What is the impact economy and why are we mapping it?

Why? 

Right now, if you’re fortunate enough to have more money than you need — which is of course a different number for everyone — and you want to do good, the journey can be confusing.  

On top of deciding where to focus, you’re faced with a fragmented market of often competing elements, Should you choose a charity? Social enterprise? Impact investment fund? A Community Interest Company? BCorp? Social Loan? 

You quickly find yourself navigating complexity that can hide  the fact we’re all part of the same conversation. 

There is clearly a connection between the philanthropist donating to a youth mental health charity and the impact investor backing a start–up tackling the same issue. They are part of the same economy.

Creating a bigger tent 

What if we talked about the impact economy in the same way we talk about the creative economy or the green economy — as a unified, purpose-led space with shared goals and common values? 

A place that recognises the differences between charity, social enterprise, and impact investment but also, that they are part of the same story, that binds them together. 

If we make the tent bigger and the language simpler and more unified, we make it easier for more people to get involved. 

Through our mapping the impact economy project, we’ll work with partners across the ecosystem to build a more comprehensive picture of the UK’s impact economy — what it is, who it is, how big it is, and why it matters. 

We strongly believe that the way to define the story of the impact economy is to start telling the story of it!  

What we’re doing 

We believe the impact economy is already substantial. If you bring together philanthropy, social investment, social enterprise and other mission-led activity, early estimates suggest the UK’s impact economy could be similar in size to manufacturing, or the creative industries, which is really exciting. 

But right now there’s no agreed definition or data set. That makes it harder to advocate for the sector, harder to build public understanding, harder to celebrate impact and harder to attract new people and capital. 

Over the next six months, we’ll be working openly and in public to pull together the best available data, listen to voices across the sector, and build a clearer narrative showing the scale, value and diversity of the impact economy. 

Because if we can’t tell its story, we can’t inspire more people to join.  

In short, we want to change the conversation. 

We want to help shift from “What kind of structure do I want to give to?” to “How am I involved in the impact economy?” 

Because once people see themselves as part of something bigger, they’re more likely to stay involved and to bring others in too. 

Join us 

We’re not doing this alone. This is a shared effort across a growing movement and we’re grateful to our partners who have helped get this off the ground: Esmée Fairbairn Foundation, Mishcon de Reya, Lloyds Banking Foundation England and Wales, Big Society Capital. 

We know it won’t be perfect. We know we’ll get things wrong. But we’re committed to learning openly, and we want as many people as possible to take part.  

If you have insight, data or a story we want to hear from you. To get in touch email impacteconomy@thinkNPC.org.