A new fund to boost the development of social enterprises in the city will be considered by the City of Cardiff Council Cabinet this week.
If agreed at the meeting on Thursday July 17 at City Hall, an annual social innovation fund of £70,000 will be established to provide start up funding towards capital costs for Small or Medium Enterprises (SMEs).
In addition to financial assistance from the City Council, the fund would also offer social enterprises advice and support from a range of partners including the Wales Co-operative Centre and Charity Bank.
A social enterprise is a business with primarily social objectives and profit is mostly reinvested in the business or in the community, rather than maximising profit for shareholders and owners. Social enterprises also compete in the marketplace and need to be well run to make money and achieve their social aims. They can vary from small community owned village shops to large organisations delivering public services.
Leader of the City Council, Cllr Phil Bale, said: “Social enterprises require a range of support and we know that it can be difficult for many new social enterprises to get backing for initial costs.
“The new fund seeks to kick start the development of new social enterprises, ensuring they have access to the guidance and assistance they need to develop into sustainable businesses and contribute to our society.
“We hope the fund can help social entrepreneurs in the city to develop ideas that can support the administration’s four key priorities which are improving education and skills to ensure people of all ages fulfil their potential, supporting the vulnerable in our communities, promoting economic development to bring in investment and jobs to the city and putting the co-operative agenda at the heart of the authority’s work.”
Examples of social enterprises in Cardiff include Cardiff and Vale Credit Union providing loans and savings opportunities to people who live and work in the city and Vale of Glamorgan, and also the Riverside Farmers’ Markets which was established in 1998 and has grown and developed a reputation as a friendly place to shop and meet in the community.
Cabinet Member for Community Development, Co-operatives and Social Enterprise, Cllr Peter Bradbury said: “The City of Cardiff Council is committed to increasing the number of social enterprises in the city and the creation of this new social innovation fund to assist start-ups would make a significant contribution to the local economy, both in terms of direct economic contribution, job creation and supporting community development.
“Given the current financial pressures on local authorities, the work done by social enterprises can be invaluable as they support community development, help to tackle social problems and provide employment to those whose opportunities may otherwise be limited.
“This is an excellent opportunity for new social enterprises and we are very grateful to all our partners for their support in the development of the fund.”
There is currently a range of support available for social enterprises across Cardiff but gaps remain in provision that can inhibit the development of the sector.
As part of the new scheme, applicants would also have access to advice and support from the Wales Co-operative Centre, signposting to funding to support ongoing activities and promotion of crowdfunding activities to support community activities.
Decisions on funding would be made by a local board comprising of representatives from the City Council, Cardiff Business Council, Wales Co-operative Centre and others.
