Partner Article

Consultation on £10m social enterprise fund

A new government fund will help give social enterprises better access to private and independent investment, it has been claimed. The Cabinet Office last week opened a consultation on the working of a £10m risk capital investment fund. The fund is part of the government’s Social Enterprise Action Plan, which was published in November 2006.

According to the Cabinet Office, many social enterprises find it difficult to access risk capital, which leaves ‘a gap in their finances’, particularly at critical stages such as the start-up and growth of the business. The published proposal for the fund is to establish a ‘pathfinder investment scheme’ where the government’s £10m will be matched by private investors. An independent fund manager would also be appointed.

Campbell Robb, director general of the Office of the Third Sector, said: “This new fund will help many social enterprises grow their businesses and flourish. Our proposals will also make it a catalyst for market change by bringing social enterprises together with private and independent investors. This is vital if we are to build a sustainable future for risk capital financing for social enterprises that is not reliant on government subsidy.”

A document detailing the proposals for the fund can be found at www.cabinetoffice.gov.uk.

This was posted in Bdaily's Members' News section by Ruth Mitchell .