Government-backed Covid lending schemes have been a lifeline – but in the long term, high levels of debt cause problems. One solution: transitioning at-risk, viable private businesses into employee or community ownership at scale.
Crunching the numbers from social sector organisations that have closed could help others to predict and prevent financial fragility. From salary spend to income type, financial benchmarking specialist MyCake suggests key questions to explore.
Covid-19 has highlighted the fact that many common forms of social investment are inflexible and have failed the social enterprises they seek to support, says Ben Smith, head of social investment at Esmée Fairbairn Foundation. But being patient and flexible is not without its challenges.
Must social enterprises take what they can get – or can they shape the (patient) social finance they need? Lisa Ashford draws on experiences with community shares and investment platforms in the UK and Africa to explore a way forward.
In the first of a series looking at 'patient, risk bearing' capital, Duncan Brown asks why social investment is so dominated by short-term, rigid debt instruments – and why there's so little support for higher risk, high return social innovation.
Where are the angels? Equity and ‘equity-like’ investment is a key growth tool for many social ventures but the impact investing community has failed to build trust, demand or the right products, new research suggests.