Resources

Social Innovation Challenge Criteria

Who can apply?

Any Scotland-based individuals, groups or organisations with a groundbreaking idea for a new social enterprise project addressing one of the themes can apply. As we aim to support the development of new, innovative ideas, we cannot support organisations that have already received significant public funding. 

• Do I need to be a specific kind of organisation to apply? 

No – although the funding can only be released to incorporated social enterprises registered and operating in Scotland, any Scotland-based individual, unincorporated group or community organisation can apply, even if they are still at the idea phase (or pre-incorporation).If an applicant who is not yet incorporated wins, we will support them with the incorporation process and governance requirements before we pay out the award.  

For example, we’ve previously offered a conditional award to an organisation that wasn’t incorporated at the time of application. The grant was paid after the organisation was officially incorporated, had elected its board of directors and had opened a bank account. 

• Can multiple organisations apply in partnership? 

Yes, we welcome and encourage applications from collaborations between different organisations. In this case, the partners involved in the application can either elect an eligible lead applicant (an organisation who is already an eligible social enterprise) or commit to set up an entirely new social enterprise together, in which case the process for individuals and unincorporated groups applies.  

• What do you mean by ‘significant public funding’? 

If applying through an existing organisation, or intending to set up a subsidiary of an existing organisation, we can only accept your application if you received less than £250,000 in public funding in the past 3 financial years. Our funding is extremely competitive, so we need to focus on organisations who have not already received high levels of financial support.   

If applying as a partnership between different organisations intending to set up a new social enterprise, this applies to all partners. 

• I have already received funding from Firstport – can I still apply? 

We prioritise new applicants, however, previous and current Firstport applicants and awardees can apply as long as they have not already received a Social Innovation Challenge or a Social Innovation Competition award in the past.  

We would only recommend previous awardees apply if they can demonstrate particularly strong links to the themes and a distinctively innovative approach. This must be reflected in your budget – i.e. we won’t cover any costs we previously funded.  

Any applicants holding open loans from Firstport, such as a Step Up or Catalyst award, would need to ensure that their cashflows reflect the necessary loan repayments as agreed with their Investment Manager. Second instalments will be subject to these repayments being met. 

If you would like more information about any aspect of the eligibility criteria, please attend one of our recurrent information sessions or contact us for further guidance. 

Eligibility criteria: 

If applying as a registered social enterprise:   

• The enterprise is incorporated and registered with OSCR or Companies House.    
• The enterprise is an asset-locked body* with a registered office in Scotland.   

If applying as an individual or an unincorporated group:   

• The lead applicant is 18 or over.   
• The lead applicant is either a permanent resident of Scotland or has a visa / leave to remain that covers the award period (usually 2 years from the award date).   
• There is an intention to incorporate an asset-locked* social enterprise with a registered office in Scotland (funding will be released on successful incorporation.)   

Applicable to all submissions:   

• The applicant has not received a Social Innovation Competition or a Social Innovation Challenge award in the past. 
  
• The applicant (individual, enterprise, or company group of which the enterprise is part of) has not received more than £250,000 in grants or loans from a public source over the last 3 financial years. 
  
• The application proposes an innovative solution which addresses one of the following four themes: eradication of child poverty, providing meaningful employment, tackling the climate emergency, alleviating pressures on essential services.   
  
• The existing or proposed enterprise’s activities do not involve political campaigning or the advancement of religion.   
  
• The core objective of the existing or proposed enterprise is to provide direct social benefit** to individuals, communities, and/or the environment.   

*Asset lock: An asset lock is a clause within the governing documents of the enterprise which ensures that any profits are reinvested towards the business and its social aims. This means that no assets or uncapped dividends can be transferred out of the organisation to private individuals or bodies. Individuals working for the enterprise can take a fixed salary, but profits generated on top of this must be reinvested.   

**Direct social benefit: We can only support projects whose primary focus is to deliver impact (or social benefit) directly to their beneficiaries or the environment. We cannot support projects which primarily work with other businesses, who then go on to deliver benefits to individuals or the environment.

Quality criteria – how we will assess your application: 

The Social Innovation Challenge is a highly competitive process, and we receive far more applications than we can fund. If you enter the challenge, we recommend that you offer strong arguments for how your project fits the quality criteria.  

Only projects that meet all eight quality markers will be considered for shortlisting. Out of those, the three top applications that best meet the criteria will be supported. 

Team delivering the solution:

As this programme is focused on social innovation and high-risk, high-potential enterprises, we must ensure that there are plans to put together a strong team with the necessary skills to deliver the solution.  

We will look beyond just the skills of the lead applicant and focus the assessment on the existing or proposed governance of the enterprise. External partnerships, collaborations or wider support also count. 

Long-lasting social impact: 

Whilst applicants can aim for either deep or large-scale social impact, which will be valued equally, the proposed solutions must be unique and must have the potential to deliver direct and long-lasting positive impact against a real and relevant issue. This means projects addressing the core issues at the heart of the theme will be scored higher than those proposing short-term, temporary improvements.  

Business potential: 

All applications need to show a strong business plan, backed up by market research that can demonstrate an opportunity to generate significant income. Strong applications should show financial viability by ensuring that there is a realistic business plan at the heart of the proposal. The business plan should show potential for generating sales consistently and, eventually, reaching financial sustainability.  

Innovation: 

Proposed solutions need to evidence innovation – either by tackling challenges from a new angle, deploying resources in inventive ways or creating new partnerships which are better equipped to understand and address these core issues. Whilst innovation can be specific to a niche context, applicants must be able to show why their solution is groundbreaking and why their approach is the best solution to the problem identified. 

Lived experience or community involvement: 

We are interested in solutions shaped alongside the individuals or communities they seek to serve. We expect all applicants to either have direct experience of the issue they are addressing, or to be able to evidence meaningful connections with those who do. 

Environmental sustainability: 

We want to understand how environmentally sustainable the proposed projects are, and we will prioritise projects which consider their impact on the natural environment and alleviate any negative consequences as much as possible. This could either be through a Net Zero plan or through the inclusion of regenerative practices. 

Potential for scale or replication:

The winning project would also show potential for scale or replicability so that other communities facing similar challenges can benefit from its learnings.

Funding need:

We will prioritise applications which can demonstrate a clear need for the funding and effective use of it if granted.