Grant Funding Can Have a Downside for Social Enterprises, New Research Findings

social enterprise and home

It is estimated that there are around 200-300 social enterprises working to support homeless people into employment in the UK. Research on these enterprises has been released.
They have found that grant funding can have a detrimental effect on the sustainability of social enterprises that integrate beneficiaries into their workforce.
The report gives an overview of the sector, talks about the balancing of social and financial targets, discusses different models, what works and what doesn’t. It also provides recommendations for practitioners and policy makers.
While they found that these organisations can carry out their mission to support adults with multiple needs into employment, they are less sure if these organisations are financially sustainable in the long term and suggest some sort of payment for social outcomes to contribute.
It is estimated that they are saving the UK Government around £66 million a year.
As for which model works best, the answer is complex: “Although multiple income streams and long-term contracts with housing associations and public bodies provide stability.”
The report concludes with, “Further support for this sector; reliable trade contracts, income for social outputs, and business advice and support should all pay dividends in helping make reality the Government’s vision of work as the most sustainable route out of poverty, even for adults with multiple needs.”
Find it here

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