Let those who know the region best help it grow

As the newly appointed Chair of the North East Social Investment Company (NESIC) Lucy Armstrong wants to embolden and empower those voluntary and community organisations in the region seeking to extend their influence and realise their potential.

It’s four years since NESIC set up the £10m-plus North East Social Investment Fund (NESIF), operated by Northstar Ventures, and it’s already making a positive difference to communities across the region.

The Sunderland-based Northern Engagement into Recovery from Addiction Foundation (NERAF) has benefitted from a £100,000 investment, while the Smarterbuys Store in County Durham – a charity which offers manageable credit solutions for key household items – was awarded £500,000.

In each case the funding met NESIF’s remit to increase or protect an organisation’s ability to deliver social impact.  Lucy believes like-minded organisations have an increasingly important role to play at a time of rapid and wide-ranging societal and cultural change.

“In the era of the welfare state, we took the view that the state organisations were the best bodies to deliver or solve various problems and we are having to re-think this at the moment.

“It's not just driven by money. It's about culture, flexibility and accountability. And I think that's going to be the next opportunity for some of the larger social enterprises.

“Local authorities have to think differently about how they deliver services and I think this provides a golden opportunity right now for social enterprises to step into that space and be more creative. But that does require a change in attitude from the state and it does require significant support and leadership from many organisations including North East Social Investment Company.”

NESIC drew its initial tranche of funding from the defunct Northern Rock Foundation (now managed by Community Foundation Tyne & Wear), Big Society Capital, Esmee Fairbairn, Northstar Foundation and the Joseph Rowntree Trust. Managed by Northstar Ventures, investments range from £100,000 to £1m and can be used to supplement operational costs, secure working capital, purchase assets and more.

“I feel we are duty bound to try and grow, to deliver to as many people as possible,” says Lucy. “If you’re good at something locally why not roll it out regionally and nationally? That’s just one of the areas where NESIC and the North East Social Investment Fund it has created, can help. Trustees need to start thinking like that - and in 2019 it’s clear that the state needs them to adopt that mindset.

“In the social sector, a number of trustees who are used to making value judgments and who are used to weighing things up knowing that everything isn't black and white, suddenly become incredibly risk averse; and that worries me.

“It seems to me that many organisations are missing out on the opportunity to deliver - and expand upon something that they do really well, to a larger audience. As a charity trustee I would argue that means you’re not pursuing your objectives.”

NESIC is a unique organisation in the UK and Lucy is justifiably proud that it continues to be overseen by North East trustees invested in the region - individuals acutely aware of the area’s potential for future growth and the pitfalls that have affected its socio-economic past.

“Because this was the first time anything like this had been done in this country, there was a feeling that it would be beneficial to involve a group of people who were knowledgeable about the region and the sector - both in terms of its geographical area and the area of social investment,” she explains.

 “We are five years in to a 20-year process and as a Board we are really excited about the future and the potential for social investment in this region.”

If you think your organisation could benefit from NESIC funding call Northstar ventures on 0191 229 2773 or email julie@northstarventures.co.uk

As published in The Journal Top 200 supplement, November 2019