Henriette Van Eijl describes the potential impact of social innovation models on the growth of small and medium enterprises

1. SME Finance Forum
Working meeting 6-7-2011,
Brussels
Disclaimer:
The views expressed in this presentation, as well as the information included in it, do not
necessarily reflect the opinion or position of the European Commission and in no way
commit the institution.
European Commission SME forum 6-7-2011
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2. « The Europe I believe
in »
“The financial and economic
crisis makes creativity and
innovation in general,
and social innovation in
particular
even more important to foster
sustainable growth, secure
jobs and boost
competitiveness.”
President Barroso at the BEPA Workshop on
‘Europe and Social Innovation’, 20 January 2009
European Commission SME forum 6-7-2011
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3. Where can you find social innovators?
European Commission SME forum 6-7-2011
From the 2010 SIX social innovation study commissioned by the EC
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4. Social innovation produces innovations
that meet a social need by:
Workplace innovation: empowering people
Connect social economy, social entrepreneurs,
business, charities, public sector, finance
Strong link to public sector innovation
Street-corner, local, regional, national to EU levels
European Commission SME forum 6-7-2011
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5. Social innovation
What are businesses doing here?
European Commission SME forum 6-7-2011
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6. Companies see opportunities in social innovation:
1. Increased demand for sustainable or energy-
efficient products and services: 32%
2. New services and products for older
consumers: 15%
3. Education, social- or health services: 12%
European Commission
Source: Innobarometer 2009 study
SME forum 6-7-2011
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7. Who is funding social innovation already –
public funds – some examples?
Social Innovation Funds:
• Estonian Development Fund, Social Enterprise
Investment Fund, UK
Innovation Agencies:
• TEKES and SITRA (Finland), VINNOVA (Sweden)
European Funds:
• European Social Funds
• EIB-ESF Progress Microfinance facility
• Other Structural Funds: ERDF
• Research Framework Programmes and CIP
European Commission SME forum 6-7-2011
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8. Who is funding social innovation already –
private funds – some examples?
Social banks:
• Banco Prossima (IT), Credit Cooperatif (FR), Triodos
(NL),
Commercial investment funds (financial return, then social
impact):
• PhiTrust (FR), BonVenture (DE),
Social investment funds (social impact most important):
• CAF Venturesome (UK), Fondazione CRT (IT)
Venture philanthropy funds (grants and advice):
• Impetus Trust (UK), d.o.b. (NL)
European Commission SME forum 6-7-2011
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9. Problem analysis:
Social innovators have commitment,
experience and energy.
But: little access to appropriate funding.
Result: no shortage of good ideas, but far
too few achieve the impact they could.
European Commission SME forum 6-7-2011
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10. Ideas by SIE
consortium
What could help? Toolbox of funds:
Investment in ideas: < ~ 25,000 €
Investment in prototypes ~ 300,000 €
Implementation fund < € 30 million
Scaling – jointly with public sector, banks
and foundations < € 100 million
European Commission SME forum 6-7-2011
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11. Questions to you:
• The public sector has funded social innovation in
many ways and for a long time, but what role should
the private sector play in funding social innovation?
• What would be the role of different tools offered by
the private sector, including cooperative banks – for
instance through capital markets or through
banking finance?
• How might private investors be empowered to drive
positive change?
• What can be done on a European level?
• Where do we want to be in 10 years time? What do
we want the finance infrastructure look like?
European Commission SME forum 6-7-2011
Enterprise and Industry

12. Thank you for your attention and
looking forward cooperating with you!
Your comments and inputs are very welcome on the Social
innovation Europe’s website:
www.socialinnovationeurope.eu
Henriette VAN EIJL, Henriette.van-eijl@ec.europa.eu
European Commission SME forum 6-7-2011
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