Social Innovation Lisbon - Norbert Kunz

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Social Innovation Lisbon - Norbert Kunz

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

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