Spark Ignites The Homelessness Sector Through Enterprise
December 2007
Spark, an innovative £1.5million project to prevent and tackle homelessness using social enterprise, was launched today (Tuesday 18 December) by Junior Housing Minister Iain Wright.
The project is a major new partnership between the Government, the private sector and leading social enterprises The TREES Group and Big Issue Invest - the finance arm of the publishers of The Big Issue magazine.
Spark is calling for organisations providing accommodation, training and employment and well-being services for homeless people to pitch to win a share of more than £500,000 of investment to offer more people a permanent route off the streets.
TREES, Big Issue Invest and the project's other partners PricewaterhouseCoopers (PWC), Eastside Consulting and the Department of Communities and Local Government believe that a social enterprise approach offers a long-term and sustainable way to address homelessness.
John Montague, TREES chief executive, said: "We've seen first hand how social enterprise can have a massive impact on communities and individuals, offering training, employment and development, creating wealth and raising self-esteem.
"We want to sow the seed of enterprise into organisations that are already doing excellent work with homeless people, but know they could achieve more given the right support."
Social enterprises need to submit their business case to the project's website, www.sparkchallenge.org, before February 18, 2008.
The organisations will pitch their business case to a panel including experienced social entrepreneurs John Montague of TREES and John Bird, the founder of The Big Issue, plus representatives from the project's corporate partners including PWC.
The top five ideas will win a share of the £500,000 funding provided by the Department, mentoring from the panellists and a one-day ‘enterprise makeover' donated by Spark's corporate partners.
In addition, Big Issue Invest has pledged a further £500,000 of potential investment for the best enterprises and the ten runners-up will receive coaching and mentoring.
Big Issue Invest chief executive Nigel Kershaw said, "We passionately believe that we can make a difference to people's lives by investing in businesses that create financial and social opportunity."
By November 2008, the 15 organisations will have undergone a demonstrable transformation, ensuring they are better prepared, better resourced and eager to increase their efforts to prevent and tackle homelessness.
Junior Housing Minister Iain Wright said: "This exciting competition will encourage homeless charities to generate a source of income and become more sustainable.
"It is a fantastic example of Government working in partnership with the voluntary and private sector to deliver a common goal for homeless people - to help them end their homelessness for good."
Social enterprises are profit-making businesses set up to tackle social or environmental issues which reinvest the majority of their profits for the benefit of their community and beneficiaries.
There are at least 55,000 social enterprises in the UK with a combined turnover of £27billion per year. They account for 5% of all businesses with employees and contribute £8.4billion per year to the UK economy - almost 1% of annual GDP.
