Mobilising Britain’s workforce

Date: 17th March 2008

LONDON, March 2008 - Impetus, leader in venture philanthropy, has formed a partnership with Acumen Development Trust which aims to achieve social and economic regeneration through learning, enterprise and employment.

Once it was the coal mines that made Easington in County Durham famous. During the 19th and 20th centuries, the East Durham population exploded and communities flourished. Unfortunately, the closure of the pits in the 1980s and 1990s ravaged many parts of the North East including Easington. The decline in coal and other manufacturing industries has led to a chronic shortage of jobs with a fifth of working age adults on incapacity benefits in Easington in 2007* .

Efforts of the government to reduce unemployment have to date mainly focused on those closest to the job market – particularly those on Job Seekers Allowance.   On the other hand, charities and social enterprises like Acumen help to regenerate the area by focusing on people who have been out of the employment market for a long period of time and are unable to re-join it through mainstream employment services. Unlike any other social enterprise in the area, it has devised a structured path that proactively identifies people most in need by engaging them in activities designed to promote learning and building their confidence.  Once these people are engaged, they are assigned an employment advisor who will develop a tailored learning plan.   A distinctive aspect of Acumen’s service is to provide people in need with tangible opportunities as they move through the process of re-entering the employment market. Acumen’s services also help people who are looking to start their own business. 

Having built a strong reputation and network of vertical partners in the North East in the first four years of its operation, the enterprising chief executive of Acumen, Kate Welch, who was awarded an OBE at the start of the year, was conscious that it needed support to help it achieve its ambitious growth plans and support a scale up beyond the North East. To help take it to the next level in its growth phase, Acumen approached Impetus for support. 

* Published in a study carried out Professor Steve Fothergill at Sheffield Hallam University in June 2007

 

Using private equity and venture capital management techniques and concepts, Impetus focuses on growth potential in charities. Impetus has built a track record of helping the charities it backs deliver faster growth by combining strategic financial support with operational expertise. Impetus supports ambitious organisations that are led by highly capable management and can deliver innovative, sustainable responses and have the ambition to effect far reaching change to help economically disadvantaged people.

Like a venture capital investment, Impetus tackles challenging social issues such as long-term unemployment, persistent offending, violence and addiction with the aim of raising educational standards, and thus achieving higher levels of self-sufficiency and employability for the people impacted. Through deployment of high calibre pro bono experts and co- investment partners, Impetus aims to treble the value of its investment.  Since actively focusing on this leveraged approach, £1 of Impetus funding has generated an additional £6 for its portfolio charities.

Impetus is partnering with Acumen initially for sixteen months with a view to making a longer term investment at the end of planning process.  The use of a staged approach is a new departure for Impetus and it will help to ensure that the investment process is more stringent and greater focus is given to develop a strategy for the charity. The first phase of the engagement will focus on supporting Acumen to define the approach to scale up and build the required capability to support its growth plans.

Kate Welch, chief executive, Acumen is very excited about entering the partnership with Impetus: “Acumen has experienced very rapid growth in the first four years of its operation.   We know that we need expert knowledge and experience to take us to the next stage in our growth.  The Impetus partnership will not only offer us financial support but also impartial advice along with expertise from its network of pro bono experts to achieve our ambitious plans.”

Daniela Barone Soares, chief executive, Impetus comments: “This partnership fits well with our quest in helping the economically disadvantaged become more self-sufficient and improve their employment opportunities.  Acumen has achieved tremendous success so far in bridging the gap between the local community, government agencies and large, private providers of employment.   We are delighted about backing Acumen and enable them to engage with more people, upgrade their skills and support them in their job-seeking activities.”

ENDS

Notes for Editors:

Enquiries:

Impetus Trust                                              Eela Devani                     +44 207 745 7204                                                                

Acumen Development Trust                   Sonia Grahams             +44 (0)191 587 8000

+44 (0)7908 792 146.

Equus                                              Vimala Camadoo                        +44 207 223 1100