UK: Small grants generate big income

An evaluation of a funding scheme in Edinburgh, Scotland, shows that small grants of less than £5,000 (7,000 euro) given to social enterprises during 2005 has generated an estimated £2million (2.8m euro) in income. The Edinburgh Fund is managed by Community Enterprise Ltd, one of Scotland?s leading social enterprise support organisations. During 2005 it distributed £145,000 in small grants to 34 non-profit organisations to research and develop their trading ideas. The companies involved carried out market research, business planning and product development. As well as providing funding, Community Enterprise worked with the groups, providing business expertise to help them make the most of their award. The evaluation on the funding scheme, which is now closed, suggests that nearly £2m in projected income and 54 new jobs will be created over the next 3 years as a direct result of the business planning made possible by the grants. ?For every £1 given out by the fund, nearly £14 is coming back into the local economy,? said Sara Maclean, Director of Community Enterprise. ?Tiny investments can lead to huge benefits for the charities involved as they develop sales ideas and start to bring in their own income?. www.communityenterprise.co.uk