Explore funding sources for social enterprises

Social enterprises can access a mix of personal, grant, loan and investment finance at different stages of growth. Developing a clear funding strategy helps you match the right type of finance to your mission, legal structure and long-term plans.

Use personal resources and networks

Many social enterprises start with personal savings or financial support from friends and family. This can be a straightforward way to fund early activity, but it also carries personal and relational risk.

Consider:

• Only invest what you can afford to lose
• Putting agreements in writing when borrowing from friends or relatives
• Being open about repayment expectations to avoid misunderstandings

Apply for grants

Grants are non-repayable funds from charities, trusts, government organisations and foundations. They typically support specific projects, community needs or social outcome.

Grant applications often have strict deadlines and eligibility requirements, so planning is essential.

The Northern Ireland business support finder is a searchable database that helps you find publicly-funded and not-for-profit support you may be eligible for.

Access loans and social lending options

Banks are becoming more familiar with the social enterprise model. When approaching a lender, present a clear business plan, cashflow forecast and a realistic repayment strategy.

You can also consider social lenders or community finance providers, who may offer more flexible terms and place greater value on social impact. All lenders will expect repayment, so ensure your funding needs and repayment plan are clearly communicated.

Traditional banks are becoming more familiar with the social enterprise model. When approaching a lender, present a clear business plan, cashflow forecast and a realistic repayment strategy.

Use equity and social investment

If your organisation's structure allows, you may be able to raise finance by selling shares to investors. Social investment combines financial return with measurable social or environmental outcomes.

Purpose-driven venture capital funds and angel investors increasingly support organisations with strong missions and impact frameworks. Some invest through dedicated impact funds that assess both profit and community benefit.

Consider crowdfunding and community finance

Crowdfunding platforms allow you to receive smaller contributions from a large number of people while building community support around your project or enterprise.

Options include:

• Reward‑based crowdfunding – supporters receive a product or benefit
• Equity crowdfunding – available to some social enterprises, depending on legal structure
• Community shares – enabling local people to invest directly in community‑based organisations
• Peer‑to‑peer lending – individuals lending money to your enterprise through regulated platforms

Government and publicly-funded support

National and local government bodies sometimes offer grants, loans, and support for social enterprises.

Sources include:

• Go Succeed – Northern Ireland’s business support service
• Shared Island Fund and the International Fund for Ireland – support for cross-border or community-focused projects.
• Local councils – short-term funding calls, programmes and business support. Find your local council in Northern Ireland.

Access start-up accelerators and incubators

Accelerators and incubators support early‑stage social enterprises by offering training, mentorship, network access and, in some cases, seed funding. Examples include trusts and foundations that nurture early-stage social businesses.

These programmes can help refine your business model and prepare you for future funding.

Develop corporate and philanthropic partnerships

Partnerships with businesses and philanthropic organisations may not always offer direct financial investment. However, they can provide valuable non‑financial support such as:

• Pro bono expertise
• Mentoring and leadership development
• Access to networks, customers or supply chains

Diversify and blend your income sources

A sustainable social enterprise doesn’t rely on one source of funding. Building a balanced mix of income streams increases your stability, reduces risk, and strengthens your appeal to funders.

Consider combining different income sources to create a funding blend. For example, trading income might sustain your day-to-day operations, while grants could fund innovation or pilot projects.

Discover how the Workspace Group expanded their social enterprise through strategic business diversification.