BRADFORD SOCIAL INNOVATION LAB - Building an enabling social investment ecosystem to support social enterprise and charities to improve the lives ...

Page created by Jimmy Moss
 
CONTINUE READING
BRADFORD SOCIAL INNOVATION LAB - Building an enabling social investment ecosystem to support social enterprise and charities to improve the lives ...
BRADFORD
SOCIAL INNOVATION LAB

Building an enabling social investment ecosystem
to support social enterprise and charities to
improve the lives of people in Bradford District

                    Stage 2 Proposal -
                    Local Access Programme
BRADFORD SOCIAL INNOVATION LAB - Building an enabling social investment ecosystem to support social enterprise and charities to improve the lives ...
CONTENTS
                   “Bradford is a young, diverse and innovative district. It is therefore right that
                   we are being considered for the local access fund. If successful, we will use         1. EXECUTIVE SUMMARY..........................................                         PAGE 4
                   this fund to support and encourage growth in our local social enterprise
                   sector. This will include further developing and maturing our infrastructure
                   support and improve the offer of financial support for this sector. For all these     2. BRADFORD SOCIAL INNOVATION PARTNERSHIP......                                        PAGE 6
                   reasons, Bradford Council are fully supportive of this bid”.
                   Kersten England
                   Chief Executive, Bradford Council                                                     3. OUR VISION: BRADFORD IN 2030 – .......................                              PAGE 10

                                                                                                            A LIVING LAB OF SOCIAL INNOVATION
                                                                                                             3.1. Bradford – A social and economic marketplace with all the right ingredients
                   “Local Access Programme is an exciting opportunity for Bradford partners
                                                                                                             3.2. Designed Together, an inclusive, democratic and diverse process
                   to bring in some innovative new support for the social enterprise sector. I
                   know Bradford is already an energetic and innovative District and as such has
                   the foundations to bring a strong social enterprise hub for the region and            4. BRADFORD SOCIAL INNOVATION LAB: ...................                                 PAGE 24
                   beyond. The opportunity that the Local Access Programme could bring to
                   the District is therefore fantastically timed to build on the pioneering activity        OUR PROGRAMME
                   already taking place across the area and open up new opportunities for what               4.1 Existing Enterprise Provision
                   is a dynamic and youthful City and District. As a Regional MP and someone                 4.2. Enterprise Support Services under BSIL
                   who worked in a social enterprise sector in Bradford District benefit from this           4.3. Financial Investment Model
                   opportunity and contribute to a thriving social enterprise sector across the              4.4. Faith Inclusive Investments
                   region and country”.                                                                      4.5. Asset based Investments
                                                                                                             4.6. Impact of Financial Investment
                   Alex Sobel MP                                                                             4.7. Investment Partners
                   Leeds North West                                                                          4.8. Keep it Local – Bradford’s way to invest locally
                                                                                                             4.9 Knowledge & Learning
                                                                                                             4.10. Options for Investment
                   “Bradford has a strong, diverse and vibrant Voluntary, Community and Social               4.11. Why should LAP invest in Bradford
                   Enterprise Sector which is increasingly recognised for the invaluable role it             4.12. Bradford as City of Culture
                   plays in the District. Like all sectors, we face significant challenges, but we are
                   meeting these head on through strong collective leadership, passion for our
                   Place, commitment to collaboration, and a real drive to make things better.
                   If successful, the local access fund would allow us to build on this strong
                                                                                                         5. NEXT STEPS ........................................................                 PAGE 54
                   platform to ensure that we have the right infrastructure in place to further
                   develop, enhance our sustainability and maximise impact for the people of
                   Bradford District.”                                                                   6. APPENDICES .......................................................                  PAGE 58
                                                                                                             Appendix 1: Partnership table of Activities
                   Kim Shutler                                                                               Appendix 2: Bradford Community Anchor Organisations and Networks
                   Chair, VCS Assembly                                                                       Appendix 3: Enterprise Support Gaps in Bradford District
                                                                                                             Appendix 4: Barriers to Growth
                                                                                                             Appendix 5: Local Infrastructure
                                                                                                             Appendix 6: GIIN
                                                                                                             Appendix 7: Leveraging opportunities
                                                                                                             Appendix 8: Social investment providers
                                                                                                             Appendix 9: Social Enterprise Providers in Bradford District
                                                                                                             Appendix 10: Key Strategies in the Bradford and Leeds City Region

2   BRADFORD SOCIAL INNOVATION                                                                                                                                                           BRADFORD SOCIAL INNOVATION   3
BRADFORD SOCIAL INNOVATION LAB - Building an enabling social investment ecosystem to support social enterprise and charities to improve the lives ...
1.EXECUTIVE SUMMARY
                                   Bradford Social Innovation Partnership (BSIP)       solutions. We will reach out and support talent from
                                   brings together a diverse, committed and expert     underserved communities, for example women,
                                   group of social and business leaders to imagine     young people, white working class communities
                                   and create a social investment ecosystem            and BAME to step up and start up new ideas and
                                   to support social enterprise and charities          help anyone who can and wants to scale up proven
                                   and improve the lives of people in Bradford.        initiatives to create greater social impact.
                                   Together; and in co-design with the city’s
                                   stakeholders, our ‘Bradford Social Innovation       We share Local Access Programme’s belief that social
                                   Lab’ vision for 2030 is to have a dynamic,          finance is crucial to resilience and sustainability and
                                   compassionate and inclusive ecosystem               our programme will provide social enterprise with
                                   of support for social enterprise, creating a        bespoke high-quality support and a menu of social
                                   destination for social innovation. This means       investment options for the best chance of success.
                                   connecting the breadth of our economy and           In addition, we will test out new social investment
                                   among the wide range of people, communities,        approaches, such as faith-inclusive finance as a
                                   businesses and organisations that have a stake      model for other areas and support institutions who
                                   in addressing the greatest need in Bradford. We     can benefit from this opportunity.
                                   have the backing of our city and the skills and
                                   capabilities needed to succeed.                     Bradford suffered greatly during the recession and
                                                                                       following this, the impact of austerity has been stark.
                                   Bradford District is ideally placed to partner      A strong social economy is fundamental to boost
                                   with Local Access Programme (LAP). We have          renewal and opportunities. The need is urgent,
                                   great strengths and assets to draw upon.            and our 10-year plan for Local Access Programme
                                   We are a place of ideas and innovation. We          is to achieve a step change in how we co-design
                                   are a big economy with globally successful          solutions and invest in sustainable ideas. Our Local
                                   businesses, a young diverse and enterprising        Access Programme plans seek a balance of focus
                                   population, strong knowledge institutions, a        between the significant long-term interventions that
                                   world class cultural offer, attractive urban and    will create systemic change, for example creating
                                   rural environments and increasing momentum          a more level playing field in commissioning and
                                   provided by the regeneration of our city and        procurement for social enterprise and the catalytic
                                   town centres. Importantly we have a broad           activities we can put in place to enable major social
                                   based and thriving voluntary, community and         impact through supporting social enterprise to start
                                   social enterprise economy.                          up and grow impact with access to networks, and the
                                                                                       right forms of support and social investment.
                                   Our challenge as a city is to build upon our
                                   revealed strengths to create an inclusive and       Finally, we want to generate and share knowledge
                                   forward-looking city that works for all our         and learning that will inform our decision making
                                   citizens. Our public sector is already enabling     and help the work of others faced by similar
                                   growth and opportunity, but it is our charities,    challenges around the UK.
                                   social enterprises and talent in communities that
                                   are the source of energy, ideas and innovation      BSIP believe Bradford is an ideal partner for
                                   needed to meet the most pressing social and         Local Access Programme investment and would
                                   environmental challenges.                           provide the catalytic support needed to enable the
                                                                                       development and growth of our ambitious plans to
                                   Our Local Access Programme is for all; however,     create a thriving social economy and marketplace for
                                   we know that people closest to the problems         social investment and support.
                                   in communities often have the most effective

4   BRADFORD | EXECUTIVE SUMMARY                                                                                                                 BRADFORD | EXECUTIVE SUMMARY   5
BRADFORD SOCIAL INNOVATION LAB - Building an enabling social investment ecosystem to support social enterprise and charities to improve the lives ...
2. BRADFORD SOCIAL
     INNOVATION PARTNERSHIP
                                                            The BSIP panel consists of eight partners             The remit of Bradford Social                           The people and organisations involved in BSIP
                                                            representing social entrepreneurs, public,                                                                   are listed below. We have purposefully organised
                                                            private, community and social economy support
                                                                                                                  Innovation Partnership is to:                          around a broad-based, cross sector partnership
                                                            organisations with deep expertise in place-                                                                  with the relevant experience, expertise and reach
                                                                                                                  • Act on behalf of the Social Enterprise and Charity
                                                            based working. Our approach is participatory,                                                                needed to deliver a successful LAP. We recognise
                                                                                                                  Sector and its partners for the preparation and
                                                            collaborative, diverse and enabling. We have come                                                            and are committed to expanding the diversity
                                                                                                                  submission of stage 1 and 2 proposals to LAP.
                                                            together in a process of learning and coproduction                                                           and range of partners and capacity to fill gaps
                                                            that will drive social change in Bradford. We are                                                            in expertise and delivery capacity as our work
                                                                                                                  • Develop a theory of change based on the
                                                            locally rooted and nationally connected with                                                                 develops through stages 2 and 3 of the LAP
                                                                                                                  findings from our consultations
                                                            an in-depth understanding of Bradford and its                                                                application process.
                                                            communities. Many of the organisations within
                                                                                                                  • Take forward implementation plans developed
                                                            BSIP already have a strong track record of working                                                           At this stage of development, we have identified
                                                                                                                  with communities and sector partners.
                                                            together to deliver significant change. The process                                                          the following gaps:
                                                            of developing our LAP proposals have enabled the
                                                                                                                  • Identify gaps in knowledge, expertise and
                                                            partnership to galvanise around a common vision                                                              • A locally based expert organisation (Local Lead
                                                                                                                  delivery capacity; and fill these to ensure success
                                                            and strong commitment to delivery.                                                                           Organisation) with the skills and capacity to
     The Bradford Social Innovation                                                                                                                                      manage and deliver blended finance products
     Partnership (BSIP) share Local Access                  Our proposals to LAP have been developed
                                                                                                                  • Identify and pursue social investment and
                                                                                                                  funding opportunities to develop a vibrant support
     Programme’s (LAP) belief in the power                  through a series of community consultations
                                                                                                                  ecosystem.
                                                                                                                                                                         • Corporate partners with resources and expertise
     of local social enterprise to create                   held between April and August 2019 (Appendix                                                                 to strengthen the support offer, including facilities,
                                                            1). This process has enabled us to bring                                                                     pro bono support and routes to market for social
     thriving places and communities.                       together experienced social entrepreneurs
                                                                                                                  • Gain in-depth understanding of the sectors
                                                                                                                                                                         enterprise and charities
                                                                                                                  in Bradford that would most benefit from LAP’s
                                                            and organisations from across sectors who are
     Our work and experience shows that self-reliance                                                             investment.
                                                            committed to tackling some of Bradford’s key
     and sustainability of Bradford’s Social Enterprise
                                                            social and economic challenges. An early and
     and Charity Sector is crucial for the social and                                                             • Explore effective practice and evidence-based
                                                            key outcome has been to identify and mobilise
     economic benefit of our communities and city;                                                                investment and support models that can be
                                                            the experience and expertise needed to convene
     and that connecting Social Enterprise and Charity                                                            beneficial to social enterprise and charities in
                                                            BSIP panel as a change agent for Bradford and
     Sector to social investment has a vital role to play                                                         Bradford District.
                                                            approach LAP to partner with the city of Bradford.
     if they are to have the best chance to thrive and
     create impact. The need is urgent, and we believe                                                            • Review the Partnership Panel for skills to enable
                                                            Each partner has agreed an initial commitment
     investment and support from LAP towards creating                                                             successful submission of stage 3 LAP proposals.
                                                            until January 2020 (Stage 2 submission). At that
     an enabling and sustainable support ecosystem
                                                            point, the existing partnership structure will come
     for Social Enterprise and Charity Sector will be                                                             • Develop model options for programme delivery,
                                                            to an end. A review will be undertaken once the
     catalytic in creating the step change needed to                                                              including the selection of an Investment Partner
                                                            outcome of our LAP bid is known, in order to
     achieve our aim for Bradford to become the Social                                                            and ‘Lead Local Organisation’ for delivery of a
                                                            assess individual roles, professional and sector
     Innovation Lab.                                                                                              successful partnership with LAP.
                                                            expertise requirements, and to manage any
                                                            potential conflicts. We envisage that the work of
                                                                                                                  • Determine the longer-term governance and
                                                            BSIP will continue to evolve and explore a range of
                                                                                                                  ownership model for BSIP.
                                                            opportunities to grow a vibrant social investment
                                                            support ecosystem for Bradford. LAP support
                                                            would provide cornerstone support to leverage
                                                            other partnerships and resources for Bradford’s
                                                            social enterprises and charities.

6   BRADFORD SOCIAL INNOVATION                                                                                                                                                                       BRADFORD SOCIAL INNOVATION   7
BRADFORD SOCIAL INNOVATION LAB - Building an enabling social investment ecosystem to support social enterprise and charities to improve the lives ...
BRADFORD SOCIAL
     INNOVATION PARTNERSHIP

     PARTNERSHIP PANEL
                  PARTNER                                   DELIVERY ROLE                                                    ORGANISATIONAL –
                  DISCIPLINE              LEAD              AND EXPECTATIONS                                                 EXPERIENCE AND TRACK RECORD

                  30 CHAPEL               Kamran Rashid     Lead the proposal for stages 1, 2, 3 and 4                       30 Chapel Street Ltd are an emerging social enterprise and innovation support organisation in Brad-          To ensure our proposals to
                  STREET LTD                                Bring together key partners to share vision and manage           ford. They led the development of the proposal and co-design process.
                                                            expectation and commitments.
                                                                                                                                                                                                                                          LAP directly meet the needs
                  (Social Innovation)
                                                            Share expertise in delivering grants programme and deliver-                                                                                                                   of our communities, Social
                                                            ing social enterprise support to new start-ups.                                                                                                                               Enterprise and Charity Sector,
                                                                                                                                                                                                                                          we have engaged Bradford’s
                  KEY FUND                Matt Smith         Knowledge transfer and blended                                  Key Fund is a social enterprise that provides investment to support the growth and development of
                                                            finance management expertise                                     other community/social enterprises. Established 20 years ago, they have invested over £55m in over           key community, statutory and
                  (Finance)
                                                                                                                             2,000 organisations.                                                                                         private sector organisations
                                                                                                                                                                                                                                          and networks through an
                                          Adrian Woods      To be explored                                                   Ontrak is an independent garage and charity, specialising in repairing, MOT, tyres and bodywork.
                  ON TRACK                                                                                                                                                                                                                extensive consultation and
                  SOCIAL (Enterprise)                                                                                        As a frontline Charity, Ontrak works with some of the most underserved young people in Bradford
                                                                                                                             through a sustainable model.                                                                                 co-design process. We aim
                                                                                                                                                                                                                                          to continue as we have
                  PARTICIPATE             Anthony           Enterprise support design and delivery                           As a frontline Social Enterprise support organisation, Participate Projects support people and organ-        started and maintain an
                                          Waddington                                                                         isations to realise their potential by providing support that helps them to develop and grow their
                  (Social Enterprise                                                                                                                                                                                                      ongoing conversation with
                  support agency)                                                                                            ideas into sustainable projects and enterprises.
                                                                                                                                                                                                                                          key stakeholders in Bradford.
                  LOCALITY                Hugh Rolo         Strategic Guidance of overall programme                          Veteran community enterprise practitioner with                                                               We will do this by sharing our
                  (Social Enterprise                        Investment proposition structuring/asset transfer support /      Locality / Key Fund                                                                                          plans and seeking feedback
                  Support organisation)                     Risk Appraisal                                                   Social Investment Business
                                                                                                                                                                                                                                          and design input through
                                                            Peer network support                                             Community Shares Unit / The Cellar Trust
                                                                                                                                                                                                                                          focus group meetings with
                  BRADFORD                Kathryn Jones     Bradford Council will act as an enabler and connector. We        Supported and delivered externally funded programmes – including ERDF targeted at social enter-              frontline organisations and
                  CITY COUNCIL                              will use our leadership function to support progress on the      prises.                                                                                                      social enterprise as our
                  (Public Sector)                           Local Access programme, influencing partners locally and         ·     Historic experience of establishing and growing social enterprises.
                                                                                                                             ·     Facilitated the set up of business incubators.
                                                                                                                                                                                                                                          plans develop. Information
                                                            regionally. We will also be mindful of opportunities where
                                                            our work can be tailored to better support social enterprises    ·     Accountable body for CLLD (Bradford & Keighley).                                                       about these organisations
                                                            (social value policy, community asset transfer, local com-       ·     Invest in Bradford team supporting new start ups and bringing new business to Bradford                 is in Appendix 2. Their work
                                                            missioning, VCSE investment). We are also advertising for a      ·     Partner in the Health Enterprise Zone and Digital Capital (supporting SMEs)                            is profiled throughout this
                                                            social enterprise support officer, which will connect directly   ·     Accelerator programme on Digital Technology for SMEs.
                                                                                                                             ·     Employ SME growth managers in partnership with the LEP.
                                                                                                                                                                                                                                          proposal to illustrate their
                                                            with Local Access.
                                                                                                                                                                                                                                          potential to provide a solid
                                                                                                                             Note: Much of the support given to SMEs is transferrable and relevant to Social Enterprises/Charities.       foundation upon which to build
                                                                                                                                                                                                                                          new investment and growth
                  INSPIRED                Nasim Qureshi     Leadership                                                       A community business and an Anchor based in Bradford East delivering District wide contracts and
                                                                                                                             commissions. Established in 2011, employs 58 staff delivering enterprise and employment support,
                                                                                                                                                                                                                                          opportunities.
                  NEIGHBOURHOODS                            Represent community Anchor’s in the District.
                  GROUP                                     Share experience and track record as a community business        welfare, debt and housing advice, physical health and mental wellbeing programmes, managing
                  (Community Business                       involved in delivering enterprise and employment support.        community centres and a community library.                                                                   This has been an important
                  and Anchor                                Share track record of managing blended finance.                  Recently secured £1.8m Bradford Community Led Local Development programme for three years                    process for Bradford. It has
                  Organisation)                                                                                              with outcomes similar to LAP. This will complement our LAP proposal.
                                                                                                                                                                                                                                          already created opportunities
                  PWC                     Julia Brannigan   To be explored                                                   PwC help build trust in society and solve important problems. They recently opened an office in Brad-        to share experience, networks
                  (Corporate)                                                                                                ford and are exploring with local partners how to support them through their social enterprise club.         and potential investments/
                                                                                                                                                                                                                                          contract. In a short period
                  AIREDALE                Noreen Tailor     To work with locally based social entrepreneurs and small        BEIS registered Enterprise agency based in Keighley for over 36 years supporting Business & Enter-
                                                            business community, supporting the customer with business        prise in the community and the wider district. Supported over 20,000 individuals and businesses with         of time, we have mobilised
                  (Enterprise Services
                  Enterprise support)                       advice, business planning, cash flow forecasting. Identifying    one to one and one to many Business advice, business planning, cashflow forecasting. Business de-            key actors across sectors,
                                                                                                                             velopment training for both business owners & employees, Strategic planning, business improvement
                                                            the right level and the best source of funding for the busi-
                                                                                                                             and quality management system Implementation. Facilities include incubator units, hot desking, virtual
                                                                                                                                                                                                                                          developed a vision around
                                                            ness. Delivering a wide spectrum of training opportunities       office, meeting & conference facilities. Airedale Enterprise Services is the Locally Trusted Organisation    social investment, forged new
                                                            to ensure the business has the best chance of survival &         for the Local Trust’s Keighley Valley Big Local programme - £1m fund to engage & support residents
                                                            success.
                                                                                                                                                                                                                                          relationships and strengthened
                                                                                                                             & Business in Keighley East ward. AES was also chosen as the Local Action Group support team for the
                                                                                                                             Keighley Community Led Local Development programme - £4.8m part funded by ESIF programme. We                 existing ones.
                                                                                                                             are also a delivery partner for the Good Things Foundation ensuring that people in our community can
                                                                                                                             access digital skills training free of charge.

8   BRADFORD SOCIAL INNOVATION                                                                                                                                                                                                           BRADFORD SOCIAL INNOVATION   9
BRADFORD SOCIAL INNOVATION LAB - Building an enabling social investment ecosystem to support social enterprise and charities to improve the lives ...
3. OUR      VISION:
      BRADFORD - A LIVING LAB FOR
      SOCIAL INNOVATION

      Our vision is that by 2030, Bradford                   Our programme activities will include:                 • More Inclusive Social Investment Sector:                We would produce a detailed analysis on LAPs role
                                                                                                                    Embed a culture of partnership, mutual support            at stage 3.
      has a dynamic, compassionate                           • Advice & Support – advice and support on how         and codesign among investors / investees. Share
      and inclusive ecosystem of social                      to improve impact, productivity and sustainability.    information, data and intelligence for investments,       Our consultation with Social Enterprise
                                                             Guidance and help to make decisions about the          service design and delivery.
      enterprise creation – a destination                    most appropriate legal form to achieve particular                                                                and Charity Sector organisations shows
      for social innovation and enterprise,                  objectives                                             • Sustainability: Enable and support organisation
                                                                                                                                                                              that ‘impact on the ground’ from LAP
                                                                                                                    to embed governance and structures that allows
      that kick starts social innovation                     • Coworking and workspaces – spaces to access          income generation, full costs recovery models,            investment will include:
      and proactively enable people,                         services and work together to tackle social and        generating surpluses and profit. Undertake cost           • creation of new enterprises
      organisations and institutions who can,                environmental issues in Bradford.                      efficiency approaches. For example: sharing back          • supporting existing enterprises towards contract
                                                                                                                    office functions; block buying energy.
      and want, to start new and expand                      • Finance, investment & funding – A range of                                                                     readiness
                                                             options for investment, funding and finance to start   • Market Development and creating new                     • enable organisations to secure contracts/
      existing ventures.                                                                                                                                                      commissions to deliver services
                                                             up, accelerate the development, growth and spread      opportunities: Influence statutory organisations
      The Social Enterprise and Charity Sector in            of successful organisations.                           procurement policies and commissioning methods            • acquire assets through community asset transfer
      Bradford are a rich and varied landscape, this can                                                            to provide level play field for local organisations.      from statutory organisations to generate income
                                                             • Market development – Interventions, (e.g. social                                                               • help enterprises to becoming sustainable through
      mean it’s often hard to know where to look to find                                                            Influence community asset transfers to enable Social
                                                             procurement and policy) to develop and grow                                                                      generating earned income
      the appropriate support, or even who does what.                                                               Enterprise and Charity organisations to generate
                                                             the market, creating a more level playing field for                                                              • make informed decisions by taking enterprise
      At the same time, Bradford needs many more                                                                    income.
                                                             commissioning, contracts and grants, embedding                                                                   support
      people and organisations to step up, start up and      evidence based and innovative practices.               • Social Impact: Majority of Social Enterprise and        • manage risks better by adopting bespoke
      grow solutions to meet the needs and aspirations
                                                                                                                    Charity Sector organisations invest their resources       investment models
      of our communities.                                    • Networks & Networking – Events, communities
                                                                                                                    in local neighbourhoods. Bradford is committed            • accessing networks, mentoring and knowledge
                                                             of practice and online networks to open
                                                                                                                    to ‘Keep it Local’ approach which creates a level         base through cross-sector collaborations
      Our mission for Bradford as a living lab for social    opportunities, connection among peers, experts,
                                                                                                                    playing field for Social Enterprise and Charity
      innovation is to engage and connect together           mentors and partners.
                                                                                                                    Sector organisations and provides sustainability.
      a broad range of individuals, organisations and
                                                                                                                    This in turn means increased investment by Social
                                                                                                                                                                              This direct impact will enable Social
      institutions, cutting across the boundaries of         • Research & Impact Management - Investment
                                                             in research, the scale, scope, benchmarking and        Enterprise and Charity Sector organisations creating      Enterprise and Charity Sector
      industries, professions and cultures to convince
      those already working together to collaborate          impact measurement to enable learning and              cohesive neighbourhoods that are mutually                 organisations ‘at ground level’ to:
                                                             sharing of what social enterprise and charities are    supportive, safe and, look after environment and
      wider and others that otherwise may not work                                                                                                                            • support local supply chains
                                                             having in Bradford, and what works for helping         housing, feel safe, crime is low, education, skills and
      together, or may not understand, the role they                                                                                                                          • generate further income from contracts and assets
                                                             them to start up, grow and become sustainable.         training is encouraged and live longer healthier.
      might play in supporting social entrepreneurs in                                                                                                                        • train to retain skilled staff and volunteers
      the city.                                                                                                     • Economic Impact: Study carried out by Locality          • build capacity with local communities
                                                                                                                    evidences that for every £1 invested the return on        • develop innovative service and investment models
      We will proactively encourage a shift in how we        BSIP’s combined experience provides us with
                                                                                                                    investment is £2.75. This means LAP’s investment          • be more accountable and transparent to local
      work together. As an Innovation lab we will engage     confidence that strategic impact of LAP’s financial
                                                                                                                    of £6 million is anticipated to produce ROI of £16.5      communities through better policies, procedures
      a wide range of participants, cutting across the       interventions will include:
                                                                                                                    million, creating more jobs, increasing GDP, taxes to     and engagement
      boundaries of industries, professions, and cultures;   • System Shift: Educate and raise awareness            HMRC and rates paid to the Council. This will also        • attract lower rate of interest from lenders as a
      bringing together “an unusual bunch” of people         of social innovation enterprise models. Enable         increase disposable income for households which           more secure risk
      that would otherwise not work together. We will        organisations to implement new models of               has direct impact on the retail sector.                   • contribute more to Bradford’s economy
      explore a range of design thinking, convening and      investment, governance, risk management and                                                                      • produce even higher return on investment for
      co-creation methods and emerging enterprise                                                                   • Inward Investment: LAP’s investment will unlock
                                                             service delivery.                                                                                                funders and lenders
      support and social finance methodologies for                                                                  match funding/investment from other investors.
      out toolkit approach; selecting the methods and        • Leadership Development: Develop leadership           This will enable us to deliver a well-resourced and       Given the need for investment in Bradford’s
      partners that are the best fit for Bradford. We        skills at different stages of businesses. Undertake    diverse interventions using a ‘toolbox’ approach          Social Enterprise and Charity Sector, our change
      anticipate that this diversity will fuel innovation    succession planning.                                   where all organisations are offered a bespoke             model reflects the impact we envisage from LAP’s
      and creativity, bringing about innovations and                                                                investment and support. We have agreed to work
                                                             • Blended Finance/ Loan Investment: enable                                                                       investment. This model will evolve overtime through
      partnerships to amplify social impact.                                                                        alongside Bradford Central CLLD and have initiated
                                                             and support organisations to consider this form of                                                               our experiences and learning:
                                                                                                                    a dialogue with Power to Change.
                                                             investments

10   BRADFORD - OUR VISION                                                                                                                                                                                    BRADFORD - OUR VISION   11
BRADFORD SOCIAL INNOVATION LAB - Building an enabling social investment ecosystem to support social enterprise and charities to improve the lives ...
BRADFORD SOCIAL INNOVATION LAB - Building an enabling social investment ecosystem to support social enterprise and charities to improve the lives ...
HISTORY OF SOCIAL
     INVESTMENT IN BRADFORD

                              Social investment has been a part of Bradford’s           With a population of over half a million people and
                              culture since the start of the industrial revolution in   youngest population, 25% under 25 years of age,
                              1800 with social entrepreneurs developing wool            in Europe Bradford is large enough to demonstrate
                              mills, dye works, iron works and foundries such as        the impact of social investment, yet small enough
                              Salts, Manningham, Drummond Mills and James               to be a living lab of open social innovation and
                              Wood Iron Works. These early entrepreneurs                investment.
                              created multi-million-pound businesses whilst re-
                              investing their profits to provide houses, hospitals      Right now, products and support available to
                              and schools for their workers and supported               entrepreneurs do not fully harness the potential of
                              Bradford’s infra-structures.                              people who live in Bradford (Appendices 3 & 4).
                                                                                        Our research evidences that a system of intelligent
                              From early settlement of ‘Brade’ ‘Ford’, immigrants       linking and triage services, combined with our
                              have settled here to work and create social               energetic networks and suite of enterprise support
                              enterprises. The two world wars in 1900’s                 and inclusive investment products, will equip more
                              continued to bring migrants from Ireland, Poland,         women, more ethnic minorities, and more young
                              Germany and later followed by South Asian                 people with the skills and knowledge to become
                              communities. The migrants to Bradford have                social innovators and entrepreneurs.
                              brought with them entrepreneurial skills and
                              culture of entrepreneurship that continuous to            We are not only investing in Bradford’s
                              influence local communities.
                                                                                        future social pioneers but harnessing
                              In 2017, Bradford was named as the best city              their skills to co-design more
                              in the UK to start a business by Barclays bank.           responsive local services and establish
                              Bradford was ranked first overall, reflecting             Bradford as a model for inclusive
                              good performances on road infrastructure (the
                              top ranking), job vacancies (the top ranking),
                                                                                        social and economic growth. The
                              commercial rent costs (the top ranking), and              district will become synonymous with
                              business rate relief (the top ranking).                   social innovation and investment.

                              BRADFORD’S FUTURE SOCIAL PIONEERS

14   BRADFORD - OUR VISION                                                                                              BRADFORD - OUR VISION   15
BRADFORD SOCIAL INNOVATION LAB - Building an enabling social investment ecosystem to support social enterprise and charities to improve the lives ...
BRADFORD SOCIAL INNOVATION LAB - Building an enabling social investment ecosystem to support social enterprise and charities to improve the lives ...
KEY   CHALLENGES
      BRADFORD DISTRICT

      ...BUT WE FACE SERIOUS SOCIAL, ENVIRONMENTAL
      AND ECONOMIC CHALLENGES
      Deprivation: The District is the second most               The job market will look very different in 2030. As
      deprived local authority in the Yorkshire and Humber       NESTA identifies in The future of skills: employment
      region, and nineteenth most deprived in England.           in 2030, a number of factors, such as technological
      The number of people 65+ will increase by at least         changes, globalisation and demographic changes
      20% - potentially requiring additional healthcare          will affect employment, reducing demand for some
      services. In addition, the trend will continue for more    occupations and increasing it for others.
      people to leave Bradford for other parts of the UK,
      than those who come to live here; In detail: by mid-       Health and Wellbeing: Life expectancy in
      2026 the population of Bradford District is projected      Bradford District is 81.5 years for females and 77.5
      to grow by 2% to 543,000. By 2026 the 65+ age              years for males. Keighley Central ward has the
      group is projected to increase by 20% and the 85+          lowest life expectancy for females (76.8 years) and
      age group is projected to increase by 17%. By 2041         Wharfdale ward has the highest life expectancy for
      the 65+ age group is projected to increase by 51.4%        females (85.3 Years). Manningham has the lowest life
      and the 85+ age group is projected to increase by          expectancy for males (72.3 years) and Wharfedale
      92.8%.                                                     has the highest life expectancy for males (84.7
                                                                 years).
      Public Sector Spend Cuts: The demand for
      public services is increasing despite the Council’s        Education and Skills: Bradford is one of the
      budget for public services being halved in the last        10 cities with the lowest percentages of residents
      ten years.                                                 with the highest qualifications. There are around
                                                                 87,500, individuals with an NVQ Level 4 and above
      Unemployment: Bradford’s unemployment rate                 in Bradford, equating to around 26.8% of the city’s
      is the highest the Leeds City Region, and above the        population. This is amongst the lowest level in the
      national average. The average gap over the period          whole country significantly lower than nearby Leeds
      equates to 20,000 people with BME women making
      up three quarters of our employment gap. We have           Pollution: Bradford is one of the most congested
      a high proportion of mid-skilled residents. Evidence       cities in the UK with Leeds-Bradford placed
      suggests that jobs requiring these mid-level skills        eighteenth on the list of the 25 most congested
      will be most affected by globalisation, technological      UK towns and cities. Bradford exceeds the legal
      change and automation.                                     standards for levels of nitrogen dioxide (over 40μg/
                                                                 m3 annual average) in a number of city centre
      Black and Minority Ethnic (BME) communities are            locations. The local authority has been mandated by
      more likely to be receive Jobseeker’s Allowance            the government to develop a plan to comply with
      across the Yorkshire region. 2.1% of BME                   the legal limits in the shortest time possible. On an
      communities are in claiming Job seeker allowance           average weekday nearly 200,000 vehicles enter the
      compared with 1.3% for White communities - both of         centre over a 24-hour period.
      which are above the national average.

      Research by the Centre for Cities indicates 1 in 4
      jobs in Bradford is in an occupation that is very likely
      to shrink.                                                                                                         PUBLIC SECTOR CUTS
18   BRADFORD - OUR VISION                                                                                                                    BRADFORD - OUR VISION   19
100,000 ACTIVE VOLUNTEERS

      There are significant health, social and economic
      inequalities across the District. Life expectancy
      depends on which area of the District people were
      born in. There are number of areas in Bradford that
      are amongst the most deprived in the country. This
      is reflected in lower educational attainment, higher
      than average demand for health services and
      reduced life expectancy.

      Bradford’s Social Enterprise and Charitable
      organisations are tackling many of the city’s social,
      environmental and economic challenges. Some
      of the key examples of collaborative work of
      the statutory sector and community businesses
      include:

      • Physical health and mental wellbeing
      commissions: Prevention and management of               During our consultation period, we undertook an         Bradford as a marketplace is substantially large with     In 2016/17 Bradford District CCG had a budget
      diabetes services are delivered by community            extensive mapping exercise. Bradford have over          diverse nature of contracts and commissions made          of £487.8 million. The top five categories of their
      businesses with better access to local communities      1500 community and voluntary organisations and          available every year. In the year 2016/17 Bradford        spend were:
      delivering better health outcomes. This model of        100,000 active volunteers1. There is a growing          spent around £424m with third parties. This is mostly
      health commissioning managed by Bradford VCS            number of social enterprises, however there             with commercial companies but also with not-for-profit    •   Acute Care £237.1 million
      Alliance has been hailed as the best practice for       is insufficient data to illustrate the scale and        companies and other public sector organisations.          •   Prescribing £56.1 million
      co-production, co-delivery and co-creation.             scope of their work. As part of this proposal we        About £190m of spending is with businesses and other      •   Primary Care £48.1 million
                                                              plan to undertake further research to address           organisations operating from a base in the Bradford       •   Mental Health £41.2 million
      • Community Assets: Bradford Council is working         this data gap. At least thirty-three organisations      District. The top five categories of spending were:       •   Community Service £32.6 million
      collaboratively with community businesses and           are providing support to Social Enterprise and
      transferring community assets such as community         Charity Sector - from seed funding to co-working        •   Social & Community Services (Adults) £127.9 million   With innovative support, financial investment and
      centers, village halls and building land. These are     spaces (Appendix 5). There are also a number            •   Children’s Services £50.5 million                     collaboration Social Enterprise and Charity Sector
      being developed and managed by community                of organisations providing social investment            •   Building and Construction £33.2 million               organisations supported by our programme
      businesses to generate income. These surpluses          (Appendix 5).                                           •   Public Health and Social £32.8 million                would be able to become investment ready and
      are re-invested in local communities to deliver                                                                 •   Community Services (Children’s) £21.7 million         position themselves to benefit from the future
      much needed services. This approach is key to           There is an established Social Enterprise and                                                                     opportunities. For example, Bradford’s 0-19
      organizational sustainability and removing grant        Charity Sector infrastructure network, with five        Bradford Council currently commission                     Children services contract worth £35 million was
      dependency.                                             community anchor organisations supporting local                                                                   commissioned and secured by Bradford District
                                                              charities and enterprises from start-up to trading.
                                                                                                                      43% of their annual spend with                            Care Trust in partnership with the consortium
      • Service Delivery: Community businesses are            Each one is located in key deprived wards and           Bradford based organisations and                          (Young Lives Bradford) of local social enterprise
      finding innovative ways to deliver services in local    represented on our Partnership Panel. (Appendix         they are endeavouring to increase that                    and charities. A similar approach may be applied
      communities and generate income by managing             2). In parallel, there are five Community Network       commitment to 60%.                                        to other contracts and commissions.
      pubs, post offices, rental offices space, mental        organisations supporting the sector and building
      health support, event management, community             new relationships across the public, private and
      led housing and so on.                                  statutory sector (Appendix 2).

                                                              1
                                                               https://bdp.bradford.gov.uk/media/1363/
                                                              stronger-communities-together-strategy.pdf

20   BRADFORD - OUR VISION                                                                                                                                                                                 BRADFORD - OUR VISION      21
4.2. ENTERPRISE SUPPORT
     SERVICES UNDER BSIL           ONE: A MORE SUSTAINABLE MARKETPLACE
                                   target audience: grant recipients + capacity build enterprise
                                   support providers + anyone in need of business support

                                   EXPERT POOL
                                   We will adopt a ‘tool box’ approach by encouraging collaboration between providers
                                   in the markets to improve the choice and variety of support available in the social
                                   enterprise support and investment market place.

                                   This will provide a coordinated access to a pool of experts across various fields who
                                   can deliver technical and professional support for example:
                                   • Social Innovation and Social Enterprise Workshops in schools / centres
                                   • Social Investment Advisers, including info on SITR
                                   • Social Impact Advisers
                                   • Community Asset Transfers
                                   • Legal, Accounting, HR Firms
                                   • Pro-Bono Providers such as Ad:Venture

                                   ENTERPRISE & INVESTMENT ADVISORS
                                   We will employ Enterprise Advisors who will support new entrepreneurs and VCSE
                                   organisations with ‘Triage Assessments’ followed by Enterprise Support. This will
                                   encompass mutually agreed objectives and timeline adopting an approach ‘we will if
                                   you will’ thus ensuring entrepreneurs are fully committed.

                                   We will also engage an Investment Partner who will employ an Investment Manager.
                                   Their responsibility will be to (a) build capacity, knowledge and expertise in Bradford
                                   (b) to get VCSE investment ready, secure investment (grant or blended finance) and
                                   provide support throughout transition period.

                                   NETWORK EVENTS 1 per quarter
                                   VCSE networks and service providers often face similar challenges. Our learning and
                                   networking events will provide an opportunity to spend uninterrupted time together
                                   to break through challenges more efficiently and with the added benefit of collective
     Our enterprise support is     innovation.
     for everyone. We adopt
     an ‘inclusive by design’      Expert speakers will provide intelligence and in depth knowledge of good practice
     approach. Our goal is         and opportunities. Inter-trading and supply chain opportunities will be made
     to address systemic           available. There will be opportunities for mentoring and coaching sessions.
     barriers, and actively
     ask ourselves who is not      SOCIAL INVESTMENT ACCELERATOR
     being included, and work      To accelerate the scale and rate of change of the social investment marketplace
     to do things differently to   in Bradford, we will convene private, public and third sector partners to explore
     ensure inclusion.             and develop ways to mobilise impact investment funds, de-risk investments, and
                                   effectively deploy capital to communities or groups in need.

     INCLUSION BY DESIGN           DATA & KNOWLEGE GAPS
                                   Building evidence that convinces others about the benefits of social enterprise and
                                   informs its development through blended finance

32   BRADFORD - OUR PROGRAMME                                                                       BRADFORD - OUR PROGRAMME   33
4.12. BRADFORD
     AS CITY OF CULTURE
                                                                                 BRADFORD FESTIVAL
     Our cultural assets are a key part of this proposal.
     In July, Bradford announced its exciting plans to
     become the UK City of Culture 2025. A catalyst for
     culture-led regeneration, if successful the District
     will receive millions of pounds in UK investment
     and reap significant cultural, social and economic
     benefits. A timely investment in our social and
     cultural infrastructure and the regeneration of
     abandoned buildings and heritage spaces across our
     District has the potential to boost the District’s bid.
     Bradford has suffered from decades of under-investment in our built
     environment and there are too many underused or at-risk buildings
     across the district. Community facilities and cultural spaces perform
     a wide variety of functions which help underpin and support the
     sustainable development of communities.

     • Mills: Historic England’s report into the loss of mills in the north-
     west and Yorkshire, Engines of Prosperity, found that 90 percent of
     the 1500 mills in the West Riding of Yorkshire are either vacant or
     underused. Integrating historic buildings with regeneration schemes
     can create popular, vibrant urban quarters or coworking spaces which
     can act as a catalyst for investment.

     • City Centre: The city centre enjoys substantial, high quality,
     architectural heritage with over 100 listed buildings. Although, the
     most recent Centre for Cities Report lists Bradford as the city with
     the third highest level of high street retail vacancies in England and
     Wales. The report shows that 24% of Bradford’s retail premises were
     vacant in 2017-18 compared to an England and Wales average of
     16%. Within the City Village Area, 32% of units are currently vacant
     and account for 73% of all vacant units in the city centre as a whole.
     The Council has a growth target of 3,500 additional homes in the city
     centre, to be met over the next 15 years.                                                       Culture is generally understood to include the following areas: art
                                                                                                     (including visual arts, literature, music, theatre and dance), architecture,
     • Community Spaces: i.e. heritage spaces, libraries, museums, post-                             crafts, creative industries, design, heritage, historic environment,
     offices (places that connect people)                                                            museums and galleries, libraries, archives, film, broadcasting and
                                                                                                     media. Cultural facilities therefore provide venues for members of the
     It is anticipated whether the city secures City of Culture status or not,                       public and the community to congregate, providing a valuable form of
     the journey will bring substantial investment which would provide                               social infrastructure, ensuring that a location is valued and the wider
     Social Enterprise and Charity sector with substantial opportunities.                            area is seen as a desirable place to live and work. Culture is also a key
                                                                                                     driver of tourism.

52   BRADFORD - OUR PROGRAMME                                                                                                                   BRADFORD - OUR PROGRAMME       53
5. NEXT STEPS
            To ensure we submit a robust Stage 3 application, become                                                                                                                                                                                                                                                                     At Stage 2 of this process we have considered: a
            contract ready, as well as embedding and implement our                                                                                                                                                                                                                                                                       ten-year plan; the actions we would need to take;
            plan within the next fifteen months, we have considered the                                                                                                                                                                                                                                                                  milestones we will have to achieve; time scales; we
            following actions and time scales:                                                                                                                                                                                                                                                                                           would need to take the following actions:

            OUR NEXT STEPS FOR                                                                                                                                                                                                                                                                                                           THE PROGRAMMES
            THE FIRST 15 MONTHS ARE:                                                                                                                                                                                                                                                                                                     TEN YEAR PLAN:
                                                                                                                                                                                                                                                                                                                                         Access	
  Programme	
  10-­‐year	
  delivery	
  Plan	
  
     	
                                                                                                                                                                                                                                                                                                                                  	
  
                                                                                                                                                                                                                                                                                                                                                                                            	
             	
                	
                	
                	
                	
                	
                	
                	
                	
                 	
  
                                      Access	
  Programme	
  	
                                                           2019	
                                                                                                        2020	
                                                                                                                                          Year	
             1	
               2	
               3	
               4	
               5	
               6	
               7	
               8	
               9	
               10	
  
                               Phase	
  3	
  and	
  4	
  Next	
  Steps	
  	
                                   Oct.	
        Nov.	
        Dec.	
            Jan.	
        Feb.	
       Mar.	
        Apr.	
        May	
            Jun.	
            Jul.	
        Aug.	
     Sept.	
            Oct.	
       Nov.	
        Dec.	
  
                                                                                                                                                                                                                                                                                                                                                                    Implementation	
  	
   	
                  	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
  
                                                      Proposal	
  Submitted	
   	
                                         	
           	
            	
                	
            	
           	
            	
           	
                	
                	
            	
          	
                	
           	
  
                                                                                                                                                                                                                                                                                                                                                                Enterprise	
  support	
  	
   	
               	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
  
                      Hosted	
  Access	
  and	
  BSC	
  Visit	
  to	
  Bradford	
   	
                                     	
           	
            	
                	
            	
           	
            	
           	
                	
                	
            	
          	
                	
           	
  
                                                                                                                                                                                                                                                                                                                                                                           Investments	
  	
   	
              	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
  
                                Review	
  current	
  partnership	
  panel	
  	
   	
                                       	
           	
            	
                	
            	
           	
            	
           	
                	
                	
            	
          	
                	
           	
  
                                                                                                                                                                                                                                                                                                                                                                               Networks	
  	
   	
             	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
  
                                                    Outcome	
  of	
  Proposal	
  	
   	
                                   	
           	
            	
                	
            	
           	
            	
           	
                	
                	
            	
          	
                	
           	
  
                                                                                                                                                                                                                                                                                                                                                            Market	
  Development	
  	
   	
                   	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
  
              Conclude	
  discussion	
  with	
  investment	
  partners	
   	
                                              	
           	
            	
                	
            	
           	
            	
           	
                	
                	
            	
          	
                	
           	
  
                                                                                                                                                                                                                                                                                                                                                      Monitoring	
  and	
  Reporting	
  	
   	
                	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
  
                      Conclude	
  discussion	
  with	
  Match	
  funders	
  	
   	
                                        	
           	
            	
                	
            	
           	
            	
           	
                	
                	
            	
          	
                	
           	
  
                                                                                                                                                                                                                                                                                                                                                                      Data	
  Collection	
  	
   	
            	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
  
                                                   Agree	
  lease	
  for	
  a	
  Hub	
  	
  	
   	
                        	
           	
            	
                	
            	
           	
            	
           	
                	
                	
            	
          	
                	
           	
  
                                                                                                                                                                                                                                                                                                                                                Leveraging	
  Inward	
  Investment	
  	
   	
                  	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
  
                                                   Recruit	
  delivery	
  team	
  	
   	
                                  	
           	
            	
                	
            	
           	
            	
           	
                	
                	
            	
          	
                	
           	
  
                                                                                                                                                                                                                                                                                                                                                                Programme	
  review	
  	
   	
                 	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
  
                                       Co-­‐design	
  investment	
  models	
  	
   	
                                      	
           	
            	
                	
            	
           	
            	
           	
                	
                	
            	
          	
                	
           	
  
                                                                                                                                                                                                                                                                                                                                                                              Evaluation	
  	
   	
            	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
  
                           Co-­‐design	
  Enterprise	
  support	
  models	
  	
   	
                                       	
           	
            	
                	
            	
           	
            	
           	
                	
                	
            	
          	
                	
           	
  
                                                                                                                                                                                                                                                                                                                                                                          Exit	
  Strategy	
   	
              	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
  
                  Learning	
  journeys	
  to	
  other	
  successful	
  cities	
  	
   	
                                   	
           	
            	
                	
            	
           	
            	
           	
                	
                	
            	
          	
                	
           	
  
                                                                                                                                                                                                                                                                                                                                         	
                                                         	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
     	
         	
  
                                              	
  Appoint	
  Local	
  lead	
  body	
   	
                                  	
           	
            	
                	
            	
           	
            	
           	
                	
                	
            	
          	
                	
           	
  
                                                                                                                                                                                                                                                                                                                                         	
  
                                                          Establish	
  Network	
   	
                                      	
           	
            	
                	
            	
           	
            	
           	
                	
                	
            	
          	
                	
           	
  
                      Identify,	
  secure	
  and	
  deploy	
  CRM	
  system	
   	
                                         	
           	
            	
                	
            	
           	
            	
           	
                	
                	
            	
          	
                	
           	
  
               Governance	
  (GDPR,	
  Policies,	
  Procedures	
  etc)	
   	
                                              	
           	
            	
                	
            	
           	
            	
           	
                	
                	
            	
          	
                	
           	
  
                                                                                               	
  	
   	
                 	
           	
            	
                	
            	
           	
            	
           	
                	
                	
            	
          	
                	
           	
  
     	
  
54          BRADFORD - NEXT STEPS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           BRADFORD - NEXT STEPS                       55
                               	
  
CONSIDERATIONS	
                  PROVIDER	
  OF	
  GUARANTEE	
                                                               PREFERRED	
  EQUITY	
  AND/OR	
  DEBT	
                        FUND	
  MANAGER	
                                                                     INVESTEE	
  
                                                                                                                              INVESTORS	
                                                                                                                                          Recipient	
  of	
  Investment	
  
IMPACT	
  OBJECTIVES	
            What	
  are	
  my	
  impact	
  expectations,	
  and	
  how	
  will	
  impact	
  be	
  measured	
  and	
  managed?	
  
	
                                •	
  (If	
  applicable)	
  which	
  Sustainable	
  Development	
  Goals	
  am	
  I	
  seeking	
  to	
  address	
  through	
  this	
  investment?	
  
                                                                                                                                                                                                                                                                                                                                    	
  
                                  •Is	
  there	
  alignment	
  among	
  stakeholders	
  regarding	
  impact	
  expectations?	
                                                                                                                                                                                                      	
  
RISK	
  BEING	
  MITIGATED,	
     •  What	
  specific	
  type(s)	
  of	
  risk	
  needs	
  to	
  be	
  mitigated	
  (e.g..,	
  unproven	
  business	
  model	
  or	
  market,	
  misperceived	
  risk,	
  lack	
  of	
  creditworthiness)	
  in	
  order	
  to	
  attract	
  capital	
  required?	
  
AMOUNT	
  OF	
  LEVERAGE,	
       •	
  How	
  does	
  the	
  provision	
  of	
  the	
  guarantee	
  mitigate	
  the	
  risk(s)?	
  
                                                                                                                                                                                                                                                                                                                                    	
  
PRICING	
                         •	
  What	
  is	
  the	
  minimal	
  level	
  of	
  catalytic	
  capital	
  required?	
  Is	
  permanent	
  subsidy	
  required,	
  or	
  is	
  subsidy	
  temporarily	
  being	
  provided?	
  If	
  the	
  catalytic	
  Capital	
  is	
  temporary,	
  at	
  what	
  point	
                    	
  
	
                                will	
  it	
  be	
  withdrawn,	
  and	
  what	
  milestones	
  should	
  be	
  achieved	
  before	
  decreasing	
  coverage?	
  
                                  •	
  Will	
  the	
  guarantee	
  cover	
  the	
  fund	
  or	
  the	
  underlying	
  transactions?	
  Will	
  the	
  guarantee	
  cover	
  all	
  the	
  investors	
  or	
  only	
  senior	
  investors?	
  	
  
                                  •	
  Is	
  there	
  precedent	
  to	
  justify	
  calculation	
  for	
  the	
  level	
  of	
  catalytic	
  capital	
  required?	
  What	
  are	
  the	
  proof	
  points	
  that	
  would	
  signal	
  that	
  catalytic	
  capital	
  is	
  no	
  longer	
  required?	
  
                                  •	
  How	
  should	
  the	
  catalytic	
  tool	
  be	
  priced?	
  What	
  is	
  the	
  cost	
  of	
  capital	
  and/or	
  return	
  expectations	
  (e.g.	
  Capital	
  maintenance)?	
  
                                  •	
  What	
  measures	
  are	
  in	
  place	
  to	
  avoid	
  moral	
  hazard	
  or	
  market	
  distortion	
  through	
  the	
  provision	
  of	
  catalytic	
  capital?	
  	
  
                                  •	
  Is	
  there	
  a	
  simpler	
  way	
  to	
  design	
  this	
  structure	
  to	
  reduce	
  transaction	
  costs?	
  	
  
                                  •	
  What	
  is	
  my	
  expected	
  leverage	
  ratio?	
                                   What	
  is	
  my	
  absolute	
  risk	
  appetite?	
  What	
  level	
  of	
  risk	
  will	
  I	
  accept	
  for	
  the	
  proposed	
  rate	
   What	
  type	
  of	
  risk	
  do	
  the	
  
                                  •	
  How	
  will	
  I	
  price	
  the	
  guarantee	
  and	
  manage	
  my	
                 of	
  return?	
                                                                                                                               investors	
  see	
  in	
  my	
  business	
  
                                  own	
  risk	
  in	
  the	
  event	
  a	
  guarantee	
  is	
  called?	
                      	
                                                                                                                                            model	
  and	
  have	
  I	
  taken	
  steps	
  to	
  
                                  •	
  What	
  internal	
  policies	
  and	
  procedures	
  must	
  be	
  in	
                                                                                                                                                              mitigate	
  it	
  (e.g.,	
  collateral,	
  
                                  place	
  to	
  provide	
  the	
  guarantee	
  (e.g.,	
  approval	
                                                                                                                                                                        financial	
  management	
  
                                  process,	
  legal	
  documentation)?	
                                                                                                                                                                                                    processes)?	
  
                                                                                                                                                                                                                                                                            •	
  Are	
  there	
  additional	
  
                                                                                                                                                                                                                                                                            restrictions	
  that	
  will	
  be	
  placed	
  
                                                                                                                                                                                                                                                                            on	
  me	
  as	
  a	
  result	
  of	
  the	
  
                                                                                                                                                                                                                                                                            guarantee?	
  
FINANCIAL	
  RETURN	
  AND	
      •	
  Am	
  I	
  willing	
  to	
  provide	
  a	
  funded	
  or	
  unfunded	
                 Is	
  the	
  timing	
  of	
  my	
  anticipated	
  return	
     •	
  How	
  much	
  am	
  I	
  willing	
  to	
  pay	
  for	
  a	
              Can	
  I	
  meet	
  the	
  return	
  
TERMS	
  OF	
  COVERAGE	
         guarantee	
  (e.g.,	
  backed	
  by	
  cash	
  reserve	
  or	
  simply	
  a	
               different	
  from	
  other	
  investors?	
                     guarantee?	
                                                                   expectations	
  of	
  each	
  investor	
  
	
  	
                            commitment)?	
                                                                              •	
  How	
  creditworthy	
  is	
  the	
  guarantor?	
          •	
  How	
  creditworthy	
  is	
  the	
  guarantor?	
                          group?	
  If	
  so,	
  how	
  can	
  I	
  
                                  •	
  What	
  fee,	
  if	
  any,	
  will	
  I	
  charge	
  for	
  the	
  protection	
  I	
   •	
  What	
  are	
  the	
  implications	
  of	
  the	
         •	
  Can	
  I	
  meet	
  the	
  return	
  expectations	
  of	
  each	
         demonstrate	
  the	
  ways	
  in	
  which	
  
                                  am	
  providing?	
  To	
  what	
  degree	
  will	
  this	
  be	
                            guarantee	
  on	
  the	
  risk-­‐return	
  profile	
  of	
     investor	
  group?	
  If	
  so,	
  how	
  can	
  I	
  demonstrate	
            that	
  could	
  be	
  achieved,	
  and	
  the	
  
                                  concessionary?	
                                                                            the	
  investment?	
  Does	
  it	
  meet	
  my	
               the	
  ways	
  in	
  which	
  that	
  could	
  be	
  achieved,	
  and	
   risks	
  entailed	
  in	
  doing	
  so?	
  
                                  •	
  When	
  might	
  I	
  have	
  to	
  make	
  payouts,	
  based	
  on	
  the	
   objectives	
  (e.g.,	
  fiduciary	
  duty)?	
                          the	
  risks	
  entailed	
  in	
  doing	
  so?	
                               	
  
                                  triggers?	
  
                                  •	
  What	
  internal	
  policies	
  and	
  procedures	
  must	
  be	
  in	
  
                                  place	
  to	
  administer	
  this	
  guarantee	
  (e.g.,	
  approval	
  
                                  process,	
  legal	
  documentation)?	
  
                                  •	
  Am	
  I	
  Comfortable	
  with	
  the	
  triggers	
  and	
  methods	
  to	
  access	
  the	
  guarantee?	
  	
  
                                  •	
  (if	
  applicable)	
  Will	
  the	
  guarantee	
  be	
  in	
  foreign	
  or	
  local	
  currency?	
  	
  
ADDITIONAL	
  INVESTORS	
         •	
  If	
  additional	
  public,	
  private	
  or	
  philanthropic	
  capitals	
  blended	
  what	
  is	
  the	
  best	
  way	
  to	
  attract	
  the	
  capital?	
  
	
                                •	
  Do	
  existing	
  investors	
  allow	
  for	
  new	
  forms	
  of	
  capital	
  to	
  be	
  included	
  in	
  the	
  blend	
  finance	
  structure?	
  If	
  so,	
  are	
  there	
  terms	
  and/or	
  restrictions	
  that	
  govern	
  those	
  new	
  investors	
  and	
  
                                  investments?	
  
Roles	
  	
                       •	
  what	
  are	
  the	
  core	
  competencies	
  that	
  each	
  stakeholder	
  can	
  contribute	
  to	
  the	
  structuring	
  and	
  implementation	
  of	
  this	
  blended	
  finance	
  structure	
  and	
  during	
  post-­‐investment	
  
                                  activities?	
  
                                  	
  
Overall	
  	
                     •	
  Is	
  there	
  mutual	
  understanding	
  among	
  stakeholders	
  of	
  each	
  others	
  rationale	
  and	
  motivations	
  for	
  pursuing	
  this	
  investment?	
  
                                  •	
  what	
  is	
  the	
  anticipated	
  timeline	
  for	
  this	
  blended	
  finance	
  structure	
  to	
  materialise?	
  Am	
  I	
  comfortable	
  with	
  this	
  timeline?	
  
                                  •	
  Are	
  there	
  any	
  unresolved	
  issues?	
  If	
  so,	
  what	
  are	
  possible	
  solutions	
  to	
  advance	
  discussions?	
  
                                  	
  
BRADFORD
SOCIAL INNOVATION LAB
OCTOBER 2019

On behalf of
Bradford Social Innovation Lab
KAMRAN RASHID
DIRECTOR, 30 CHAPEL STREET LTD
KAMRAN@30CHAPELSTREET.CO.UK
34 PECKOVER STREET
BRADFORD BD1 5BD
You can also read