Former SSE boss ploughs dough into breadmaker

Ian Marchant, former chief executive of energy giant SSE, has made his first investment in social enterprise, backing a community bakery in Edinburgh.

Breadshare, which “provides organic and nutritious bread and offers a variety of activities to enhance community life in Edinburgh”, has secured investment to franchise its business model across Scotland.

The investment, made by Mr Marchant, has secured Social Investment Tax Relief (SITR) and was facilitated by social enterprise start up agency Firstport.

Breadshare, set up by husband and wife team Debra and Geoff, is one of 14 businesses on Firstport’s LaunchMe, Scotland’s first accelerator for early stage social enterprises.

The bakery has raised a total of £100,000, with the £50,000 put up by the investors matched by grant funding from Big Lottery Scotland.

Delivered by Firstport and funded by Big Lottery Scotland, the accelerator is designed to grow the social investment market in Scotland.

Firstport identifies the most ambitious, early stage social enterprises in Scotland, provides one-to-one business support and connects them with investors looking for social as well as financial returns.

The participants can also apply for matched non-repayable grant funds from Big Lottery Scotland, as well as initial seed funding.

Mr Marchant said: “I was looking for my first investment in social enterprise and there were two features about Breadshare that caught my attention: It is based in my home city and it operates in the hospitality industry, a sector that interests me.

“I asked a trusted colleague with a background in the industry to investigate the opportunity further, and after she gave her the seal of approval, I decided to go ahead with the investment.”

Karen McGregor, chief executive of Firstport, said: “We are delighted that traditional angel investors are more aware and getting involved in social enterprise. It’s a significant development for our sector and we hope more investors like Mr Marchant turn their attention to, and recognise the exciting potential of, social enterprise.

She added: “We have now set up an informal network of investors interested in social enterprise.”

Mr Marchant added: “I have developed my own theory about investment which applies to both time and money. It draws on the triple bottom line theory which is usually applied to companies and governments but can, I believe, be adapted for personal use too. For me, an investment social enterprise hits all those three: a modest economic return for an impact on an organisation and an issue facing society in a market or place that interests me. What’s not to like.”