The Social Enterprise Boom

Social enterprises represent the fastest-growing business sector in the UK, combining commercial success with social impact. Government recognition of their role in "leveling up" communities has unlocked unprecedented funding opportunities across grants, investment, and hybrid financing models.

2025 Social Enterprise Landscape

>£650M

Social enterprise funding available

125,000

Social enterprises operating in UK

47%

Growth in funding since 2022

What Makes Social Enterprises Attractive to Funders

Demonstrated Impact:

• 3.3 million people employed by social enterprises
• £60 billion contributed to UK economy annually
• 58% of social enterprises led by women
• 39% have BME leadership (vs 14% traditional businesses)

Policy Alignment:

• Leveling up agenda delivery mechanism
• Net zero transition support
• Community asset ownership model
• Skills and employment creation

Government Social Enterprise Programmes

Community Ownership Fund

£150 million government programme supporting communities to take ownership of assets and amenities at risk of being lost, turning them into thriving community businesses.

Programme Details:

• Total fund: £150M (2022-2025)
• Grant range: £250K - £2M
• Match funding: 20% required
• Success rate: 31% (2024 data)

Eligible Assets:

• Community centers and village halls
• Pubs, shops, and post offices
• Sports facilities and libraries
• Cultural venues and museums

Community Energy Fund

Programme Overview:

• Total funding: £100M over 3 years
• Focus: Community-owned renewable energy
• Grant range: £100K - £1M
• Next deadline: March 30, 2025

Priority Projects:

• Community solar installations
• Local wind energy projects
• Energy storage systems
• Community heat networks

Social Investment and Finance Programme

Joint initiative between government and Big Society Capital providing both grants and investment-readiness support for scalable social enterprises.

Start-up Support

• Grant range: £10K - £50K
• Business development support
• Mentoring and coaching
• Legal structure advice

Growth Funding

• Grant range: £50K - £300K
• Market expansion support
• Systems and infrastructure
• Team development

Scale-up Investment

• Investment: £300K - £2M
• Repayable finance
• Performance-linked returns
• Impact measurement support

Regional Social Enterprise Support

Devolved Nation Programmes

Scotland - Social Economy Support

• Just Transition Fund: £45M for community energy
• Community Asset Transfer: £25M
• Social Enterprise Development: £18M
• Highlands & Islands Enterprise: £12M

Wales - Social Business Growth Fund

• Development Bank of Wales: £35M
• Wales Co-operative Centre: £8M
• Community Foundation grants: £15M
• Rural Community Development: £6M

Northern Ireland - Social Innovation

• Social Innovation Fund: £28M
• Community Asset Transfer: £12M
• Rural Development Programme: £20M
• Belfast Social Innovation: £5M

London - Social Investment Fund

• Mayor's Social Integration Fund: £22M
• London Community Response: £15M
• Good Growth Fund: £38M
• Community Infrastructure Levy: £50M

City and Regional Funds

Manchester Social Investment

• Total fund: £18M over 3 years
• Focus: Community asset ownership
• Grant range: £25K - £500K
• Strong cooperative movement support

Birmingham Social Enterprise Hub

• Total fund: £12M
• Focus: BME-led social enterprises
• Grant range: £15K - £300K
• Incubation and acceleration support

Liverpool City Region

• Community Wealth Building: £25M
• Social value procurement priority
• Co-operative development support
• Community land trust funding

Bristol and West of England

• Social Economy Alliance: £15M
• Community Energy Fund: £8M
• Food systems development: £5M
• Circular economy initiatives: £10M

Foundation and Trust Social Enterprise Funding

Major UK Foundations

Esmée Fairbairn Foundation

• Social change programme: £25M annually
• Focus: Systems change and innovation
• Grant range: £50K - £500K
• Multi-year funding available
• Strong social enterprise track record

Power to Change

• Community business development: £100M total
• Focus: Community-led enterprises
• Grant range: £10K - £600K
• Business support and mentoring
• Evaluation and learning focus

Paul Hamlyn Foundation

• Social justice programme: £15M
• Focus: Participatory and user-led
• Grant range: £25K - £400K
• Capacity building emphasis
• Innovation and learning priority

Garfield Weston Foundation

• Community programme: £20M annually
• Focus: Community facilities and services
• Grant range: £5K - £100K typically
• Capital and revenue funding
• Community asset focus

Specialist Social Enterprise Trusts

The Cooperative Foundation

• Annual giving: £8M
• Focus: Cooperative and mutual enterprises
• Support for conversion to cooperative
• Worker and community ownership

Lankelly Chase Foundation

• Systems change focus: £12M
• Severe and multiple disadvantage
• Long-term partnership approach
• Community-led solutions priority

Social Investment Business

• Investment and grants: £35M
• Business development support
• Impact measurement expertise
• Blended finance approach

UnLtd Foundation

• Social entrepreneur support: £5M
• Early-stage social ventures
• Awards of £500 - £15,000
• Mentoring and networking

Corporate Social Investment

Major Corporate Programmes

NatWest Social & Community Capital

• Annual commitment: £25M
• Focus: Financial inclusion and community regeneration
• Grant range: £10K - £250K
• Business banking expertise
• Particular focus on underserved communities

Barclays 100x100 Community Programme

• Annual fund: £15M
• Focus: Community economic development
• Grant range: £5K - £150K
• Skills and employment priority
• Digital inclusion emphasis

Lloyds Banking Group Foundation

• Social impact investing: £20M
• Focus: Complex social problems
• Grant and investment mix
• Evidence and evaluation focus
• Systems change approach

Santander Breakthrough Programme

• Social enterprise acceleration: £8M
• Focus: Scaling social impact
• Funding plus intensive support
• International expansion support
• University partnership model

Retail and Consumer Corporate Funds

John Lewis Partnership Community Fund

• Annual giving: £12M
• Local community focus near stores
• Social enterprise partnerships
• Employee volunteering integration

Co-op Foundation

• Community development: £18M
• Cooperative movement support
• Young people and communities
• Values-based partnership approach

Social Investment and Blended Finance

Understanding the Social Investment Landscape

Social investment sits between grants and commercial investment, offering repayable finance at below-market rates for organizations creating social impact.

Types of Social Investment:

• Social Impact Bonds: Payment by results contracts
• Community Shares: Community ownership models
• Development Finance: Patient capital for growth
• Revenue-Based Finance: Repayment linked to income
• Quasi-Equity: Flexible repayment terms

Major Social Investors:

• Big Society Capital: £600M fund of funds
• Access Foundation: £150M community investment
• Key Fund: £45M social ventures
• Social and Sustainable Capital: £80M
• Resonance: £120M impact investment

Application Success Strategies

What Social Enterprise Funders Want

Business Model Clarity:

• Clear social purpose: Defined beneficiaries and impact
• Viable revenue model: Path to financial sustainability
• Market validation: Evidence of demand for your solution
• Competitive advantage: What makes you different
• Scalability potential: Growth and replication opportunities

Impact Measurement:

• Theory of change: Clear logic model
• Impact metrics: Measurable social outcomes
• Baseline data: Starting point measurement
• Evaluation plan: How you'll prove impact
• Stakeholder engagement: Beneficiary involvement

Building a Compelling Social Enterprise Application

1. Problem Definition and Market Analysis

• Clearly articulate the social problem you're addressing
• Provide evidence of need with statistics and beneficiary voices
• Analyze existing solutions and identify gaps
• Size your target market and demonstrate growth potential

2. Solution and Business Model

• Describe your innovative solution and why it works
• Explain your revenue streams and pricing strategy
• Detail your operational model and key activities
• Outline your partnerships and key relationships

3. Impact Framework and Measurement

• Present a clear theory of change
• Define specific, measurable impact metrics
• Explain your evaluation methodology
• Show how you'll use learning to improve

Common Social Enterprise Application Mistakes

Business Model Issues:

• Unclear or unrealistic revenue model
• Over-dependence on grant funding
• Insufficient market research
• Weak competitive analysis
• Unclear value proposition
• No clear path to sustainability

Impact and Governance Failures:

• Vague or unmeasurable social impact
• Weak theory of change
• No beneficiary engagement
• Inappropriate legal structure
• Inadequate governance arrangements
• Lack of diversity in leadership

Legal Structures and Compliance

Choosing the Right Legal Structure

Community Interest Company (CIC)

• Purpose-built for social enterprises
• Asset lock protects social mission
• Limited dividend distribution
• Regulatory oversight by CIC Regulator
• Popular with funders and investors

Charitable Company Limited by Guarantee

• Charity status for tax advantages
• Can trade and generate profit
• Strict regulatory compliance required
• Attractive to grant funders
• Limited profit distribution

Community Benefit Society

• Member ownership structure
• Democratic governance model
• Community shares eligibility
• Tax advantages available
• Strong community connection

Limited Company with Social Objects

• Maximum operational flexibility
• Easier to raise investment
• Standard company law applies
• Articles must embed social purpose
• B Corp certification option

2025 Social Enterprise Funding Calendar

Programme	Next Deadline	Award Range	Decision Timeline
Community Ownership Fund	February 28, 2025	>£250K - £2M	6 months
Community Energy Fund	March 30, 2025	>£100K - £1M	5 months
Power to Change	Rolling	>£10K - £600K	3-4 months
Esmée Fairbairn Foundation	April 15, 2025	>£50K - £500K	4-6 months
NatWest Social Capital	May 31, 2025	>£10K - £250K	3 months
Big Society Capital	Quarterly	>£100K - £5M	4-8 months

Success Strategy: Start with Community Need

The most successful social enterprise applications start with deep community consultation and engagement. Spend time understanding the real needs of your target beneficiaries before developing your solution. This community-first approach is what funders want to see and what leads to sustainable social enterprises.

Launch Your Social Enterprise

Crafty's social enterprise specialists understand the unique funding landscape for community businesses and help you build applications that demonstrate both social impact and business viability.

Start Your Social Enterprise Application