A once-in-a-decade opportunity to help social enterprises to grow

Makerspaces in Liverpool that bring creativity to communities and provide hubs for budding artisans and entrepreneurs to flourish in business has become the first beneficiary of a brand new social investment fund ringfenced for the Liverpool City Region. Livv Housing Group, a social-impact focussed housing association based in Knowsley, has launched Livv and Flourish, a significant social investment fund with £4.25 million of support in the form of blended finance available for social enterprise and charities across the Liverpool City Region over the next three years. The fund’s first social investment of £175,000 is set to ‘make’ a meaningful difference to a purpose-driven social enterprise that works across the region. Make, a Community Interest Company set up in 2012, unites and enriches communities through creativity, art and culture at its makerspaces that create places for makers and artisans to turn their passions into prosperity. Making social impact that matters Make CIC applied to the Livv and Flourish fund to support the development of their new premises in Birkenhead, helping to ensure the overall sustainability of the organisation and enabling its network of makers hubs to increase social impact. The social investment from Livv includes a blend of finance, a loan of £150,000 and a grant of £25k, funding that’s helping to make a difference to Make’s residents in turn, creating opportunities to support their livelihoods. That’s residents like Agnieszka, Paul and Cathy’s creative and entrepreneurial endeavours, real life stories, with chapters marking opportunity, collaboration and growth, working out of Make’s Huyton Village location. Budding entrepreneur Agnieszka Holubik opened Once Upon a Plant in May this year, the perfect place for her business to be located in to be part of her local community - and a home for opportunity and ambition to grow with her plant merchant and lifestyle brand business start-up. Sweet entrepreneur Paul Doyle had the idea for his business in the pandemic, starting out in his spare room at home. His vegan-friendly personalised gummy and jelly sweet pouch business has grown from spare room start-up to market scale-up with his venture The Tuck Shop UK. Animator and illustrator Cath Garvey saw the perfect ‘blank canvas’ for her creative business at Make - at the same time as being a place to enjoy working alongside other artisans, being inspired by them and enjoying a true collaboration culture. Liam Kelly, Make CIC’s CEO, said: "This investment from Livv will help to support Make CIC with its work across the Liverpool City Region. Social lending, like Livv and Flourish, is a critical part of making impact work happen in communities. Traditional finance options are often not available to organisations like Make CIC, despite the significant societal impact they generate. So thank you to all those in Livv who have put together this fund to ensure that Make, and organisations like ours, can continue to grow the impact our communities desperately deserve." Tony Cahill, Executive Director at Livv Housing Group, said: “Make’s hubs are places that nurture life-changing social impact, spaces where opportunity meets ambition and true collaboration. They’re spaces for ideas to incubate, for business start-ups to literally start up, to grow and to flourish into established business enterprises that support livelihoods. It’s in recognition of this genuine spirit of social impact that the first investment from our new fund has been made to Make.” Livv Housing Group’s social investment heritage Livv Housing Group’s new Livv and Flourish fund is offering a blend of grant and unsecured loan finance of up to £200,000 per application, with tailored support offered to recipients throughout the process from its team. It is ringfenced social investment for Knowsley and the Liverpool City Region, with the fund open for three years. Socially-driven organisations keen on receiving investment through Livv and Flourish can visit www.livvinvestment.com to find out more and express an interest. Livv and Flourish is part-funded by Access – The Foundation for Social Investment, which works to make sure that charities and social enterprises can access the finance they need to sustain or grow their impact. Access provides patient and flexible investment through blended finance and boosts the resilience of charities and social enterprises through enterprise development. It is supported by funds from the Dormant Assets Scheme, which redirects money from forgotten accounts to good causes, and is distributed via Access. Seb Elsworth, Chief Executive of Access – The Foundation for Social Investment, said: “The Dormant Assets Scheme puts forgotten money to better use, rather than letting it gather dust in inactive accounts. It’s fantastic to see how the scheme is making a real difference in the Liverpool City Region – creating jobs and boosting the local economy by helping social enterprises like Make CIC and the entrepreneurs they support. By combining grants with loans into a blended package, social investors like Livv can offer the kind of small scale, patient and flexible finance that charities and social enterprises need.” Livv and Flourish is the latest in Livv’s social investment fund portfolio, with over £5.2 million of support in loans and grants generating £222 million of wellbeing value in the last eight years. Organisations who received funding previously have used the finance to support thousands of people into employment. Hundreds of jobs were created or sustained, and over 50 new apprenticeships were introduced. Over 29,000 people were supported with training and developed new skills, while 28,000 more were supported with their physical and mental health. About Livv Housing Group Livv Housing Group is a housing business and more. We provide around 13,000 homes across Liverpool City Region and the North West, plus apprenticeships, training, health and local projects to build flourishing communities. We’re positive, respectful partners who take the lead, do what we say and help others to unlock their potential. About Make CIC Make CIC is a social enterprise, founded in 2012 by Kirsten Little and Liam Kelly. It supports its residents to turn their passion into prosperity by providing studio space for people who might otherwise be working at home, composed of artists, makers, creatives and small businesses. It runs a programme of workshops, public classes and courses, exhibitions and support, across sites in Birkenhead, Liverpool’s North Docks and Knowsley’s Huyton Village, which are collectively home to over 147 residents.

Today (21 November) we mark Social Enterprise Day - a time to raise awareness and understanding of our global movement - with new research that shows the impact of business putting people and planet first. Unlike traditional businesses, social enterprises reinvest profits in vital missions, from bringing communities together and creating employment opportunities to tackling environmental issues and stimulating local economies. New analysis on our Social Enterprise Knowledge Centre provides regional breakdowns of our sector across the country - overall painting a vibrant picture of the many and varied social enterprises from Cornwall to Cumbria, driving positive change despite complex economic challenges. We’re proud to shine a spotlight on the great work of our movement. Read the new research

As our new government maps out its “mission-based” approach, the Cabinet Office is looking at how public procurement could support this – and as part of our work to build markets for social enterprise, we’re seizing this opportunity to show political leaders the added value unlocked when we work in partnership. Procurement is one of the government’s most powerful economic tools, with public sector bodies spending over £400bn to deliver vital public services and critical infrastructure in the last year alone. Unfortunately, the current system is failing to achieve its full potential, as evidenced by our Social Value 2032 research. With a more effective strategy, these funds could help shape markets to improve business behaviours and social outcomes. We hope this new government consultation is the start of a journey to making public sector procurement more collaborative and innovative, so that it delivers greater value – and we know social enterprise can help accelerate progress here. Our business model naturally aligns to a mission-driven approach, putting people and planet before profit. However, system change is needed to really unleash the procurement power of social enterprise suppliers. Having given insight and advice directly to government as part of the consultation, we also wanted to publicly share the highlights of our response, as we continue to push for more engagement and understanding. A key point is making legislation work better. Our research found £56bn in added value has been lost since the Social Value Act came in, so this must be strengthened alongside updates to the National Procurement Policy Statement. It’s promising that guidance on the upcoming Procurement Act expresses a specific intention to benefit social enterprises, and we’ll share our sector insight with policymakers to ensure they understand our needs and expectations. Going further, commissioners must recognise the intrinsic value of organisations in their supply chain. Rather than narrow measurement processes that relegate social value to a tick-box exercise, commissioners should consider how suppliers in their supply chain might advance wider strategic goals. Ultimately, commissioners need the responsibility and guidance to play the role of market stewards; procurement spending should be recognised as investment, with commissioners obliged to consider how such funds can be used to deliver more for the communities they serve. This should also mean actively limiting opportunities for profit in certain areas. When vulnerable individuals are dependent on specific services like social care, there should be no opportunity to make profit at the expense of investing and providing the highest quality service. The government’s new plans to prevent profiteering in children's homes are a very welcome step in the right direction – but there are concerns about whether profit-driven businesses would make voluntary changes, and questions about how mandatory legislation would work in practice. Where possible, commissioners should look to reserve more contracts for suppliers that have adopted business models where surplus funds are used to invest in services, rather than enriching shareholders. Overall, more transparency is needed across the procurement system. Commissioners need to understand what colleagues across the public sector are doing and pursue best practice in line with their own goals. Similarly, they need to understand how suppliers are using their funds, so they can get an accurate sense of the costs needed to deliver vital services. Procurement can enhance public wellbeing and deliver shared prosperity – but it must be approached in a way that prioritises collaboration and transparency, with greater appreciation of what different organisations may bring to the table. This will allow commissioners to better embed suppliers whose practices, values and interests are aligned with the people and places they serve. Ultimately, this will not only improve services and outcomes but cultivate a more inclusive and dynamic economy. If you want to share your experiences of public sector procurement, and/or get involved with our Social Value 2032 work, contact policy@socialenterprise.uk.