NEW REPORT: Power to Change – Financing the Future Economy.

Power to Change  launched their new report, Financing The Future Economy, on 16th May.

Drawing on lessons learned since 2015, the report provides an overview of the finance and funding landscape for community business, outlining the challenges in accessing the right type of finance at the right time. Situating access to finance within the wider policy context, it also provides recommendations for the next Government to work alongside funders and social investors to provide the type and level of investment required.

Positioning community business as being ‘untapped potential’, the report shares that community businesses across England have a combined income of just under £1bn, and tend to operate in a hybrid fashion, with grants and earned/commercial income both playing a part.

The key facts:

  • 48% of community businesses operate in the 30% most disadvantaged areas in England.
  • 86% of paid staff live locally.
  • 56p of every £1 stays in the local economy.

Tim Davies-Pugh, Chief Executive Officer of Power to Change, said:

“This research shows the complexities facing community businesses in financing their ambitions. They access support through a mosaic of different sources and overcome multiple hurdles that do not exist for the traditional business community.  It cannot be right that Hastings Commons – a community business leading the regeneration of its local town centre – has had to secure funding from nearly 100 separate grant, loan, and social investment awards to bring much-loved buildings back to life.

We look forward, through our work on Financing the Future Economy, to collaborating with partners to turn these recommendations into reality so that community business has access to the right finance at the right time. Together we will harness this untapped potential and ensure community businesses play an even bigger role in our social and economic life.”

Want to know more about the types of finance available, the challenges currently being faced, or what P2C are recommending for the future? Read the full report here.