5 steps to ... raising investment for social enterprises

Alexandra Coxon, Regeneration & Renewal, 6 July 2009

2. Explain how you'll use the money. Investors are unlikely to provide capital if they're simply plugging a gap, warns Kennedy, so pinpoint a specific use for the investment and tie that use to your goals. "If, for example, you need to buy new vans, explain why, what they'll be used for and how this will further your social enterprise's objectives."

3. Know who to approach. Research which organisations can help and whether they provide loans, grants and equity investment. "There are grants available for specific types of social enterprises," says Richard Litchfield, managing director of Eastside, a business support provider for social enterprises. Other organisations to consider include Big Issue Invest, Futurebuilders and community development finance institutions.

4. Try co-tendering. Consider working with other bodies to apply for a share of larger funding pots. Litchfield says a good example is the Government's Future Jobs Fund, which supports the creation of jobs for young people and the long-term unemployed. The Government says it will give preference to bids from partnerships such as those comprising councils and social enterprises (R&R, 25 May, p5).

5. Be realistic. Social enterprises won't always win the investment they apply for, says Natalie Johnson, executive director at Firstport, an organisation that supports social entrepreneurs in Scotland. "Have a back-up plan to prevent you having to return to your board if you're unsuccessful," she says.

- More information Visit www.can-online.org.uk, www.thesroinetwork.org, www.eastsideconsulting.co.uk, www.firstport.org.uk, www.biginvest.co.uk or www.futurebuilders-england.org.uk