Skip to main content

Welcome to our new website. You may still see some pages from our old site as we move things over.

Pulling in the Right Direction: How Social Investment Can Support VCSEs to Become More Resilient, Achieve Their Social Mission and Avoid Mission Drift

Pulling in the Right Direction: How Social Investment Can Support VCSEs to Become More Resilient, Achieve Their Social Mission and Avoid Mission Drift (PDF, 2.9MB)

This file may not be suitable for users of assistive technology. To request an accessible format contact us.

Introduction

This research looks at how Voluntary, Community and Social Enterprise (VCSE) business models lead to them taking on social investment. It explores how organisations generate income while creating social impact. The research is for funders, policymakers, and organisations developing sustainable social enterprise models.

Findings

The research found that social purpose organisations use a range of business models to support both income and social impact. Many combine grants with trading income or service contracts.

The research found that:

  • many organisations rely on blended income, including grants, trading and contracts

  • trading income can strengthen financial resilience

  • organisations often balance social purpose with commercial pressures

  • partnerships and support organisations help develop sustainable models

  • flexible funding allows organisations to test and adapt their approaches

Overall, organisations benefited from support to develop and refine their business models.