Purpose of investment
To expand three existing services to deliver future growth - painting, jetting and electrical, building the capacity of the organisation to be able to competitively tender for more contracts.
Investment package: Making Enterprise Happen
Sector: Employability, Health and Wellbeing
Social outcomes: Citizenship and community
Making a positive impact on the people of North Glasgow
ng2 is a growing social enterprise based in North Glasgow, employing 85 people in the housing sector. They maintain homes and public spaces, helping to provide quality housing and neighbourhoods for local people. They employ a mix of tradesmen (painters and electricians) alongside manual workers including cleaners and power-washer technicians.
Since 2010 they have built up their social enterprise business, creating sustainable jobs, delivering services to the local community and tacking inequality by employing local people who have been removed from the labour market. They see their role as providing professional management of the housing stock, whilst looking after the welfare of local residents.
In 2014, ng2 received £350k from Resilient Scotland via Making Enterprise Happen. The investment would support ng2 to build the organisation, develop new contract opportunities both within and outwith their local area whilst increasing the range of services they provide for people in North Glasgow – i.e. creating a sustainable enterprise.
The investment has allowed ng2 to employ a quantity surveyor with experience and skills in writing tender documents, to help grow the business and to become more commercially focused. This has spawned early success with them winning a range of contracts across the city, whilst at the same time maintaining their links with the housing association.
They have subsequently gone on to employ 10 new full-time members of staff across a range of trades, equipping them with the skills to deliver ng2’s new work opportunities.
John Devine, Director of Regeneration at ng2, commented; “The investment has given us flexibility, we have been able to determine how it is spent and we are not constrained by onerous grant conditions. As an organisation we took the decision that we could use the grant element to cover revenue costs and in particular to cover the creation of a new post, whilst the loan element could contribute to the significant capital costs connected with the development. Without this investment ng2 business development would have been much slower and many of our new contracts would have fallen by the wayside.”
With the assistance of the Resilient Scotland funding, ng2 grew their income by 33% and operating profit increased by 90%. More than £45k of the loan from Resilient has already been repaid.