In partnership with the All-Party Parliamentary group on Entrepreneurship (APPGE)
At the House of Commons for our regular Lord Ahmed, Chairman of the APPGE welcomed the group, we then had quick introductions from Helene Martin Gee on the four excellent panellists - Anna Sofat, Founder of Addidi; Nick Hanna, Founder of www.solarclubs.com and author of The Green Investing Handbook; Honor Wilson-Fletcher MBE of the Aldridge Foundation and Nigel Kershaw OBE, CEO of Big Issue Invest.
Delegates were from all sectors and backgrounds, and included students from Lambeth Academy (right)
To a question from Sue Lawton, we began discussing crowd funding, which Nick Hanna pointed out wasn’t new, being run along the same lines as mutual building societies. Uday Thakkar of Red Ochre, said there is a lot of hype around them, and good as they are returns are unclear even for cooperative models.
To a question from Sue Lawton, we began discussing crowd funding, which Nick Hanna pointed out wasn’t new, being run along the same lines as mutual building societies. Uday Thakkar of Red Ochre, said there is a lot of hype around them, and good as they are returns are unclear even for cooperative models.
This led to many suggestions, and Nigel Kershaw shared ideas around a sustainable local magazine, which could be compiled in every borough, for example the Shoreditch Trust produces the Star Magazine.
As talk widened to social investments, Honor Wilson-Fletcher said it is the relationship with the giver that is key. Aldridge has created the Entrepreneurial Communities Fund, which is endowed, shaped and run locally so that projects are attuned to local people and their community.
Katie Owen said ethical finds are making a big impact but we need Government to offer tax breaks or other incentives, eg the EIS scheme which offers reward for taking an investment risk. It was agreed that investors seek more than financial rewards and this is paramount when making investment in a social enterprise – or social business as Nigel prefers to call it.
Anna Sofat explained money doesn’t motivate after ‘basic needs’ are met, so a model with part equity/part debt offers another way of investment. Uday said charities don’t want investment; but social business needs to look at an asset lock, so social entrepreneurs can benefit from value created. Nick agreed, saying we need to challenge the assumptions and work out how best to manage the exit.
Anna suggested we need to define a reasonable ROI – its not going to be 30%, but the assessment of return, both financial and otherwise, is still needed for a social investment. To map and measure success is key – but we often don’t measure social impact, although the Kauffman Foundation have mapped success and it would be good to share this model.
To a question from Jenny Wardle, asking where are the levers, and how can we change the mindset and attitudes of investors? Panellists suggested we also need to change the business model. In fact, said Honor, we need a number of different social business models.
Dr John Potter has set up the Cornwall Institute for Entrepreneurship. He said there are two cultures with social investors, the desire for financial return alongside the need to do good. There are many high impact funds, for example in Brazil
Kevin Riches suggested there is a clear opportunity for a Social Investment Exchange, the model being the Nanotechnology Exchange (INSCX). This would ensure compliance, give security and provide a marketplace. But measurement is needed, and Christina Alfonso said metrics do exist. Jill Case reminded us that protecting IP is also important, as creative and inventive social entrepreneurs often neglect this area.
We made great connections as we networked with her other guests and were further inspired as Lady Flather talked about women in India
Networking in the Cholmondeley Room...
Business cards and ideas are exchanged..
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Energised students continue to share ideas with Nigel Kershaw!