Social investment delivering sustainable jobs and rising turnover

Social Investment Scotland chairman Nick Kuenssberg and chief executive Alastair Davis in their office on Broughton Place
Social Investment Scotland chairman Nick Kuenssberg and chief executive Alastair Davis in their office on Broughton Place

Increased third sector lending by Social Investment Scotland has supported the creation of hundreds of new jobs and an increase in trading income by its customers over the past year, according to its annual Social Impact Report.

In the report, SIS found that its customers have created 454 jobs over the past 12 months and sustained more than 3,000 jobs.

Customer turnover reached £172 million for the year, an increase of £22m on the revenues generated by SIS customers in 2014. Importantly, £100m of this turnover is attributed to trading income, with £55m to grant funding and £17m to other income sources. The increased proportion of trading income is a reflection of the fact that 61 per cent of SIS customers claim to have increased their sustainability over the past 12 months, indicating a reduced reliance on grant funding.

As well as the improved economic impacts being delivered by SIS customers, the report also highlights some significant social impacts, across a broad matrix of social indicators including the environment, employment, citizenship, conservation, mental health and housing.

  • Nearly half (47 per cent) of SIS customers who focus on employment, training and education report that the beneficiaries of their services are now in suitable employment, training or education
  • Three-quarters (76 per cent) of those targeting arts, heritage, sports and faith outcomes have provided high quality, affordable, accessible and inclusive cultural services
  • Half (50 per cent) of those concentrating on improving housing and local facilities have created access to local shops, transport, facilities and recreation.
  • Social Investment Scotland’s chief executive, Alastair Davis, said: “It has been a huge year, both for SIS, and for the broader social investment sector. With a wider understanding of what social investment can deliver, more social enterprises and community organisations are turning to this form of finance to help them achieve their social goals. And it’s clear that these goals are being delivered in abundance.”

    Nick Kuenssberg, chairman, Social Investment Scotland, added: “By using social investment to fund further growth, our customers are not only creating more jobs and generating more income, they are also able to increase the impacts they are making to the lives of people within communities across Scotland. At a time when the Scottish Government strives to secure economic growth, promote social justice, strengthen communities and tackle inequality, it’s clear that social investment has a major role to play in Scotland’s economic and social development.”

    Social Investment Scotland recently posted record results for 2014. Over the past year SIS secured £23m of new or renewed investment commitments from the Royal Bank of Scotland, Bank of Scotland, Clydesdale Bank, the Scottish Government, Big Society Capital, Triodos Bank and Asda. The organisation also invested more than ever before with £7.5m in funding being awarded to 45 social enterprises, charities and community organisations seeking growth. Since its start in 2001, SIS has made investments totalling £49.4m. Customers include Social Bite, Aberdeen Foyer, Showcase the Street and Changeworks.

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