Community-owned enterprises can now apply to take part in a Government-funded research project which is looking at new ways for social enterprises to attract more funding.
The research, announced earlier this year, is examining the potential of community shares and bonds as a way to attract extra investment. This includes inviting ten projects to test the idea, looking at barriers that could restrict their growth and how they can be overcome. Their experiences will be used to benefit future learning.
Five organisations will be chosen to take part in the research. Any project, be it a small village shop, a large scale housing development or a community recycling project is eligible to apply providing they are community-owned and work for the benefit of the community. Community-owned enterprises will receive a package of funding and consultancy and must show that they:
• Intend to raise finance through community investment ie. “The sale, or offer for sale, of more than £10,000 of shares or bonds to communities of at least twenty people, to finance ventures serving a community purpose.”
• Will issue non-transferable securities.
• have a committed group of project champions and an established steering group, unincorporated body, partnership, association, or corporate body
• have community support for their venture
Applications are available on www.communityshares.org.uk/findoutmore and the deadline for receipt of applications is 21 September 2009
This is the second round and first round successful projects (June 2009) are:
• Cybermoor, Alston, Cumbria aims to bridge the “digital divide” in rural areas by helping people use the internet and provide affordable broadband
• Hastings Pier & White Rock Trust aims to regenerate the pier buildings in particular the "apron" section closest to the promenade
• FC United of Manchester aims to raise up to £1m using community shares and bonds with the aim of building a new £5million community stadium in Manchester.
• Slaithwaite Cooperative Ltd Green Valley Grocery store, Colne Valley, nr Huddersfield raised funding through a community share issue to re-open a valued independent greengrocery shop
• Ashington Community Development Trust (Ashington Minors Childcare), Northumberland aims to become more integrated within the community through a community share offer
Hugh Rolo, Head of Assets and Investment at the DTA said: “We are already supporting five community enterprises – one of which has successfully completed a community share offer to rescue a village store – a vital resource for the community and in Hastings the community are rallying to rescue and develop derelict section of the Pier. Round two of this programme will allow us to work with more enterprises and demonstrates the huge potential of using community investment to raise capital for local projects that people can trust and see are worthwhile”
Pauline Green, Chief Executive of Co-operativesUK, said: “Community investment is about community engagement and this is at the core of the co operative way of business. For example, FC United of Manchester aim to raise substantial funding through a community share offer toward the cost of building a new stadium. And in the rural community of Alston, Cumbria, a community share offer will provide improved broadband connections to local residents. I think other communities will want to follow their example.“
