Investing in social enterprises in the North East of England is critical to driving social change and building a sustainable future for the region. These organisations, known as socially trading organisations (STOs), reinvest profits into their missions, creating local economic impact and supporting communities. There are over 5,400 STOs across the North East, employing around 29,000 people and contributing significantly to the local economy.
The impact of social enterprises in the North East
The North East social enterprises range in size and industry. They all share a common goal: delivering positive social impact and reinvesting in the communities they serve. According to research from Power to Change, each £1 spent by a community-owned organisation in the UK keeps around 56p in the local economy, compared to just 40p for larger private companies. This local reinvestment strengthens community resilience and fosters economic sustainability, making STOs essential to the North East’s future.
Addressing the funding gap for early-stage social enterprises
Despite the presence of funding and support agencies in the North East, a recent sector review highlighted a funding “cold spot” for early-stage or “risky” STO models. Traditional finance products may not always suit STOs, particularly those in the early stages or with innovative yet high-risk social missions. There is a need a funding model specifically for these underserved social enterprises, offering patient and flexible financing.
Introducing the Flexible Social Finance Fund
Big Issue Invest, in partnership with the North East Combined Authority and Power to Change, is empowering these STOs. Together, we offer flexible finance solutions to enable growth and long-term impact.
The Flexible Social Finance Fund is a new financing product created to support STOs in the North East. Loans range from £50,000 to £400,000, repayable over up to five years. This fund is structured to remove barriers to entry, making it easier for social enterprises to access much-needed capital. Working alongside the North East Combined Authority and other local support agencies, we are supporting qualifying STOS with access to funding but also a robust ecosystem of resources and mentorship.
Investing in the North East – let’s connect
We’re eager to connect with STOs across the North East who are committed to social impact and growth. Get in touch with michael.burns@bigissueinvest.com to discuss how our Flexible Social Finance Fund might be able to support your vision.
