.
23
Thanks for listening
@cliffprior
@bigsocietycap
www.goodfinance.org.uk
#socinv