The Editor's Post: Can and will social investment reach those who need it most?

Our lead story this week focuses on a difference in opinion – some would say argument – between social entrepreneurs and social investors in the UK. Social Enterprise UK, the representative body for social entrepreneurs, believes that the UK’s social investment market isn’t adequately meeting the needs of social entrepreneurs and that it must fundamentally transform – fast. In response, social investors, the main protagonist being UK social investment flagship Better Society Capital, say they’re actually doing ok at getting money to where it’s most needed and that they’re working on getting even better.

Things have become heated from time to time over the past few years and we’ve witnessed some tense exchanges. While we don’t want to stoke the fire, we do believe it’s important to highlight both sides of the argument, not least because the UK is often celebrated as an example of social investment for other countries to follow.

Of course, the UK does have a lot of good social investment practice to share and we’ve reported on a lot of it in Pioneers Post. However, the criticism that money can be too difficult to access for social entrepreneurs in the most deprived areas, and particularly those from Black and ethnically minoritised backgrounds, is important to acknowledge. Victor Adebowale, the chair of Social Enterprise UK and the lead of the Adebowale Commission on Social Investment, which spearheaded this assessment of the market, is calling for more dialogue – and, importantly, more co-creation of funds. 

The very same issue was raised at Impact Europe’s Impact Week event at the end of November in Spain. A breakout session looked at the potential for Spain to help channel more investment from Europe to Latin America. With an all-white panel of investors and representatives of investors on stage, a member of the audience, reflecting on the criticism that Better Society Capital has received, asked whether the speakers had considered how they were going to avoid discrimination in their investment practice across the enormously diverse communities of Latin America.

It’s likely that similar conversations are happening – or should be happening – across the world. Wouldn’t it be amazing to see true co-creation (in all its uncomfortable, messy reality) of hundreds of social investment funds taking place? We look forward to reporting on the pioneering examples. 

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UK social investment making ‘slow and disappointing progress’ in meeting social entrepreneurs’ needs – Adebowale

New European commissioner takes on social economy responsibility from Nicolas Schmit

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