Small and Medium-Sized Enterprises on Economic growth Development Author: Oncioiu Ionica, Titu Maiorescu University Bucharest
Romanian Small medium enterprises (SMES), as in all transition economy play an important role in the economic growth development and are
enterprise The Impact of Innovation in Romanian Small and Medium-Sized Enterprises on Economic growth Development
410 Special Issue December 2013 Introduction Given the importance of SMES in their world, economies everywhere are
private enterprises. The first is a quantitative argument: SMES form a big and vital part of the modern economy.
Enterprises on Economic growth Development 411 Special Issue December 2013 concept. The new business concept is conceived from the current state of
products and processes in the enterprise, the current markets and a perception of future market opportunities
these inherent challenges, that is, the capacity of the enterprise to muster resources and to act in a sufficiently dynamic way
Enterprises on Economic growth Development 412 Special Issue December 2013 higher. Therefore, when engaging in research,
small enterprises have share research costs much higher turnover than in large enterprises Moreover, large enterprises in research-development focuses on another
very important indicator for them: the share of production of new products in turnover Lately, attention is given, absolutely natural, SME branches of
the peak of high-tech.""Thus, in a recently completed study, conducted with funding from the European union Directorate General XXIII, divide
Enterprises on Economic growth Development 413 Special Issue December 2013 the innovation in a transition economy, as Romanian is?
Enterprises on Economic growth Development 414 Special Issue December 2013 reasons of the emergence of companies in specialized exchange economy
Enterprises on Economic growth Development 415 Special Issue December 2013 Lankhuizen and Woolthuis 2003, Rothwell 1986,1994.
Romanian small and medium enterprises is to encourage the business environment and the general development of the economy.
Enterprises on Economic growth Development 416 Special Issue December 2013 maxims of scientific method: construct validity, internal validity and
Enterprises on Economic growth Development 417 Special Issue December 2013 4 Pattern not evaluated 36 6, 10%1
Small and medium enterprises represent an equilibrium factor at micro and macroeconomic level. In permanent economic changing
Enterprises on Economic growth Development 418 Special Issue December 2013 Thus, despite the economic reform, small and medium
enterprises in Romania are confronted still with a series of obstacles which, in the view of the economic and political instability, lead to
Enterprises on Economic growth Development 419 Special Issue December 2013 the crisis, and the winners will be those who will be able to make
Enterprises on Economic growth Development 420 Special Issue December 2013 more economic growth, employment, a better balance of payments
Enterprises on Economic growth Development 421 Special Issue December 2013 11 Soete, Luc a o.,Eindrapport van de Expertgoep voor de
20 Business models for Small and Medium-Sized Enterprises, in Constructing the European Information Socia1yfair, 1998, pp
23 OECD, Small and Medium-sized Enterprises: Local Strength Global Reach, OECD Observer, iunie 2011
Enterprises on Economic growth Development 422 Special Issue December 2013 26 www. cnipmmr. ro 27 www. europa. eu. int
Similarly, family firms have dominated small and medium-sized enterprise (SME creation in many countries (Astrachan and Shanker 2003;
and medium-sized enterprises were analyzed through hierarchical regression analysis and innovation was found to be a significant factor in both family and non-family
to family-owned enterprises (Nordqvist 2012. Knowledge-based resources have been noted as important for a firm's innovative capacity which aids in the discovery and ex
) Innovation speed in small and medium-sized enterprises. Creativity and Innovation Management, 15 (3), 279†295
high growth strategies of women-owned enterprises Journal of Business Venturing, 16, 453†470 Hambrick, DC,
of Small-and Medium-sized Enterprises (SMES) located in Hungary and Romania. Specifically, the paper analyses the role of OI in these small firmsâ€
Open Innovation (OI) practices in Small-and Medium-sized Enterprises (SMES) located in Hungary and Romania.
Enterprises. In H. W. Chesbrough, W. Vanhaverbeke, & J. West (Eds.),New Frontiers in Open
SME Performance Review-Small and medium sized enterprises-Enterprise and Industry Online. Brussels. Available: http://ec. europa. eu/enterprise/policies/sme/facts-figures
-analysis/performance-review/index en. htm Communities, S. O. o. t. E. 2005. Oslo manual: Guidelines for collecting
A comparison of small and medium-size enterprise development in Central and Eastern europe. Comparative Economic Studies, 43,35-68
enterprises. Small Business Economics, 41,537-562 Uzkurt, C.,Kumar, R.,Kimzan, H. S. & Sert, H. 2012.
†and science must meet regional policy and enterprises. Universities are increasingly called upon to adjust their work, both in terms of research activities and human capital development,
the research community and enterprises. It must be stressed that Structural Funds are intended not to cover
•enterprise and business development: promoting enterprise development and growth •human capital development: contribution to human capital and skills development;
and •enhancing social equality: improving social equality through regeneration and cultural development 6 Main themes emerging
research and connectedness with enterprises and local authorities, all of which raise the profile of the university, increase student numbers as well as provide alternative forms of revenue in an increasingly
Anders Olsson Sweden Värmland Enterprise and Innovation Manager Rui Monteiro Portugal Norte Head of Unit, Science and Innovation Unit
•Enhancing R&d cooperation between R&d institutions and enterprises (programmes supporting materials, environmental, ICT, healthcare, biotechnologies, energy
the development of advanced services to enterprises, especially SMES, for example, intensive computing facilities, experimental platforms (e g. agro-materials platform, chemical and physical analysis services
Enterprise Ireland) as an open competitive process on a rolling basis There is thus a considerable synergy between structural funding and national programmes, but all
-driven clusters in the area of renewable energy sources and associating research entities, enterprises and
rights or to invest in micro-enterprises in Mumbai or Mexico city. Government data is increasingly being made public,
Enterprise, European commission for their insight and advice We would like to acknowledge the contributions of the SIX network across
business models †such as social enterprises, cooperatives or socially driven businesses Together, The New Nature of Innovation and the recommendations of the
The term social innovation is used often synonymously with social enterprise and social entrepreneurship. They are overlapping but distinct.
Social enterprises are businesses with primarily social objectives whose surpluses are reinvested principally for that purpose in the business or
definition of social enterprise. This is because social enterprises can take numerous forms, are engaged in multiple spheres of activity and because
legal structures vary from country to country. Social innovation is much 16 broader than either social entrepreneurship or social enterprise †although it
will often include one or both of these. Social innovation describes the processes of invention, diffusion and adoption of new services or
Unlike the terms social entrepreneurship and social enterprise, social innovation transcends sectors, levels of analysis,
and enterprises they create. But it will certainly require understanding and fostering the conditions that produce solutions to social problems. xxiv
Enterprise which tackles issues of disability and marginalisation in Germany); ) and -the household (which plays a critical role in the creation of social
sustainability of the firm, social enterprise or charity that will carry the innovation forward. In the public sector this means identifying
alternative service models provided by social enterprises and grant based organisations, often working closely with them on extending the
difficult for social enterprises and third sector organisations to recruit, retain and develop staff, and to access capital;
enterprises and cooperatives. The park will include start-ups, regional and governmental organisations, and charitable foundations.
growth of social enterprises Information about the scale and scope of the social enterprise sector across
Europe remains limited. There are difficulties in measuring how many social enterprises operate within member states. In part, this is because most
countries do not collect information on the number of social enterprises †instead they collect data on the number of organisations with particular legal
forms †that is, the number of social cooperatives, associations, social purpose companies and so on. For example, there were 7, 363 social co
enterprise activity is collected in official statistics A few countries have started to collect information about the number of social
enterprises. In Finland, for example, there were 170 registered social enterprises in 2008. lix However, because social enterprises in Finland are work
integration organisations (†social firmsâ€)- that is, organisations which focus on integrating highly excluded groups into the labour market,
it is highly likely that these figures significantly underestimate the true scale of social enterprise
activity in the country. With the EU, the field of social enterprise may be best developed in the UK.
Figures from 2008/9 estimate that there are 62,000 social enterprises in the UK, with small and medium social enterprises contributing
£24 billion Gross Value Added to the UK economy. lx In what follows, we†ve pulled together a range of examples of social
enterprises. These are businesses which earn a profit but are focussed on their social goals. lxvii
Definitions of social enterprise vary, but the main features are the primacy of the social mission, trading income and the provision of
The term social enterprise covers a wide range of organisations from co -operatives to public service providers and community/voluntary associations
enterprises also work across a range of social and environmental fields-in Poland and Finland, for example, social enterprises are mainly nonprofit
work insertion organisations; in France and Sweden, childcare services make up the bulk of social enterprise activity;
in the UK, social enterprises cover education, health and care †but increasingly also areas such as housing
culture and sports and; in Italy, cooperatives make up a significant proportion of social enterprise activity
43 In the main, however, social enterprise activity falls into two categories. The first is social service provision †childcare,
eldercare, care for the disabled and so on. The second is †work integration†or †work insertion†integrating the long
Social enterprises can also be identified by the types of relationships they have with their beneficiaries, the way in
example, argue that †the key feature of social enterprises seems to be their ability to strengthen the fiduciary relationship within and around the
relationships, social enterprises are embedded often within their local communities. Consequently, they are attuned more and responsive to the
Social enterprises tend to be relatively small although some have established themselves in the mainstream Access to finance has been identified as a significant barrier to the growth of
businesses and social enterprises (banks for charities such as Banca Prossima in Italy or ethical banks such as Triodos Bank in The netherlands
3. The growth of social enterprise 4. The growth of microfinance 44 5. The growth of social finance institutions
The growth of social enterprise Work Insertion-Diakoniewerk Arbeit & Kultur, Germany Diakoniewerk Arbeit & Kultur ggmbh (or the †deacon†s activities for work
Insertion Social Enterprise (WISE. It was set up in 1985 to run a small number of employment measures funded by the regional labour office
expanded into a social enterprise which provides wrap around services for social welfare in the community.
independent trading enterprise and an official mental health unit, which means that it has access to national health services staff and premises.
-generating enterprises (a further 35 are in the process of being created), as well as restoring two redundant large state farms
facilitating the emergence of civil society and social enterprise in post communist Poland. Barka has played also a key role in bringing four key
civil society and social enterprise in Poland; address the problems of social 51 exclusion with the creation of eight Centres for Social Integration and
These include social enterprises and social entrepreneurs, trading charities and socially driven commercial organisations. Examples from
the wide variety of enterprises it has set up which provide those being rehabilitated with on-the-job skills training.
across social enterprises and is a transferable credit. The second element is a time-based credit which aims to make voluntary work visible and
•Overall strategic frameworks for social innovation, social enterprise or entrepreneurship. These remain rare but are beginning to spread, for
example Denmark†s recent strategy for social enterprise •Legal frameworks, such as new legal forms
social enterprises and foundations to big institutions, laws and regulations There are now dozens of social innovation funds around the world, and
Social Enterprise Investment Fund, UK The Social Enterprise Investment Fund is run by The Social Investment
Business on behalf of the Department of health in the UK. Developed in the wake of the 2006 White paper, Our Health, Our Care,
the potential role of social enterprises in developing health and social care to better meet the needs of communities, the fund was established in 2007 to
social enterprises and health professionals. Fifty £50, 000 grants are available for start-ups, while twenty £200, 000 grants are available for existing social
enterprises wishing to expand. The first funding round is in January 2010 Funds exist for various purposes,
into a social enterprise. Further to this, the fund holds workshops where commissioners and practitioners are brought together to build upon the
aim to develop an understanding of the role social enterprise can play in the delivery of primary and community care
of Employment to bring together government, private enterprises and the research community under one roof to promote user-centred innovation
enterprises Incubators provide a range of supports for social enterprises and social entrepreneurs. Some of these needs are the same as those of mainstream
businesses †including space, marketing, business planning and financial management. Other needs are specific to social enterprise
and arise from their social mission or particular decision-making and ownership structures †including legal issues associated with specific forms of incorporation.
and develop new joint enterprises in a highly innovative environment The Social Innovation Park will host more than 50 international companies
It will also host the first †Social Enterprise Generator†enabling those in receipt of employment
for the park†s enterprises without losing their benefits and; Southern Europe†s first †Social Innovation Laboratoryâ€, providing the opportunity for those based
in the park to work together to generate new social enterprises that will be incubated in the park, with access to training, mentoring and evaluation in
sector institutions, organisations and enterprises will also be available, in the form of a †Social Innovation Academyâ€
agencies-Enterprise Ireland (IE), FFG (AT), Senternovem (NL), Tekes (FI and the Technology Strategy Board (UK)- stated that †The Grand Challenges
enterprises currently working outside the NHS to develop services that NHS commissioners want to contract to help deliver better health outcomes.
services, and secure investment from funds such as the Social Enterprise Investment Fund (SEIF) and the Regional Innovation Funds (RIF) managed by
staff and local enterprises are harnessed and channelled towards delivering sustainable solutions to address health and social care needs.
creating new services, a SEIR with roots in the local social enterprise culture works to change the culture of an organisation
social enterprises and lowering hand straps in the Metros for shorter passengers. Without mechanisms for turning ideas into action, idea banks will
These new legal forms have helped to build awareness of the social enterprise sector and distinguish social enterprises from charities, associations and other
third sector organisations Legal forms Many European countries have had long innovative legal forms for social enterprise.
They include Italy†s social cooperatives Type A and B, which has been superseded by a 2005 law on social enterprise,
and France†s Sociã tã coopã rative d'intã rã t collective (cooperative society of collective interest), a
finance for social enterprises. The field is developing fast in the UK where there are an estimated 62,000 social enterprises with small and medium social
enterprises contributing £24 billion GVA (Gross Value Added) to the UK economy. cxvi New legal forms must have clear and direct benefits otherwise take up will be
slow. They must also be easy to adopt with little bureaucracy. This is the lesson from countries such as Belgium and France
which makes it difficult for social enterprises and third sector organisations to recruit, retain and develop staff,
a significant bulk of the social enterprise sector. One of the big problems facing these organisations is the reliability of funding sources.
crucial for the longer-term sustainability and growth of social enterprises and ventures The Business Panel on Future Innovation Policy notes that â€oethe current
enterprise. In February 2008, for example, the Office of the Third Sector committed £10 million for the creation of the Risk capital Fund for Social
Enterprise. It is the first fund of its kind and is intended to help social enterprises and early stage social start-ups to access funding to grow and
develop their businesses While financing is clearly an issue, there is a need to think more broadly
difficult for social enterprises and third sector organisations to recruit, retain and develop staff, and to access capital;
social enterprises. clviii The burgeoning field of environmental economics has spawned methods for measuring everything from wetlands to emissions, usually using a combination of
indicators showing how enterprises affect society. Italy has a similar †bilancio socialeâ€. Others have measured time.
-EIF to promote social enterprise alongside enterprise. The EIF could also invest in pan-European funds focused on specific
Enterprise Ireland (IE), FFG (AT), Senternovem (NL), Tekes (FI), Technology Strategy Board (UK) and VINNOVA (SE) acknowledged that â€oethe Grand Challenges of
xi European commission, DG Enterprise & Industry, Special Business Panel (2009) Reinvent Europe through innovation: From a knowledge society to an innovation society.
http://ec. europa. eu/enterprise/policies/innovation/policy/lead-market-initiative/Accessed 11 December 2009
lix P. Pattiniemi,(2009) Social Enterprise Leg islation in Finland. Available at http://www. rci. org. pl/download/080728/17. pdf
lx George Leahy and Frank Villeneuve-Smith (2009) State of Social Enterprise Survey 2009 London:
Social Enterprise Coalition. Available at http://www. socialenterprise. org. uk/data files/stateofsocialenterprise2009. pdf lxi Robin Murray (2009) Danger and Opportunity:
lxvii For more information on social enterprises and social entrepreneurship see, Alex Nicholls ed.)(2006) Social Entrepreneurship:
Jacques Defourny and Marthe Nyssens (2008) †Social Enterprise in Europe: Recent Trends and Developmentsâ€, Social Enterprise Journal, Vol. 4, Issue 3 and Jacques
Defourny and Marthe Nyssens (2008) †Conceptions of social enterprise in Europe and the United states:
convergences and divergencesâ€, paper presented at the 8th ISTR International 122 Conference and 2d EMES-ISTR European Conference, Barcelona, July 9-12;
2001) The Emergence of Social Enterprise, London and New york, Routledge lxix Spear, R. & Bidet, E. 2003) †The Role of Social Enterprise in European Labour
Marketsâ€, Working papers Series, no. 03/10, Liã ge: EMES European Research Network Available at http://www. emes. net/fileadmin/emes/PDF FILES/ELEXIES/ELEXIES WP 03
I. Bode, A Evers and A. Schulz,(2002) †Work Integration Social Enterprises in Germanyâ€, Working papers Series, no. 02/04 Liã ge, EMES European Research Network
lxxi A. Bacchiega & C. Borzaga, †Social enterprises as incentive structures: an economic analysis†in C. Borzaga & J. Defourny (eds.
2001) The Emergence of Social Enterprise, London and New york: Routledge lxxii Muhammad Yunus (2008) Creating a World W ithout Poverty:
Vigorous independent enterprises meeting social needs or the emergence of †entrepreneurial not-for profits with limited social liability�
addressing the critical gaps in risk-taking capital for social enterprise, Skoll Centre for Social Entrepreneurship Working Paper, Said Business school, University of Oxford
cxvi George Leahy and Frank Villeneuve-Smith (2009) State of Social Enterprise Survey 2009 London:
Social Enterprise Coalition. Available at http://www. socialenterprise. org. uk/data files/stateofsocialenterprise2009. pdf cxvii Cabinet Office (2006), Partnersh ip In public Services:
Addressing the critical gaps in risk-taking capital for social enterprise. Skoll Centre for Social
Addressing the critical gaps in risk-taking capital for social enterprise, Skoll Centre for Social
cxxvi European commission, DG Enterprise & Industry, Special Business Panel (2009) Reinvent Europe through innovation: From a knowledge society to an innovation society.
cxli European commission, DG Enterprise & Industry, Special Business Panel (2009) Reinvent Europe through innovation: From a knowledge society to an innovation society.
and user participation. †See European commission, DG Enterprise & Industry, Special Business Panel (2009) Reinvent Europe through innovation:
clxxiii European commission, DG Enterprise & Industry, Special Business Panel (2009) Reinvent Europe through innovation: From a knowledge society to an innovation society.
entrepreneurship and social enterprise. It draws on inputs from hundreds of organisations to document the many methods currently being used around the
social enterprises, mutuals, co-ops, charities, companies as well as loose associations. But the many examples set out below also show a field that is
sector, providers in social enterprises, advocates in social movements, and entrepreneurs in business. This is one of many reasons why it†s misleading to
firm, social enterprise or charity, that will carry the innovation forward In the public sector this means identifying budgets, teams and other
include setting up social enterprises, and lowering hand straps in the Metros for shorter passengers
Brookings and the American Enterprise Institute. The most visible tend to focus on policy innovation. In the past, they acted as intermediaries
Minister†s Enterprise Fund, or the UK€ s Invest to Save Budget. These are open to applications from existing public agencies, sometimes
enterprises created 98) Paying for time. Taking innovative front line workers out of service roles and putting them into incubators or prestigious time-limited roles
For social enterprises, the business model represents a strategy for sustainability. It needs to be simple, persuasive and
as well as leisure trusts and social enterprises running public leisure facilities. There are now 109 such leisure mutuals
enterprises, and is similar to charitable status. CIC status enables social ventures to access equity investment while maintaining the social goals
of the enterprise as paramount. They do this by having a lock on assets and a cap on dividends,
which partially insulates the enterprise from the private market†s imperative for profit maximisation and capital
when the enterprise goes through difficult times 119) Boards are one of the key design features of any organisation.
primary driver of the enterprise. This may not always be possible. Raising capital may involve some compromise with the providers of capital, but the
mission, enterprises can raise social equity, limit the quantity of common shares, and seek subordinated loans from sources ready to share early risk
enterprises, and supporting spin outs from the public sector. It can be used for various kinds of social enterprises as well as for-profits.
The forms used will include: quasi-equity †which can be based royalty, or profit based;
enterprise has proved itself, and risks are reduced. They sometimes have an advantage over venture capital funding in that they can tap investors
experiment with alternative service models provided by social enterprises and grant based organisations, often working closely with them on
Small social enterprises and other NGOS generally find organisational growth difficult: it requires changes to leadership, culture
medium social enterprises, such as flexibility, drive, and dynamism 203) The consortium model. In Italy, small and medium firms have
enterprise activities. However, REDF and others have retreated from the original claim that SROI could create single number measures,
indicators (ranging up to 400) showing how enterprises affect society Italy has a similar bilancio sociale
experience of working in small social enterprises. These could play a critical role in training up a future cadre of social innovators
enterprises to improve local health outcomes within the first 12 months of the project The Saheli Women†s Centre in Balsall Heath, Birmingham.
enterprises, and the research community under one roof to promote user-centred innovation A day in the life.
enterprise with a mission to catalyse social innovation in its home base of Toronto, and around the globe.
a business park for social enterprises and cooperatives. The park will include start-ups, regional and governmental organisations, and
such as climate change and welfare by linking small-scale social enterprises and projects to big institutions, laws,
a wide-ranging portfolio, covering regulation, enterprise and business support, higher education, innovation, and science. Another example is
enterprises 288) Specialist innovation agencies such as the NHS Institute for Innovation and Improvement in the UK,
or Singapore†s Enterprise Challenge. Some funds are increasingly branching into service CONNECTING PEOPLE, IDEAS AND RESOURCES 133
enterprise; provide a space to test out new ideas rapidly in practice, with quick assessments; allow fast learning across a community of innovators
Canadian enterprises. It was created in 2000 on the site of the old Toronto General Hospital.
private market, it includes social enterprises engaging in the market, as well as some of the activities of private companies that have primarily social goals. 2
and social enterprises attract all sorts of voluntary support. But for both private and social enterprises the
primary discipline is the market. Similarly, some charities and other grant -based organisations run their own shops and other market enterprises
and many contract services to the state. Yet organisations like Oxfam and Age Concern are shaped still primarily by the grant economy in how they
third sector †namely NGOS and social enterprises. The definition here includes both the public economy †whose values and goals have much in common with those of the third sector
-Danone and their collaboration in a social enterprise producing yoghurt for low income households in Bangladesh
Enterprise Challenge in Singapore, and the $700 million US education innovation fund. In the UK, the NHS has established a £220 million
The Greater london Enterprise Board financed its operational expenditures for many years through the sale of industrial property it
362) Social enterprise investment funds, such as the Social Enterprise Investment Fund launched by the UK€ s Department of health with
around £100 million, using a mix of loan and equity finance 363) Endowment finance such as the National Endowment for Science
Fund, and Enterprise Boards 376) Public Finance Initiatives, also referred to as †public-private
Enterprise Investment Scheme (EIS) for social enterprises, or property tax holidays for early-stage social enterprise and charities
378) Experimental zones are geographic areas which are used as a test bed for new ideas that can then be introduced nationwide.
and private enterprises, and vice versa 402) Collaborative structures for more innovative service design and delivery †such as Denmark†s School, Social services and Policy
and enterprises works best, or how to stage funding to maximum effect We anticipate rapid evolution in this space as philanthropists develop more
some are social enterprises, and some are charities themselves. They provide legal and business advice, offer free
known charities or social enterprises; attracting talent (particularly younger people who want to believe that their employer has a social conscience
The most significant development has been in the growth of social enterprises These are businesses which earn a profit
The main challenge for social enterprises is to maintain their commercial position in the market
In some cases, clusters of social enterprises have developed a network for collaboration and joint services which has enabled them to access services
Increasingly though, there are examples of social enterprises establishing themselves in the mainstream Inspirational examples and more information on successful business models
are critical for the growth and sustainability of the social enterprise sector There need to be diversified more capital markets, packages of support
442) Social enterprises operate in the market to achieve social goals There is currently no universally accepted definition of social enterprise
This is because social enterprises can take numerous forms, are engaged in multiple spheres of activity,
and because legal structures vary from country to country. For example, in Italy, social enterprises are constrained by a non-distribution clause †that is,
all income has to be reinvested in the enterprise. In the UK, the Community Interest Company (CIC) was created as a new legal form in 2004 to reduce the
tensions between finance and mission. CIC status makes the social mission dominant, and limits the returns on capital.
Social enterprises can generate income in a myriad ways. Some may generate their income through direct provision of a service
443) Social enterprise mutuals as providers of joint services for their members, such as the service consortia in the, Third Italy, or Work
452) Partnerships between social enterprises and corporations with not-for-distributed profits such as BASF-GAIN initiative for Vitamin a in
Africa, the Danone-Grameen yoghurt enterprise in Bangladesh and the BASF †Grameen venture, also in Bangladesh,
One of the big challenges for social enterprise is growth. Partly, this is because they face limited access to risk and growth capital,
enterprises grow, they often face difficulties in balancing conflicting pressures Much has been written about social returns on investment, triple bottom
enterprise Social finance Increasingly, there are a range of financial instruments and packages which take into account the particular needs of social enterprises and businesses
with social goals. A number of these, like public share issues, funding through cooperative subscription and crowdfunding are discussed in section 4 on
458) Social enterprise funds including the new venture capital fund, set up by Triodos Bank, which invests in high impact and commercially
sustainable social enterprises. Their aim is to help grow a dozen or so social enterprises in the UK
459) Social venture funds that use equity-like investments for start-up and early-stage social ventures where loan financing is unsuitable
enterprises to a stage where traditional investors can make investments This can include, for example, providing interim finance directors or
capital to established social enterprises with the ambition and potential both to scale up their businesses and maximise their social impact
charities and social enterprises in sites in central London (see also method 487 467) R&d mentored funding prior to start-up lending, such as
to the specific needs of social enterprises and businesses with social and environmental goals 468) Ethical banks including Triodos Bank and the Cooperative bank
of the proposal and the prospects of the enterprise. If the judgement is positive, the committee then promises to guarantee a bank loan
to the enterprise, backed by a small capital reserve and the personal guarantees of each member of the consortium.
473) Bank-based funding for social enterprises and not-for-profit organisations including Banca Prossima in Italy
market place for social enterprises and lenders that takes a small margin on the financial transaction
providing publicity to social enterprises. Countries like Cyprus have used the model of a †Good Food Guide†to upgrade the quality of the island†s
resources for social enterprise. As yet, very few resources have been devoted to labour market development. However, developing skills within the field of
social enterprise is critical to the growth and development of the sector 483) Specialist academies linked to social economy initiatives, such
which promotes social entrepreneurship and social enterprise across the UK (see also method 466 3 SUPPORT IN THE MARKET ECONOMY 193
Currently a number of social enterprises trade shares through matched bargains between registered buyers and registered
investigate the viability of a social stock exchange for social enterprises in the UK 492) Social indices such as the FTSE4GOOD Index Series, which measures
1. For more information on social enterprises and social entrepreneurship see, Nicholls, A Ed.)(2006) †Social Entrepreneurship:
Defourny, J. and Nyssens, M. 2008) Social Enterprise in Europe: Recent Trends and Developments. †Social Enterprise Journal. †Vol. 4, Issue 3, 2008
and Defourny, J. and Nyssens, M. 2008) †Conceptions of social enterprise in Europe and the
United states: convergences and divergences. †Paper presented at the 8th ISTR International Conference and 2nd EMES-ISTR European Conference, Barcelona, July 9-12,2008;
C. and Defourny, J. Eds)( 2001) †The Emergence of Social Enterprise. †London and New york
National Health Service Social Enterprise Investment Fund 158 NHS Innovation Hubs 135 NHS Institute for Innovation and
Prime Minister†s The Enterprise Challenge (TEC) 150 Private Equity Foundation 175 Pro-Ams 139
Social Enterprise 2; 60; 66; 78; 86; 98 99; 103; 130-132; 142; 158; 162;
economy, social entrepreneurship and social enterprise. It draws on inputs from hundreds of organisations around the world to document the many
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