Coutts & Co launches UK’s first social enterprise advisory service

By: 

Cheryl Chapman

Managing Editor, Philanthropy UK

Coutts & Co has achieved a UK-first with its pioneering ‘Social Enterprise Advisory Service’ aimed at encouraging and assisting many of its 20,000 successful entrepreneurial clients to develop enterprises that give something back to the community.

The advisory service brings together a panel of experts, including the School for Social Entrepreneurs, ClearlySo and UnLtd, who together will focus on advising clients on the best way to navigate the diverse social enterprise landscape to find opportunities to suit them. This includes facilitating mentoring opportunities and advisory roles, providing access to business angel investment opportunities and making grants and donations.

Andrew Haigh, head of entrepreneur client group at Coutts, says, “This is an exciting time with social enterprise providing a new and increasingly important dimension to philanthropy in the UK. With the concept of ‘giving something back’ a frequent element of life planning for many successful entrepreneurs, this provides a great opportunity for them to use the skills that have driven their own success for the benefit of others.”

He says the launch of the advisory service, which will be provided for free to clients, is not so much a response to explicit demand but is based on insight and observation of entrepreneurial behaviour among clients who indicate they want an alternative to grant-making and cheque writing.

“We are seeing the beginnings of ‘market disruption’ within philanthropy - things are changing. Though we are not declaring the death of traditional philanthropy - and there is a broad spectrum of ways to make a difference - we know entrepreneurs like to roll up their sleeves and become very involved in the causes they support, while risk-taking is their heartland. Social enterprise caters for both and offers greater transparency.

“When we talk to our clients about ‘investment’, they perceive a greater sense of discipline around the activity, which may be real or imagined; it is often an emotional response, but it appeals to their entrepreneurial nature,” says Haigh.

In addition to the advisory service, Coutts will be hosting a series of educational days for clients and ‘speed-networking’ events at which potential investors will have the opportunity to meet social enterprises requiring investment funding.

A guide to social enterprise, which has tips on structuring, finding funding, getting involved and measuring impact has also been launched by the private bank in association with the Social Enterprise Coalition and is available for download at www.coutts.com/social-enterprise

Rod Schwarz, CEO of ClearlySo, the social business, enterprise and investment website says, “We are delighted to be a core part of this pioneering service - helping to facilitate the flow of capital from high net worth individuals into social businesses and enterprises is a vital part of a new wave in investing.”

Alastair Wilson, chief executive of School for Social Entrepreneurs, says, "We know from our work that entrepreneurs learn best from each other, and gain the most relevant support from those individuals with real business experience. Harnessing that expertise, allied to a passion for social change, will enable social entrepreneurs to be more effective in their work."

Cliff Prior, CEO of UnLtd, a foundation providing support for social entrepreneurs, adds, “The UK needs social entrepreneurs more than ever. They are the glue binding our society and the motivating force for social and environmental innovation.”

More information on the service can be found at the Coutts& Co website.