Slide 1: Financing social innovation
with a sample project in the area of inclusive entrepreneurship
Norbert Kunz, iq consult Power a New Future – The ESF delivering the Lisbon Strategy Lisbon, December 12, 2008
beratung. projektentwicklung. qualifizierung.
Slide 2: Content
1. Social innovation / social entrepreneurship 2. Goals iq consult 3. Sample project: Project enterprise – Young people on the road to self-employment 4. Necessity and difficulties of public financing
beratung. projektentwicklung. qualifizierung.
Slide 3: 1. Social innovation
Social Goal: Systemic solution of a social problem Success factor: Social change financial sustainability is desired, profit however is NOT the main aim
Entrepreneur Innovative approach Entrepreneurial spirit Creativity Growth-oriented Role model
beratung. projektentwicklung. qualifizierung.
Slide 4: 2. Goals iq consult
ESTABLISHMENT OF A HIGH-QUALITY START-UPSUPPORT STRUCTURE FOR ALL
•Elimination of structural barriers and lack of acceptance for business starters in difficult social and economic circumstances •Assistance for potential business starters on their pathway to self-employment through a targeted and integrated support service in all phases of the start-up process •Creation of access to finance for business starters
beratung. projektentwicklung. qualifizierung.
Slide 5: . Sample project: PROJECT ENTERPRISE
Aim: TO ENABLE YOUNG PEOPLE UP TO THE AGE OF 27 A PROFESSIONAL ALTERNATIVE THROUGH SELF-EMPLOYMENT
beratung. projektentwicklung. qualifizierung.
Slide 6: . Sample project: PROJECT ENTERPRISE SUCCESS THROUGH STANDARDS
Entrepreneur‘s passport
4-phase model Self-learning manuals
beratung. projektentwicklung. qualifizierung.
Slide 7: . Sample project: PROJECT ENTERPRISE PROCESS AND RESULTS (QUALITATIVE)
• Reduction of prejudices by active networking and by integrating the service into the existing start-up support infrastructure • Development of a QM system within the 4-phase model • Development of an Entrepreneur’s Passport (Guide & Transparency) • Design of self-learning materials • Development of micro-finance offers • Development of a mentoring system for post-start-up support • Contribution to the establishment of national structures to improve the situation of business start-ups out of unemployment (VDG/DMI)
beratung. projektentwicklung. qualifizierung.
Slide 8: . Sample project: PROJECT ENTERPRISE
PROCESS AND RESULTS (QUANTITATIVE) • Number of participants • Number of start-ups • Survival rate after 3 years • Number of employees • Costs per participant • Costs per start-up 1.400 70% 2.000 1.200 5.000 6.000
beratung. projektentwicklung. qualifizierung.
Slide 9: . Sample project: PROJECT ENTERPRISE
NATIONAL AND EU STRUCTURES
in Germany: • Brandenburg (since 1999) •Mecklenburg-Vorpommern (since 2001) • Berlin 2002 • Sachsen-Anhalt (2004) • Thuringia (2006) Partners in Europe: • Spain • United Kingdom • France • Greece • Belgium • Poland
beratung. projektentwicklung. qualifizierung.
Slide 10: 4. Public finance
IMPORTANCE OF PUBLIC FINANCE
•Development of innovation was only possible with the help of public money •Regional ESF money helped to establish regional operational project mechanisms, EQUAL served for the development and implementation of new instruments and methods
beratung. projektentwicklung. qualifizierung.
Slide 11: 4. Public finance
People with sufficient purchase power
Public investment in people or structures providing services customized to the financial capacity of different target groups (Social Business) Public investment in people by developing effective and efficient performance systems
People with low purchase power
People with no purchase power
beratung. projektentwicklung. qualifizierung.
Slide 12: 4. Public finance
PROBLEMATIC ASPECTS OF PUBLIC FINANCE
• no options for adaptation in case of changing demand
• rigid budget framework • no incentive for realizing income (deficit financing) • no planning security • absurd documentation duties
beratung. projektentwicklung. qualifizierung.
Slide 13: Thank you very much for your attention!
Norbert Kunz iq consult gmbh Muskauer Straße 24 D-10997 Berlin kunz@iq-consult.com
www.iq-consult.com
beratung. projektentwicklung. qualifizierung.