Education plays a fundamental role in young people’s lives, influencing their opportunities now and in the future. But the attainment gap for pupils from less advantaged backgrounds remains huge. There is also a challenge equipping young people with the skills needed for work and retraining older people to secure jobs in emerging industries.
Charities and social enterprises are using repayable finance to address these issues by delivering additional education programmes, preparing students for life after they leave the school system, connecting people with jobs, supporting young people at risk of unemployment and providing training opportunities to people further from the labour market. Revenue is generated from both from selling products and services to consumers and business as well as directly contracting with government, sometimes through outcomes-based payments.
High quality impact measurement in this area is essential to help organisations sell services to commissioners, win business from employers and understand the relationship between impact and profitability. Metrics which appear to be used commonly focus on education, jobs created and sustained employment. We would like to see greater alignment and transparency about success and challenges of different interventions in this area. This will help commissioners and investors make more informed choices about investment.