Social Impact

Evaluation of DSL - Rocket Science 2012

ERDF Project: November 2008 – July 2012

The project was partially funded by ERDF (£229,486 or 40%); the remaining £358,474 was funded by DSL Business Finance.

This project's objectives were to expand DSL lending to businesses that could not access bank funding; extend DSL’s lending across the Lowland Urban Programme area; facilitate business start-up and growth and increase sustainability through aftercare and support. We exceeded our objectives by:

• creating and sustaining 415 jobs in Scotland
  
• cost per job has been £1,441;
  
• 20.6% in increased turnover;
  
• loans issued to a value of £1.642m
  
• £3.1 million levered

 

Esmee Fairbairn 5 Year Study - 2005 to 2011

This study looked at clients of DSL and other CDFIs across the Uk over a five year period. It showed that a business loan investment had a greater long-term impact on a person's income than a personal loan. 'Roughly speaking for every loan DSL issued 3 people exited poverty'

"The successful business-lending CDFIs, such as DSL and to some extent Derby Loans, increase their clients’ incomes by a large average margin (although most of the gain is concentrated among a few ‘star clients’) and also generate multiplier effects through diffusion of technology and through employment generated amongst their clients."

–Pamela Lenton and Paul Mosley “Out of the poverty trap: Overcoming financial exclusion in the inner city” Published Oct 2011

What do or clients say about us? (independent evaluation, 2008)

• 100% of clients would recommend us to other businesses
• 77% think DSL is good or very good in comparison to other sources of finance
• 92% of clients are happy with the post-loan contact they receive
• 86% received some assistance with their application
• 93% of clients had approached a bank for finance before coming to DSL
• 82% of clients perceived DSL to be the only source of finance available to them