Northern social enterprises in 'precarious' position, report claims

A new report produced by the Institute for Public Policy Research (IPPR) has revealed that as many as 70% of community and social enterprises look for grant funding, something that may be increasingly difficult to access given the current financial cuts.

via Chrisanthi Giotis socialenterpriselive.com

Social enterprises in the north are dangerously dependent on grants and will struggle to help create the Big Society without government support, a new report claims.

Growing the Big Society: Encouraging success in social and community enterprise in deprived communities, by the Institute for Public Policy Research (IPPR) North, reveals that 70 per cent of organisations calling themselves community or social enterprises look for grant funding.

The authors warn there is a significant gap between the expectations of the government's 'big society' and the current capacity of the sector with not enough 'enterprise ready' organisations.

IPPR North director Ed Cox said: 'Organisations need support to make the transition from being aspirant community organistions to fully fledged social enterprises.'

Of the 100 plus respondents interviewed almost all had sought finance in the last 12 months but less than ten per cent had sought traditional forms of finance like a bank overdraft.

Less than five per cent had sought a loan from a bank or community development finance institution.

The report states the survey respondents appear 'heavily dependent' on the public sector for income, with a preference for grant funding, placing them in a 'precarious situation in the next few years'.

The report makes several practical suggestions for organisations wishing to become more sustainable and for policy makers.

You can download the report here.

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