A new £4m fund to invest in Wales’ social business sector has been announced by Welsh Finance Secretary Mark Drakeford.

The new Social Business Growth Fund, backed by £2.3m of EU funds, will make funding packages of up to £150,000 available to social businesses across Wales.

Managed by the Wales Council for Voluntary Action (WCVA), it will support the growth of Welsh social businesses and help develop new products, services and markets.

Investments through the fund will involve a mix of grant funding and repayable finance, with financial incentives for social businesses that exceed job creation targets.

Around 45 social businesses across Wales are expected to benefit from the fund over the next three years.

Professor Drakeford said:

“Social businesses make important contributions to regenerating communities and delivering local services, as well as creating jobs and enterprises, so I’m delighted to announce this support for this sector.

This fund complements the specialist support already available through Business Wales and will help social businesses expand, pursue new opportunities and continue to play a valuable role in our economy and society.”