I always urge social enterprises to seek traditional finance. And it appears the government is starting to move the sector in this direction. This is a program to pilot determine how we can bring equity investment into the social enteprise scene, moving us beyond traditional loan finance. While some companies, such as P3 Capital, are already acting as venture capitalists on the scene, their focus is on extremely high growth enterprises. I think this program is about bringing mainstream equity investment to the social enterprise scene:
From the Social Enterprise Coalition newsletter:
ED MILIBAND ANNOUNCES SCHEME TO BOOST PRIVATE INVESTMENT IN SOCIAL ENTERPRISE
The Office of the Third Sector is offering limited funding to organisations with strong ideas on how to pull private investment into social enterprises for start-up and growth.
Following the announcement on the 4th August by Ed Miliband, Minister for the Third Sector, three organisations will win funding of up to £100,000 to pilot proposals to incentivise greater private investment in the sector. The aim of the scheme is to promote innovative approaches to social investment and to increase understanding of the current barriers that exist to investment from the private sector.
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