HIE can assist social enterprises and other enterprising third sector groups with the purchase and/or the development of an asset which will produce an income. We will also look at supporting activities which help and ensure that groups have the skills to be able to run and develop their own initiatives to achieve growth - sometimes referred to as capacity building.
HIE's funding policy for such initiatives is to fund the minimum amount required to make a project happen but in some cases, based on our funding formula we can be an early funder. We also offer variable intervention levels depending on area.
In our strengthening communities remit, HIE's intervention can take many different forms including:
- Assisting with acquisition and development of assets
- Capacity building work
- Funding for local development officers as part of our community account management in fragile areas
Summary of intervention levels
Fragile areas:
Minimum grant for capital intervention in a fragile area - £5,000
Minimum grant for capacity intervention in a fragile area - none
Non-fragile areas:
Minimum grant for capital intervention in a non-fragile area - £10,000
Minimum grant for capacity intervention in a non-fragile area - none
Intervention rates
In all areas the community will normally be expected to make a contribution to match HIE's, from public, private or own sources, subject to normal appraisal procedures and state aids compliance. Communities in non fragile areas are expected to make more significant contributions than those in fragile areas.
Assets
Assets should be owned, or leased, normally for at least 20 years, by the community, they should have realisable value, and they should have the potential to earn income, as expressed in a credible growth plan.
Social enterprise financial sustainability
Financial sustainability encompasses everything that enables a social enterprise to realise their targeted income. As well as financial assistance, HIE, through its account management of clients can offer advice either directly or through external sources. This can include the following:
- Strategy. Activity in areas of business planning, governance, management, SWOT, finance, which lead to improved operation of the company
- Product development. Activity in research, new products which will lead to increased sales
- Marketing. Activity in market research planning, strategy, materials, advertising, engaging new customers, which will lead to increased sales
- Skills development. Training needs analysis, personal development plans, leadership, which will lead to improved operation of the company
- Information technology. Improved financial or management information systems, creation of on-line sales capability, leading to increased sales
Contact your local HIE office for more details.
