Impact of the Lloyds Bank and Bank of Scotland Social Entrepreneurs Programme

September 2017 to

November 2022

Foreword by Claire Dove OBE

In order to realise the potential of the sector we need innovation and commitment to bring impactful solutions to the market. Programmes like the Lloyds Bank and Bank of Scotland Social Entrepreneurs Programme are key to unleashing this potential.

This evaluation report from AKOU on the Lloyds Bank and Bank of Scotland Social Entrepreneurs Programme, shows us the impact of social entrepreneurs with first-hand experience of the social and economic challenge tackling society’s biggest issues. They are doing this from within their communities, for their communities, playing a key role in levelling up the country.

Over the last decade, the 2,467 social entrepreneurs on this programme have led the way in reaching those in need, building community connections and growing the economy. Rather than admitting defeat, they have instead decided to tackle local issues head on, empowering communities to take control of their destinies in the process.

What this report also shows is that there is a new way we can fund social organisations that gives agency to local people. Match Trading is a tool that can incentivise organisations to trade more, which in turn creates more sustainable and resilient social enterprises.

This moves social entrepreneurs away from a dependency mindset and to one where policymakers and funders place trust and power to those on the frontline to innovate and grow on their own terms. It is an innovative approach which can really support the Voluntary, Community and Social Enterprise (VCSE) sector.

As we absorb the findings from this report, let us recognise that our collective work is far from complete. We must continue to nurture and support social enterprises, ensuring that they have the resources, networks, and funding to thrive.

Together, let us seize the opportunities that lie ahead. By empowering social enterprises, we will not only level up our nation’s economy but also weave the fabric of a more compassionate, inclusive, and unified society.

About this report

Key Outcomes

• 99% of participants improved at least one skill, with an average skill gain of 55%. Average scores for every one of the 21 skill indicators increased between baseline and endline.

• The leading areas of skill development were found to be improving networks and increasing trading income generation.

• Ventures showed a 2-year survival rate of 81%, surpassing the UK SME average of 73%.

• Ventures benefiting from Match Trading grants saw a 41% increase in trading income. The results were consistent across different sized ventures.
  

• Employee headcount increased by an average of 21%
  

• By the programme’s end, programme fellows were collectively supporting up to 1.8 million beneficiaries annually.

• Over 5 years, programme fellows contributed an estimated £11.9 million to local economies through direct spending.

Cohorts

Between September 2017 and November 2022, 1,217 social entrepreneurs from 66 cohorts across 9 UK regions completed the programme to become programme fellows.

These individuals came from various backgrounds with different goals. Their ventures, while diverse, all operated with a common purpose: to make a positive difference in their communities.

Cohort types:

There were three levels of support available:

• Start Up

• Trade Up

• Scale Up
  

Social Entrepreneurs

SSE has pledged to make EDI (Equity, Diversity and Inclusion) a priority in all that it does, as part of a commitment to share power, wealth and opportunity more equally within the organisation and through all programmes. A crucial tenet of SSE’s approach is that diverse cohorts enhance the learning experience and realise the best outcomes.

Monitoring is crucial in revealing any gaps in diversity and therefore demographic data was collected from programme fellows to monitor this.

The data revealed that:

• Whilst 47% of social enterprises nationally are female-led, 72% of social entrepreneurs who completed the programme identified as female (including trans women).

• Approximately 22% of the social entrepreneurs who enrolled belonged to Minority Ethnic Groups, exceeding both the national average for SME leaders (6%) and social enterprises (14%), and the national population average (18%). This suggests that SSE has been successful in ensuring the programme is accessible to Minority Ethnic Groups.
  

• The proportion of disabled entrepreneurs in the programme (15%) is slightly below the national average (18%), but shows an improvement from earlier phases. There is progress to be made in terms of outreach and ensuring the proportion of applications from those with a disability increase to at least the national levels.
  

Proportion of programme fellows by gender:

Proportion of programme fellows by ethnicity:

FELLOW IN FOCUS

Arts Well: Innovating during Covid-19

Arts Well was created and founded in 2017 by Jayne Howard, who has over 15 years of experience initiating, advising and collaborating on arts-based health projects in Cornwall. It was founded to improve the experiences of individuals and communities and to tackle social inequalities related to accessibility in arts and health.

Jayne first joined a Start Up programme in Cornwall in 2016 and later, a Trade Up programme in 2019, finishing amidst the emerging pandemic. During the programme, Jane increased her skills scores across the board and more than doubled her skill score in ‘new product / service development’ – an area important for adapting to new challenges.

In 2021 Jayne designed and ran a project focused on the impact of creative practice in a post-COVID world. In 2021, she led the Creative Health and Wellbeing programme, backed by the Contain Outbreak Management Fund (COMF).

This initiative enhanced mental health and reduced social isolation in Cornwall by developing creative activities and programmes, creating a Creative Health network, and forming a Directory of Creative Opportunities with over 80 local organisations.

The programme significantly aided social prescribers in Cornwall, facilitating easier access to local creative arts for the community.

Find out more about Arts Well

Lived experience

SSE has long emphasised the belief that individuals with lived experience often make highly effective social entrepreneurs. Those affected by a problem are often best placed to resolve it and they:

• Create bottom-up solutions challenging existing power structures.
• Have the authenticity required to create genuine connections in communities.
• Create innovative, unexpected and effective solutions to problems.

In line with our values, many social entrepreneurs in the programme draw from personal experience.

94% of ventures were rooted in the lived experience of their founders and 70% had directly been impacted by issues they were now addressing through their venture.

Proportion of programme fellows with lived experience:

Social ventures

Proportion of programme ventures by legal structure:

Proportion of programme ventures by primary beneficiaries category:

Programme Impact on Fellows

Skills and networks development in 4 key areas:

Average baseline and endline scores by core skill areas:

99% of programme fellows improved on at least one indicator. The diagram illustrates the average skill scores at baseline and endline, signifying the progress made.

Refer to full impact report, section 5 for further analysis on programme impact on fellows

Building networks of programme fellows

• The area of ‘Developing & Maintaining Connections with Other Social Entrepreneurs’ experienced the most significant average (mean) growth, at 86%.

• Networking is central to SSE’s programmes, which typically comprise of place-based cohorts of about 20 social entrepreneurs. The programme utilised a cohort-based learning model, and the substantial growth in networking skills suggests this approach is effective.

• Over the programme’s five-year duration (Phase 2), outcomes in networking have been consistently positive.

• On average, programme fellows made 11 connections on the programme and reported that their time at SSE had been crucial in widening their professional networks.

• The relationships between programme fellows provided new perspectives, support, and skills to learn from and apply to their own social enterprise.
  

Boosting trading income capabilities

An average increase in ‘Trading Income Generation’ amongst programme fellows is 79%.

Enhancing the ability of the programme fellows to generate trading income is an important part of the programme and crucial for any social entrepreneur.

This pattern aligns with expectations, given that Scale Up ventures typically have a higher baseline level of skills. Encouragingly, all stages show growth in this area and deliver high endline skill levels.

Mean relative change in 'trading income generation' skill score by cohort type:

Effects of Match Trading® grants

In 2017, Match Trading grants were incorporated into the programme, along with additional support aimed at boosting trading income for programme fellows.

The average increase in skills related to trading income has been on an upward trajectory since 2017.

The data underscores the programme’s effectiveness in elevating skills in trading income generation.

Average change in trading income generation by year:

FELLOW IN FOCUS

Our Version Media: Becoming less reliant on traditional grants

Our Version Media was founded by Southampton-born former TV news journalist, Veronica Gordon, in 2019. The CIC is dedicated to amplifying black and marginalised voices by equipping individuals, communities and organisations with media skills to tell their own, authentic stories.

Driven by a desire for creative freedom and a genuine impact on the community, Veronica sought to establish a self-sufficient trading model, instead of being constrained by the rigid criteria of grant funders. This autonomy allows Our Version Media to have full control over the direction and priorities of their work and respond best to the needs of the communities. Veronica was part of the Hampshire based Start Up cohort starting in 2018. During the programme Veronica increased her ‘Trading Income Generation’ skills score by 11% and Our Version Media’s trading income increased by 12%.

Our Version Media Mobile Storytelling workshops empower individuals to create impactful videos using smartphones, fostering confidence and well-being. 96% of beneficiaries acknowledge the positive community impact. Our Version Media provide transferable skills in digital and social media, enhancing employability and amplifying often ignored community voices. These skills draw attention to challenges faced by marginalized groups.

Find out more about Our Version Media

“I feel more seen and represented, it makes me feel heard that people who look like me are given a platform to have their voices heard.”

Beneficiary of Our Version Media

Areas of improvement

Evaluating Social Impact

Evidence demonstrates that 93% of programme fellows reported an improvement in at least one of the three indicators used to assess their competency in approaching social impact measurement.

However, despite these widespread improvements, the indicator with the lowest average skills endline was ‘Measuring Your Organisation’s Impact Appropriately’. Programme fellows began the programme with a relatively low baseline score of 3.8 and ended with an average score of 5.1. This represents a substantial improvement (59%) but the low starting point means there are some programme fellows ending the programme with this as an area that will require further development.

The endline skill level in this area varies according to the stage of the venture: Start Up cohorts averaged 4.9, Trade Up 5.2, and Scale Up 5.7. This suggests that it is the earlier stage ventures that may require further support in measuring their social impact appropriately. Whilst it is expected that programme fellows with more established ventures have a higher level of skill in this area, there are also benefits of developing these skills for early-stage ventures.

Social ventures often compete directly with private sector small and medium-sized enterprises (SMEs). The capability to accurately measure and convey social impact can offer social ventures a competitive edge. This could be through sharing impact data with potential customers to stand out, or when applying for contracts or additional funding.

This could be an area for future development for SSE, which could not only benefit individual ventures but could also make a meaningful contribution to the sector.

Impact on business resilience

A key part of the programme’s aim was to develop more sustainable businesses that are financially resilient and create employment. The programme was designed to achieve this through technical support and learning based on financial and business skills. Leveraging a cohort-based model, it also facilitated Action Learning Sets where programme fellows could discuss real-world business challenges.

Alongside the support, the programme offered financial assistance through grants:

• Programme fellows receiving Match Trading grants increased their trading income by 41% over the duration of the programme.

• Trading income growth was broadly consistent across Trade Up and Scale Up cohorts suggesting Match Trading grants were effective across ventures of different size and stage.

• Trade Back Grants introduced in response to COVID-19 (which mixed traditional grant with Match Trading grant) appear to have helped ventures to increase trading, with trading income for programme fellows increasing to 66% in the year following the pandemic’s onset.

• Most programme fellows maintain stable employment levels, but some experience high growth, contributing to an average of a 21% increase in paid employment.

• 81% of the ventures of programme fellows were still operational 2 years after completing the programme, a performance which surpasses the UK’s average two year survival rate for Small and Medium Enterprises (SMEs), which stands at 73%.
  

• Survival rates appear to correlate with endline skill levels which suggests that by increasing skills, the programme contributed to higher survival.
  

The programme impact on the financial resilience of the ventures

The programme fellows have experienced an average (mean) increase in their total income of 31% and an average (mean) increase in their trading income of 41% over the duration of the programme. At the start of the programme the average proportion of income from trading activities was 56%. This increased to 60% by the end of the programme.

Relative change in trading income from baseline to endline by year:

Benefits of Match Trading funding

Trading income consistently increased for both Trade Up and Scale Up cohorts, averaging 40% and 42%. Despite varied initial trading incomes (ranging from £25,306 to £162,860), Match Trading grants proved effective across different venture sizes.

The percentage of total income derived from trading has increased from the programme’s start to its conclusion. Initially, the average (mean) proportion of income from trading was 56%, rising to 60% by the endline. The control group also started with a baseline of 56%, but ended at 51%. This suggests that Match Trading grants may be effective in nudging ventures towards a higher proportion of income from trading

The programme impact on the level of employment of the ventures

The social ventures in the programme are diverse in terms of both delivery and business models, as well as size, which leads to varying numbers of employees. Although the absolute number of paid employees isn’t a direct indicator of business sustainability (or programme success), an increase in this number over the programme’s duration does signal operational growth, provided it’s sustainable. The programme fellows reported the number of paid employees that worked for their social venture (in terms of headcount) at the start of the programme (baseline) and at the end of their programme (endline).

There are a portion of ventures which decreased their headcount over the course of the programme (21%). Among ventures that downsized, 55%34 also reduced their volunteer workforce, indicating an overall decrease in operational capacity. Conversely (of those that decreased their headcount), 29% increased their volunteer numbers possibly compensating for the reduced paid staff.

Breakdown of ventures by cohort, indicating whether their headcount decreased, increased, or remained unchanged

The programme impact on the long-term sustainability of the ventures

To gain a deeper understanding of the programme’s impact on business resilience, we examined the survival rates of social ventures two years after the programme’s conclusion. Ventures from later cohorts that haven’t yet reached this two-year post-programme milestone were not included in the analysis.

81% of social ventures that completed the programme remained operational two years later. This performance surpasses the UK’s average two-year survival rate for SMEs, which stands at 73%.

Despite the economic hurdles and the added complexity of delivering social impact, programme fellows have demonstrated sufficient business and financial resilience to outperform their counterparts in the traditional private sector.

Proportion of programme ventures who were still operating 2-years after the completion of the programme (compared with SME average) split by cohort type

Impact of skills development on business survival

The average skill score when entering the programme was 4.5 out of 10. At exit this rose to 5.9 out of 10. An average increase of 55%.

The skill score at endline gives an indication of the position the individual is in to successfully lead a social venture. While the leader alone is not the sole factor for success (or business survival), they do play a pivotal role. The hypothesis is that enhanced skills in programme fellows leads to better leadership and more resilient ventures.

The findings raise a pertinent question: what additional support, grants, or resources are needed for those entering programmes with a low skill base?

Further assistance could potentially help these individuals attain higher skill levels, thereby increasing their chances of long-term success. While these findings offer some evidence that skill development positively impacts long-term business resilience, the analysis has limitations. The data leans heavily on the Start Up cohorts, given the high survival rates of the Trade-Up and Scale Up cohorts. It is also acknowledged that significant external factors influence the survival rates of these ventures, beyond the skills of their social leaders. This area of research is relatively undeveloped in the social enterprise sector and would benefit from broader analysis across various programmes and venture stages.

Programme influence on community impact

SSE’s Theory of Change is built around the principle that supporting programme fellows has an indirect effect in delivering lasting and widespread community impact. By supporting social entrepreneurs to run sustainable ventures, SSE aims to also support them to bring benefits to their local community and its residents:

Understanding the number of people (beneficiaries) who were supported by programme fellows helps to highlight the breadth of impact programme fellows are having.

To understand community impact, it is necessary to understand the depth of support offered to beneficiaries, and in turn, how that support impacted them. It is also helpful to understand the impact ventures have on the local economy directly through jobs and investment.

The development of skills and business resilience means that better equipped social leaders are running more resilient ventures. Better skilled programme fellows, and more resilient ventures, are more able to deliver impact within communities.

• Up to 1.8 million people were supported by programme fellows.
• Almost half a million additional beneficiaries were supported between the programme baseline and endline. This represents an average of 33% increase whilst on the programme.
• People reached by programme fellows experienced a range of positive impacts on their wellbeing and social capital.
• Social enterprises create local jobs, and programme fellows are no exception. In total programme fellows employ 3,27042 people in paid work.
• Ventures give back to the communities that they’re in, spending £11.9m within their local economy.
  

How social ventures are impacting local communities

86% of people reached by Research Associates rate the positive impact of the venture on their community as high.

Average (mean) local spend by programme fellows annually:

FELLOW IN FOCUS

The Play Center Glasgow CIC – making community connections

The Play Center Glasgow offers children and adults of Drumchapel, a vibrant, safe space to learn, play, and connect. It was founded by Adekemi Giwa who was part of the 2021 Start Up cohort based in Scotland. The Play Center increased their beneficiaries by 86% over the course of the programme.

The Play Center Glasgow provides a one-stop shop for the local community on issues around social inclusion, delivered through youth clubs, after-school clubs and family hangouts. The aim is to help the community thrive through the provision of mentoring and encouraging capacity building through skill development. In doing so, The Play Center Glasgow serves to assist the government in tackling the concern of youth delinquency, vandalism and school absenteeism in the Glasgow community.

By providing a locally run and accessible space, beneficiaries feel more socially connected. The Play Center Glasgow provides beneficiaries with a chance to meet other families and individuals in the community. This reduces feelings of social isolation and helps them to make new friendships. 95% of surveyed beneficiaries felt that Play Center Glasgow had a positive impact on their community.

Find out more about The Play Center Glasgow

“I’ve witnessed the skills people, from all ages, have developed through the organisation and I also admire how children are given exposure to hobbies and opportunities they may not have had before.”

Beneficiary of The Play Center

FELLOW IN FOCUS

Breadwinners – provide jobs in the local community

Founded in 2016, Breadwinners is a grassroots charity supporting young refugees into paid employment. They do this by delivering three employability programmes in London and Brighton that provide jobs, work experience, training and mentoring at their market stalls and through their wholesale service selling baked goods.

Martin Cosarinsky Campos is the founder of Breadwinners and started the programme in 2020 as part of the London Scale Up cohort. During the programme, he increased his total skill score by 65%. Over the same period, Breadwinners increased the number of people they support by 123%. Around 70% of refugees are unemployed in London despite being highly-skilled. Refugees face many barriers when looking for work in the UK: lack of in-country experience and connections, legal constraints and bias and discrimination against refugees. Beneficiaries felt that Breadwinners helped them access new opportunities in employment and work experience. The provision of training in skills like language and communication, business management, CV writing, and sales improved beneficiaries’ employability.

Connections made via Breadwinners also enabled beneficiaries to access other organisations and services for support. Continued social and financial support as well as training builds beneficiaries’ confidence and allows them to work towards particular self-defined goals they decide.

Find out more about Breadwinners

“We refugees and asylum seekers have no voice, no one can empower us like Breadwinners… Breadwinners gave us [a] voice and confidence. If they stop that power will be taken away from us, no organisation [does this] like Breadwinners.”

Beneficiary of Breadwinners