dan gregory, social investment, tsrc esrc nesta, nov 2012
TRANSCRIPT
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SOCIAL INVESTMENT PROMISE AND POSSIBILITY
Dan Gregory, November 2012
COMMON CAPITAL
Mutual and social enterpriseFunding and finance Policy and practice
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PERSPECTIVE
Social investment
vs.
Access to finance
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DEFINITION
• Impact investment vs. social investment (Zweck / Wert)
• Funding (revenue / income) vs. finance (capital / investment)
• Repayable vs. non repayable
• By socially minded or in socially minded
• Tens of millions or billions?
• Equity, debt + hybrids
• Social considerations?
• Sub-commercial?
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UNDERCAPITALISED?
• Unequal distribution of capital
• Relatively underleveraged
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INVESTMENT READINESS
• Almost half simply not interested
• Those who already have investment mainly have asset backed loans
• Appetite for <£100k long-term sub-commercial risk capital
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BARRIERS?
“little evidence that social enterprises are either riskier or less well understood ... no significant difference between social enterprises and mainstream businesses in the number that had been rejected.”
“4% of social enterprises sought to issue equity… less than 3% of SMEs seek equity finance”
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JUST TURN ON THE TAPS!?
Business models in areas of market and government failure
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INNOVATION / TRADITION
If innovation is the application of old ideas in a new context
• Stock exchange
• Investment bank
• Private finance initiative (PFI)
Or old ideas coming back into fashion
• Community shares
• Old-fashioned banking
• Disintermediation
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METRICS
Instrumentalist / McKinsey / Blairite ‘what works’ / deterministic / evidence Taliban (Zweck?)
vs.
Trust / governance / ownership / participative capitalism / engagement (Wert?)
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RHETORIC AND REALITY
“There aren’t actually any social investors are there?”