# Finance worries keeping social entrepreneurs & charity leaders awake at night

- Link: https://fundraising.co.uk/2016/06/22/finance-worries-keeping-social-entrepreneurs-charity-leaders-awake-night/
- Published: 2016-06-22T09:28:02+01:00
- Author: Melanie May

**The majority of social venture leaders can’t sleep at night due to concerns surrounding
access to finance, a snapshot survey from social enterprise network [CAN](http://www.can-online.org.uk)
has revealed.**

 

According to the survey, 71% face sleepless nights because they are concerned or
extremely concerned about access to finance to fund both cash flow and growth. Organisations
are also struggling to balance organisational growth with day-to-day cash flow and
staff resource, the results show, with 59% expressing concern for staff workload
and capacity.

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In addition:

 

 * Of organisations with turnover of less than £100k, 72% were concerned or extremely
   concerned about developing a sustainable growth strategy, while more than 40%
   expressed specific concern over social impact reporting.

 

 * 42% of organisations within the £100-£500k turnover bracket said they found it
   difficult or impossible to access social investment, while 55% of all organisations
   surveyed said they had the same difficulty accessing traditional lending.

 

 * 52% of all organisations surveyed, ranging in turnover from under £100k to over
   £1.5m, said that they find it difficult or impossible to access public sector
   funding, and 51% said the same of restricted grants from trusts and foundations.

 

Respondents put difficulties accessing funding advice and business support primarily
down to lack of funding (57%) and lack of time (64%), while 53% said they didn’t
know who to ask, or were unaware of what support and finance is available.

 

However, despite the difficulty many respondents reported with generating income,
the survey also identified an appetite for different types of revenue and finance
from VCSEs:

 

Traded income 75%

 

Private contracts 56%

 

Public sector contracts 52%

 

Restricted grants 67%

 

Donations 58%

 

Social investment 39%

 

 [⌊CAN infographic⌉](https://wfay6x.infiniteuploads.cloud/2016/06/CAN-Survey-infographic.jpg)

 

The survey was carried out to identify common barriers to growth for VCSEs, which
in turn will better inform how CAN should shape its social investment services to
the sector. It also informs [CAN³](http://can-invest.org.uk/can3): a fast-growth
programme designed to enable VCSEs to grow both their businesses and social impact.

 

Andrew Croft, chief executive of CAN, said:

 

> “It’s not surprising to see the lack of support in terms of finance and business
> strategy expressed by the social sector. While some organisations in our sector
> are thriving, there is still a vacuum, where many are struggling to meet their
> social objectives while still achieving significant financial and organisational
> growth. Business advisory support needs to be better, and we need more new, innovative
> funding streams from social investors and trust and foundations. We hope that 
> CAN³ will help address some of these challenges.”

 * **[How the ideal charity would spend its money, according to the public](https://fundraising.co.uk/2016/06/24/ideal-charity-spend-money-according-public/)**(
   24 June 2016)
 * **[Guide to New Trusts 2016/17 published](https://fundraising.co.uk/2016/06/27/guide-new-trusts-201617-published/)**(
   27 June 2016)
 * **[Community Foundation Ireland’s grant giving grows](https://fundraising.co.uk/2016/07/01/community-foundation-grant-giving-grows/)**(
   1 July 2016)

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