presentation given in February 2012 to cohort of small business owners as part of Manchester Metropolitan University's programme to support small business growth

1. What’s on the menu?
financing options for small and social enterprises

3. Traditional sources of cash
•
Equity (dragons and
•
Personal savings angels)
•
Family and friends •
Factoring
•
'sweat equity' •
Retained profits
•
Debt (bank loans,
overdraft) •
Grants
Adrian Ashton

4. social enterprise “specials”

CDFI

Community shares

Social impact bonds

Loan stock

'In-kind'

crowd-funding
Adrian Ashton

5. Do you have the right type of
income?
Adrian Ashton

6. Some problems with grants...

Lead time

Restrictions on use

Cash-flow implications

Admin time/cost in monitoring & reporting

Risk of 'claw back'

Risk to credibility
Adrian Ashton

7. What do you need the cash for?

Dealing with failure ('rebooting' the business)

fashion/credibility

Validation (reassuring yourself)

Set-up

Development

Working capital
Adrian Ashton

8. Why you’re ‘un-fundable’
(you don’t give people what they want...)
• Their money back (loans, equity)
• Financial Return (loans, equity)
• Social Return (grants, loans, equity)
• Outputs & Outcomes (grants)
• Security (loans)
• Partners (grants, loans)
• Exit Strategy (equity)
Adrian Ashton

9. Further sources info & reading
•
Unlocking the potential – a guide to finance
Social Enterprise UK
•
http://www.ncvo-vol.org.uk/sfp
•
http://www.knowhownonprofit.org/funding/social-in
•
Simply Finance Co-operativesUK
Adrian Ashton

10. *GOOD MONEY WILL NOT MAKE A
BAD ENTERPRISE GOOD
Adrian Ashton