Social Investment Scotland has launched a new subsidiary company which aims to offer finance to new entrepreneurs
A new project has been launched which aims to stimulate social entrepreneurship in Scotland.
Social Investment Scotland (SIS) has unveiled plans to create a £5 million fund by encouraging Scottish business people to invest in social enterprises.
SIS Ventures will provide financial assistance to businesses and social enterprises and have its own board, chaired by experienced finance boss Bill Crossan.
The idea is to take advantage of the Social Investment Tax Relief and the Enterprise Investment Scheme, which offers tax breaks to people who invest in social enterprise, and raise the £5 million over three years. The money will be used to support projects which focus on sustaining employment, improving health, helping the homeless and supporting the disadvantaged.
SIS Ventures is currently seeking authorisation from the Financial Conduct Authority to operate in the market as a wholly owned subsidiary of SIS.
The venture will provide debt and equity to entrepreneurs, particularly to those starting up, that might struggle to raise finance from existing sources, but who have the ambition to deliver worthwhile projects.
“The investment world has come a long way in recent years,” said Crossan. “Where previously impact-first investment lacked both credibility and visibility among the investor community, we’re now beginning to see more investors come on board with the idea of backing businesses who can produce both a financial and social return.
“This is, in part, due to the increased value placed on social impact at board level, but also an increased desire among Scotland’s entrepreneur community to pursue a profit-with-purpose model.”
Crossan will be joined on the board by Homes for Good's Susan Aktemel; Alastair Davis, Morag McNeill and Thomas Gillan, all of Social Investment Scotland; David Ovens of Archangels; and Mike Wooderson and Amanda Young of Aberdeen Standard Investments.
Thomas Gillan, director of SIS Ventures, said: “At Social Investment Scotland we believe that impactful enterprises, those that deliver profit and purpose, should be the bedrock of society; supported with the full power of the investor community. We know that many individuals today have a genuine desire to invest in activities that benefit society which is why we created SIS Ventures Limited.”
