SCOTLAND'S flagging mergers and acquisitions market is being given a boost by the Big Lottery Fund, which has set aside £500,000 to encourage social firms to take over family businesses.
The Lottery in Scotland is keen for social enterprises such as the Big Issue, which generates work for the long-term unemployed, to expand through the acquisition of small family firms.
It is donating £500,000 to Social Firms Scotland, an agency
helping social enterprises to grow, which intends to broker eight to 10 acquisitions over the next three years.
The news comes as the Scottish Government today announces a £1m Social Entrepreneurs Fund aimed at increasing Scotland's stock of social and ethical companies, which currently stands at more than 3,000.
Martin Stepek of the Scottish Family Business Association said the Lottery funding will provide a boost for small family companies that want to sell up but frequently find it difficult to attract a suitable buyer.
He said social enterprises such as the Aberdeen Foyer, a business which offers employment to vulnerable young people, have become increasingly competitive players in the lower end of the M&A market. Many small business owners would rather sell to an organisation they know will continue to benefit the community, he said, adding that takeovers by social enterprises often allow for family members to stay on in some capacity.
Pauline Graham of Social Firms Scotland said: "Our motivation is around finding and creating employment opportunities for people who are severely disadvantaged in the employment market."
Jim Mather, who will launch the Social Entrepreneurs Fund today, said social businesses will play an important role in creating jobs in downtrodden communities. The fund will be managed by Firstport, an agency that helps budding social entrepreneurs through training and financial advice.
Naomi Johnson, executive director of Firstport, said: "This new money, linked with business support and advice, sets a strong remit in the development and growth of the social enterprise sector."
The full article contains 336 words and appears in Scotland On Sunday newspaper.
