Charity News Alert
Hope moots social stock exchange
Ian Allsop
The government is exploring the possibility of establishing a social stock exchange where social enterprises could trade shares, as part of its commitment to helping social enterprise access finance.
Speaking at Social Enterprise London’s 2007 conference today, minister for the third sector Phil Hope said: “This would provide a means beyond bank borrowing or early stage investment to raise capital by issuing shares.”
Hope also said the government wanted to make it easier for social enterprises to win government contracts, and planned to run a pilot study on the use of social clauses with several local authority recycling services.
Early findings from recent research on the use of social clauses, whereby public procurement contracts specify outcomes with a social benefit - such as jobs for long-term unemployed - would be useful in developing guidance for local authorities.
He also issued a wake-up call to the co-operative movement. “It’s a sleeping giant, but has a real opportunity to play a bigger role. It should ask itself what it can do to support those wanting to set up social enterprises.”
Allison Ogden-Newton, director of Social Enterprise London (pictured), said that one of the big challenges was for social enterprises to demonstrate their impact, which she acknowledged was “tricky”, especially over the long-term.
Hope agreed that awareness was a key issue. “Not enough people know about this movement. Too many people still look blank when you use the term social enterprise. But when you explain, when you tell them some of the great success stories, you see people’s eyes lighting up.”
Hope confirmed that the announcement of the rest of the government’s social enterprise ambassadors, “enthusiasts from the frontline with a strong track record and communication skills”, would be made next week.
