The Freedom Bakery Case Study | Social Investing | Good Finance

The Freedom Bakery

Freedom bakery
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Freedom Bakery raised investment from seven investors using the Social Investment Tax Relief to grow their prison-based social enterprise.

 

Duration 
4 years
Cost of capital 
1.75%
Turnover 
£210,000 from year 2
Invested 
£48,000 Social Investment Tax Relief, £85,500 in total

Problem

Many ex-offenders are reconvicted within one year of release. While research shows that many prisoners thought that ‘having a job’ was important to stop them reoffending, finding employment on release can be difficult for many, particularly for those who were unemployed before they were convicted.

Solution

The Freedom Bakery trains prisoners at a maximum security prison, HMP Low Moss, to make artisan bread. By teaching skills and qualifications, as well as recreating the structure of a working day, the bakery aims to increase the employability of prisoners and reduce re-offending.

Revenue model

Social investment helped the business startup and will be repaid through selling produce. The Freedom Bakery supplies the visitor café at HMP Low Moss as well as cafés, restaurants and offices in Glasgow.

Impact

Over the lifetime of the investment, The Freedom Bakery will provide training for more than 50 inmates at HMP Low Moss, giving them the skills, knowledge and support they need to find employment, while also creating job opportunities as the business grows.

SITR gave us the freedom to fit our intervention around individuals and increase their long-term employability.

        Matt Fountain, Founder, The Freedom Bakery