Local community businesses, co-operatives, and socially minded enterprises are being invited to apply for a share of a new £4m innovative finance fund.
The Social Finance Fund comes from a new partnership between the North of Tyne Combined Authority (NTCA) and community business charity Power to Change, and is part of a wider £15m investment from the NTCA to help businesses develop new and inventive products and services.
North of Tyne’ Labour/Co-op metro mayor Jamie Driscoll said: “We don’t believe in a top-down way of doing things. The whole point of devolution is to bring powers close to people. We know there’s a need for an economy that works better for local people. We know there are people that want more socially trading organisations and workers’ co-ops.
“We’re announcing a dedicated £4m Social Finance Fund specifically for local businesses working to improve our region and communities.
“But this only works if it’s a partnership between us and the people we’re funding so we need you to come forward with your ideas. This fund will help the co-ops and community businesses thrive and we need your help to shape it.”
Deputy mayor Carl Johnson, who is also North of Tyne cabinet member for investment and resources, said: “Social enterprises have a critical role in the creation of a more inclusive local economy. As Social Enterprise UK have shown, they are more diverse organisations and employ more women and people from minority communities than other businesses, with a greater proportion of these in leadership roles.”
Tim Davies-Pugh, interim CEO of Power to Change, said: “Socially trading organisations, including community businesses, play incredibly important roles in local economies. Rooted in the areas they serve, these organisations directly address the needs of their communities. They also give local people more opportunities to actively participate in, and benefit from, economic activity, even in the poorest communities.
“We look forward to working in this exciting partnership with the North of Tyne Combined authority to create a more inclusive economy through the development of the fund.”
NTCA and Power to Change will also be collaborating with the Insights NE initiative at Newcastle University that will contribute their regional academic expertise to inform the development of the fund.
