What are the barriers to investing in social enterprises? An investigation into the attitudes and experiences of social entrepreneurs in the United Kingdom

Frederick A Seddon, Richard Hazenberg, Simon Denny

Research output: Contribution to ConferencePaper

Abstract

The ongoing global economic crisis and the restrictions that this is having on government expenditure has meant that current UK policy is being directed at trying to end the grant dependency that currently exists in the third sector. One of the key focuses of this policy initiative has been to try to increase the third sector’s access to both debt finance from lending institutions and equity finance from venture capital investors. However, this policy intervention presupposes that the lack of private sector investment in the third sector is a ‘supply-side’ problem caused by limited funds. This ignores the structural problems in the social enterprise sector related to governance and a lack of organisational capacity. Indeed, as of 2011 the ethical investment sector in the UK was worth approximately £9 billion and was spread across 90 ethical investment funds responsible to 700,000 investors. Additionally, social investment (i.e. those funds targeted specifically at third sector organisations) was worth £165 million as of 2011. This suggests that the lack of private sector investment in social enterprises in the UK is not a ‘supply’ side problem but is instead related to the ‘investment readiness’ of social enterprises

Conference

Conference4th EMES European Research Network International Research Conference on Social Enterprise
Period4/07/13 → …
Internet address

Fingerprint

Entrepreneurs
Social enterprise
Third sector
Investing
Ethical investment
Investors
Private sector
Supply side
Lending
Equity finance
Debt finance
Venture capital
Readiness
Policy intervention
Government expenditure
Global economic crisis
Governance
Organizational capacity
Investment funds

Cite this

Seddon, F. A., Hazenberg, R., & Denny, S. (2013). What are the barriers to investing in social enterprises? An investigation into the attitudes and experiences of social entrepreneurs in the United Kingdom. Paper presented at 4th EMES European Research Network International Research Conference on Social Enterprise, .
Seddon, Frederick A ; Hazenberg, Richard ; Denny, Simon. / What are the barriers to investing in social enterprises? An investigation into the attitudes and experiences of social entrepreneurs in the United Kingdom. Paper presented at 4th EMES European Research Network International Research Conference on Social Enterprise, .
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abstract = "The ongoing global economic crisis and the restrictions that this is having on government expenditure has meant that current UK policy is being directed at trying to end the grant dependency that currently exists in the third sector. One of the key focuses of this policy initiative has been to try to increase the third sector’s access to both debt finance from lending institutions and equity finance from venture capital investors. However, this policy intervention presupposes that the lack of private sector investment in the third sector is a ‘supply-side’ problem caused by limited funds. This ignores the structural problems in the social enterprise sector related to governance and a lack of organisational capacity. Indeed, as of 2011 the ethical investment sector in the UK was worth approximately £9 billion and was spread across 90 ethical investment funds responsible to 700,000 investors. Additionally, social investment (i.e. those funds targeted specifically at third sector organisations) was worth £165 million as of 2011. This suggests that the lack of private sector investment in social enterprises in the UK is not a ‘supply’ side problem but is instead related to the ‘investment readiness’ of social enterprises",
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Seddon, FA, Hazenberg, R & Denny, S 2013, 'What are the barriers to investing in social enterprises? An investigation into the attitudes and experiences of social entrepreneurs in the United Kingdom', Paper presented at 4th EMES European Research Network International Research Conference on Social Enterprise, 4/07/13.

What are the barriers to investing in social enterprises? An investigation into the attitudes and experiences of social entrepreneurs in the United Kingdom. / Seddon, Frederick A; Hazenberg, Richard; Denny, Simon.

2013. Paper presented at 4th EMES European Research Network International Research Conference on Social Enterprise, .

Research output: Contribution to ConferencePaper

TY - CONF

T1 - What are the barriers to investing in social enterprises? An investigation into the attitudes and experiences of social entrepreneurs in the United Kingdom

AU - Seddon, Frederick A

AU - Hazenberg, Richard

AU - Denny, Simon

PY - 2013/7/4

Y1 - 2013/7/4

N2 - The ongoing global economic crisis and the restrictions that this is having on government expenditure has meant that current UK policy is being directed at trying to end the grant dependency that currently exists in the third sector. One of the key focuses of this policy initiative has been to try to increase the third sector’s access to both debt finance from lending institutions and equity finance from venture capital investors. However, this policy intervention presupposes that the lack of private sector investment in the third sector is a ‘supply-side’ problem caused by limited funds. This ignores the structural problems in the social enterprise sector related to governance and a lack of organisational capacity. Indeed, as of 2011 the ethical investment sector in the UK was worth approximately £9 billion and was spread across 90 ethical investment funds responsible to 700,000 investors. Additionally, social investment (i.e. those funds targeted specifically at third sector organisations) was worth £165 million as of 2011. This suggests that the lack of private sector investment in social enterprises in the UK is not a ‘supply’ side problem but is instead related to the ‘investment readiness’ of social enterprises

AB - The ongoing global economic crisis and the restrictions that this is having on government expenditure has meant that current UK policy is being directed at trying to end the grant dependency that currently exists in the third sector. One of the key focuses of this policy initiative has been to try to increase the third sector’s access to both debt finance from lending institutions and equity finance from venture capital investors. However, this policy intervention presupposes that the lack of private sector investment in the third sector is a ‘supply-side’ problem caused by limited funds. This ignores the structural problems in the social enterprise sector related to governance and a lack of organisational capacity. Indeed, as of 2011 the ethical investment sector in the UK was worth approximately £9 billion and was spread across 90 ethical investment funds responsible to 700,000 investors. Additionally, social investment (i.e. those funds targeted specifically at third sector organisations) was worth £165 million as of 2011. This suggests that the lack of private sector investment in social enterprises in the UK is not a ‘supply’ side problem but is instead related to the ‘investment readiness’ of social enterprises

M3 - Paper

ER -

Seddon FA, Hazenberg R, Denny S. What are the barriers to investing in social enterprises? An investigation into the attitudes and experiences of social entrepreneurs in the United Kingdom. 2013. Paper presented at 4th EMES European Research Network International Research Conference on Social Enterprise, .