Impact
The Results
Social enterprises in the portfolio have continuously achieved double-digit annual growth in both their financial turnover and social impact. In 2005 – 2009, income of the Breakthrough organisations grew at an average annual rate of 22%, compared to an 8% average for all UK charities (Source: UK Civil Almanac 2009). During the same period, the social impact of the Breakthrough organisations grew by an even higher average rate of 29% per annum.
Feedback from the portfolio senior management continues to acknowledge the positive impact that business mentoring has had on their teams and the growth of their businesses. Our original premise still remains true – that we can positively influence the social impact of social enterprises by deepening and adding to their business skills. The average investment since 2005 is £142,406.
Valuable Lessons
Breakthrough has extended its support for the organisations beyond the original two-year agreement - in some cases through additional funding, but in most cases with ongoing management support.
The experience across the social enterprises illustrates the importance of preparation for growth. Without such critical preparation around infrastructure, personnel and systems, valuable management time will inevitably be consumed by reacting to growth, rather than directing it.
Greater transparency will become standard practice. With increased competition in some sector industries as well as greater need for capital investment, social enterprises cannot underestimate the need for sound evidence of their social impact and financial strength. Such transparency however should not at the expense of frontline activity or demand a diversion of already tight resources.
Corporate skill and involvement can have powerful impact on social enterprise when it is structured, focused and results orientated.