Increased social investment by Social Investment Scotland, leading lender to the third sector, has supported the creation of hundreds of new jobs and an increase in trading income by its customers over the past year.
These findings are according to its annual Social Impact Report.In the report due to be published today (Monday, 28 September), SIS found that its customers have created 454 jobs over the past 12 months and sustained more than 3,000 jobs.
Customer turnover reached £172million for the year, an increase of £22million on the revenues generated by SIS customers in 2014. Importantly, £100million of this turnover is attributed to trading income, with £55million to grant funding and £17million to other income sources. The increased proportion of trading income is a reflection of the fact that 61% 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%) 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%) of those targeting arts, heritage, sports and faith outcomes have provided high quality, affordable, accessible and inclusive cultural services
- Half (50%) of those concentrating on improving housing and local facilities have created access to local shops, transport, facilities and recreation.
Commenting on the Social Impact Report, 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 £23million 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 £7.5million in funding being awarded to 45 social enterprises, charities and community organisations seeking growth. Since its start in 2001, SIS has made investments totalling nearly £50million (£49.4m). Customers include Social Bite, Aberdeen Foyer, Showcase the Street and Changeworks.