PURPLE SHOOTS BUSINESS LENDING LTD
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Mission Statement
Our aim is to uncover, empower and enable Britain’s hidden entrepreneurs, to change things for people who are disadvantaged by circumstances, health or disability and are left behind by the economy. We believe everyone has potential and should have an opportunity to fulfil it. We open doors and provide opportunities and new possibilities for people who otherwise would not have had access to funding or support. Through our loans and our self-reliant groups (SRGs), we build capacity, independence and confidence in often marginalized individuals who have previously struggled with employment. We aim to drive positive and sustainable change for these “hidden” entrepreneurs, allowing them to flourish – improving their lives, the community they live in and the wider economy. We want to see every community with access to the network of support which our self-reliant groups offer, and every individual with access to finance if they have aspirations to start and run their own business, so that they are enabled to change things for themselves in a sustainable, permanent way. We believe everyone is valuable and has potential and should be given the chance to be the best they can be Respect – we believe that community is built on mutual respect, treating everyone equally and with dignity Inclusivity – we partner with entrepreneurs of all races, cultures, systems and beliefs Integrity – we will always be honest and open and act with integrity to ensure the best outcome for entrepreneurs and the wider community Justice – grounded in Christian ethics, we believe in fairness and justice for all As an organization, we follow our “purple” values. We are: Purposeful – we stick to our aims and our values, to do good and to change things for the better Understanding –we seek to understand our clients well and to serve them in the best way we can Reliable – we treat everyone fairly and with respect Proactive – we are not passive. Working with people means you cannot take a back seat. We are in it for the long haul with the people we work with and we want to drive a whole movement of change Learning - We are always open to learning and willing to improve – we encourage a learning attitude in our clients and in ourselves as this leads to self-empowerment and success Entrepreneurial - we encourage new ideas and we seek to enthuse, motivate and inspire
About This Cause
Purple Shoots is tackling poverty, isolation and unemployment, encouraging entrepreneurship, independence and self-reliance, amongst people who are often the most marginalized in our communities, including those on benefits, people with disabilities, long term health conditions or mental health issues. We are doing this through providing pathways and creating opportunities to enable people to change things for themselves in a sustainable, permanent way. We believe every individual is valuable and has something to contribute – so we look for their potential, for the skills and ideas they might already have and enable them to build on that. There are two key things that we do: • Microfinance: small loans to individuals who are unable to access finance from other sources. The loans are used to start or run a small business. 96% of clients are on benefits at the time they receive a loan. We are unique in the UK in the approach that we take and the people we support – nobody else is supporting this client group into self-employment. Money given to us for this part of our work has a long term impact – we can lend it over and over again to support more and more people, as loans are repaid and the money goes round again. • Self-reliant groups (SRGs): for people stuck in a vicious cycle of isolation and poverty who want to change their lives but don’t know where to begin. Our groups help them to use their own resources, skills and knowledge to take positive action in a self-determined way, and provide a support network of other group members plus a wider UK-wide community of other like-minded groups. The groups have a financial element and we provide any training requested. Our experience is that group members become more confident, resilient and better equipped to deal with life’s challenges. We aim to drive positive and sustainable change for the UKs ‘hidden’ entrepreneurs, allowing them to flourish – improving their lives, the community they live in and the wider economy. Our Story Purple Shoots’ founder, Karen Davies, started Purple Shoots because of her own passion for social justice and the need that she saw right in front of her in South Wales. With a career history in financial institutions as well as experience in small business, she knew that no one supports the very disadvantaged people into business beyond providing advice – no funder will back them because they are perceived as a bad risk, with no assets for security, no money behind them and no track record. As a result, people caught in these circumstances have no chance to improve them and no chance to realize their potential. However, having studied the microfinance models in developing countries, and understanding the strengths in poor communities which distant funders often don’t see, she became convinced that microfinance could be made to work in the Welsh context. She successfully raised a small fund from a wealthy philanthropist and having obtained all the necessary regulatory approvals, began, convinced that if she proved it, other funders would be interested. The first borrowers included a man who had lost his building business in the financial crash but had retrained as a specialist therapist for children with cerebral palsy and needed £2,000 to open a centre. No one else would help him because he had no funds to put in, no assets and a bad credit score. He now has a successful business, employing others and successfully treating hundreds of individual children with cerebral palsy. Recognized as an expert, he does talks across the UK. Another early borrower was a Polish couple who borrowed £1700 for kitchen equipment to open a small Polish restaurant above a pub in Mountain Ash. They now have a successful restaurant in the centre of Cardiff which (until lockdown) was full most evenings and also offers a takeaway service. More funding was raised and the lending continued but it soon became clear that whilst the borrowers had mostly overcome a series of bad circumstances and obstacles to get to the point of approaching Purple Shoots for a loan, there were many other talented people held back by circumstances who could also change their lives given some support and opportunities. Karen had visited self-reliant groups in India and was already working with a charity in Scotland called WEvolution which was introducing the model in the UK, so with some support from them, she introduced it in Wales. The success of this model was recognized by NESTA who funded us to introduce it in the West country three years ago. Our early groups included a group of disabled women in Swansea who, although not well enough to work, save together and generate small amounts of income together through handcrafts so that they can support each other in crises and keep going as an independent group. Another group of new immigrant women in Cardiff formed their group initially providing free meals to other immigrant women in a subsidized café. The quality of their food has become widely recognized and they now have a small catering business providing food for events and surrounding offices which has enabled them to continue to cover the costs of running their café and to completely refurbish and upgrade their kitchen to a commercial standard. Outcomes to date Microfinance In the last 6 years we have made 579 small loans, lending a total of over £1.3m. Our lending has created over 460 new businesses and supported 115 existing ones, generating employment for over 600 people. Purple Shoots’ work is supporting the Welsh economy: the £1.3 million invested has had an economic impact (calculated using a recognized tool developed for the Responsible Finance Association) of £13 million and the lending also has high social impact in terms of improved self-esteem and confidence, benefits to family etc. Purple Shoots’ lending is focused principally on the South Wales valleys, although increasingly we are lending further West and North and in the cities. Our loans correlate with some of Wales’ most deprived areas, as documented by the Welsh Index of Multiple Deprivation. Since inception: • 70% of loans have gone to the 50% most deprived areas of Wales • 48% have gone to the 30% most deprived • 25% have gone to the 10% most deprived areas Within those regions, Purple Shoots is reaching the neediest people: • 96% of our clients are on benefits at the time they receive a loan • 74% are unemployed. For example, Lisa Middle overcame the almost terminal illness of her son, the loss of her job whilst she cared for him, the loss of her husband’s job and the inevitable decline in their financial circumstances – to establish Lisa’s Cake Station, cake shop in a village in the Rhondda Valley selling cakes, all baked fresh daily by Lisa. She also makes celebration cakes, TV-nights-in boxes, and cakes for local businesses – and she runs cookery classes for local children. Purple Shoots was the only organization prepared to back her. Her cakes sell out every day. Self Reliant Groups We have also helped more than 300 people through 40 SRGs in Wales and South-West England, of which 13 are now self-sustaining. The outcomes of the groups vary – some form enterprises, some individuals find jobs or move into self-employment or training (including two who have significant disabilities and have never before been in sustained employment.) All of the established groups have generated savings pots of £500 or more, enabling the group to launch its enterprise or lend small sums to group members who can thereby avoid predatory personal lenders. Our impact evaluation programme has found other impacts on individuals as a result of our groups including improved mental health, increased confidence and reduced isolation. A quote from a GP of one our group members seeking a repeat prescription for anti-depressants: “You can have the prescription but the best thing you have ever done to tackle your depression is joining that group”. Another quote from a father of one our group members with learning difficulties: “I think Social Services should divert all their money to your organization because it is the only one which has ever done anything meaningful for my son”.