COVID-19 and the impact on Social Enterprise in Scotland
The data in this report has been drawn from a variety of sources: our own experience, members' feedback from individual phone calls, data collated regarding emergency fund applications, the 2019 Census and survey information collected by others.
Part one – Sector analysis a. By geographical areas: some suggestion that rural and urban areas affected differently b. By organisational type: obviously sectors affected differently, with some seeing increased demand, some not much change (eg housing) and others closing (eg retail, leisure, community centres, childcare) c. Based on turnover: mixed picture by turnover, but many larger charities with more staff plan to furlough staff.
Part two – support and information Lots of concern about cashflow, particularly from organisations that were primarily funded through trading.
a. What people are asking for: ● A one-stop-shop for support to decide what fund might work best, clarity about funding support with better FAQs, guidance and signposting ● Information on what to do if situation goes on longer than expected and a commitment to extra funding if current funding runs out ● Ensure all types of organisations and individuals have access to some form of funding, including all types of social enterprise/self-employed. Ensure those without business premises also get support. ● Webinar and technology guidance and support
b. Data regarding Third Sector Resilience Fund (£25K-£100K and loans)
In the first month FirstPort reported a total of 1816 applications to the Third Sector Resilience Fund, requesting a total of £56 million. Of the 289 organisations funded within the first 2 weeks, 2013 FTE jobs were secured. Most organisations accessing the funds are looking for immediate support: investment to pay April payroll was a consistent theme. Organisations have seen a loss of trading income and increase in demand for services. They often feel they can't mothball staff when demand is increasing.
Around one third of applications are for organisations working in Health and Social Care (33%). The next largest sectors to apply are Sport & Physical Activity (12%) and Creative Industries (including digital) (11%).
Of those applying, 57% of applicants stated that they were also trying to gain funding from other sources Of those organisations which provided data on reserves, 27% currently have no reserves or (in a few cases) debt. 63% have £50,000 or less in reserves. However, some note that their reserves were 'too high' to apply to TSRF.Average survival ratio for the SE sector, based on reserves, is 33 weeks or c. 7.5 months but this highlights the enormous variation.
c. Where people are looking for information: the SCVO Hub, Social Enterprise Scotland website and The Scottish Government most popular.
Part three – Other impacts a. Impacts on people and communities: limited info b. Sector solutions to COVID-19: limited info but some organisations likely to take a lead eg Food Train. SES plan to collate case studies from our sector regarding adapting, increasing services and looking at challenges. c. Impact on the future of the sector: SES plan to look at future recovery, including carrying out a fuller survey of members.
