Category Archives: SME Support

Cornershop revisionism – philosophy refreshed…

The Pop-up Shop has been getting a lot of press recently.

Did it ever go away? Is a revision to enterprise philosophy under way? Asset management, both in the public and private sector is in flux. With revisionist thinking on collaboration and about public space utility and development?

We think there is this paradigm shift, which can energise the social finance market. It will temper developments in the public space. This affects political mission, private capital movements and community outcome.

We offer as evidence the three reports/ideas formulated by a diversity of organisations below. As crisp in their thinking as they are diverse. They are telling onlookers to change, at an opportune moment for our sector.

The Pop-Up Shop:

See more modern retailing here...
Hogarth imagines the pop-up shop?

Reading mainstream articles about this newly energised movement, we enjoyed revisiting the web site of www.appearhere.co.uk . We see it as a metaphor for a new retailing in the UK.

We are a world away from the ’empty space’ temporary retail proposition of old.

Gone are bare spaces, filled with less than high quality merchandise on a seasonal pressure sale basis. In comes a range of artisan producers, innovatory publishers and craft manufacturers. All intent on capitalising on short term, premium retail spaces. It should stir the imagination?

The Appear Here concept achieves a number of aims for the burgeoning retailer. Firstly, you can use the site to scope spaces across the UK, and will be able to view more in the future. You can also see, upfront, the cost of occupying the space over your chosen period.

If you are a community enterprise just at the planning stage this is important. Not being retail property specialists, but with a passion for your community manufactury, then knowing what the costs are likely to be, with support of the Appear Here team, could be a deal clincher for your project.

We haven’t fully explored the booking conditions from the site yet, and cannot see other start-up costs like majority deposits that may be needed, but overall the presentation makes a telling offer for the 21st Century.   internetIconMini  Check out Appear Here today.

We also liked and applaud The Plunkett Fondation’s attempts to vivify the community shop. They have recently published a new report Community Shops 2014 – A Better Form of Business.

Better shops, better communities...
Better shops, better communities…

The Foundation’s main focus is on rural development. As with the initiative above, retailing and the opportunities it offers, are good in inner-city areas too.

These include the principles of stock management, employment, volunteering, managing cash-flow and more.

The mixture of skills and commitment adds human capital, not only to the shop, but also the community if done right.

Icon for Adobe PDF  Download a copy of the Plunkett Foundation Report for 2014 here…

What can be gleaned for the Plunkett report is how a local shop can be a driver for community cohesion, a broad, beneficial identity and, because it is community owned, a wider sense of community ownership of place is also generated. Who cannot be proud of the area the shop they own exists within?

 Socially Productive Places:

Yesterday The Royal Society for the Arts (RSA), in collaboration with British Land, published a new report about an emergent model to add value to public spaces by utilising a new admixture of co-operation and skills shared amongst local authority planners, developers, community groups and politicians.

New ideas in regeneration...
New ideas in regeneration…

We were excited by the report, which contains recommendations for how private developers and public sector players can innovate and collaborate in new ways to get the maximum value from public spaces, whilst at the same time adding value to built assets.

At the heart of the report is a lack of fear about profitability. But with a sense of urgency and innovation about how the public domain renovates and rebuilds from now on.

The report tells us what should not done. As well as illustrating the new skills needed by key players in the development sector. It is a cogent and telling argument.

Icon for Adobe PDF   Download a full copy of the research paper here…

It’s a timely report and you can read a short review, and find links to the conference that inspired the research, on conversationsEAST, the East of England Fellowship journal supporting the work of the RSA.

Mass Collaboration:

The Institute of Public Policy Research (IPPR), is a centre-left think tank. It recently published a paper called Mass Collaboration.

Within the context of this brief article, the IPPR piece binds together some of the ideas expressed above. Taking a meta-narrative view of policy and practice.

To see how to achieve change in the public arena. Moving to mass engagement within the socio-political structures that frame our society.

Working together in a new way...
Working together in a new way…

The paper, authored by Matthew Pike, a serial social entrepreneur. He has connections to Unltd, Big Society Capital and the Social Investment Business.

Matthew is the founder of www.resultsmark.org, a free reporting system for public services. Always worth checking out!

Icon for Adobe PDF   Download a copy of the report here…

The Pike thesis for change, that will will channel mass collaboration, is based upon five key principles. We give them below.

  1. “Invest in shared institutions that build social capital and engender supportive working relationships across sectors and hierarchies, such as teams of supporters around individuals, community anchor organisations, children’s centres, extended schools and more. Above all, invest in new ‘backbone organisations’ that can mobilise and organise whole-system change across localities.
  2. Understand what help people need in order to help themselves and discover the existing strengths within people and communities, through an immersive programme of listening and learning.
  3. Harness the new power of ‘big social data’ to turn public funding into a real-time process of action learning, understanding as much as possible about activities, outcomes and costs in an area to help design new systems that give people the help they need in a much smarter way.
  4. Provide funding, investment and support to test, grow and scale up what works better in a local context and cut what isn’t needed or is less effective.
  5. Work progressively to use new insight and evidence to help redesign the wider systems, rules and regulations that hamper local achievement”.

The five could apply to the social finance sector, and the players operating in it. Innovation, change, consultation, system and process review, engagement with communities of interest. All are all defining characteristics of the Social Finance sector.

The thematic glue to them, for us in the sector, is money. It’s accrual, its management and its dispensation. The Pikeian motif can layer upon the RSA paper, as well as across the innovatory approach of The Plunkett Foundation. In essence, we should talk to each other and ‘do things different’.

A heady time to be in the vanguard of a new movement?

Ethical business with a social dimension...
Ethical business with a social dimension…

The impact of the CDFI

CDFI 2013 Report cover image
How CDFI delivered…

Inside Community Finance 2013 from the Community Development FInance Association internetIconMini is an illustrative document to frame the current CDFI landscape in the UK. In the report the Financial Secretary to the Treasury, Sajid Javid MP, declares that there is still much to be done for the struggling SME.

On balance, however, the report shows the emergent strength of the CDFI movement and offers a road map for the immediate future, built on its past success.

Download a copy of the CDFA Report for 2013 here. Icon for Adobe PDF

CDFI’s lending to social ventures in the 2012/13 period makes for positive reading…although more is always better (Ed.) The community development institutions lent £13 million pounds to 204 social ventures, the report tells us, This created or protected 1,900 jobs and represented a 37% increase in lending over the previous twelve month period.

Lending to individuals was equally impressive. CDFIs internetIconMini lent £19 million to some 40,600 people, which diverted 29,000 people from higher cost lenders, and saved over £7 million pounds in interest payments for those individuals.

Interestingly, the report illustrates that Community Investment Tax Relief (CITR), providing a tax incentive for those who invest om accredited CDFIs, was not a major driver of capital growth for the CDFI industry. Perhaps the delivery of the Social Investment Tax Relief scheme (SITR) this year will drive more money in from the cold for social based lending?

You can also gain insights into the reach of the various CDFI initiatives in the document.

In 2013, 93% of CDFI business loan recipients had been turned down for finance by a bank. Fifty seven per cent of loan recipients had previously been unemployed.

The report, in terms of potential reach, also has something interesting to say about the engagement of CDFIs and Local Enterprise Partnerships (LEP). CDFIs are hopeful, that with the roll out of the 2014-2020 European Structural and Investment Funds (ESIF), that CDFI/LEP partnerships can become active and effective.

You can see development and delivery guidance for ESIF here. Icon for Adobe PDF

At eighty pages Inside Community Finance 2013 is a lengthy document. But it is structured with data, forecasts and case studies that make the CDFI story a telling one. Whether you are looking for evidence of the CDFI impact at local, region, national or European level – there’s something of interest here.

Ethical business with a social dimension...
Ethical business with a social dimension…

Tell your story everywhere!

writing Press Release Pic2
Getting to grips with your news…

In desperate economic times it is is important spread your success story as widely as you can. Impact is about perception as much as it is about delivery.

Getting your narrative and pictures together is one thing. Where and to whom should you send it? Below are details of useful tool kits and advice packs that can help you, whether you are a community group just starting down the road to social enterprise, or a fully fledged small business beginning to highlight the important ‘social’ message in your work.

Locality offer a great Press Kit. It explains in simple and accessible language, what makes a good story, How to ‘pitch’ your news to create wide interest. Importantly the information also shows you how to let the press know – what are the mechanics of sending a captivating email, for example.

The tool kit offers guidance about how to put together a formal press release, and lets you access a template to help you get it right. Not everyone is good at talking to reporters, or in making off the cuff comments that best reflect your project. Choose the right spokesperson and plan ahead.

See the Locality Media kit here. Icon for Adobe PDF

And don’t forget social media. You’re reading this article in the SEEM on-line journal, but someone had to create it and populate the pages too. Locality also offer you a short social media tool kit to compliment the more traditional press release.

See the Social Media toolkit from Locality here. Icon for Adobe PDF

 

The Guardian have a nice article on the ten most glaring mistakes you can make in a Press Release for your project or Social Business. Too may CAPS, too short or too personal? The media professionals at The Guardian offer some advice.

The Guardianwriting a good press release web pages hereinternetIconMini

 

For the more commercially minded HubSpot, bringing something of a USA focus , offer their take with  The Newsworthy Guide to Inbound Public Relations.

Although you will have to register on the HubSpot website, the download is free and they promise to give you insights in how to revive the Press release for the new media age.

HubSpot – get your free copy of The Newsworthy Guide here. internetIconMini

If you’re currently writing your press release, planning your campaign or just interested in reviving your project face to the world…help is here.

Ethical business with a social dimension...
Ethical business with a social dimension…

 

The SME graduate?

Amy Simmons and Emily Ward, two final year undergraduates at Nottingham Business School have just delivered an interesting research paper on …why are so few graduates working in SMEs within the UK?

Having worked in small business in their University placement the researchers had noticed how graduates appeared to be missing from the SME human resource landscape. The SME economic landscape is important. As their research states…

SMEs are the driving force towards the recovery of the economy as they account for 99% of the UK businesses. They also provide 67% of private sector jobs and contribute to 50% of the UK’s GDP.

Their research indicates that SME’s do not understand  and have a lack of knowledge about graduates. What are their qualifications worth? What impact can a graduate have on my business? Graduate skills, even from major corporates clearly focus, their research shows, on ‘traditional’ skill sets. Team working and communication, team players required and a strong can do’ attitude.

A key reference in the Simmons and Ward research is the difficulty of actually connecting SME’s with graduates. Private sector ‘soft development’ of business often takes place outside of normal working hours in the UK.  Key careers fairs and ‘meet and greet’ graduate events are traditionally mainstream day events.

Overall we warmed to their thesis, and find echoes in our worry about Social Business awareness, which we have written about in the past. How to enable graduates to recognise the Social Business sector as positive career progression path? The Simmons and Ward research seems to indicate that the issue is of an even more fundamental nature.

How to make graduates aware of the SME sector opportunities for dynamic personal and professional growth? Leaning towards social or community enterprise is probably the second, more subtle step to take in our raising awareness campaign?

Discover the Nottingham Trent University web article in full here…

Ethical business with a social dimension...
Ethical business with a social dimension…

Is the economy broken?

Although it has been around for a month or two now, we thought it was worth revisiting the Transforming Finance film from the pages of The Finance Innovation Lab.

Even at the start of 2014 we are burdened by news of multi-million pound loss making institutions paying multi-million pound aggregate bonuses. The schism between the ‘real economy’ in communities and the netherworld of internal trades in the financial markets is well illustrated in the film below.

The core message of the film is a critique of the current banking environment. Interestingly the voices heard and the opinions expressed are voiced by significant players in the finance innovation sector – what is not heard is the voice of disorganised fiscal radicalism, rather a careful, reflective and pointed analysis of the current financial situation.

The unstated, yet telling counterpoint, to the argument expressed is a positive acclamation of the Social Finance sector. The notion of financial institutions trading with each other, the making of money out of money, seriously impedes the fiscal health of communities and small business.

The delivery of innovation, profit and community welfare in the broadest economic sense is not impossible. We heard about it in this film.

Discover the Finance Innovation Lab here.

Ethical business with a social dimension...
Ethical business with a social dimension…

Supporting small business UK

Vince Cable recently announced a variety of additional support mechanisms for small business – new funding for loans and additional mentoring and support services.

Business is Great Britain banner image

There is a new website – Business is Great Britain – which aims to provide information and resources to UK businesses to plan, export, lead and nurture their development.

The web pages also contain useful links to funding sources, business grants etc., to help that growth.

The new British Business Bank has allocated its first £45 million pound tranche of funds, the deployment of which should begin in early 2014. The money is being placed with finance intermediaries to explicitly be invested in the support of SME’s.

In the ministerial announcement was an indication that the funds may be invested in ‘…businesses that offer non-traditional channels of lending that may not be regulated by the Financial Services Authority or the Office of Fair Trading’. Is this an oblique reference to the Social Business market?

You can read the full ministerial announcement here.

The Sector Mentoring Challenge Fund aims to encourage employers, trade bodies and others to work together and deliver tailored mentoring solutions that address real business needs in their sector.

This is a one off funding tranche, competitively aspiring to fund innovative mentoring and support for business sectors. The Fund is specifically looking for proposals that can become self funding examples of sector support.

You can find application details for the 11th December deadline here…

Any help for the SME sector is useful in the current economic climate, although the acid test will be how conservative in approach these new intermediary funds turn out to be. More support, or more of the same, only time will tell?

Ethical business with a social dimension...
Ethical business with a social dimension…

 

Nottingham, a city of making

Academic underpinning of development - Nottingham has two universities...
Academic underpinning of development – Nottingham has two universities…

We featured the early results for GDP from the Office of National Statistics for Quarter 2 in 2013 recently. These are now firm and the results are detailed below. The slight air of optimism about UK Ltd continues to be felt, we would argue.

UK gross domestic product (GDP) in volume terms was estimated to have increased by 0.7% between Q1 2013 and Q2 2013, unrevised from the Second Estimate of GDP published 23 August 2013. Between Q4 2012 and Q1 2013, GDP in volume terms increased by 0.4%, revised up from the previously estimated 0.3% increase.

We were also delighted to read a recent article in the national press, where Nottingham, our home city, was cited by the Governor of the Bank of England as a ‘bell-weather’ for the UK economy. With data showing that nine out of ten jobs in the city are currently in the service sector, a move back to ‘creative manufacturing’, in all it’s diversity, is a great echo to the high Victorian energy of the city.

Katie Allen, writing in The Guardian, described Mark Carney’s view of Nottingham as a city where growth was rising, but that the quality of that growth and innovation was also significant. Gone are bicycles and cigarettes, but they are replaced by significant entities in bio-science, engineering and the arts/creative sector.

Examples in our city include the creation of new Creative Quarter Community Interest Company, as well as the delivery of a new BioCity development to foster the city’s lead in the sciences.

With the development of the Creative Quarter, it is great to see social business as a key plank in the city’s developing enterprise structure.

If, as a social business looking to make an inward investment, or to explore the context of Nottingham a start-up or social business development setting – you can find the city’s Growth Plan online here.

The team at SEEM, with our expertise in social business start-up and skills in delivering social finance would be happy to help you shape your project too. Contact us here…


Interesting web resources:

Mapping the Moment – a map based examination of the ‘cultural industries’ in Nottingham between 1857 – 1867

Knitting Together – an examination of the East Midlands knitting industry, 1600 to 1970. (Much changes in the economic landscape for our city and its hinterland, but much remains the same. New technologies, mergers, enterprise rise and fall…)

Ethical business with a social dimension...
Ethical business with a social dimension…

Funding at the sea-side

A boat at a coastal community...
Investing in Coastal Communities…

The Treasury recently announced an increase in the budget allocation for the Coastal Communities Fund.  Next year’s fund will be worth £29 million, an increase of 5% on the 2013 level. Government has committed the Fund allocation to 2016.

The Fund was established with the intent…

to invest in seaside towns and villages, helping them achieve their economic potential, reduce unemployment and create new opportunities for young people in their local area.

Forecasts for the first round projects across the UK are that the Fund will generate 5,000 jobs and 500 apprenticeships. You can see a map pinpointing the successful first round projects here.

Retail businesses in the  Eastern region can share in a £250,000 fund to help improve their digital technology thanks to the Greater Lincolnshire Local Enterprise Partnership and Lincolnshire County Council. (£200,000 of the money has come from the Department for Communities and Local Government, via the Big Lottery Fund, operating as the BIG Fund. Lincolnshire County Council is contributing a further £50,000).

The Council and the LEP are developing pilot areas in which businesses can bid for the funds.  Once the pilot areas are identified, businesses in those areas will be able to bid for a share of the money from April 2013 until the end of March 2015.

In the wider Coastal Communities Fund context the successful bids for round 2 will be announced in the autumn and nominations for round 3 are expected to open in early 2014.

You can check out the Coastal Communities Fund pinterest board here. See the winning projects in action.

Finally, Lincolnshire does have Digital Business Cluster presence on LinkedIn. Although specific funding is targeted at distinct areas of the County, joining a LinkedIn group is a good way to keep up to date with developments across the county. Read more here…

Mobilising private capital – the Canadian experience

Sometimes looking over the wall at what your neighbours are doing to the landscape of their garden can give you ideas for your own. In this short article we have looked across the Atlantic Ocean to see how, in the last couple of years, the Canadian Social Finance sector has responded to community and governmental demand for increased active social investment from the private sector.

Encouraging social investment: Canada
Encouraging social investment: Canada

Towards the end of 2010 the Canadian Task Force on Social Finance issued a major report – Mobilising Private Capital for Public Good. The Premier of Ontario, Dalton McGuinty, defined the work as being to ‘…help social enterprise and social purpose business adopt social innovation business models; and develop recommendations to enhance public and private sector support for social finance to unleash its full potential in Ontario‘.

Download a pdf copy of the report here

The report offered seven recommendations to the burgeoning Canadian sector…

1. The public and private foundations should aim to invest at least 10% of their capital in ‘mission-related’ investments by 2020. They should report annually on their progress.

2. The country should establish an Impact Investment Fund, supporting existing activity and encouraging increases in scale and new fund creation for the sector. Regions with no fund should be encouraged to create one.

3. New bonds and legislative change should occur, to foster and incentive flows of private capital tot he social finance sector.

4. Pension funds should deploy their assets into social investment, with government ensuring that the pension funds are mandated to do so, and to offer pension Funds incentives to balance and mitigate any additional risk.

5. Policy and regulation should change to support social revenue generating activities in the charity and not for profit sectors.

6.Tax incentives for social investing should be exploited, encouraging capital to be channeled to social enterprises offering maximum social and environmental impact with their activities.

7. Business development programmes, training and business support initiatives from central government should be tailored to specifically engage with social businesses and not just ‘mainstream’ SME organisations.

Whilst it can be argued, looking at the Canadian shopping list, much work of a similar nature has been started in the UK. However, the push towards incentivising pension funds, delivering mainstream flexed business support directly to the social sector and the adoption of a very broad and generous tax incentive led attitude to social impact investing would add new dimensions of transformation to the UK sector.

The report, Mobilising Private Capital for Public Good, develops the recommendations above and offers examples and capital forecasts for their deployment. Interestingly, the outputs recommended were assessed in a follow-up report one year after publication.

After a year - what happened? Canada
After a year – what happened? Canada

This action and output summary, Measuring Progress During Year One, shows that some 50 million Canadian Dollars (CnD) of new mission investment had been generated by the private sector. New government and private fund partnerships had created 284 million CnD of additional impact related investment, with some 215 billion CnD of assets under management by pension funds who are now signatories to the UN backed Principles for Responsible Investment.

Download a pdf copy of the report here

The follow up report highlights some achievements and illustrates how the Canadian debate is starting to have a transformational effect of the country’s social impact investment landscape. In the final analysis there is still huge opportunity in this dynamic economy to take the social investment message forward.

In concluding the report illustrates a late 2011 survey on SME take up of government backed services for the SME sector. Only 5% of the SME survey clearly identified themselves as having social outcome considerations. 93% of the survey cohort expressed ‘ambiguity and  confusion’ over social investment issues. With 2% of the government services used by those surveyed explicitly excluding non-profits and the social sector.

Canada has a long and successful history of not for profit and social impact development. These reports show that even with history, public opinion and buckets of radical thinking there is still much to be done.

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Ethical business with a social dimension...
Ethical business with a social dimension…

You can visit the home page of SEEM here…

Minority communities and
access to business finance

Overcoming perceptions of enterprise 'drag' in communities
Overcoming perceptions of enterprise ‘drag’ in communities

Nick Clegg, Deputy Prime Minister and the the Department for Communities and Local Government (DCLG) have just released a new report Ethnic Minority Businesses and Access to Finance, which following talks with the British Bankers’ Association, commits mainstream banks to a series of policy initiatives to support enterprise in ethnic minority communities.

…the government has agreed with the British Bankers’ Association that the banking industry will commit to a series of measures to improve access to finance for ethnic minority business groups. This includes collecting data through independent research, for the first time, on the experiences of ethnic minority businesses seeking finance.

The Ethnic Minority Businesses and Access to Finance report was published on the 30th July 2013 by the Communities Minister, Don Foster – with the analysis in the report indicating that there is already much good work underway to enhance enterprise funding in these target communities, but that there is also still much to be done.

You can download a full copy of the report in pdf format here

The report tells us that business in ethnic minority communities carry a quintuple burden to accessing finance…

  • shortage of collateral
  • low credit scoring
  • minimal formal savings
  • an unestablished financial track record
  • the difficulty of language barriers

Whilst some of these drag factors can be attributed to any sector where social finance is deployed, for example, language and culture can be additional burdens on enterprise creation in a dynamic, culturally mixed and enterprise leaning community.

The report does recognise interestingly, whilst there is no apparent discrimination or prejudice in play within mainstream financial cultures, the report states, there is strong evidence that ethnic minority entrepreneurs perceive this to be the case and that access to mainstream financial advice and guidance is, in itself, seen as an intimidating process.

The report suggests that banks and mainstream lenders must make a continued commitment to overcome these mis-perceptions.

Finally, the report outlines the role that Local Enterprise Partnerships (LEPs) can play in supporting the policy roll-out, and the particular relevance that Community Development Financial Institutions (CDFI) and alternative sources of finance can play in supporting ethnic minority community enterprise.

Promoting these alternative finance schemes is a strong part of the report action plan, which coupled with our sector knowledge of local communities and awareness and sensitivity to cultural norms, can only endorse the role that Social Finance can play.

On balance the report is well considered and broad in its scope and to be welcomed. The elephant in the corner, despite the passion and commitment of the Social Finance sector, is how committed mainstream banks will be regarding pressure to lend and fund business projects. Their track record to date, even towards core SME support, is not one of sparkling achievement.

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Ethical business with a social dimension...
Ethical business with a social dimension…

Visit the main home page of SEEM here…