Most demand for social investment 'comes from service providers to public sector'

Matt Robinson, director of strategy at Big Society Capital, says research by the Boston Consulting Group shows the state is the most willing to pay for social value

About 60 per cent of the demand for social investment comes from organisations that provide services to the public sector, according to Matt Robinson, director of strategy at Big Society Capital.

Robinson said that recent research by the Boston Consulting Group, which estimated that the social investment market could be worth £1bn by 2016, contained a detailed breakdown of the sectors that organisations seeking social investment worked in.

"Looking at this data, and analysing whether those sectors are private, public or a mixture of the two, it suggests that about 60 per cent of the demand for social investment comes from organisations that supply the public sector," he said.

Robinson said the state was "the sector most willing to pay for social value", and this meant that Big Society Capital would "have to make sure that social investment is useful for supporting relationships with public sector commissioners".

But he said he also expected to see a growth in the use of social investment in other sectors.

"This survey hasn’t looked at demand in every sector," he said. "It’s captured only the 5 per cent of the economy where social organisations are arguably most active. What this survey hasn’t necessarily captured is sectors like food, clothing, art and culture, where there may also be a need for social investment in the future.

"And another important use of social investment in the future could be business-to-business services. The state market is growing, but we think other markets could grow more."

David Ainsworth recommends

Big Society Capital

Read more

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register
Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Follow us on:
  • Facebook
  • LinkedIn
  • Twitter
  • Google +

Latest Jobs

RSS Feed

Third Sector Insight

Sponsored webcasts, surveys and expert reports from Third Sector partners

Markel

Expert Hub

Insurance advice from Markel

Guide: What insurance does your charity need?

Guide: What insurance does your charity need?

Partner Content: Presented By Markel

Third Sector Logo

Get our bulletins. Read more articles. Join a growing community of Third Sector professionals

Register now