Liverpool’s ‘Sirolli’ Schemes Bid to Establish New Funding Solution

Source: http://www.liverpooldailypost.co.uk/ldpbusiness/business-news/2011/07/06/liverpool-s-sirolli-schemes-bid-to-establish-new-funding-solution-92534-29000756/

MOVES to clinch a funding lifeline for Liverpool’s Sirolli projects have begun.
They centre on establishing a Community Development Finance Institute (CDFI) to attract investment for the entrepreneurs of the future.
The Sirolli projects were introduced to Liverpool in 1996 when acclaimed Italian business guru Dr Ernesto Sirolli followed up on visits two years previously to establish three schemes aimed at developing grass roots entrepreneurs.
The Sirolli model encourages communities to shape their own future by pooling resources to help create new businesses that contribute to the area’s regeneration as they grow.
Each institute is spearheaded by a “business facilitator” aided by a board of local people, including existing small businesses who can pass on valuable advice.

Enable North covers North Liverpool, Dream High focuses on the East of the city and Waves looks after central and South Liverpool.
But their funding runs out with the ending of Stepclever next March.
So Enable North chairman Mark Rea, 29, has suggested a CDFI to generate new investment.
He explained: “CDFIs have been around since 1999 but, because of the Objective 1 money, Liverpool has never needed one before.”
CDFIs attract community investment tax relief, so an investor giving, for example, £1,000 for five years would get 5% tax relief over the period and their money back.
Mr Rea said: “We’re hoping to be able to add a little bit more as a bonus to involve more people, so low earners could consider it as an investment.”
He said the proposal was just at the “baby steps” stage, but he wants to involve organisations like regeneration agency Liverpool Vision, the city council, Liverpool Chamber of Commerce and the Federation of Small Businesses: “We want to work in partnership with these people and say, we want you as a partner. We want to be collaborative.”
He added: “We need to grasp this with both hands and do it properly.”
CDFIs can provide funds from £500 to £50,000 for start-up businesses, overseen by the current community panels that assess the business risk in new ventures.
Mr Rea hopes his proposals could move a step closer to reality when the Community Development Finance Association comes to Liverpool this September to stage its annual conference at the Crowne Plaza Hotel.