female social entrepreneurs Archives

Sources of Finance for Female Social Entrepreneurs

It’s all very well having big ideas to save the world but where do we get the money from to help us?

In the context of this ‘new covid normal’. I’ve just spent the last few weeks filling in grant funding applications which I think we are unlikely to get (not covid specific or disadvantaged enough); searching for speculative Trust funding opportunities (bit of a long shot) and scoping out social investment options (looks promising but my Board not keen to borrow money). Alongside marketing and delivering new online packages for my services, as a way to pivot from place-based freelance contracts.

I’m not alone in finding finance a challenge right now.

As access to finance is one of the main barriers to finance for female social entrepreneurs, and although there has been progress the gap remains, partly due to a lack of diversity among investors.

A third of businesses globally are now owned by women – a figure that is only growing. But frustratingly, despite performing equally alongside male entrepreneurs, female-led businesses continue to receive less funding than those headed by men at every stage.

“In the UK, only one in three entrepreneurs is female – and they receive less than 1% of venture capital. Why, and what can be done?” said NatWest CEO Alison Rose said during the recent Women’s Entrepreneurship Day, updating us on recommendations and progress from the Alison Rose Review of Female Entrepreneurship.

From their detailed research they believe the biggest opportunities to help female entrepreneurs fall in three areas:

Increasing the funding directed towards them;
Greater family care support; and,
Making entrepreneurship more accessible for women and increasing support locally, through relatable and accessible mentors and networks.

As the Here & Now Report states, up to £250 billion of new value could be added to the UK economy if women started and scaled new businesses at the same rate as UK men. Even if the UK were to achieve the same average share of women entrepreneurs as best-in-class peer countries, this would add £200 billion of new value to the UK economy.

Women have been hardest hit by covid job losses and the increased childcare responsibilities which have come with it. So can entrepreneurship be an answer to this ‘new normal’ for many?

Unless we provide proper support, which includes easy access to finance, it’s going to continue being a struggle. With women restricted to running micro and small businesses, which don’t require capital investment.

Liverpool Council recently came up with an enlightened plan to help address this: ‘Policy Actions to Build Back Better for Women’s Enterprise.’ Proposals to address the gaps in COVID19 enterprise support for women in business, include; Allocation of Grants, Loans & Investment, by: Ensuring Small Business Grant Funds reflect the nature of women-led purpose driven businesses, such as those working from home premises. As well as ensuring rigorous monitoring to negate the impact of gender bias.

However in the absence of easy to find investment, here is my advice for things you can do right now.

My 6 top tips for finding finance for female social entrepreneurs

Create and manage a good Budget to understand what you really need. A good cash flow forecast will provide you with a clear picture about your actual financial situation. What you definitely need and which areas are more flexible. It is good practice to operate as leanly as possible, while still investing in the structures and development which you need in order to deliver your vision. I can recommend two excellent books, which both advocate for this; The Company of One; Why Staying Small is the Next Big Thing and The Lean Start-up.

2. Keep up to date with the Grant Funding opportunities available Grants are non-repayable funds – or ‘free money’ – disbursed or given by one party, often a government department, corporation, foundation or trust, to a recipient, often a nonprofit entity, educational institution, business or an individual. They are a great way to run pilot projects and get your social business off the ground. Check via search engines and register for alerts to your inbox Grants online, Funding Central

3. Join an entrepreneur network These networks support social entrepreneurs to develop sustainable solutions to social problems through courses and workshops. They have a strong focus on peer-support and inspirational input from social enterprise experts. Their programmes often also come with grant funding too. eg. School for Social Entrepreneurs, UNLTD, Entrepreneurial Spark

4. Check out Social Investment opportunities. These are loans, however may come with a blended mix of grant too. Social investment is the use of repayable finance to help an organisation achieve a social purpose. Charities and social enterprise can use it to help them increase their impact on society, for example by growing their business, providing working capital for contract delivery, or buying assets. Check out Good finance.

5. Try a crowdfunder This is a great way to get your business or new product off the ground. Crowdfunding is a different way to raise money for good ideas. People are increasingly bypassing more traditional funding routes such as bank loans or grants and turning instead to the people around them and in their community to support their venture. Check out the purpose-built platforms and businesses which are set up specifically to host them. e.g. Crowdfunder Kickstarter Justgiving

Another thing to consider is getting the business support you need to help you stay focussed and available to all opportunities.

Alison Rose, chief executive, NatWest Group, said: “One of the most striking findings from the Rose Review was that women are less likely than men to know other entrepreneurs or to have access to sponsors, mentors, or professional supporter networks. For female entrepreneurs, and the UK economy to truly prosper, this balance must be reset.“

So my final tip is to get a coach or a mentor. A business mentor who can help guide you and give you confidence to scope and get investment for your business. Currently there are few free programmes set up to match you with a mentor, although perhaps you can just ask around your network or ask someone you admire?

Good luck and remember to stay focussed on your big vision, as well as developing a detailed action plan, to help you get there.

Also believe in your ability to deliver it and find the resources you need, when you need them.

If you would like some support developing your business idea would you like a free copy of my ebook ‘Top 50 Tips for Female Social Entrepreneurs’ DOWNLOAD HERE.

Also there is still time to join my next start-up course – ‘Set up your own Successful Sustainable Business’ – 3rd – 18th December. BOOK HERE or email me if you would like to find out about upcoming courses next year [email protected] @TraciLewis79

My Top 50 Tips for Female Social Entrepreneurs

So you want to be a social entrepreneur or have already started down this path? Well I have put together my top 50 tips to help you to succeed. All the things I wish someone had told me when I started out. As well as the things I wish I’d actually listened to and put in place at that time.

Given the current job market and economic situation, if you don’t have a secure job now, then you may well be thinking about how you can create your own.

So these top 50 tips are designed to help you do just that, they cover; hopes & dreams to systems & finance, as well as lots of the other stuff in between. There are some useful tips and insights to help you succeed, while saving you valuable time and money along the way.

I am co-founder and director of social enterprise Catalyse Change CIC. I also run my own change agency, Sustain-Live Consulting Ltd, helping purpose-led businesses to thrive.

For 18 years, before I set up my own businesses, I worked for the Soil Association organic food and farming charity, also their not-for-profit company, which I helped grow from a small organisation to the successful market leader they are today. I also managed their regional Organic South West office supporting lots of social, environmental and community businesses to start-up and to grow.

Throughout this time I have experienced lots of successes and lots of failures too.

When I started working for myself 5 years ago I made a lot of mistakes. However it has been an incredible learning journey, which is why I would like to share some of it with you now.

These tips are relevant for women who are just thinking about – or have already started – setting up and leading their own social enterprise or business.

You might call it a social, green, purpose-led, ‘BIG WHY’ or ethical business.

We’re talking about the same thing. It’s all about having purpose at the heart of your business and ensuring that all of your objectives and activities are aligned with that.

Although a defining legal feature of a social enterprise, is that the social or environmental objectives are actually also written into the companies governing documents. But I’m jumping ahead, let’s start at the beginning first…

Hopes, dreams & creating the right mindset. It all starts here…

1. So what’s your Dream? Think big and don’t be afraid of that. You can narrow down the details later, but it’s good to start with a big vision about what it is you really care about and what you want to spend your life creating. A good way to do this is by taking time out away from other people and your computer. Get out into nature for a good walk or even better a camping trip.

Just do some daydreaming.

Try and remember what you dreamed about as a child or teenager. What things did you really care about? What did you used to imagine yourself doing before your worries and fears got in the way?

Write it all down, nothing is too silly and see where it takes you.

2. What problem do you want to solve? This is also a good starting point and a question you need to answer as a social entrepreneur.

What are the things you really care about most?

Is it climate action, ocean pollution, social injustice or poverty?

For me it’s gender equality. I want to help empower young women to have the confidence to be the change they wish to see in the world. And as we are in a climate emergency I also want to help ensure they have the knowledge and tools to be effective change agents.

A good place to look for inspiration is the UN Sustainable Development Goals (SDGs), 17 global goals, which identify what we need to focus on and how we can work together to create a sustainable world.

3. Don’t give up your day job Well, at least not straightaway. Clearly, you’ve got to be able to generate enough income to at least provide for your basic needs. So unless you have savings, or other sources of income, then you need to carry on working until you know that you can generate enough income to cover your outgoings. You can explore other sources of available finance such as; loans, social investment, grants. However it’s good to know that you have a viable business model first.

4. Be clear on your business model How will you make money? You need to create a profitable business with proven revenue streams. A business model is essentially the way or how a company makes money and delivers value for the customer. The Business Model Canvas is a useful tool to help you develop yours. There are many different existing business models you can choose from eg. Manufacturer, Distributor, Retailer, Franchise, Online Marketplace, Affiliate Marketing. However as a woman in sustainability, just starting out, you might want to keep it simple to begin with. For inspiration and advice read Paul Jarvis’ book Company Of One and Heidi Fisher’s How to set up a successful social enterprise.

Laptop open on a desk with a cup next to it

5. Start as a freelancer A good way to start working for yourself, is as a freelancer, exchanging your time and skills for an hourly or day rate. You can register with HMRC as a sole trader and with a relatively low financial investment start earning money straight away, doing what you are already most skilled at. It is a good way to test the water and see whether you enjoy working for yourself, and if so, how you like to do it. It will help you to build your confidence and give you time to put your marketing, admin and finance systems etc. in place. You can then develop your business model over time, if you wish.

6. Get a Growth Mindset Have you got the right mindset to be an entrepreneur? It’s important to be open, flexible and growth orientated. Having this mindset changes your approach to problem solving and collaboration. Tony Robbins, a world renowned motivational speaker and coach, says that running a successful business is 80% psychology, and 20% skill. This is all about having a growth mindset. Read Carol Dweck’s book on Growth Mindset and see what you can learn in order to grow yours. Once you change your mindset you will find that your external circumstances change accordingly.

7. Be confident In order to go out and convince other people to believe in you, you really need to believe in yourself first. Only you can make this happen. However getting a good coach or mentor helps too. Someone with whom you can talk through your challenges and decisions, to help you explore issues you are unsure or stuck on. Self-care practices such as meditation, affirmations and regular exercise also really help. As your outer experience is just a reflection of what is going on internally. So make sure you are being kind to yourself and building up your confidence, instead of listening to your inner critic.

8. Get networking This is a key activity to help you succeed in business. In fact it’s value can’t be emphasised enough. So ensure you grow a really strong network by getting out there regularly – on and offline – to meet people who might end up being customers, but will also help you to grow your business in many ways eg. information sharing, partners, supporters and referrals.

9. Organise the money If you set up a limited company or social enterprise you may want to hire an accountant. However you should also consider using one of the many useful online accounting tools such as QuickBooks, Xero or Sage. As doing this will help save you time and money in the long run. To ensure good money management do also get a separate business bank account as soon as possible.

10. Set Goals Setting goals help us to prioritise and gives us a roadmap to follow. They are also a great way to hold ourselves accountable and define what we truly want in life. Just make sure that you set goals that really motivate you, so ones which are important to you and that you really want to achieve. Try using SMART (specific, measurable, achievable, realistic, timebound) as a useful framework to ensure your goals work. Also do record them in a working business plan, using a management tool – such as Trello or Excel – to help you actually do them.

Unfortunately there isn’t room to include all 50 tips here, however I’d be delighted to send you a free copy of my ‘Top 50 Tips for Female Social Entrepreneurs’ playbook. Just follow the instructions on the link.

If you are just thinking about – or have just started – working for yourself you should join my new online programme ‘Set up your own Successful Social Business,’ get in touch if you’d like to find out more.

I also lead a Women in Sustainabiltiy (WINS) freelancer & enttrepreneur group, drop me an email if you’d like an invite to our next meeting. It is an informal and friendly format – where we network, share knowledge and support each other to grow our businesses – I do hope you can join us.

For more information please get in touch;

Traci Lewis, WINS Bristol hub lead, [email protected] @TraciLewis79 Linkedin