Social Investment and Social Enterprise
United Kingdom presidency of the G8, June 3, 2013
Social investment provides capital which gives social sector organisations the capacity to deliver returns. These may be social, financial or both. This investment can take the form of revenue funding or capital investment:
Social investment is repayable, often with interest. It provides capital to enable social sector organisations to develop new and/or existing activities that generate income. These activities generate a surplus which is used to repay investors.
Social sector organisations may generate a surplus through trading activities, contracts for delivering public services, grants and donations, or a combination of some or all of these. Social sector organisations can include non-profit organisations.
Social enterprises are businesses that tackle social or environmental problems and work in communities to improve people's lives. Social enterprises can include charitable non-profits or businesses that make money. The majority of social enterprises reinvest their profits in the communities they work in.
There are around 68,000 social enterprises in the UK. They represent 7% of all SMEs and contribute at least £24bn to the economy.
Social enterprises create jobs and offer employment opportunities to excluded groups:
As part of the UK's G8 Presidency this year, the Prime Minister has asked for an event focusing on social impact investment. On 6 June 2013, the G8 Social Impact Investment Forum – the first of its kind – will help to catalyse this growing agenda and to enable the market to operate effectively on a global scale.
Prime Minister David Cameron said: > I want to use our G8 Presidency to push this agenda forward. We will work with other G8 nations to grow the social investment market and increase investment, allowing the best social innovations to spread and help tackle our shared social and economic challenges.
Social impact investment aims to tackle the world's most significant social and environmental challenges. Every year, an increasing number of businesses deliver innovative and financially sustainable services to address social problems at root. Social impact investment recognises this increased value of business through the supply of private capital to organisations on the basis of social, as well as financial, returns.
Within the UK, and across the G8 countries, growth in the social impact investment market has demonstrated a range of benefits including economic growth, improved public service delivery and innovative ways of tackling the most complex social issues. Most importantly, the social impact investment market enables ventures to support individuals and their communities in a more effective and sustainable way.
The forum will provide a platform for gathering together senior politicians, major philanthropists, leading investors and business executives, pioneering entrepreneurs and innovative policymakers from across the G8 to discuss the opportunities and challenges that a global social impact investment market presents.
The forum will consist of 3 sessions:
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This page was last updated June 04, 2013.
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