Social Finance

This study covers Social Finance as the financing of social enterprises. Social enterprises are important drivers behind social innovations and social change. Their business models provide services or goods with a social value or integrate the target group in the production process. This study written for the Austrian NEOS Lab and the European Liberal Forum analyzes the mechanisms of the social capital market, discusses recent developments and formulates a number of recommendations to support the growth of the social capital market. Check it out.

Imperfections in the social investment market and options on how to address them

The ex-ante evaluation for the European Commission was a study on how to best use €92 million to support the European social investment market. The study outlined the imperfections in the social investment market and what steps should be taken to improve the functioning of the mechanisms.  Take a look. It’s really worth reading!

The delivery options were as follows.

Aim Increase the capital base, through a signalling effect for other investors Facilitate lending for social enterprises, and reduce the risk for capital providers Capacity building in the social investment market
Instrument Investment Fund Guarantees Grants
Main Target Venture philanthropy funds Mainly banks but also foundations Financial intermediaries and organisations with a focus on the development of the social enterprises
Amount €38 million + €3 million €40 million €9 million

The program is a very important step for European social enterprises and Felix Oldenburg wrote an interesting article about it.

Herausforderungen bei der Gründung und Skalierung von Sozialunternehmen. Welche Rahmenbedingungen benötigen Social Entrepreneurs?

A consortium worte this study on the challenges to create and scale social enterprises for the German Federal Ministry for Economic Affairs and Energy. It also included the task which framework conditions should be created to support social innovations in Germany. If you understand German you should download the report here: Herausforderungen bei der Gründung und Skalierung von Sozialunternehmen.