Spotlight Series: How Purple Shoots expands economic participation through inclusive finance

Across the UK, many capable people are excluded from mainstream business finance - not because they lack ambition or viable ideas, but because traditional lending systems are not designed for disrupted or non-standard lives.

Purple Shoots is a community finance organisation working to address this gap, providing patient, relational finance to people who are ready to create income but are locked out of conventional routes. 

As GoodFX is committed to the idea of finance as a force for good, we want to highlight the work done by other organisations working in adjacent spheres. That is why we are pleased to highlight Purple Shoots amazing work in the latest of our Charity Spotlight series. 

THE CHALLENGE: WHEN FINANCIAL SYSTEMS DON’T FIT REAL LIVES

For individuals dealing with illness, redundancy, caring responsibilities, insecure employment or recent relocation to the UK, access to finance can quickly become restricted. Even where business ideas are viable, rigid credit criteria and automated assessments can make it difficult to move forward.

Karen Davies, who founded Purple Shoots in 2013, saw this pattern repeatedly during her career in financial services.

“These are often people dealing with disruption. The challenge is that financial systems aren’t designed to accommodate that complexity.”

THE APPROACH: PATIENT FINANCE, DELIVERED LOCALLY

Purple Shoots operates with a deliberately human approach to finance. Rather than relying solely on credit scores, the organisation combines patient lending with practical, relational support.

Their work focuses on two core areas: • Small business loans for individuals ready to trade but excluded by traditional credit criteria • Self-reliant groups, where people save together, support one another and gradually rebuild confidence, income and resilience

The businesses supported are typically small and locally rooted, contributing directly to local economic activity. 

A HUMAN APPROACH TO LENDING

Every Purple Shoots applicant speaks directly with a member of the team. Decisions are explained clearly, and where a loan isn’t immediately appropriate, guidance is offered on what may help someone become ready in future.

Repayment structures are designed to be realistic, with flexibility built in where circumstances change.

IMPACT TO DATE

Since its founding, Purple Shoots has issued just under 1,000 small loans, supporting an estimated 1,500 people into income-generating activity.

Internal analysis indicates that every £1 lent generates approximately £14 in economic value, with a net gain of around £4 to the public purse.

A wider impact study is currently underway with Glasgow Caledonian University.

WHY THIS MATTERS TO GOODFX

Impact investors are well-accustomed to the idea that credit enables economic stimulus in developing economies. As Purple Shoots highlight, however, this idea is not necessarily limited to distant geographies. Regeneration in local UK communities requires financing, and somebody has to supply that oxygen. Otherwise finance is not a force for good, rather something that can unintentionally compound the exclusion felt by those outside a traditional growth pattern.

LOOKING AHEAD

Purple Shoots continues to explore ways to extend its reach and strengthen its model across the UK. It plans to expand outside of its Wales and Midlands base and address its growing demand across the UK. We encourage ths interested to contact the charity via Karen directly karen@purpleshoots.co.uk. Donations may come in the form of a one off gift or a regular commitment.