Huge Interest In New Financial Solutions For Social Enterprise Sector

17/11/10
'We are pleased to provide the foundations on which the architects of the Big Society Bank can build an expanded capital market for the social sector. The overwhelming response to the Call for Ideas reflects the social sectors' desire to find solutions to the funding gap which is holding back the development of social ventures.'

Ninety ideas for social finance products and services have been received by NESTA, the National Endowment for Science, Technology and the Arts - many more than it anticipated - following a call to trial financial packages for the Big Society Bank.

Proposals have come from a broad range of organisations including charities, social finance and mainstream financial organisations.  NESTA's project team is being bolstered with support from UnLtd, and the selection of proposals will be reviewed by an external panel of social sector and financial market experts, chaired by Sir John Gieve, former Deputy Governor of the Bank of England.

The trial will explore products and services that could be offered by the Big Society Bank to support social entrepreneurs when it launches in April next year, offering a major opportunity for the social finance sector.

Nick Hurd MP says: 'We should not be surprised by the high level of interest in the potential of a Big Society Bank. I'm very encouraged that the proposals are so practical and credible. It shows that the Government's commitment to the Big Society Bank is matched by a clear demand for its services. I want to thank NESTA, UnLtd and the other organisations that have contributed for helping to bring these products and services to the fore so that we can provide the right type of support to social enterprises when the Bank is up and running.'

Jonathan Kestenbaum, NESTA's Chief Executive says: 'We are pleased to provide the foundations on which the architects of the Big Society Bank can build an expanded capital market for the social sector. The overwhelming response to the Call for Ideas reflects the social sectors' desire to find solutions to the funding gap which is holding back the development of social ventures.'

Fifteen short-listed proposals will be announced by NESTA on 26 November - a week later than originally planned as a result of the volume of proposals received. Each short-listed proposal will be offered a £10,000 grant from the Fund to complete the final stage of research and due diligence.

From this short list, around five proposals will be selected for funding, with an announcement due in early 2011.

Jonathan Jenkins from UnLtd says: 'We would like to see the complete portfolio of proposals taken up by the future stewards of the Big Society Bank, not just those in which we invest as we believe it is important that the sheer breadth and depth of innovation is taken into account as the Bank's vision and structure evolve.'

Notes to editors

For further information please contact:

Catherine Anderson on 020 7438 2609 or Catherine.Anderson@nesta.org.uk or Chani Hirsch on 020 7438 2601 or chani.hirsch@nesta.org.uk

About NESTA
NESTA is the UK's foremost independent expert on how innovation can solve some of the country's major economic and social challenges. Its work is enabled by an endowment, funded by the National Lottery, and it continues to operate at no cost to the taxpayer. 

NESTA is a world leader in its field and carries out its work through a blend of experimental programmes, analytical research and investment in early-stage companies. 

About UnLtd
UnLtd is the leading provider of support to social entrepreneurs in the UK and offers the largest such network in the world. UnLtd resources over 1,000 individuals each year through its core Awards programme.

UnLtd operates a unique model by investing directly in individuals and offering a complete package of resources; from awards of funding between £500 and £15,000 to ongoing advice, networking and practical support.

UnLtd supports individuals who have their ventures firmly rooted in delivering positive social change. The Global Entrepreneurship Monitor (Harding and Harding 2008) found that there were 1.7m people leading social organisations in the UK, 238,000 trying to start one, and that 35% of all nascent (early stage) entrepreneurs were starting with social ventures.

· UnLtd Ventures - provides long term specialist support to a number of outstanding entrepreneurs

· UnLtd Research - leads on inspiring and informing action, policy and social change

· UnLtd Connect - brings together experienced professionals able to offer pro-bono support and those who are growing social ventures

· UnLtd Advantage - is the premier investment readiness programme for social entrepreneurs and those investing in them

· Live UnLtd - is transforming how society views young people and how young people view themselves

· UnLtdWorld.com - connects you to the people, tools and information you need to change the world

For more information about the support offered by UnLtd, please visit: www.UnLtd.org.uk

Twitter: www.twitter.com/unltd

Facebook: www.facebook.com/unltd