![[file:field_file_image_alt_text]](https://www.pioneerspost.com/sites/default/files/styles/node-teaser/public/images/article/BSC-Directory_v2.jpg?itok=PnqzFHCR)
Five things we learned this week
![[file:field_file_image_alt_text]](https://www.pioneerspost.com/sites/default/files/styles/node-teaser-large/public/images/article/i-stock%20mountain%20600w.jpg?itok=LA7d3s4r)
1. Big Society Capital has a busy year ahead
From the summit of the social investment mountain spoke Nick O’Donohoe, outlining the Big Society Capital (BSC) agenda for the year ahead. On the BSC blog he announced 20 new funds were on their way, cumulatively worth between £75 and 100m. These will be distributed via sector and regional specialists (not just the usual in-crowd of social investors) with significant amounts of finance earmarked for social impact bonds or “outcomes-based” contracts.
2. How to pitch for social investment
According to the Financial Times, at least three of the twenty new funds will be launched “in the coming weeks”, two of which will have “big City firms” as co-investors.
UnLtd however, are already a couple of steps ahead, as the Big Venture Challenge opened for applications on the 8 January. If you’re a high growth social enterprise seeking between £50-£250,000, it could be for you.
Thinking of a applying? This quick piece from the Harvard Business Review provides a good introduction to how to convince social investors to part with their cash. Head over to Pioneers Post TV for more specific advice on how to claim your place on the Big Venture Challenge.
3. High labour costs lead to business innovation...
Economists have long debated why Britain was at the heart of the industrial revolution. A new study from economic historian Bob Allen suggests it was a simple matter of economic incentives, as covered here by Tim Harford.
At the time, the UK labour market was charaterised by low energy costs but high labour costs, whereas in other economies, such as China and India, the reverse was true. So where Chinese inventors focused on maximising energy efficiency, British inventors focused on developing technologies to reduce labour costs, leading to innovations such as the spinning jenny.
In turn, this led to a “self-reinforcing spiral”. Every increase in productivity came with an increase in wage demands, meaning more innovation was required. Britain reached such high level of automation that they blew the the competition out the water.
4. … but may inhibit social innovation
The belief that market forces leave only the most efficient, effective and innovative businesses standing is well established, and is at heart of the UK government’s drive to privatise public services.
The impetus on businesses delivering public services to cut costs is clear. With the value of government contracts decreasing, businesses must lower costs or go bust – and this week it was reported that social enterprise Care Plus must save £800,000 or face closure.
How this pressure will lead to better services for the public is unclear.
5. Can ‘solutions journalism’ save local media?
With dwindling circulation and the remorseless gutting of the classifieds by ebay, Gum Tree and and their evil online ilk, the local paper industry is in crisis. A new model is needed for the modern age. But what does it look like?
York-based social enterprise One&Other is pinning its hopes on “solutions journalism” – where revenues are put towards “serving the local community and giving causes a voice”.
At Pioneers Post we applaud the endeavour – not least because we adopt the same approach. As well as being a community interest company, 20% of our membership revenue is diverted in to a social investment fund. Find out about the benefits of becoming a member today.
