social innovation lisbon - norbert kunz

beratung. projektentwicklung. qualifizierung.

Financing social innovation

with a sample project in the area of inclusive entrepreneurship

Norbert Kunz, iq consultPower a New Future – The ESF delivering the Lisbon StrategyLisbon, December 12, 2008


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


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

EntrepreneurSocial


2. Goals iq consult

•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

ESTABLISHMENT OF A HIGH-QUALITY START-UP-SUPPORT STRUCTURE FOR ALL


3. Sample project: PROJECT ENTERPRISE

Aim:

TO ENABLE YOUNG PEOPLE UP TO THE AGE OF

27 A PROFESSIONAL ALTERNATIVE

THROUGH SELF-EMPLOYMENT



SUCCESS THROUGH STANDARDS

Self-learning manuals

Entrepreneur‘s

passport

4-phase model



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)



• Number of participants 6.000

• Number of start-ups 1.400

• Survival rate after 3 years 70%

• Number of employees 2.000

• Costs per participant 1.200

• Costs per start-up 5.000

PROCESS AND RESULTS (QUANTITATIVE)



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


4. 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

IMPORTANCE OF PUBLIC FINANCE


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


4. 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

PROBLEMATIC ASPECTS OF PUBLIC FINANCE


Thank you very much for your attention!

Norbert Kunziq consult gmbh

Muskauer Straße 24D-10997 Berlin

[email protected]

www.iq-consult.com