European Social Entrepreneurship Funds

Key points:

• The EESC welcomes the proposal for a Regulation on European Social Entrepreneurship Funds to regulate the development of such funds by creating clarity and certainty for all parties concerned while facilitating cross-border raising of capital.
• Improving access to appropriate capital for social entrepreneurship is a top priority, but the EESC would stress that this initiative should be seen as just one of many much-needed tailored financial instruments that still need to be developed.
• To improve the impact of these types of funds on social entrepreneurship, they might usefully be seen as one element of a hybrid capital solution, which is the most appropriate form of financing for social entrepreneurship.
• The greatest challenge in this proposal is the need to measure and report on the effects and impact on society of portfolio undertakings. Investment readiness programmes and other forms of capacity-building for all parties should also be set up in order to build trust and joint structures specifically tailored to this type of fund.

Other EESC opinions:

• Social entrepreneurship and social enterprise (INT/589)
• Social Business Initiative (INT/606)

For more information please contact the INT Section Secretariat