Access Report: Investigating Access to Finance for Ethnic Minority Social Entrepreneurs in Scotland

Scotland can be rightly proud of its social enterprises, making up a sector that has benefited hugely from the support of the Scottish Government, via an ambitious strategy and successive action plans. Our social enterprises have proven their ability to make a significant impact in local communities, particularly through the challenges of the Covid-19 pandemic and subsequent cost of living crisis- rapidly changing their business models to respond to local needs. It’s a business model that is gathering more attention, particularly as Scotland’s focus switches to economic transformation, creating jobs and inclusive growth in all parts of the country. Social enterprises will also have a key role to play in our transition to net zero. Firstport and Social Investment Scotland (SIS) are committed to supporting a social enterprise sector that is open to all, regardless of background, disability, gender, sexuality, class or race. We need more social entrepreneurs establishing new businesses if we want to realise our full potential. As partners, we recognised that we could be doing more to support ethnic minority entrepreneurs in particular; the journey from start up to step up and scale up is not straightforward and we know that social entrepreneurs from ethnic minority backgrounds have not been accessing the full range of support and investment that is on offer. This research, building on the work of the Adebowale Commission and other Diversity, Equality and Inclusion focussed initiatives for social enterprises and social investment from elsewhere in the UK, aims to explore these issues with a Scottish focus. Supported by Scottish Enterprise through the Scottish Government’s Ecosystem Fund, Dechomai, Firstport and SIS have worked together to carry out this research. The findings will allow us as partners, but also other agencies, to reflect on the issues raised and develop a set of actions in response. It was disappointing that the criteria mandated that SIS lead the consortia as the largest partner, rather than Dechomai, itself founded and led by and ethnic minority team. As much financial resource as possible has been passed on to Dechomai to ensure they have been adequately compensated for their vital role in the project and reach into under-represented communities. The report raises important questions for Scotland’s social enterprise ecosystem but also provides a clear set of recommendations and next steps. Our work will not stop here and, on behalf of Firstport and SIS in particular, we are absolutely committed to continuing our journey of learning and reflection, but also delivering clear actions to improve our reach. We deserve to be held accountable for our progress and commit to continuing to share our experience and further reflections.