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The Social Investment Business Report shows high demand for social investment
The Social Investment Business, the UK’s fastest growing social investor, unveiled its first impact report on Wednesday 24th February.
‘Investing in the future’ provides an overview of the organisation’s activity over the last 18 months and concludes that the demand for social investment is extremely high – even in the current challenging economic climate.
The report shows that the case for social investment is made:
- In the last 12 months The Social Investment Business has received over 3,000 applications for investment (worth more than £500m) through the Government funds it manages
- Support from the Office of the Third Sector Futurebuilders Fund, managed by The Social Investment Business, has helped third sector organisations win £46.2 million of public service contracts from April to December 2009.
The Report also notes that The Social Investment Business has attracted funding and investment from commercial banks which would otherwise not have invested in the sector, bringing in millions of pounds of additional money through co-funding deals.
Jonathan Lewis, Chief Executive of The Social Investment Business commented:
“We are proud of what we have delivered so far. But, this is only the start. ‘Investing in the future’ clearly demonstrates that social investment can strengthen a wide variety of third sector organisations – big and small – social enterprises, charities and community groups. We want to build on our success by attracting more money in to the sector, so that we can help more organisations do more of what they do best – help individuals and communities most in need.”
At a reception in Westminster to launch Investing in the future to MPs, the Rt Hon Angela Smith MP, Minister for the Third Sector said; “The broad array of social enterprises require innovative and diverse funding, and the success of Futurebuilders, delivered by The Social Investment Business, has paved the way for further growth of the social investment market. Futurebuilders is one of the most innovative funds to be set up by the Government. Thanks to the fund, 230 public contracts worth over £46 million have gone to social enterprises in 2009 alone.”
She concluded: “We need to raise awareness among investors to show that they can make a profit while also making a difference in people’s lives.”
Shadow Cabinet Office Minister, the Rt Hon Francis Maude MP was also in attendance and commented;
“The Social Investment Business has set itself up as a key part of a growing market. The increased significance of the third sector has meant that there is now a greater demand for finance and there has to be innovative thinking about how this finance can be delivered effectively.” He continued: “I envisage a wide range of finance options becoming available, such as social impact bonds. It is time for the Social Investment Bank “to see the light of day”, and the proposed initial funding of £75 million is unlikely to be sufficient to meet the level of demand for funding from the third sector.”