Education and training are incredibly important in young people’s lives, shaping their opportunities both now and in the future. But the attainment gap for pupils from less advantaged backgrounds remains huge. It’s also a challenge to equip young people with the skills they need for work, and to retrain older people to secure jobs in emerging industries.
Social enterprises, charities, and social purpose organisations are using repayable finance to address these issues, by delivering education programmes, preparing students for life beyond school, connecting people with jobs, supporting young people at risk of unemployment, and providing training opportunities for people disconnected from the labour market. They generate revenue both from selling products and services to consumers and businesses, as well as directly contracting with government, sometimes through outcomes-based contracts.
High-quality impact measurement in this area helps organisations sell services to commissioners, win business from employers, and understand the relationship between impact and profitability. Commonly used metrics focus on education, jobs created, and sustained employment.
