“…how emerging technologies in the digital economy can transform society by the mobilisation of collective action, enable a more collaborative economy, new ways of making, citizen participation, sustainability and social innovation”.
This European initiative, connected by philosophy and concept, itself overcomes distance by the use of new technology. Bringing together organisations and key players on the innovative transformation of society through their use of the internet.
The idea:
This can be in the creation of projects which develop a more collaborative economy, devise new ways of making, delivering a more open and democratic society, as well as using technology to bring forward new funding streams, accelerator and enterprise incubator programmes.
This whole spectrum of activity sits well with our own social finance mission, based upon strong ethical considerations, which deliver social output as a key return of the business plan.
The event:
We think DSI will continue to grow through 2015. Nesta and its partner organisations are holding an event in Brussels on the 17th February, 2015 to enable players in this new sector to engage, discuss and make new connections.
If you wish to explore DSI further, ahead of the event, the DSI Partnership has a web site that is worth exploring. You can see who the 1500 or so partner organisations are and access news and information on funding and research. You can also download a set of free resources. See more here.
Their succinct definition, of what DSI is, is given below….
“Digital Social Innovation is a type of collaborative innovation in which innovators, users and communities co-create knowledge and solutions for a wide range of social needs exploiting the network effect of the Internet.”
If you are interested in the transformative power of financial innovation, social change and new technology economies of scale, we think this is a movement worth tracking in 2015. The city, region or national movements in our sector will all find something of interest here.
We may even see you in Brussels?
Ethical business with a social dimension…
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Below is an article from 2014 that argues for social investment in education. With the current crisis in university finances, the poor uptake of social investment tax relief (SITR) and so on, perhaps the new energy framed in this paper is still a highly pertinent reflection?
Dateline: 2014
Roger H. Moors and Justin Beresford have published a new paper on Social Finance and Human Capital: the case for social investment in higher education. The paper presents an interesting argument, namely, that higher education offers the opportunity for private investment and hence that human capital can be viably classed as an investible proposition.
Read the full paper here…pdf
This is a new model of education. Making the process of investment in human capital a social finance initiative, which might offer tax incentives for pension fund investment, whilst reducing state spending on H.E. The model could offer real wage increases over time, enhancing the fiscal strength of generations in the future.
The abstract:
“The markets for both education and retirement planning are characterised by market failure and hence are dependent on state intervention. However, an ageing population and a commitment to make university the norm for most young people have led the state to withdraw wholesale funding.
This paper discusses the potential for social capital to be used as a funding mechanism for university tuition. A solution is outlined in which investor’s pension contributions are used to fund university tuition. Graduates pay a higher marginal rate of tax over their working lives and contributions are drawn down by retirees from these repayments. Wage growth over time, motived by induced investment in human capital, means that each successive generation is able to recoup more than it put in.
The external benefits outlined allow the facilitating institution to be classified as a social enterprise and hence investment is motived by tax incentives as well as the promise of high private returns”.
The argument:
This is a timely paper. With some £9 billion spent on higher education in England, student debt and the future shape of university finances all currently in debate. It has been mooted that universities might, for instance, buy the student loan debt of their own students. Much criticism has been engendered, however, as some suggest this will lead the institutions to only take on low risk students from wealthy backgrounds. Further promoting social divide and a non-inclusive higher education process, as they reap the later financial benefits of students taking up highly paid careers as their lives unfold.
The Moors/Beresford thesis holds that benefits can be accrued from the creation of a ‘savings pension pot’, which could be used to fund university tuition fees. The model for a fully funded scheme sees investor savings used to invest in university tuition fees, rather than being invested in financial market instruments.
The graduating student will repay their tuition fees by accepting a higher rate of marginal income tax over a fixed number of years. The Moors/Beresford multiplier would kick in if the ‘…rate of growth of participating students earnings continuously outgrows interest rates’, leading to a continuously rising scale of skill and economic productivity to foster more growth for future generations.
Read the paper, join the debate, support a new model of education for future generations.
About the authors of this proposition:
Roger Moors was CEO at SEEM (Supporting Social Business) based in Nottingham. Researching the development of new models and applications for ‘social finance’ across a range of social and environmental issues.
Justin Beresford is an economic adviser at the Malagasy Ministry of Finance Department for Budget Programming and Coordination. He was an assistant economist at the UK Ministry of Justice (Analytical Services Directorate).
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Registration for the Good Deals conference taking place on the 24-25th of November 2014 at 30 Euston Square London will close on Wednesday the 19th of November.
Our partners Matter&Co are once again organising the UK’s biggest gathering of social entrepreneurs, civil society leaders, corporates and social investors.
Keynote speakers include Jacqueline Novogratz, Vince Cable, Safia Minney and Liam Black. Please visit http://www.good-dealsuk.com/ to book your ticket online and for programme and venue details.
As a partner to the event we are delighted to offer all of our members a 25% discount ticket to the conference using the promo code SEEM14.
If you can’t wait, give a member of the team a call on 02085338892.
We are really excited about this year’s event and we will be there in full force. We hope to see you there too.
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SEEM (Supporting Social Business) will be in London for the UK’s biggest social investment conference at the end of November 2014 and as partners to this event we’ve secured a special discount rate for our members and readers of ‘MiningTheSEEM’
With less than four weeks to go to the Good Deal Conference taking place on the 24th and 25th of November, we’re looking forward to seeing what’s new in the world of Social Finance. Our partners Matter&Co are once again organising the UK’s biggest gathering of social entrepreneurs, civil society leaders, corporates and social investors.
Keynote speakers include Jacqueline Novogratz, Vince Cable, Safia Minney and Liam Black. For more information on programme and venue details please visit www.good-dealsuk.com.
As a partner to the event we are delighted to offer all of our members a 25% discount ticket to the conference using the promo code SEEM14.
We’re reliably informed that over half the tickets have already been sold, so if you can’t wait give a member of the Good Deals team a call 020 8533 8892.
The Local Enterprise Partnerships in the East Midlands and South East Midlands are conducting a survey of businesses in our area to find out whether businesses are able to get access to finance to support their growth.
This could of course include social finance for all socially impacting businesses.
They would like to know about business’ experiences if they have sought funding recently or if they plan to seek funding for future investment projects. They would also like to know if they have any barriers to growth.
By completing the survey below, businesses will help the Local Enterprise Partnerships in the East Midlands and South East Midlands to decide how to use their funds to help small and medium-sized enterprises.
We were pleased to cross the City and to be invited to the latest CleanTech Centre lunch event, on Thursday 21st October, 2014. A great opportunity to network and hear key speakers in an informal, professional setting.
Our Roger Moors was delivering the keynote presentation to the assembled guests and he was welcomed to the event by Bob Pynegar of Inntropy Limited, who owns the Centre.
Inntropy was set up in 2011 by Bob Pynegar and Nick Gostick. They saw that a building in West Nottingham had the potential to be an incubator for entrepreneurs, start-ups and SMEs specialising in clean technologies. This building is now known as The Nottingham Clean Tech Centre (NCTC).
Bob wrapped his introduction to delegates with an illustration of how the CleanTech Centre offers its resident businesses a professional, supportive atmosphere to work in, with the advantage of having spaces available to meet client s and suppliers, as well as being able to take advantage of the Inntropy ‘entrepreneurship offer’ – mentoring, guidance , support and training.
Completing his delivery to the audience with a stress upon the growing importance of the Social Business sector, whether as a source of development funding, the melding of company philosophies with consumer expectations or the growth of the ‘triple bottom line’ business. ‘Social outcome will be even more important for the SME sector in the future...’ said Bob.
Roger Moors of SEEM then took centre stage. Roger began by offering the assembled business audience a range of definitions about the context of charities in business, social enterprises, and now with the emergence of the social finance sector, the ever growing importance of companies with distinct and clear social aims, yet who can still deliver external dividends as part of their enterprise processes.
Roger used a few simple diagrams to make his point. The ‘blended social business’, with solid social aims, clear business strategies and distinct profits would look something like this, he argued…
Achieving the blended balance…
Roger emphasised the point that there were 90,000 Social Enterprises in the UK, with only some 10% actually delivering a sustainable business model that was not reliant on loans or charitable grants.
An opportunity for the social business, with strong profits, to deliver social outcome in a sustainable way.
This was not seen as a failure of the sector, but an opportunity for mainstream businesses to make bolder declarations of their social concern and delivery and use this effect to capitalise expansion, new products an services, the whole while supporting their communities of interest.
Roger then launched to the audience the new £1 million Nottingham Social Impact fund, which is designed to fit the investment profile outlined in the narrative above.
With loans available from£5,000 to £150,000, Roger saw the initial tranches of support in the £50,000 sector or below, with an ideal period of three years for repayment. The money will be put out at 6.5% interest.
Roger, in conclusion, stressed the importance of thePublic Sector Social Value Actof January 2013. Committing all Local Authorities to take social impact into account when making strategic procurement decisions with their public money.
Roger receive applause from the audience and the thanks of Bob Pinegar for his clarity and conciseness.
I f you are interested as a start-up in the office provision and business support that the CleanTech Centre can offer, then please use the contact details below.
The EU made two major announcements this week, about programmes across Europe. Designed to sustain SME’s, who lack the collateral to enjoy secured lending. The announcements represent a new cohort of funds to broaden the business base of the small business sector.
The European Commission and the European Investment Fund (EIF) will deliver a new 100 million Euro fund. The Fund will be to bring new ideas to market. The Fast Track to Innovation (FTI) Fund will be available in 2015 and 2016.
Consortia of three to five members will be free to bid for the funds at any time. ‘EU officials expect grants to be between €1m and €2m’.
The executive also signed an agreement with the European Investment Fund. The Commission said ‘…this would open up €25 billion of potential finance for SMEs over the next seven years’.
The EIF provides risk finance to SME’s across Europe. It will give €1.3billion for SME financing, under the EU Competitiveness of Enterprises Programme.
The EIF will give that money to financial intermediaries such as banks or funds, who will in turn make it available to SMEs.
The EIF will appoint the intermediaries. There will be a call for expressions of interest and a due diligence process.
The Commission estimates that up to 330,000 SMEs will receive loans backed by the guarantees. Total lending will hit €21 billion. An average guaranteed loan will be €65,000 per firm.
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:
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. 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…
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.
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…
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.
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…
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!
The Pike thesis for change, that will will channel mass collaboration, is based upon five key principles. We give them below.
“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.
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.
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.
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.
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…
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To the Galleries of Justice in Nottingham this morning, 17th July 2014, for a massive double espresso shot of Social Finance. Two hours of concise advice, proven experience and excitement for a sector under change.
Hosted by our own Roger Moors of SEEM, the assembled audience convened for coffee and muffins at 7.45am, more about the venue at the bottom of this article, all looking forward to a series of key speakers on expanding, developing and capitalising on our growing sector, courtesy of Big Society Capital.
Councillor Nick McDonald – Nottingham City Council:
Cllr. McDonald was delighted to announce to the gathered social finance bankers and intermediaries that the City now had a newNottingham Social Impact Fund. This new source of funding for the enterprising small business comprises a pot of £1 million pounds, which, argued Cllr. McDonald, coupled to a revised City Procurement Policy, would heavily lean the city towards a paradigm shift in its industrial base, as well as building on existing entrepreneurial energies in the city. A new fund is always welcome for the business sector, particularly at very good rates.
Geetha Rabindrakumar – Social Sector Lead, Big Society Capital:
New research, new ideas…
Geetha began by offering the audience a classic definition of social investment, and underscored research that indicates, whilst societal problems will magnify and public sector funding will continue to diminish, it is the social sector, with its thirst for new forms of finance that will drive the sector forward in the next few years.
Underscoring the role of Big Society Capital as a finance wholesaler, Geetha stressed the importance of intermediaries in process, and that BSC will be looking to exhaust its coffers on innovative projects, which give investors their money back, provide a return on that investment and achieve social impact and delivery.
A clear presentation of roles and responsibilities in the sector, now and in the future.
Sam delivered a pacy and detailed analysis of the work of The Key Fund for his audience. Outlining the Fund’s history, but also encouraging intermediaries with the news of the quality of relationships the Fund enjoys, it’s flexibility and pace in moving from application to decision. A refreshing approach in a finance oriented sector, we believe.
The Fund also illustrated how innovative and enterprising communities and individuals can be. Sam offered the audience examples of Fund development clients as diverse as a Therapeutic Comedy Training Academy, a Virtual Human Body for drug testing, community wind farms and and solar photo-voltaic energy installations on community buildings.
The Key Fund deserves it’s key player status as a driver of fiscal energy for projects across the North of England. Discover The Key Fund on–line here.
Peter Ware – Partner at Browne Jacobson LLP:
Peter gave the assembled audience a very informative over-view of Public Sector Mutual’s development. Organisations that move into the social business sector, ofen with existing customer bases and public sector ethics and philosophy.
Reminding us that the sector could see demand for social finance rise to £500 million by 2015, Peter, nonetheless, did not shy away from some of the issues to be wrangled with in creating Mutuals in a local authority setting.
Matt explained the heavyweight nature of The Big Lottery, and how it was looking to develop agile, relevant and timely funding solutions in the future, particularly to benefit the social finance sector.
Working across three strategic layers the Fund is looking at how demand, intermediaries and the supply side of funding can all be tempered and flexed to respond to the needs of risk capital with a social mission at its centre.
Richard gave us a ‘rally cry’ speech, moving across his own initiation into social business, after being a banker for twenty years and finding himself re-tailoring a hotel group in an area of social need.
Raising £3 million pounds, only a year ago, using the social business’s innovative model of housing development, coupled to partnerships in the social enterprise sector to provide training and skills support for ex-offenders.
So successful has Richard’s ministration been that profits are reported, funding need has been reined back, temporarily, and the business is set fair to exceed it’s targets of 15 property renovations undertaken per annum and with 150 clients supported through their training process into employment by the end of this five year bond period.
Midlands Together, using a revision of the ‘Together’ model developed in Bristol, describes its work as property development with a heart. Real asset development, care for people and delivery of profits. We were inspired.
We had our breakfast convocation at the Galleries of Justice in the Lace Market quarter of Nottingham. In the heart of the city’s creative area, this museum, educational service and charity offers a fascinating series of spaces for events.
We met in the courtroom. You can see from the narrative above, all our star witnesses for the defense of Social Finance were sparkling. The verdict? Guilty of enthusiasm and expectation for the future.
Published a week or so ago now, the Office of Fair Trading update on their market review of banks and their attitudes and approaches to the SME sector makes for interesting reading.
The report notes that the mainstream banking sector has made some positive movements and improvements to their SME approaches, following the 2002 Competition Commission’s investigation into banking practice.
However, there is much to be concerned about from an SME perspective ‘...the OFT has received concerns about failure to comply with…undertakings, which prevent banks from requiring an SME to take out a Business Current Account (BCA) in order to obtain a business loan (that is ‘bundling’ of BCAs with business loans). The OFT considers that compliance with these undertakings is important as they are designed to help providers to compete effectively in SME banking’.
Even in 2014 the report finds that…
The provision of business current accounts (BCAs) and business loans remains concentrated among a small number of major banks.
Barriers to entry and expansion may be contributing to newer or smaller providers finding it difficult to enter and expand their business across the core business banking products.
SMEs find it hard to differentiate between providers. There are low levels of shopping around and switching, and low awareness of alternative sources of finance.
More troubling is the aspect of the report which cites new, alternative lenders as being hampered in delivering services to SME’s because, allegedly, the mainstream banks are moving at a snails pace when authorising transfers or in waiving security on current loan arrangements for additional alternative lender charges to be rendered.
Two things occur. The notion of ‘level playing field’ is rendered useless in competition terms, and that the openness and clarity of most of the Social Finance sector, given their strong ethical and community focus, shines like a beacon across the current banking landscape.
Linda Slack – 
0115 822 1865
