Financial instruments for social economy workshop

Recommendation 1

Co-operation between the financial sector, the NGOs and public sector in providing funding for social enterprises is necessary. From this perspective, it is needed that local financial intermediaries understand the role and needs of social enterprises and recognize their financing as a business opportunity. Policy makers and MAs should understand the constraints of financial intermediaries so to strengthen their capacity to work with SE. Lack of capital or increased risk of lending is then possible to be covered by involving public resources – primarly as guarantee - with fair risk distribution.

Recommendation 2

It is necessary to set up integrated support schemes combining grant mechanisms with financial engineering. The aim is to make funds available for the different stages of development of social enterprise. Besides the initial capital investment it is also necessary to consider the availability of working capital to ensure the sustainability of social business.

Recommendation 3

It is efficient to couple the investment into social enterprises with investment into human capital. ESF should be significantly focused on strengthening the capacity of entrepreneurs and their employees, using already existing or developing new Business support services for coaching, mentoring of social enterprises. Ensuring access to capital without the corresponding business services (advising, coaching, mentoring) does only partly help the development of social enterprises.

Recommendation 4

It would be appropriate to continue to strengthen the ability and capacity of Managing Authorities and other policy makers to create integrated financial mechanisms co-funded by the ESF or ERDF. It would be fruitful to continue to promote exchange of experience among Managing Authorities regarding the provision of support for innovative solutions in ensuring resources for social enterprises.

Thank you for your attention