annual report - mozaik
TRANSCRIPT
1
ANNUAL REPORT
JANUARY 1ST– DECEMBER 31ST, 2018
SARAJEVO, JANUARY 2019
2
CONTENT:
1. Short Summary
2. Strategic Statements 2015-2026
3. Results Achieved in 2018
3.1. Attract and identify responsible, ethical and positive youth
3.2. Mobilize and develop community leaders
3.3. Support and invest in promising ideas of social entrepreneurs
3.4. Become the regional gold standard for sustainability and social entrepreneurship
4. Mozaik’s Development
4.1. Regional Scaling
4.2. Mozaik Impact Fund II
4.3. Community Building and Data Analytics
4.4. Networks
5. Challenges and Risk Mitigation Strategies
3
1. SHORT SUMMARY
MOZAIK FOUNDATION is a social enterprise based in Bosnia and Herzegovina with a
mission to identify, empower and invest in value-driven and innovative social
entrepreneurs, creators of good economy. We are committed to achieve our 10-year
impact: “Between 2016 and 2025 Mozaik will lead the development of a break-through
generation of entrepreneurial and innovative youth - a value-driven force that creates new
social and economic value, creates new jobs and serves as role model to other youth.”
In order to involve many different stakeholders, share ownership, increase participation
and achieve promised impact, we launched on-/offline community LONAC (the pot),
where young person can find everything she needs for her professional success. Since
April 21 2018, when the community was launched, 11.131 individuals registered.
We are running two interrelated programs that create opportunities for youth: YouthBank,
where we identify and empower young social innovators and entrepreneurs through
community grants. In 2018, young people applied with 332 projects and 263 were
supported, totaling 324.153 Euro. 42% of this amount was raised by non-formal groups
and additional 32% Mozaik raised from municipalities, meaning that on every Euro
Mozaik grants through this mechanism, three Euros are mobilized locally.
Our second program, Impact Incubator, provides free and quality support to young social
entrepreneurs. Beside mentorship, Mozaik is also providing impact investment to these
social entrepreneurs that satisfied developed criteria for social businesses. In 2018, we
incubated 161 social businesses ideas and invested in prototype development of 29 new
businesses. Finally, we invested in 15 social businesses that address social issues in
economically sustainable way.
In 2018 we developed strategic partnerships with several companies, who are now part
of the ecosystem and provide social banking services (Sparkasse Bank), place on their
shelves for social businesses’ products (dm and Mercator) and physical spaces in 3 cities
for entrepreneurs (PMI).
Mozaik’s annual budget was 1.326.112 Euro, coming from 43 various sources, including
strategic partnerships with 32 municipalities, seven private foundations (Bosch Stiftung,
Mott Foundation, Medicor Foundation, ZEIT Stiftung, TechSoup Foundation, Rockefeller
Brothers Fund and one anonymous foundation), one fund (EFSE) and one individual
impact investor (anonymous). This year, we signed contracts with SIDA and SDC who
agreed to join and co-fund our strategy. EU supports our cooperation with regional
4
foundation (SIGN Network) and USAID our partnership program with Eurofoundation
on strengthening YB program in Georgia and Macedonia.
We are proud that our fruitful cooperation with US Deloitte d2i program has continued
and that we had eight consultants working with us in 2018. Their support since 2014 in
pro-bono consulting is now to over 3M USD.
2. STRATEGIC STATEMENTS 2016-2025
2.1. VISION
BiH and the region - where economy is good for all!
2.2. IMPACT STATEMENT
Between 2016 and 2025 Mozaik Foundation will lead the development of a break-through
generation of entrepreneurial and innovative youth - a value-driven force that creates new
social and economic value, creates new jobs and serves as role model to other youth.
2.3. MISSION STATEMENT
Identify, empower and invest in value-driven and innovative social entrepreneurs –
creators of good economy
2.4. OBJECTIVES
2.4.1. ATTRACT AND IDENTIFY RESPONSIBLE, ETHICAL AND POSITIVE YOUTH
KPI: #of youth that benefit from Mozaik online learning programs and take online tests.
10-YEAR TARGET: 50.000 youth
2.4.2. MOBILIZE AND DEVELOP COMMUNITY LEADERS
KPI: # of Mozaik-supported community projects that increase youth awareness and
commitment to social impact.
10-YEAR TARGET: 5.000 youth-led projects
2.4.3. SUPPORT AND INVEST IN PROMISING IDEAS OF SOCIAL ENTREPRENEURS
KPI: # of Mozaik-supported social entrepreneurs that start social businesses.
10-YEAR TARGET: 500 social enterprises and microbusinesses
2.4.4. BECOME THE REGIONAL GOLD STANDARD FOR SUSTAINABILITY AND SOCIAL
ENTREPRENEURSHIP
KPI: % of Mozaik’s minimum viable budget coming from endowment and social
businesses.
10-YEAR TARGET: 100% of the minimum viable budget (500.000€)
5
3. RESULTS ACHIEVED IN 2018
3.1. ATTRACT AND IDENTIFY RESPONSIBLE, ETHICAL AND POSITIVE YOUTH
3.1.1. DEVELOPING ON-/OFFLINE COMMUNITY
In order to establish and maintain an ecosystem of support for young social entrepreneurs
and activists, Mozaik launched LONAC, an on-/offline community for entrepreneurship
and activism. Online part of the community is placed on the platform www.lonac.pro that
provides free and quality end-to end solution to entrepreneurs and activists in BiH and
the region.
On LONAC young person can get answer to her questions, grant for socially innovative
project through YouthBank, investment in prototype development, investment in social
business registration, tailor-made mentorship support, no-collateral loan for acceleration
and free access to capacity building and information. Offline components of the
community are face-to-face trainings and capacity building, implementation of social
projects and social businesses. In 2019 we will establish physical spaces, LONAC Hubs,
in Sarajevo, Banja Luka and Bihać.
On April 21st, 2018 we opened public beta version of the community and until end of the
year we have had these results:
56.347 people visited community (55,6% female, 44,4 % male)
these 56.347 made 116.505 sessions
11.131 registered, although everyone can surf as anonymous
1.119 people (44% female, 56% male) developed 332 applications for YB projects,
283 approved for funding in 46 BiH municipalities
161 entered our impact incubator
29 got investment to test their minimum viable product
15 social businesses were registered.
43 people (40% female, 60% male) applied with microbusiness ideas
15 microbusinesses were registered
69 applied for social banking
4 received loan for acceleration (with Sparkasse)
6 received investment for acceleration (through EFSE)
Our efforts were focused on community building, curation and implementation of various
campaigns, events and brand building activities. To achieve the set targets and goals we
have defined and carried out marketing methods which enabled us to attract young people,
engage with them through various channels, got them to participate and receive support
that is tailor-made to them.
6
The following activities were implemented to achieve this objective (all details are
presented on this link http://online.fliphtml5.com/ihsr/cejq/ ):
1. Campaigns:
80 campaigns for YB projects in 32 partner municipalities
Campaign for YB projects at national level
Campaign for micro-businesses
Campaign for investment in prototype development and testing
2 campaigns for investment in social businesses
5 campaigns for internships
2. Events
2 Demo Days 1.0
1 Demo Day 2.0
80 promotions of YouthBank campaigns in municipalities
32 promotions of implemented YB projects in municipalities
Presentations of LONAC
Contract signing ceremony with new 15 microbusinesses
3. Other activities
Continuous promotion and PR support of social businesses
LONAC.pro – launch of public beta
Launch of LONAC Facebook and Instagram profile
Reached over 20,000 followers on Mozaik Foundation’s Facebook page
Website redesign www.mozaik.ba
3 newsletters – eMpresso
New Year greeting card
Our on-/offline community LONAC enabled us to open more campaigns and invite more
people to apply than ever before. YB board members provide online and offline support
to improve quality of the projects, select these that are developed according to criteria and
approve the funding.
3.1.2. LONAC HUB
LONAC HUB is an initiative we’ve started in 2018 with a goal of establishing a network
of Hubs focused on social entrepreneurship, innovation and education. Our hubs will
consist of coworking spaces, conference rooms, meeting rooms and makerspaces.
We have finished the preparation stage for Lonac Hubs in Sarajevo and Banja Luka in
2018 and we expect to have them up and running until the end of 2019 Q1. Aside from
this, we are partnering with PMI to establish an Innovation program in Sarajevo which
7
aims to connect entrepreneurs and innovators with all relevant stakeholders, in order to
bridge the gap between ideas and viable business ventures. The program’s first phase is
planned to last for 10 months (until the end of 2019), after which we’ll make adjustments
based on the needs of our target group.
Long-term plan is to have a network of Hubs in all major cities in BiH and by the end of
2019 we expect to have at least 3 opened, since we are already in negotiations with City
of Bihać as our third location.
3.1.3. DEVELOPING PARTNERSHIPS WITH MUNICIPALITIES AND OTHERS
We expect large collective impact to be achieved through this community. We have
opened the position Manager for Collective Impact and have already negotiated several
other stakeholders to promote their activities and use LONAC as a channel to offer more
opportunities to youth.
One of the most important partnership is with municipalities. Mozaik continued
developing partnerships with governmental institutions in order to provide leveraged
funds and a solid base for sustainability of the programs.
With 32 municipalities we have signed cooperation for 2018: Bosanska Krupa, Bosanski
Petrovac, Bugojno, Cazin, Doboj, Doboj Jug, Goražde, Gornji Vakuf-Uskoplje, Istočna
Ilidža, Jezero, Kladanj, Konjic, Kostajnica, Kotor Varoš, Kozarska Dubica, Laktaši, Lopare,
Novi Grad, Novi Travnik, Modriča, Mrkonjić Grad, Odžak, Olovo, Srbac, Šipovo, Tešanj,
Ugljevik, Usora, Zvornik, Zavidovići, Žepče, Živinice.
Municipalities allocated funds for Mozaik
in their annual budgets and most of them
incorporated the YB program in their
municipal development strategies or
strategies for youth.
Meeting with Mayors, December 2017
8
We have developed number of meaningful
activities for municipality representatives to
gather and discuss program improvements
and share the best practices. These activities
strengthen the synergy between Mozaik and
municipalities and enable us to provide a
long-term perspective for all. Municipality representatives in Sarajevo July 2018
3.2. MOBILIZE AND DEVELOP COMMUNITY LEADERS
3.2.1. YB PROGRAM DEVELOPMENT
YB program offers small grants to non-formal youth groups. Every grant is approved by
trained young volunteers, YB Board members, through participatory grantmaking
process that is integrated in LONAC. They make the final decision on which youth
projects will be approved to compete for community votes and receive the grant. At the
beginning of 2018, we had 180 (98 females and 82 males) board members. Among them,
70 board members were new, selected through public call in December 2017.
During February-March 2018, online and offline capacity building have been organized
for all new YBs board members. Crucial role during these peer-to-peer trainings was
performed by the “old” board members - those who have previously performed the role
of the board member in the YB program and could thus give practical guidance to
newcomers.
During April 2018, YBs organized offline promotions of YB program in their communities
– 100 board members (50 females and 50 males) organized 80 presentations in which 1.200
youth took part (564 females and 636 males).
Workshop in Jezero for new members of YBs Sipovo, Mrkonjic Grad and Jezero. Workshop in
Ugljevik for YBs from Lopare and Ugljevik.
9
YB board members have an active role in all phases of program development and
implementation. This includes promotion of the YB program in their communities,
provision of support to the non-formal groups during the application process and
monitoring of approved projects. It is important that board members serve as a direct
channel of communication between youth groups in communities and the municipal
mayor or representative, and that they have a chance to facilitate program improvements
during meetings or promotional activities.
3.2.2. CAPACITY BUILDING FOR THE YB NETWORK
With an aim to further build the capacity of the YB
Network and strengthen their role in engaging and
empowering youth for activism and
entrepreneurship, Mozaik has organized a training
in Sarajevo, named “Business Canvas Model”. The
event took place on April 24-25, where 27 YB
representatives took part.
Moreover, Mozaik organized weekly
online meetings which served as
additional mentoring for the YB
members, aimed at strengthening their
skills when it comes to engaging and
empowering youth in their
communities.
From July 4-7, Mozaik has organized a training for 40
YB board members from BiH, Georgia and Abkhazia.
3.2.3. PARTICIPATORY GRANT-MAKING PROCESS
Grant-making process in the YB program is fully youth-driven: youth develop the
application, the criteria, they invite their peers to apply in non-formal groups, young
people mentor the process of the project development and finally approve projects for
community voting.
Fully online – each step of the grant-making process is carried online (including the
submission of projects, selection process, monitoring and reporting) To support those
without an internet access, Mozaik specified that only 3 members of a non-formal group
(out of a maximum of 7) are required to register online. Furthermore, we promote calls in
10
rural areas and enable free or cheap access to internet with support of private and public
partners in every municipality.
Transparency – each application that is approved by the YB board member is made
visible to everyone. Everyone in the community www.lonac.pro can read the project
proposal and its reports as well as monitor the implementation of the project.
YB Board Members decide on who gets the funding. Board members were responsible
for evaluating applications, mentoring groups to fulfil all set criteria, and approving
applications for the voting campaigns. They monitor the projects throughout the
implementation.
Grant Manager was responsible for the development of criteria together with the YB
board members, development of the public call material and applications guides, lunch of
the voting campaigns, approval of applications for the voting campaigns, announcement
of winners and contracting. Furthermore, the Grant Manager monitored the
implementation of the projects and the entire process of grant-making.
Community members were the ones that took the final decision in approving projects.
They were voting for the projects they considered as most significant for the local
community and ensured the financing for the groups. Everyone registered for voting could
vote for the projects. Everyone could vote only once for one or more projects.
Detailed steps in the grant-making process: http://online.fliphtml5.com/ihsr/cvaa/
3.2.4. YB CAMPAIGNS - OPEN CALLS FOR YOUTH PROJECTS
During the period from 21st April to September 17th, we have published 80 calls (4 rounds)
in 32 partner municipalities and one BiH call for projects in other municipalities (about
110). Details of the process are on this link: http://online.fliphtml5.com/ihsr/xtuw/
3.2.5. YB AWARDING CEREMONIES - SIGNING CONTRACTS WITH YOUTH GROUPS
We have organized 63 awarding ceremonies in partner municipalities, aimed at signing
contracts with the non-formal groups. Municipal mayors, representatives of
municipalities, the YB board members and groups attended these events. In addition, in
14 non-partner municipalities we also have organized awarding ceremonies during the
BiH National Call.
11
All information regarding the awarding ceremonies can be found in LONAC blogs, which
included remarks from the attendees and the event photos.
YouthBank No of projects Date of ceremony Blog and photos
Bosanska Krupa 19 08.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-i-dodjeljivanja-cekova-u-
bosanskoj-krupi
Bosanski Petrovac 3 08.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-i-dodjele-cekova-u-
bosanskom-petrovcu
Cazin 5 08.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-i-dodjeljivanja-cekova-u-
cazinu
Doboj 6 05.06.
https://www.lonac.pro/view-post?uri=ceremonija-potpisivanje-ugovora-omladinska-banka-doboj
Doboj Jug 8 02.06.
https://www.lonac.pro/view-post?uri=ceremonija-u-opcini-doboj-jug
Gornji Vakuf - Uskoplje 2 06.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-i-dodjele-cekova-u-
gornjem-vakufu---uskoplju
Istočna Ilidža 2 04.06 https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora---omladinska-banka-
istocna-ilidza
Jezero 4 04.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-u-opstini-jezero
Kladanj 5 05.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora---opstina-kladanj
Konjic 2 04.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora---omladinska-banka-konjic
Kostajnica 3 20.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-i-dodjeljivanja-cekova-u-
kostajnici
Kotor Varoš 2 05.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-u-opstini-kotor-varos
Laktaši 2 06.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-i-dodjele-cekova-u-
laktasima
Lopare 2 29.06.
https://www.lonac.pro/view-post?uri=ceremonija-dodjeljivanja-cekova-i-potpisivanja-ugovora-u-
opstini-lopare
Novi Grad 20 11.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-i-dodjele-cekova-u-opstini-
novi-grad
Novi Travnik 2 08.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora--omladinska-banka-novi-
travnik
Modriča 16 07.06.
https://www.lonac.pro/view-post?uri=potpisivanje-ugovora-i-dodjela-cekova-u-opstini-modrica
Mrkonjić Grad 8 06.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-i-dodjele-cekova-u-
mrkonjic-gradu
Srbac 11 04.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-u-opstini-srbac
Šipovo 4 04.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-u-sipovu
Tešanj 3 05.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-i-dodjela-cekova-u-opcini-
tesanj
Usora 11 05.06.
https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora-u-opcini-usora
Zavidovići 3 08.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora--omladinska-banka-
zavidovici
Žepče 8 07.06. https://www.lonac.pro/view-post?uri=ceremonija-potpisivanja-ugovora--omladinska-banka-zepce
Examples of the Supported Projects
Title of the project: Colourful Street Location: Municipality Šipovo
Grant: € 308 Community contribution: € 168
Thanks to the youth in Šipovo, children had an opportunity to colour their town with
their own drawings and writings. They had four hour long gathering with 200 peers,
parents and other visitors. They were enjoying themselves through play, music, balloons
and their own decoration of the town. This was a rare opportunity for citizens
(especially for children) of Šipovo to attend this kind of an event.
12
Project name: No limits Play Location: Novi Grad
Grant: €368 Community contribution: €301
Volunteers renovated children’s playground. They installed seesaw, slide and other
toys. Decorated it and made it fun for play. The playground is in the kindergarten and
now 120 children have an opportunity to use it daily.
During the period from June 5th until December 10th, 2018, we have paid expenses for 269
successfully implemented projects of non-formal groups. This was a challenging process
as we were at same time investing our time in innovating the LONAC community,
particularly the financial module and the whole process of the financing of the projects. It
is very important to stress out that only 14 groups (5%), due to other working obligations,
did not purse their projects.
# Applied projects # Awarded projects # Implemented projects
332
in 46 municipalities
283
in 46 municipalities
269
in 43 municipalities
Achieved results of 269 finalized projects are following:
Total amount of
269 projects
Mozaik from
donors
Municipalities Community
contribution
€324,153 €82,867 €104,750 €136,536
100% 25,56% 32,32% 42,12%
Volunteers/beneficiaries
Beneficiaries Volunteers Volunteer’s hours
Female 21.543 1.741 12.625
Male 36.462 2.840 27.031
Other 0 0
Persons with disabilities 747 33 39.656 TOTAL 58.005 4.581
13
Community contribution
Public Institutions Companies Individuals NGOs
No. of
contributors 144 147 407 115
In-kind (EUR) €24,434 €20,456 €36,956 €20,067
Cash (EUR) €13,559 €2.592 €8,215 €10,067
SUBTOTAL €37,993 €23,048 €45,172 €30,324
TOTAL COMMUNITY CONTRIBUTION €267,042
Through the YB program, Mozaik engaged a tremendous number and percentage of local
resources. It is important that philanthropy development was a cornerstone over all
previous years, and the model itself is included in municipal strategies and their budgets.
Promotion and education of volunteers on how to mobilize local resources made our
program fruitful and well recognized.
3.2.6. SIGNING MOU WITH MUNICIPALITIES (2019-2022)
After the implementation of youth projects, we have organized 30 ceremonies in
municipalities with an aim to promote achievements and results of supported projects at a
municipal level. These events were hosted by governmental representatives and the board
members who were welcoming youth groups and other stakeholders from communities
who supported the actions. For these events we have printed posters of successfully
implemented projects in order to promote results and the increasing support provided by
our donors and partners. In addition, we have provided certificates of achievements for
youth groups, board members, and stakeholders that have provided additional contribution
to youth projects.
Mozaik signed the YouthBank program MoUs with 30 municipalities for the period 2019-
2022. It is important to stress out that 25 partner municipalities are to continue with their
support to the YB program and 5 new partner municipalities will join the partnership.
These 30 municipalities will allocate 610.000 EUR over the period 2019-2022.
During 2019 we plan to involve 10 more municipalities in the YB program.
3.3. SUPPORT AND INVEST IN PROMISING IDEAS OF SOCIAL ENTREPRENEURS
3.3.1. MOZAIK’S IMPACT INCUBATOR
Mozaik offers extensive business development support to prospective young social
entrepreneurs. Incubation period within our incubator is tailored to each business, where
14
all teams are asked to participate in a series of events. It all starts with short application
on LONAC. During this part of incubation, start-up teams are introduced with the
ecosystem and social business concept. After selection of the most promising ideas, based
on the impact and market potential, teams spend about 5 to 8 weeks developing and
validating their social business concept using tools such as social business canvas. After
successful concept validation on Demo Day 1.0, selected teams access to pre-seed
investment (up to 2.500€) used for prototype development and testing. What follows is a
few months of intensive market research and product/service testing, overseen by
experienced internal and external mentors.
Findings from the first phase of incubation are brought by teams to Demo Day 2.0, where
participants pitch their social business ideas to an investment committee that decides what
businesses will receive further support to the amount of up to 20,000€. This investment is
accompanied by a contract regulating ownership and obligations of each side – Mozaik
and the team who brought about the business idea – in the new social enterprise to be
registered jointly, with Mozaik as a minority owner.
The whole journey from an idea to a registered business is guided and supported by an
expanded pool of external mentors, professionals in all walks of business and academic
background. Our mentoring pool in 2018 are 22 mentors. Our plan is to keep expanding
the pool to cover every aspect of the social business development cycle and improve the
service through corporate volunteering offer in LONAC.
A series of events in 2018 organised by Mozaik contributed to building a solid base for
incubation of new businesses. Throughout the year, young women and men applied with
161 social business idea, whilst Mozaik invested pre-seed into 29 social business
prototypes and registered 15 social business.
3.3.2. DEMO DAY 1.0
During 2018, Social Business Incubator organized two physical Demo Day 1.0 events –
first in March 2018, second in June 2018 and one virtual Demo Day 1.0 in July 2018.
At all three Demo Days 1.0 we gathered 30 teams and 33 young people coming from 16
towns, bringing with them 26 new social business ideas. All businesses received
mentorship support up to three months prior to Demo Day 1.0, to ensure their idea is
developed into business model ready for a pre-seed investment.
15
Detail from the Demo Day 1.0 in June 2018
First Mozaik’s Virtual Demo Day 1.0 was a new era of Incubator's approach to young
people who have social business ideas that are still in development phase, in need of
mentoring and financial support, but are unable to attend our in-field events for various
reasons (family obligations, full-time jobs, distance limitations, etc).
16
The following ideas were awarded with the pre-seed investments in 2018:
Social Business Name
Town /
Location
Short description
Axis Tešanj Chicken feet & paw processing plant
Eko s juga Mostar Production of vegetables
Soft Hug Breza Production of aromatised decorative pillows
Vilenski čajevi Kotor Varoš Production of natural teas
PetWet Sarajevo Production of shampoos for pets
Lahor Mostar Automated laundry facility
Nanine slastice Mostar Production of domestic, handmade food
Argerr d.o.o. Sarajevo 3D modelling studio
Svijet bez etikete Tuzla On-line psychological counselling
New way english school Tomislavgrad School of English language
BioS cosmetics by Alabajči Tuzla Natural cosmetics production
WallME Sarajevo Digital advertising walls
Hostel Square Tuzla Tuzla Hostel and tourist agency
Reduce, Reuse, Recycle Mostar Recycling facility for PET bottles,
Stap Milk Zenica Production of homemade milk and cheese.
Learning through Play Vogošća Production of educational toys and mobile apps for
parents to use with their kids.
The Little Field of Pomegranate Mostar Pomegranate juice production.
Flop East Sarajevo Student co-working space and information web portal
UNITE Tuzla Social netoworking mobile application.
NDone
Sarajevo NFC (Near Field Communication) ordering and
payment system.
Note: nine more teams got pre-seed and seed investment, they are describe in the section
about registered businesses.
3.3.3. DEMO DAY 2.0
In April 2018, Sarajevo was home to Demo Day 2.0, giving teams we’ve worked with over
the last six months an opportunity to pitch for a seed investment and continuous
mentoring support. Intensive work on preparing and testing their business ideas
preceded the event, resulting in outstanding quality of ideas presented.
Eleven teams were selected to participate in the event and all eleven were awarded access
to seed investment and mentorship support, with five of them required to conduct further
adjustments to their business model prior to registration. Final decisions were not based
purely on the three-minute pitch from this event but were rather part of a longer process.
17
Namely, all members of jury got an opportunity to hear 20-minute presentations from all
teams one week before the Demo Day 2.0 event, giving ample feedback to teams on the
quality of background work done to that point (market research, production and financial
planning, business model development, etc). This gave teams an opportunity to re-work
some conclusions and consider once again whether their ideas are suitable for the next
step of incubation – registration of business.
Business brief documents, as one of the most valuable tools for the jury to familiarise
themselves with the business mode, sales and financial projections, have also been
significantly improved for this event, and we plan to advance them further based on
feedback from Deloitte consultants who are helping us re-work different processes within
the Incubator.
3.3.4. DEMO DAY 3.0
Mozaik in cooperation with Finance in Motion organized EFSE Entrepreneurship
Academy to support startups and young entrepreneurs in the business acceleration
phase. This Tournament was a great opportunity for social businesses to receive valuable
grants for acceleration of their businesses while presenting their work and potential
opportunities for growth.
30 start-ups applied for a Tournament and 22 teams selected who have the grow potential
to present to jury. After the presentations, the jury announced the winners in four
categories:
Woman Entrepreneur Award: Winner of 3 000 EUR is Super Woman (Mozaik’s
incubator).
Innovation Award: Winners of 3 000 EUR are Farmer.ba and Hurma Hanuma;
Social Impact Award: Winners of 3 000 EUR are New Traficlight and Urban
Roofs (Mozaik’s incubator);
Business Acceleration Awards: Winners: Tree D One 6 000 EUR, Play Learn
Grow - 6 000 EUR (Mozaik’s Incubator), Fedback 6 000 EUR, Herbs 10 000 EUR,
Axis 10.000 EUR (Mozaik’s Incubator, Dawood 10 000 EUR, Greens 10 000 EUR
(Mozaik’s incubator, AgroRevolution 10 000EUR (Mozaik’s Incubator) and Freya
Design 10 000 EUR.
18
3.3.5. SOCIAL BANKING PROGRAM
In December 2017 Mozaik signed a year-
long agreement with Sparkasse Bank (part
of the Erste Group), to conduct their social
banking project in the country. As part of
the agreement, Sparkasse Bank will offer a
maximum of five loans up to 10,000EUR to
social businesses. Mozaik Foundation, on
the other hand, will conduct a call for social
business ideas, and incubate the right
business ideas to the point of readiness to
enter a loan arrangement with Sparkasse
Bank.
Figure 12 'Korak po korak' is Erste Group's social banking project in the region
A national call for applications was made in May, where 68 individuals applied from 24
towns and cities around the country, with 40% of female applicants taking part.
A jury made-up of Mozaik and Sparkasse Bank management selected 31 social business
ideas to be invited into the incubation process. Three of eight finalists of the program are
awarded with the loans: Igraj, uči, rasti; Safe Hand and Super Women, all comming from
Mozaik's incubator. This encouraged the Sparkasse Bank to rely on Mozaik's due
diligence process to reduce their risk and offer Mozaik to run year-long social banking
program through LONAC.
3.3.6. TRAINING AND EVENT PARTICIPATION
Mozaik continually invests in skills development and education of young social
entrepreneuers, whether using seed or pre-seed investment. During 2018, eight of our
teams and businesses attended 20 trainings and study visits.
3.4. BECOME THE REGIONAL GOLD STANDARD FOR SUSTAINABILITY AND SOCIAL
ENTREPRENEURSHIP
3.4.1. M-FUND – ENDOWMENT BUILDING
Endowment building strategy is one of pillars of Mozaik’s long-term sustainability. We
have signed the agreement with Mott Foundation for a matching grant of 500.000 USD
for the first 250.000 that we succeed to fundraise. Mozaik’s board has decided to put
Mozaik’s asset, the house we own in the old city, as contribution to endowment fund. Our
endowment fund is currently 495.135 USD.
19
Entire amount is still at the bank account and we are exploring the best way to build our
conservative portfolio from this fund. We will inform Mott Foundation about our decision.
We believe that our image as backbone organization to an ecosystem for support of social
entrepreneurs will enable us to fundraise additional funds from major donors, individuals
and companies to the endowment fund in the future.
3.4.2. REGISTERED MICROBUSINESSES
Mozaik provides opportunity for young people to receive a small grant and register their
microbusinesses, including employing one person. We came to this idea after realizing
that some of the social businesses that applied to our Incubator will not be able to make
enough revenue at the market to become a ltd. Microbusiness is the first step in the
development of their idea and we hope that this will become another pipeline to our Impact
Incubator.
We have opened call in LONAC from September 12th to 10th October, and in total 43 young
applicant (40% female, 60% male) applied with business idea for their microbusiness.
From October 12-14 in Sarajevo we
made preliminary selection of 43
applications with assistance of 17
board members of YouthBanks and
staff of Mozaik impact incubator.
Based on the recommendations of
selection committee applicants
additionally provided info in
applications, and 23 applicants
completed this process. Their business ideas entered the campaign for community voting
from November 7-13 and 15 of them got the necessary support. On December 10th Mozaik
signed 15 contracts to support the following microbusiness ideas:
http://online.fliphtml5.com/ihsr/wozl/
3.4.3. SOCIAL BUSINESSES IN MOZAIK’ S PORTFOLIO:
HTTP://ONLINE.FLIPHTML5.COM/IHSR/QLXN/
20
4. MOZAIK’S DEVELOPMENT
4.1. REGIONAL SCALING
In December 2018, Mozaik received additional grant from the Bosch Foundation to pilot
reginal scaling of Lonac to Croatia, Serbia and Montenegro. We will build this cooperation
on the strong foundation of cooperation with national foundations within sign and
creating new partnerships with other stakeholders who provide services to activists and
entrepreneurs in the region.
We were also invited to participate in the EU-Turkey funded project to build Network of
social entrepreneurs in Turkey, where Mozaik has an advisory role.
Foundation Mozaik as lead partner strengthen YouthBank model previous years in Serbia,
Croatia and since end of 2017 in Macedonia where we in partnership with Mladi Info
establish Network consist of 13 YBs.
We have partnership with Europe Foundation Georgia on supporting transfer know how
amongst YBs from Georgia, Abkhazia and Bosnia and Herzegovina.
Mozaik is active member of YouthBank International network (joined 23 foundations and
organizations that support over 225 YBs) and during 2018 we have shared best practices
including YBI forum in November in Istanbul, Turkey.
4.2. CEE REGIONAL IMPACT FUND
As the activities to implement various aspects of the Mozaik’s ten-year strategy unfolded,
we found ourselves at the onset of a critical phase for the full strategy implementation –
to secure a long-term financial, technical, and market infrastructure for the social
enterprises. This was a common area of concern for all social impact actors and
stakeholders in the Central and Eastern Europe. The financial infrastructure calls for a
long-term and a diversified source of funding. Currently, the CEE region is critically
lacking the right level and type of financial resources as only 35% of European resources
for social enterprises are spent in CEE and venture philanthropy investment is 65 times
lower in CEE than in Western Europe. Following a period of discussions dating back as
far as the 2015 EBRD Annual Meeting, this track became a focus of the policy work Mozaik
contributed to within the CEE Impact Investment Task Force organized under the
umbrella of the European Venture Philanthropy Association.
The fund is called MIF II Impact Venture Fund and it full documentation for its launching
is developed in 2018. We also secured the reserve fund of 125.000€ as well as readiness of
EFSE to participate in the fond. The first step is to secure structural funds from EIF and
we are still in the process of negotiation.
21
The MIF II will provide equity, quasi-equity and hybrid financing to European impact-
driven small and medium-sized enterprises (SME) and social enterprises whose products
resolve complex societal challenges while generating financial returns. The Fund will
invest in European seed and early-growth impact-driven SMEs, value-chain providers,
intermediaries, and social enterprises whose products and services target, reach, and
impact tens of thousands clients and beneficiaries. The MIF II will invest in the European
impact and venture markets, with a particular focus on the following countries: Albania,
Austria, Bosnia-Herzegovina, Bulgaria, Czech Republic, Croatia, Estonia, Greece,
Hungary, Kosovo, Latvia, Lithuania, Macedonia, Montenegro, Poland, Romania, Serbia,
Slovakia, and Slovenia. MIF II will make up to 40 minority investments from EUR 0.25 to
2.5 million that it will aim to hold for seven to ten years. It will focus on high growth and
high impact sectors: care and healthcare, financial services, sustainable agriculture and
food processing, clean energy and technology, community and education.
4.3. COMMUNITY BUILDING AND DATA ANALYTICS
Mozaik Foundation's programmes engage on a regular, annual basis over thousands of
youth from across BiH. Through different stages of the existing programmes, i.e.
YouthBanks and Impact Incubator, we collect data on their demografics, employment
status, professional ambition, propensity to risk taking as well as on the values that
underpin their professional behavior. Mozaik has employed Data Analyst in order to make
full use of the existing and future data in terms of improving the content of the
programmes, internal process flows and to better understand the needs of our
beneficiaries.
There are several ways in which this function aims to improve the performance of the
organisation:
1. Our M&E process will be fully internalised and integrated with other functional processes.
In previous years, we had to hire an external organisation to conduct our monitoring
and evaluation processes and this was costly, time and money wise. External
organisation was not able to understand the depth of our processes as much as
someone who is asign a role of internal researcher will through simple everyday
observation and data analysis.
2. Our impact statement will be supplemented with a clear, and internally owned impact
measurement methodology and tool kit. Mozaik has a very clear idea of what it will
achieve by 2026. To get there and be able to generalise on our findings we have to
have clear, theoretically supported and consistent methodology and indicators of
success. We will work on impact measurement on two levels: for the organisation
as a whole and for social businesses from our portfolio. Our social businesses will
also receive a clear guidelines on how to monitor, record and report on their social
impact by the end of each year. The end result of this should be a report that will
22
unite impact of the organisation on youth to the point of creating their social
business but also the impact on society of social businesses established through
Mozaik's programmes.
3. Our internal decisions will be fully data-driven. Programme activities are fully flexible
categories in Mozaik's programme. Adjustment to our activities will be done in
reaction to research findings rather than on an ad-hoc basis. Now we will
implement smart use of data to support all changes to activities carried our in order
to reach our end result.
4. Policy proposals resulting from real-time data. On/Offline community Mozaik is
embarking upon should provide us with access to real-time data on community
users. We will be producing policy proposals based on our observations of this
data.
5. Research to serve the improvement of the programmes and departments. Data analyst
will be very much related to marketing activities and functions but will aspire to
serve all other departments and programmes as well in order to improve on the
process and content delivery.
4.4. NETWORKS
In 2018 we continued with active participation on several networks: Grantmakers East
Forum, European Foundation Centre, SIGN Network and National Network for Building
Peace, NGO Council, EVPA… Mozaik has been elected to the governing council and
management committee of European Foundation Centre.
The regional SIGN network is won a second EU regional grant and we are implementing
the project SIGN Up for Impacy, led by Trag, while Horus, fAct, FIQ, Catalyst and Mozaik
are the partners.
Finally, we are investing a lot into developing strong non-formal network of social
business and business that can support our curriculum, competency model and
development of our social entrepreneurs. We are developing strong base of mentors who
can support our social businesses during incubation process.
5. CHALLENGES AND RISK MITIGATION STRATEGIES
Although we are very proud on the results Mozaik has achieved, the 2018 will be
remembered as a very challenging year, mostly due to two reasons that were out of our
control:
a) SDC support in the among of 50% of our annual budget was negotiated for mid-
June, when their 6-month support to develop full project proposal was ended.
However, due to complexity of the strategy and the fact that decision is made in
23
Bern and that this is the first time this instrument of co-funding is introduced in
Bosnia, we are still in the process of negotiation, with the “promise” that the last
meeting where only formal approval will be given, will be held on February 7th.
This support is of high importance for us, since it decreases a need for fundraising
and provides good basis for replication in the next 8 years. However, due to this
extensions, we had to decrease the salaries for three months (managers 20%, other
staff 10%)
b) Our technical partner for development of the software for LONAC seized to exist
in October. After many negotiations, in the contract termination procedures,
Mozaik succeeded to get the copy of the code (value of over 100.000 USD) and now
we are trying to organize the right team who will be subcontractors for maintenance
and development. We also succeeded to engage the product owner, the most
important person in the process of developing Lonac to test and prepare the team
of programmers for Mozaik.
24
Financial Report for Year 2018
Mozaik Foundation Financial Report for Year 2018
1 EURO = BAM
1 USD = BAM
1,95583
1,68
Title Total BAM Total EUR Total USD
Grants 736.332 376.481 438.293
1 Community Development 431.680 220.714 256.952
1.1. Social Innovation Projects - Youth Banks 360.793 184.471 214.758
1.2. Partners Support 60.781 31.077 36.179
1.3. Supporting transportation costs for young people 10.106 5.167 6.015
2 Social Enterprise 304.652 155.766 181.340
2.1. Lean Start-up grants - Social Business Incubator and Scale up grants - Accelerator
(Start-up) 304.652 155.766 181.340
3 Staff (Salary and benefits) 894.062 457.127 532.180
3.1. Staff (employed - programs and other staff) 821.720 420.139 489.119
Other employee expenses
3.2. Office Cleaning 12.759 6.524 7.595
3.3. Contracts - Business Development Mentor 20.314 10.386 12.092
3.4. Contracts - HUB Manager 12.950 6.621 7.708
3.5. Contracts - Interns 24.644 12.600 14.669
3.6. Provision for severance payments 1.675 856 997
4 Contracted services 511.049 261.295 304.196
4.1. Capacity Development in Local Communities (Training, Facilitation & Advising) 37.312 19.077 22.210
4.2. Capacity Development - Mentoring (Training, Facilitation & Advising) 98.871 50.552 58.852
4.3. Curriculum Improvement and Revision 5.284 2.702 3.145
4.4. Social Innovation Projects - Project Monitoring 19.598 10.020 11.665
4.5. Promotional, PR and Marketing Activities 46.887 23.973 27.909
4.6. Conference / Youth Bank 22.490 11.499 13.387
4.7. Promotional Events for Incubator (Kick-Off, Demo Day I, Demo Day II, DemoDay III) 114.509 58.548 68.160
4.8. Services Contracted for Techsoup 39.039 19.960 23.238
4.9. External IT Services (servers, Navision maintenance, IT desk support...) 43.826 22.408 26.087
4.10. Research and Development Services on On-Line Community) 14.669 7.500 8.731
4.11. Lawyers and notarial services 17.648 9.023 10.505
4.12. Web Designer 4.534 2.318 2.699
4.13. Audits 27.574 14.098 16.413
4.14. Translation, Interpreters 2.164 1.106 1.288
4.15. Annual Licenses for IT applications 3.699 1.891 2.202
4.16. Strategic Planning and Meetings of Board of Directors, Advisory Groups and Staff 5.292 2.706 3.150
4.17. Staff trainings 7.653 3.913 4.555
5 Running Cost 271.640 138.887 161.690
5.1. Occupancy (Sarajevo, Banja Luka) 50.948 26.049 30.326
5.2. Utilities (Sarajevo, Banja Luka) 8.592 4.393 5.114
5.3. HUB 3.516 1.798 2.093
5.4. Office and Equipment Maintenance 9.029 4.616 5.374
5.5. Staff Insurance and Equipment Insurance 6.613 3.381 3.936
5.6. Vehicle (maintenance, registration and insurance) 16.546 8.460 9.849
5.7. Communications 29.559 15.113 17.595
5.8. Office Supplies 14.121 7.220 8.405
5.9. Local Travel (Fuel, Accommodation & Per Diems) - Staff 30.042 15.360 17.882
5.10. International travel - Transport, Per diem, Accommodation (Conferences, Networking,
Training) 56.309 28.790 33.517
5.11. Depreciation of Office Equipment 13.531 6.918 8.054
5.12. Depreciation of Agriculture Equipment 21.627 11.058 12.873
5.13. Depreciation of Vehicle Value 11.207 5.730 6.671
6 Other 180.567 92.322 107.480
6.1. Bank Fees 8.284 4.236 4.931
6.2. Membership Fees 14.921 7.629 8.882
6.3. Expenses for Taxes 13.272 6.786 7.900
6.4. Interest Costs 374 191 223
6.5. Property sale costs 135.000 69.024 80.357
6.6. Expenses of the previous years 7.462 3.815 4.442
6.7. Unexpected Expenses 1.254 641 746
FIXED COST - TOTAL 2.593.650 1.326.112 1.543.839
25
1 REVENUE
1.1. Local, Federal and National Institutions support 224.901 114.990 133.870
1.2. Donor support 2.184.627 1.116.982 1.300.373
1.3. Donor support/equipment 43.873 22.432 26.115
1.4. Income generating activities (Trainings) 10.996 5.622 6.545
1.5. Other revenue - (Reimbursement for travel expenses) 1.322 676 787
1.6. Other revenue (Bank interest and exchange rate) 12.497 6.390 7.439
1.7. Income from the sale of assets 135.000 69.024 80.357
1.8. Income from corrections from previous years 8.122 4.153 4.835
1.9. Other revenue (Compensation for insurance claim) 598 306 356
TOTAL REVENUE 2.621.936 1.340.575 1.560.676
DIFFERENCE 28.286 14.463 16.837
26
Income 2018.
Mozaik Foundation 1 EURO =
BAM
1.95583
1 USD = BAM 1.68
Total Income 2018
BAM
Euro
USD
1 C.S. Mott Foundation 565,267.94 289,017 346,590
2 Robert Bosch Stiftung 244,478.75 125,000 145,523
3 Porticus - Stiftung Auxilium 176,024.70 90,000 104,777
4 Medicor Foundation 293,374.50 150,000 174,628
5 ZEIT - Stiftung Hamburg 195,583.00 100,000 116,418
6 CAF American Donor Fund 143,130.14 73,181 85,000
7
Swedish International Development Cooperation Agency - SIDA
377,320.68
192,921
224,596
8
Swiss Agency for Development and Cooperation - SDC
77,432.00
39,590
46,090
9 Rockefeller Brothers Fund 70,359.62 35,974 42,000
10
European Fund for Southeast Europe - EFSE
418,803.84
214,131
249,288
11 Local authorities 222,959.00 113,997 132,714
12 European Union / SIGN 74,646.21 38,166 44,432
13 TechSoup Foundation 64,422.39 32,939 38,347
14 USAID (Georgia) 121,239.06 61,989 72,332
15 Philip Morris BH 84,353.90 43,129 50,000
16 Sparkasse bank 19,558.30 10,000 4,810
17 European Fund for the Balkan 977.92 500 582
18 Individual donors ( Employees ) - M Fond 2,066.92 1,057 1,230
19 Income generating activities - Mladi info Skopje 6,996.46 3,577 4,098
20 Company 370.00 189 220
21 Income from the sale of assets 125,000.00 63,911 74,405
22 Other revenue (insurance, interest, refund) 7,802.41 3,989 4,644
Total:
3,292,168
1,683,259
1,962,724
27
Balance sheet 2018
BALANCE SHEET AS OF DECEMBER 31, 2018
Year 2018 (1 USD = 1.68 BAM) 1.68
I ASSETS BAM USD
Fixed Assets 320,398 190,713
Furniture and Equipment (PCs, printers, furniture, video equipment and other office equipment)
12,743
7,585
Vehicles 21,314 12,687
Lifesaver water purifiers 40,863 24,323
Cold storage facilities for agricultural products 65,933 39,246
Software Lonac.pro 179,545 106,872
Long-term investments 117,395 69,878
Investment in EkoMozaik, MaSta and New Businesses (Equity) 116,825 69,539
Long-term loans 570 339
Current Assets 1,464,270 871,589
Cash and cash equivalents 1,334,869 794,565
Other current assets / Receivables from employees 4,237 2,522
Other current assets / Receivables from donors 12,077 7,189
Other current assets / Receivables from EkoMozaik 55,100 32,798
Other current assets / Receivables from NGO Alert 35,148 20,921
Other current assets / VAT refund 19,871 11,828
Advances paid for services and suppliers 2,968 1,767
Total assets 1,902,063 1,132,181
II LIABILITIES BAM USD
Short-term liabilities
110,407
65,718
Liabilities to suppliers 10,808 6,433
Liabilities to employees - salaries 32,062 19,085
Liabilities for service contracts 7,583 4,514
Liabilities for taxes, fees and benefits 39,775 23,676
Liabilities - accrued expenses - (audit services, and advances) 9,031 5,376
Other liabilities 11,148 6,636
Short-term liabilities / income received in 2018 543,721 323,643
Accrued income from donations for project expenses in 2019 543,721 323,643
Long-term liabilities 327,944 195,205
Accrued income from donations for projects / fixed assets 320,964 191,050
Loan from BH Telecom for mobile devices 2,160 1,286
Reservations for severance payments 4,820 2,869
Net Assets 919,991 547,615
Capital 88,165 52,480
Endowment fund 831,826 495,135
Total liabilities 1,902,063 1,132,181