Tag Archives: social finance

Good for Business?

businessforgoodButtonThe lounge of Antenna, in Nottingham, was buzzing last night (24th February) with talk about business for good and how change in traditional structures and processes can create models of delivery that are good for business.

The event was part of the ongoing  programme of engagement with post-grad students at Nottingham University for the Social Business Programme, which seeks to offer opportunities and ideas for the current post-graduate cohort of the University to start a business for good, a Building Enterprise activity.

You can find more about the work of the project on our events page, or see the Nottingham City Postgraduate Social Business Programme on-line here.

The evening was chaired and facilitated by Jeanne Booth, who was able to introduce a panel of speakers for the audience, who were both inspirational and able to deliver pertinent short messages about their experiential learning in the development and awareness of Social Business. Some of the ideas abroad on the night are tendered below…


 

Paul CaulfieldDirector of the MBA in Corporate Social Responsibility at Nottingham University Business School

Corporate social responsibility is dead, long live Social Business! This could have been the rallying cry for the audience from Paul’s presentation. The old ways are perhaps no longer fit for purpose, we were told. With CSR as a concept, arguably, seen as a reactive and backward looking process.

Much was made of nature and things natural as metaphors for new business development under the banner of Social Business. We have destroyed 50% of the rain-forest so far. Paul surprised the audience with the metaphoric concept of bio-mimicry as perhaps providing the new, forward looking business model.

However, the speaker argued, not all in the past is of no use. The Guilds were, from early modern history, craft makers and carers for community. Fostering skills and market development, from their geographical locus, yet preserving the best of tradition.

It is this, the fostering of ideas, like the emergent Social Business movement, that is the only truly scaleable resource we have. ‘A dialogue between two people with ideas results in a more dynamic third idea‘. Wonderful stuff!

Toni EsbergerCEO of Nottingham Circle

This section of the evening had the style of a structured interview and response between Toni and Jeanne.  Toni, in her development of the Nottingham Circle, a membership group for the over-50’s, had clearly done much to encourage the recording and shaping of data and soft outcome records for her organisation.

In any new or developing business, this collection of data is redundant in itself. It is how the people in the organisation deploy the knowledge locked up in the data, or in people’s stories over time.

Relationships, shared goals, resourcefulness and generosity. These were some of the keywords Jeanne was able to elicit from the speaker. They are the perfect framing paradigm for a good Social Business too. These and a great spreadsheet, which you can deploy for funders, partners and beneficiaries too.

Roger MoorsCEO of SEEM

How do you finance good business was Roger’s key question to the audience at Antenna? Illustrating the tensions between the Third Sector and traditional business, Roger opined that it was seen as the sector’s traditional role, over business, to deliver social outputs.

This has changed. Using another natural metaphor the audience were asked to declare if they ate vegetables? Then they were asked if they were vegetarians? There was a large disparity in the aggregate numbers of the replies.

Thus, Roger argued, ‘…Social Business is not about legal structure, it is about how you do it’. All businesses need capital, to finance cash-flow, purchase of assets or to develop their business idea. Social investment is, therefore, about investing for impact.

There are, therefore, three key elements to getting an offer of social investment. An economically sustainable idea. A collection of ‘investable’ people. Impact.

To see if you qualify, contact Roger at SEEM. He’s the capital chap!

Martin KnoxBrand Developer, Business Designer and Creative Interpreter for retail business

Martin works with people in organisations to ‘...identify, articulate and present the truth of their product or service’. Echoing the message that traditional business methodologies were undergoing change, Martin stresses the search for ‘truth’ in presentation, marketing and delivery as now being the key social business driver.

There is a new commercial imperative. It is the power of the story, not about a thing in itself. As founders of new social businesses the message about your motives, your values and the journey you have undertaken to get here are now powerful drivers of client or customer engagement.

This was a telling section of the evening. Stressing the emotional and empathetic engagement inherent in social business. ‘People no longer buy the ‘what’, they are interested in the ‘why’.

Nicky GreyFounder of Food Freedom

Nicky’s story is one of developing her Social Business through reaction to familial allergies and intolerances. Driven to engage with school catering staff, Nicky was able to grapple initially with the ‘different school lunch’ issue, helping to foster a more tolerant attitude to difference, certainly, but also restoring a sense of balance and good health to her own family members.

From this ‘community action’ approach, Food Freedom has gone on to foster and deliver a range of training courses and awareness raising expertise for a variety of clients – schools, companies and community settings.

A very telling and key part of the Food Freedom presentation was the characteristics needed to found, grow and stabilise a new Social Business. Nicky had three important messages for the Antenna audience…

  • Really want to make a difference – care about it above profit…
  • Draw exhilaration and energy from the feedback and measured impact you can obtain along the way…
  • Make sure you gather that evidence formally and then deploy it wisely.

 

The evening concluded, after a short break, with a full Q & A session with the expert panel. The Chair was able to guide the audience through questions and responses, from theory and practice, to help them conceptualise, form or grow their Social Business idea.

This was a well organised, useful and informative session. It is part of a wider programme of creating enterprise events. If you have an idea as post-grad, then this is the place to go for answers, advice and, perhaps, even funding…see more here.

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

 

Calling all Nottingham City Post-grads, are you ‘Social Business’ minded?

 

 

Sharing knowledge, developing a good idea and planning ahead?

If you are on a post-graduate course in Nottingham, in any discipline, and  interested in starting your own business, then the Social Business Programme represents a great opportunity to develop your idea, share opportunities and to learn about the social business start-up sector.

The Building Enterprise Project is managed by Community Partnerships at the University of Nottingham. Led by Roger Moors, CEO of SEEM and Jeanne Booth FRSA, founder of The Good Work Guide.

From February to April 2015 the programme of events and conferences represent a great opportunity to develop your ideas in concert with a team Social Business specialists.

You can also meet us at a special postgraduate meeting of First Tuesday, Nottingham’s network for social businesses, on February 3rd, 2015. Social Business and social impact measures are part of the debate.

Places are free, but numbers are limited.

Key Programme Events:

3rd February, 2015First Tuesday, a Post-grad special event. Inspiration for the entrepreneur and a free drink for the first fifty people through the door! You can book here…

24th February, 2015  – What is good for business? Four different speakers offering you insights into key aspects of Social Business development. A Question and Answer Session will follow this, the first of four sessions in the programme.

There is more to come in March and April.

To see the full project programme visit nottinghampg.strikingly.com  internetIconMini

Project Sponsors:

Community Partnerships  :   The University of Nottingham  :   SEEM  :  RSA East Midlands  :   European Regional Development Fund (ERDF) :

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

Seasonal Greetings to everyone…

Christmas card 2014 image

We hope that everyone has a warm and happy seasonal break.

Looking forward to another exciting year at SEEM, with the continued support and engagement of our sector. With all best wishes for a prosperous and effective 2015.

Roger and the SEEM team…


 Article highlights from 2014, if you missed them?

Reviewing education and the funding debate: Read more here.

Social Finance – a breakfast revelatory: Great venue, great presentations, great connections. Read more here.

Socially productive places and the pop-up shop! Read more here.

Big energy ideas from the social sector – track the winners! Read more here.

Happy New Year!

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

Social Finance and Human Capital

From the SEEM archive:

Addendum: February 2019

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...
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).

SEEM partners the Good Deals Social Investment conference

This was the GoodDeals conference in 2013.

Good Deals 2013 from Matter&Co on Vimeo.

Now for 2014…

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 CableSafia 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.

We are really excited about this year’s event and we will be there in full force.

We hope to see you there too…

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

Are you getting enough finance?

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Business growth in our region…

Access to finance to support Growth

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.

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Your say!

You can find the on-line survey here.

 

 

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

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 social stock exchange: investment, risk and return

Investment socially focused...
Investment socially focused…

Social finance is about ethical investment, coupled to returns that maximise social equity and outcome, whilst providing returns, albeit of a softer maturation than traditional investment vehicles.

There is a new market-place for matching socially positive investors with enterprises who embrace the social return in parallel with the financial…the social stock exchange.

Below we offer some examples of a new breed, the market making, signposting organisation intent upon making social finance investment a reality,

They meld with the mainstream financial markets in a variety of ways, or run ‘independently’. Evidence of this early stage development is illustrated by, in the cases we review, that there appears to be no single cross border, cross discipline framework with regard to governance, recognised standard fees or standardised cash holdings to support investment. Some operate in developed markets, others in emerging and frontier zones.

A good, standardised assessment methodology for both social and environmental positive impact already exists, Read more about GIIRS, (pronounced ‘gears’), a Pennsylvania based not for profit organisation with a world view. Could a similar system be invested to measure social finance market makers too?

None the less, a clear emergence of a trade/invest market for the socially minded investor can only be a good thing, we would argue.

Ethex:

This not for profit company believes it should help make money do good. Based in Oxford, UK the Ethex team strive to inform and support positive investors in identifying and investing in companies with strong social outcomes as part of their delivery.

Ethex believes that all money should do good – not only financial good, but also making the world a better place. That means investments that deliver social and environmental benefits, not just financial ones. Sadly, this is not true for the majority of financial products.

Currently financed from a variety of charitable trusts, Ethex is supported by The Tudor Trust, Esmee Fairbairn Foundation, The Big Lottery Fund and others, with plans to become self sustaining as their investment portfolio grows. (Ethex are open about the charges to both investor and companies seeking investment, as well as salary levels in their organisation).

Investors can discover and create portfolio from as little as £10.  Read more about Ethex here..

Social Stock Exchange:

Based in the City of London, this company is located and mirrors quite closely a traditional financial market matrix, featuring London Stock Exchange listed companies with social drivers.

At the Social Stock Exchange we connect Social Impact Businesses with investors looking to generate social or environmental change as well as financial return from their investment.

We believe that robust revenue and growth businesses with social and environmental aims at the core of their activities are best equipped to generate positive change. We call these Social Impact Businesses.

As a market maker the SSE evidences strong standards, reporting and accountability processes. They argue that there selection processes for companies is rigorous and transparent, and that there system of annual Impact Reports ensures that social mission remains a constant in the companies invested in. Mission drift can lead to a lapse of listing with SSE,

As might be expected SSE enjoys the support of the London Stock Exchange and The City of London Corporation amongst others. Read more about the Social Stock Exchange here…

Moving away from the UK into the global arena for Social Finance there a number of market making organisations in our sector who focus on Africa and Asia, not Western Europe.

Impact Exchange:

This organisation is a market gateway for Africa and Asia, an access point to social enterprises seeking social market listing/capitalisation which is managed by the Stock Exchange of Mauritius (SEM).

By taking the lead in supporting Impact Exchange, SEM is working to ensure that the capital markets actively provide the infrastructure and systems necessary to create an organized, fair and regulated market that will bring Impact Issuers and Impact Investors together from across the globe. SEM is fully supportive of the vision of “”Maurice, Ile Durable” (“Mauritius, sustainable island”)”, and supports the emergence of Mauritius as sustainable island by providing a global marketplace to support sustainable investment for social and environmental impact throughout the continent, the Asia Pacific and beyond.

Impact Exchange is an open investment market, with the Impact Partners programme operating as a pre-screened, closed investment market for enterprises already exhibiting sustainability and sophistication in delivery,

The Exchange has a non – profit arm, Shujog, which provides practical operational help for social enterprises in the market’s area of interest, as well as playing a key role in developing impact assessments to evidence the social value for both the enterprise and the socially minded investor.

Impact Exchange, supported by the SE of Mauritius appears to evidence a mature and sophisticated approach to the funding, reporting and impact assessment of social enterprise on a pan-regional basis. Read more about Impact Exchange here,,,

Further evidence that mainstream financial institutions, as well as traditional trust funds, are bending more towards social finance and impact investment opportunities is evidenced in a recent Cabinet Office report on Achieving Social Impact at Scale: co-mingling social investment funds.

New fund mixtures for a new market...
New fund mixtures for a new market…

This report from the Spring of 2013 offers the reader case studies of seven international projects which have taken a layered and differentiated approach to social investment, including in the UK some key Trust funds.

Download a pdf version of this Cabinet report here...

Foundations across the world are increasingly looking towards social investment as a tool to help them to achieve their social mission. Alongside grants, growing numbers of foundations are providing different forms of repayable finance to social enterprises and charities to enable them to tackle poverty and disadvantage, strengthen communities, create jobs and drive growth…

This co-mingling of funds, layering of risk and return at stepped levels – coupled to a new social investment and impact recognition market place – all indicate that social finance as an emerging market sector has an ever increasing means of recognising opportunities and in refracting often competing investment needs through the co-ordinating lense of social outcome.

The SEEM Team – thinking about structural change in the social finance arena

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