Scottish Government
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Third sector enterprise fund
A £12 million fund to encourage Third Sector organisations to become more enterprising is to open for applications in the new year.
The Scottish Government's Third Sector Enterprise Fund will offer between £25,000 and £100,000 to organisations wishing to build their capacity, capability and financial sustainability.
Enterprise Minister Jim Mather revealed details of the fund at today's Social Firms Scotland annual general meeting in Edinburgh and said supporting the Third Sector was a crucial element of the Scottish Government's economic recovery programme.
He said:
"Scotland's Third Sector connects with some of the most vulnerable people in society, often creating valuable employment opportunities. In the current climate, when many people are feeling the effects of the global downturn, it is even more important to utilise the Third Sector's contribution towards increasing sustainable economic growth and helping Scotland to emerge stronger from the current downturn.
"The Scottish Government's decision to increase funding for the sector by 37 per cent shows that we recognise and value the sector's transformational potential. And now in launching the Third Sector Enterprise Fund we are helping ambitious organisations to develop and prosper.
"We want the Fund to help organisations demonstrate how enterprising approaches can strengthen their capacity and potential. In turn this will increase their contribution towards creating the wealthier and fairer nation we all seek."
Green MSPs have worked closely in developing the fund. Patrick Harvie MSP said:
"The mid-sized organisations which the Third Sector Enterprise Fund will support are precisely those groups which are working hardest to weave the values of social enterprise into the fabric of Scottish society. There could not be a better time for this investment to kick in, given the urgency of both the economic situation and the climate crisis we all face. The Scottish Green MSPs are therefore delighted to have worked with the Scottish Government to support the development of this fund, which will help strengthen and grow the brightest and best of Scotland's social enterprises."
The new fund has been welcomed by organisations including the Scottish Social Enterprise Coalition and Senscot, which works to support social entrepreneurs in Scotland. Senscot Network Development Manager Colin Campbell said:
"This completes the `pipeline` that starts with the Social Entrepreneurs` Fund and ends with the Scottish Investment Fund. It is an opportunity for medium-sized social enterprises to access investment for that critical stage of growth which will enable them to deliver greater impact in their respective communities. Senscot sees this as being particularly relevant to the 200 plus members of the Local Social Enterprise Networks across Scotland."
Lucy McTernan, acting CEO of the Scottish Council for Voluntary Organisations (SCVO), said:
"SCVO has worked hard over the years to support the charity and voluntary sector in Scotland in its efforts to become more enterprising. This new fund is a welcome support for the whole sector in achieving this. It will allow organisations across the sector to get the sort of investment they need to develop a more enterprising approach to their activities. I am sure organisations will make good use of the fund to invest in making themselves more able to take advantage of new market opportunities."
The fund will be targeted at Third Sector organisations which:
- Are located or operating in Scotland, with social or environmental aims, and which reinvest any surpluses for a social purpose
- Have the potential to increase their turnover and/or become more financially sustainable
- Have appropriate management and governance arrangements in place to support the Government's investment
The launch of the Third Sector Enterprise Fund follows the opening of the separate £30 million Scottish Investment Fund - which is designed to help organisations at a more advanced stage of development become more effective and efficient. The Scottish Government also recently launched the £1 million Social Entrepreneurs Fund - designed to help launch new social enterprises. All three funds have been launched thanks to the Government's decision to increase Third Sector funding by 37 per cent.
Social Firms Scotland is an intermediary organisation which aims to grow the social firm sector in Scotland in order to increase employment opportunities for severely disadvantaged people. It has launched a new project called Acquiring Business for Good which promotes opportunities for Third Sector organisations to purchase existing commercial businesses and convert them into a social firm business model. Social Firms Scotland will produce a 'How to' Guide to business acquisition for wider dissemination across the third sector. They will support up to 10 organisations to buy an existing business and convert to a Social Firm.
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