14 Measuring Irish Entrepreneurship †International Benchmarks 15 Entrepreneurship Index 16 GEDI †2014 16 Basic characteristics †Ireland 17
Alternative and innovative sources of financing 41 4. 3 Microfinance Ireland & Credit Guarantee Scheme 41 4. 4 Venture capital 41 4. 5 Access
we must benchmark ourselves against the best in each area and promote improvement across the system.
Stimulate and support high levels of quality entrepreneurial ventures with high growth, export, wealth and job creation potential. 3 Innovation Make Ireland a location of choice for high quality international startups.
and international venture capital investors and continue to develop the domestic venture capital sector. Ensure that the banks develop the skills
Measuring Irish Entrepreneurship †International Benchmarks Measuring a country†s entrepreneurial profile is not a straightforward exercise.
Benchmarks are required to measure the impact of entrepreneurship and compare performance across a number of variables and between comparator countries.
Ireland is performing well against a number of international benchmarks on various business environment indicators.
IRELAND GEDI Benchmark or Indicator Reference point Size of population (million) 4, 588,252 Per capita GDP Euro (PPP, World bank) 40,375 Rank in Doing Business index 2013 15
and the availability of venture capital. GEDI addresses many of the deficiencies of previous measures by combining some of the basic requirements.
A number of the larger EU countries, such as Britain (10th), France (13th) and Germany (17th), all perform below their potential because of a shortage of venture capital.
while India has a shortage of venture capital. The capital-rich Gulf states score very low on launching new products and on starting new companies.
Stimulate and support quality entrepreneurial ventures that have high growth, export, wealth and job creation potential.
and operation of new ventures. 7†All policy initiatives that are intended to stimulate or promote entrepreneurship
Given that Ireland is performing strongly across international entrepreneurship benchmarks, as measured by GEDI, Ireland†s entrepreneurial profile is that of an innovation-driven economy.
and data for Ireland compiled across international benchmarks. This analysis will reveal the particular conditions that are driving high
DJEI) Develop a consistent benchmark index for Ireland that will measure and track trends across the national entrepreneurship system.
This strategy will set out performance indicators and measures to benchmark entrepreneurial activity in Irish higher education.
HEA) Set out performance indicators and measures to benchmark entrepreneurial activity in Irish higher education. DES, HEA) Develop an Entrepreneurial Phd programme with a view to training more scientists in SFI supported research teams to launch their own businesses.
The availability of seed and venture capital funds The availability of tax breaks under various startup tax reliefs An expanding suite of easy-to-use regimes that take unnecessary compliance costs out of the requirement to meet
Subject to EU State aid clearance, Budget 2014 introduced a targeted CGT relief designed to encourage business people to re-invest the proceeds of previous asset disposals into new business ventures.
500 Startup Training 4. 0 3, 800 Seed & Venture capital 55.0 186 Commercialisation Fund 15.7 64 Incubation Centres (26) 2. 0
355 National Policy Statement on Entrepreneurship in Ireland 29 The supports available range from startup training and feasibility study grants to direct support, access to seed and venture capital and various levels
A wider range of performance indicators will be developed on foot of this Policy Statement to benchmark progress
and support high levels of quality entrepreneurial ventures which have high growth, export, wealth and job creation potential EI will aim to increase its overall level of startup clients by 12%to 550 over the 2014-2016 strategic period.
Benchmark the quality and outcomes of these courses in Ireland against international best practice. DJEI and other Depts./Agencies) Vigorously promote the full range of supports to startups under the Action Plan for Jobs brand to ensure startups are aware of and avail of the full range of available supports.
For example, the seed and venture capital markets in Ireland have tripled in size in the past decade, with almost half of this finance coming from funds leveraged by Enterprise Ireland.
and impact of both schemes. 4. 4 Venture capital Venture capital is an essential source of funding for innovative
In the last 10 years Irish venture capital firms have invested â 1. 5 billion in Irish SMES
The sizes of the venture capital funds have increased and the skill set of Irish venture capitalists has deepened considerably in recent years,
However, a shortage of capital worldwide for venture investment is creating uncertainty about the level of future inflows to Ireland.
a Government initiative designed to attract leading international venture capital fund managers to Ireland. Venture capital funds that receive an investment from EI have to invest a meaningful proportion of their fund in Irish companies or companies with significant Irish operations.
By June 2014, Enterprise Ireland had made four investment commitments through IFI with a combined value of approximately â 80 million, out of a total EI allocation to the fund of â 125 million.
and international venture capital investors and continue to develop the domestic venture capital sector Double the volume of angel funding over the next five years through such actions as reforming the Employment Investment Incentive.
EI, NPRF) EI will issue a second call for expressions of interest under the Seed and Venture capital Scheme 2013-2018.
The private sector supported Seed and Venture capital framework in Ireland, including the current AIB Seed Capital Fund,
and data for Ireland compiled across international benchmarks. Many of the performance indicators listed below focus on output.
Further indicators will be added from international benchmarks such as the Global Entrepreneurship & Development Index (GEDI. Culture, Human Capital & Education The Global Entrepreneurship Monitor (GEM) provides an annual assessment of the entrepreneurial activity,
Performance indicators will be developed to benchmark progress to compare best practice at home and abroad and to set stretch targets.
Seed & Venture capital Scheme: Aims to increase the availability of risk capital for SMES to support economic growth through the continued development of the Seed
and Venture capital Sector in Ireland to achieve a more robust, commercially viable and sustainable sector. 2011: 116 investments;
and support them to commence investment under the first call for expressions of interest under the Seed and Venture capital Scheme 2013-2018.
and Venture capital Schemes and minimum of those commitments are invested in Irish companies. The funds do
Seed & Venture capital Scheme: Aims to increase the availability of risk capital for SMES to support economic growth through the continued development of the Seed
and Venture capital Sector in Ireland to achieve a more robust, commercially viable and sustainable sector. 2011: 116 investments;
and support them to commence investment under the first call for expressions of interest under the Seed and Venture capital Scheme 2013-2018.
We are introducing closer monitoring of impacts to measure performance and to test areas of opportunity against international benchmarks in the areas of job creation, startups, market penetration, innovation, efficiency of public sector interface with enterprises, cost competitiveness, finance
Benchmark metrics are supplemented with key data from the annual surveys of the Enterprise Agencies, such as employment, expenditure, sales,
650 respectively between 2011 and 2013 and further progress is needed to get to international benchmarks. Across the EU
ï§Increase researchers in enterprise to international benchmarks; and ï§Target to double patent and trademarks and registered design performance.
equity provision or venture capital support. 7 Central bank SME Market Report 2014 H2 26 Selected Targets for 2015:
which is below international benchmarks. Increasing intellectual property management and exploitation capabilities within firms across all sectors of the enterprise base is an important step in addressing this gap.
ï§The commitment by EI of â 99.5 million to a number of funds under its Seed and Venture capital Scheme (2013-2018;
venture and growth capital in Ireland is above average in an international context. The ESRI suggests that in practice the scope to substantially increase the share of this type of funding may be limited.
& Venture capital Scheme (2013 †2018) to stimulate job creation and support the 68 funding requirements of young innovative Irish companies.
The overall vision of the Seed & Venture capital Scheme (2013-2018) is to increase the availability of risk capital for SMES to support economic growth through the continued development of the Seed
& Venture capital Sector in Ireland to achieve a more robust, commercially viable and sustainable sector.
D/Finance, DJEI) 120 Issue a competitive second call for expressions of interest under the Seed and Venture capital Scheme 2013-2018.
Under each objective we shall identify key benchmarks and develop actions with public agencies and private actors in the field to deliver continuous improvement. 7. 1 Progressing the National Policy Statement on Entrepreneurship The six key elements that make up the ecosystem for entrepreneurship in Ireland are:
HEA) 187 Set out performance indicators and measures to benchmark entrepreneurial activity in Irish higher education. DES, HEA) 188 Work with the Department of Social Protection to promote the Back to Work Enterprise Allowance,
The international invitees will be from strategic target areas such as venture capitalism, corporate venturing, corporate backed accelerators, intern programme placement managers.
D/Taoiseach, All Departments) 247 Benchmark key business costs and publish a report highlighting areas where Irish enterprise costs are out of line with key competitors.
while in 2013, Enterprise Ireland invested â 203 million in capacity, innovation and equity ventures to allow agri-food companies become more agile in order to secure export sales on global markets.
researchers in enterprise to international benchmarks ï§Target to double patent and trademarks and design performance 2. 3-Europe†s Energy Innovation Hub 2. 6
Capital Scheme SEAI Sustainable Energy Authority of Ireland SVCS Seed and Venture capital Scheme SFA Small Firms Association SFI Science Foundation Ireland SME
in order to enhance social wealth by creating new ventures or managing existing organizations in an innovative manner†(p. 522).
and,(5) is unusually resourceful in being undaunted relatively by scarce assets in pursuing their social venture.
As an immediate step, it will pilot a European Public sector Innovation Scoreboard as a basis for further work to benchmark public sector innovation.
In terms of financing of new social innovation ventures, the SI Park will contribute to expanding funding opportunities through establishing a †Social Business Stock Marketâ€
Conduct benchmarks and consider what is •being done externally in the field. Map Resources Design a supply chain map:
Benchmark your product (s) against com-•petitors on environmental aspects alongside function, cost, pricing, etc.
venture capital; â€oeangel investorsâ€; share ownership; and â€oecrowd fundingâ€? What are associated the risks with each •source of funding?
Currently, several crowfunding platforms, such as www. Impactcrowd. com (NL) and www. crowdmission. com (UK), specialise in impact investment for ventures that aim to create environmental, social and economic impact.
project representatives will be able to visualise their impacts by comparing their performance with a set of benchmarks (Passani at al, 2014a).
certainly including the current fragmentation of the Internal Market and the absence of well-developed venture capital;
a total lack of harmonisation prevents cross-border venture capital investment and the creation of funds in areas where financing for innovation is needed.
In addition to cross-border venture capital and technology transfer support via the European Investment Fund (EIF), the European Investment Bank (EIB) could consider widening the scope of applications, in particular by broadening and deepening risk-sharing operations,
increasing venture capital, increasing the availability of skilled labour and enhancing international cooperation. In more in detail, short-term solutions include better application of existing state aid rules, a level international playing field and improved access to finance.
In addition to cross-border venture capital and technology transfer support via the European Investment Fund (EIF), the EIB could consider widening the scope of applications, in particular by broadening and deepening risk-sharing operations,
a total lack of harmonisation prevents cross-border venture capital investment and the creation of funds in areas where financing for innovation is needed.
o Establishing an integrated venture capital market in Europe o Expanding the permanent risk-sharing products of EIB o Developing tax incentives to support investments in R&d and innovation,
Master programmes throughout the EU27. •In addition to cross-border venture capital and technology transfer support via the European Investment Fund (EIF),
and calls into question contractual forms or venture partnering, whereas transfer of knowledge also means skills, mobility of researchers, incentives for talent.
This sensitization to mutual cultural issues may play a key-role in the success of an international venture. •The motivation (potential benefits) as well as the necessity behind global innovation activities (e g. tapping new markets
G#1v 12698 Venture 0#2#venture Venture G#2v 12734 Venture capital G#3v 12736 Benchmark
0#4#benchmark Benchmark G#3v 12735 Burn rate 0#4#burn rate Burn rate 0#3#venture capital Venture capital
G#0v 6915 ICT G#1v 7872 4d printing 0#2#4d printed 4d printing 0#2#4d printer 4d printing
0#2#4d printing 4d printing G#1v 7873 5g 0#2#5g 5g G#1v 7874 Artificial intelligence
G#2v 7875 Artificial intelligence 0#3#artificial intelligence Artificial intelligence G#2v 7876 Expert system 0#3#expert system Expert system
G#2v 7877 Machine intelligence 0#3#machine intelligence Machine intelligence G#2v 7878 Machine learning 0#3#machine learning Machine learning
G#3v 7879 Reinforcement-learning 0#4#reinforcement learning Reinforcement-learning G#2v 7880 Neural network 0#3#neural network Neural network
G#1v 6917 Artificial life 0#2#artificial life Artificial life G#1v 6918 Bionics G#2v 6919 Bionic man
Kakati M. 2003), Success criteria in high-tech new ventures, Technovation, Vol. 23 Issue 5, pp. 447†457
which is not really very uncommon for social ventures in Germany. As the venture is still in the planning/start-up
phase, there is yet no proven sustainable business model. However, economic sustainability is envisioned to be achieved by the commercial branch.
relationships that are worth mentioning in dothiv becoming a successful venture: First and foremost, the 105 relationship between domain operators, large and small,
Overall, one the central goals of the venture is just that: The establish and improve relationships,
which is not really very uncommon for social ventures in Germany. As the venture is still in the planning/start-up
phase, there is yet no proven sustainable business model. However, economic sustainability is envisioned to be achieved by the commercial branch.
Coursera had received over $85 million in venture capital (Crunchbase, 2014. It has been crucial for MOOC€ s success
egovernment performance in Europe †egovernment Benchmark 2012†European commission (2014) â€oemapping smart cities in the EU€, Directorate-General for Internal Policies, Economic
Many ventures start with a practice or prototype and only fully flesh out the demand in terms of
benchmark analysis of existing schemes and policies to boost digital entrepreneurship...38 The European policy background...
ventures 5. Boost the digitally powered single market. Improve the ease of doing digital business
5 Digital entrepreneurship embraces all new ventures and the transformation of existing businesses that drive
ventures Improve the ease of doing digital business in and across Member States, in order to equally
Nevertheless, the stigma attached to a failed entrepreneurial venture, the heavy administrative burdens, the social constraints
the EU'24 proposes an action with regard to venture capital and crowdfunding, aiming at supporting a network of European crowdfunding platforms to support,
and venture capital firms, compared to 63%when talking with banks. In this respect, the 2012 report †A framework for European
crowdfunding†indicates that SMES often fail to attract venture capital finance as a result of information asymmetry between entrepreneurs and investors
benchmark analysis of existing schemes and policies to boost digital entrepreneurship To understand what actions can be initiated both by public and private sector in order to boost
regions or cities were assessed in a benchmark analysis27 According to this analysis digital entrepreneurship is in most cases determined by a combination
landscape-Benchmark analysis. See also annex 38 Figure 18 †Overview of key success factors boosting digital entrepreneurship
EXHIBIT †KEY FINDINGS BENCHMARK ANALYSIS Silicon valley ï§Silicon valley emerged organically as a start-up ecosystem with little deliberate public
encourage exchanges and new business ventures between young and digitally -minded entrepreneurs and existing enterprises in any other sector
Benchmark Irish owned SMES against the Design Ladder Methodology Or Develop Ireland†s Community Innovation Survey to Include
and set the benchmark for key digital applications to make Germany not only the leading provider in the area of smart
for venture capital and crowdfunding zz helping to â€oematch†established businesses with start-ups zz supporting female entrepreneurs with specific measures
Ministry of Health and Social welfare, IBM, Medicines for Malaria Venture (MMV), The swiss Agency for Development and Cooperation (SDC), Vodacom and Vodafone.
The competition targets start-ups and businesses through competitive funding, offering venture capital mentorship and other forms of support.
opportunities and to turn their entrepreneurial projects into successful ventures. Becoming familiar early with the idea that running one†s own firm can be a potential career option is important, and education
breeding ground for new ideas and business ventures to be conceived. †141 6. 3 Crowdfunding, contests,
new venture capital initiatives focused on the developing world Crowdfunding is the collective effort of individuals who network and pool their money, usually via the
Venture capital for Africa is an example of a crowdfunding model to connect entrepreneurs building promising companies in Africa with investors from some 159 countries around the
The community currently supports more than 400 ventures in over 30 African countries Entrepreneurs have been featured in mainstream media, established joint ventures and
can access screened ventures and review ventures that match their investment criteria. Members meet online as well as
organize offline-networking events called VC4AFRICA Meetups. These have been hosted in 35 cities around the world
Venture funds are also being established by many organizations to fund startups. These funds are typically found in specific countries or regions,
mentorship, internet connectivity and the possibility of venture funding through connections with the international venture capital community.
The space is a tech community facility with a focus on young entrepreneurs, web and mobile phone programmers, designers and
Venture capital Financial capital invested in start-up companies Web 2. 0 Websites that allow users to interact,
World bank but also Dow Chemical†s venture fund. Revolution Foods, a four-year-old venture-capital-backed U s. start-up
comparing their performance with a set of benchmarks (Passani at al, 2014a In parallel, CAPS users will be invited to fill in the UDGI,
their venture. The global study Good Incubation (2014) 12 explores how social venture incubation has grown as a set of techniques to help founders develop ventures that are
investable propositions, including a focus on incubators with a specific focus on sup -porting digital social innovators
Incubators typically support innovators in exchange for equity, at pre-seed or seed stage There are nearly 100 incubators/accelerators in Europe
Ventures, and the Waag society in Amsterdam, working on setting up and hosting one of Europe†s first Fab Labs, are two examples of this in Europe.
Bethnal Green Ventures in the UK, who support early-stage technology start-ups tackling a social or environmental problem with £15, 000 and 3
Ventures Tor Open Garden Guifi. net Confine Smart Santander DSI AREAS 37growing a Digital Social Innovation Ecosystem for Europe
Bethnal Green Ventures Citysdk Clearlyso Angels Communia Commons 4 Europe Confine Crisisnet Desis Network Everyaware
Bethnal Green Ventures Citysdk Clearlyso Angels Communia Commons 4 Europe Confine Crisisnet Desis Network Everyaware
Ventures Tor Guifi. net Confine Smart Santander Makerfaire The different methods by which these organisations are supporting DSI
Venture capital Big data and cloud computing Collective awareness platforms collective intelligence CENTRALISED TOP-DOWN GRASSROOTS DISTRIBUTED COMPETITION ECONOMIC ENTERESTS
Venture capital Big data and cloud computing Collective awareness platforms collective intelligence CENTRALISED TOP-DOWN GRASSROOTS DISTRIBUTED COMPETITION ECONOMIC ENTERESTS
more than 400 ventures were started among its members One of the most obvious measures is to crackdown on tax abuses by technology
mainly aimed at start-ups and ventures There are other elements such as prizes, competitions, events, knowledge sharing
venture incubation, with a focus on what can be learned by this sector from other pro -grammes around the world.
The Triple Helix outlines how social tech ventures, and investors, should focus on three types of value †Social Value, User
the venture intends to create i e positive impact health resilience and sustainability society. Social value is the
the venture to be sustainable and the venture has to be active in it. The generation
of sustainable income is understood as financial value which comes as the result of realising user or social value
accelerator programme run by Bethnal Green Ventures have demonstrated potential in how models developed to support early-stage businesses can be adapted to support
†perhaps as a new venture or as a new policy within an existing institution.
ventures and the ventures that should be scaled up to achieve systemic changes. It is important that
Social enterprises are ventures in the business of creating significant social value, and do so in an entrepreneurial, market-oriented way, that is, through
ventures work on challenges relating to training and education (smart growth), economic, social and community development and social service delivery (inclusive growth), and the environment
Moreover, we observe that these ventures are introducing many more new to -the-market innovations than mainstream businesses.
involved in creating new ventures for social purposes, including the willingness to take risks and
By social enterprises here, we mean ventures whose primary goal is to create significant social change, and who
Organisations that have experience of backing successful social ventures emphasise the importance of looking at the carrier of the project as well as the idea that they pitch
that develops promising ideas into new ventures by providing funding, social capital and entrepreneurial expertise
an incubator to many projects and ventures some of which are located co at its London headquarters
3. 2. 2. Access to venture capital †The European Venture Capital Funds...105 3. 2. 3. The European regulatory framework for social investment funds
emergence of a wider diversity of funding sources for innovative ventures with a so -cial objective from the public and private sectors.
responds, where legislation permits, to calls to †crowdfund†social ventures. This is good news as one of the major barriers to the development of social innovation identified in
engage in long-term ventures This aspect has raised considerable attention, in particular at EU level, since the launch
Together with the Regulation on European venture capital funds (Euveca) and the Alternative Investment Fund Managers Directive (AIFMD), this Regulation aims to make it easier for AIFMD-exempt
Eusef Regulation is wider than those available for venture capital funds under the EVCF Regulation 58 The third axis of this programme focuses on microfinance and social entrepreneurship with a fund of EUR
size and scope of the venture and to allow an approach that respects the diversity of
ventures. The dynamics of involving all stakeholders (from investors to service users is designed to maintain the balance between the overriding need to deliver measurable
-SIS) with a view to improving its ability to benchmark the innovation performance of the public sector in Europe.
initiatives, and benchmark progress. Much will depend on creating a critical mass of public sector leaders who have the skills to manage innovation.
work to benchmark public sector innovation and explore with Member States wheth -er it is appropriate to bring together new learning experiences and networks for
and by investing in funds that provide venture capital and mezzanine finance to expansion and growth-stage SMES
3. 2. 2. Access to venture capital †The European Venture capital Funds174 Small start-up businesses often have difficulty getting funding.
European Venture capital Funds (Euveca), which along with Eusef175 became available on 22 july 2013. Euveca invest in unlisted companies with
Access to venture capital †The European Venture capital Funds 3. 2. 3. ï¿The European regulatory framework for social investment funds:
Like the social ventures it describes, we want this work to grow and develop. Your comments, thoughts and stories are welcome at the
of developing workable ideas and setting up a social venture in a way that ensures its financial sustainability;
venture capital with those from tendering and grant giving. Others are combining ethnography, visualisation techniques from product design, user
Conversely, some NGOS are learning from venture capital not only how to finance emerging ideas, but also how to kill off ones that aren†t
often advisable to set it up as a separate venture, with public finance and a
•A business model that runs parallel to the core idea of the venture and which sets out how it can become sustainable
Any venture driven by a social mission has an interest in maximising the spread of an innovation beyond the
Most social ventures have to do both †to remain open and collaborative, while surviving financially.
this openness, together with the social mission of the venture, that attracts voluntary contributions in terms of volunteer time, resources, and donations
Social ventures have much to gain from keeping open, yet this is easier said than done.
Ventures are subject to the day to day disciplines of keeping the show on the road. They tend to turn inwards behind their organisational moat
strategy about how the proposed venture is positioned on the economic field of play. There will be key points of control in any sector of
which a venture is based. In the diagram below we identify 12 alternative axes which may be more appropriate for social ventures
62 THE OPEN BOOK OF SOCIAL INNOVATION 4 disaggregating its activities to generate alternative income streams
Particularly instructive for social ventures are the lessons from the business models adopted by web companies which, like social ventures
have an interest in maintaining free access, while at the same time generating revenues indirectly as the result of the response that the free
social venture to be a straightforward implementation of a blueprint (it is much more like a process of discovery and unfolding), plans help to
competence of those engaged in taking the venture forward 109) Business plan assessment methods. There are many methods that
methods from the field of venture capital, for example, provide a rigorous framework for paying attention to the many elements that together make
model for new ventures has shown 12 axes in the diagram below. For each of them, progress is mapped in four stages.
chart the progress of more than 450 ventures, in order to identify key areas for further development Ownership and organisational form
when every venture has to decide what organisational form to take, what kind of decision making and accountability processes to
For some social ventures, simple private company models are the most suitable: they may help with raising equity, and
Most social ventures depend on restrictions Just a few of the houses built by Un Techo para Chile (A Roof for Chile
ventures to access equity investment while maintaining the social goals of the enterprise as paramount.
instruments of governance of social ventures, they have a dysfunctional history. They represent a division between moral and manual labour
Yet the success of a social venture depends on an integration of the two. The means of overcoming this
work of the venture. Boards are required legally to act as guardians of values and mission, and often see themselves as having to resist
But increasingly social ventures are seeking ways to involve stakeholders that do not depend on representation on a board
comprehensive guides to help ventures make decisions about governance models and organisational forms. These can be used at an
more directly in the work of a venture, both directly, and through representation on the board.
Many social ventures try and avoid strict hierarchical structures by remaining small and by subdividing (like
cells) or collaborating with other similar ventures. Some have adopted a franchised model, to allow each unit to remain relatively small, while
benefitting from economies of scale for the group of ventures as a whole This is the basis for the expansion of Riverford Organic Vegetables Ltd
his venture small, and production local. The resulting network now delivers 47,000 organic food boxes a week
The distinctive value and values of a social venture show up not just in its structures but in its operations †how it works with others, uses technologies
reflect the values of the venture are often a key element in sustaining and expanding a social venture.
An organic food box scheme, for example, depends on its certified supply chain. A fair trade company
For some ventures providing intermediate goods or services the challenge is how to develop a demand
demand chain reflecting the social mission of the venture 4 SUSTAINING 71 133) Shared backroom economies.
Many new ventures carry high overheads because of their small scale, or they fail to invest in financial
It is important for ventures to find ways of sharing these overheads, or access part-time specialists,
It is often important for ventures to adopt technologies that are flexible, adaptable, and suitable for distributed
New ventures put much of their energy into securing financial capital †money to invest in fixed assets on the one hand,
built up between a venture and its users and suppliers, and the relationships between a venture and its staff and volunteers.
Conventional accounting takes little account of this intangible capital, yet in all social ventures it is the
foundation of their strength, and of their distinctiveness We use the concept of relational capital to capture the quality of relationships
relevance for a social venture, as its fortunes depend on the range and depth of its relationships that
property and contract, for a social venture the boundaries are more porous †internal and external interests mesh
It is one of its greatest potential assets that a social venture can attract support and resources from outside itself,
project, for it is from an open and inclusive culture that a social venture draws much of its strength
ventures tend to rely on their idea to galvanise funders and users They place their operational focus more on supply than demand.
to ensure that the venture remains generative rather than static, users should remain central †a service should know who they are and who
Just as no venture can operate without a finance and accounting system, it requires a system of user relationships and
All social ventures now have to have a website. But their full potential has begun only to be explored.
Many ventures are by their nature information intensive †in respect to the quality and tangibility
It has therefore become crucial for ventures to have access to the tools †wikis, chat rooms, forums, comment boxes, and
Above all, a venture needs to devote resources to the constant updating and active hosting of their sites.
Social ventures, particularly those that are tax-funded or grant-aided, have been suspicious of branding
But all ventures have an appearance and a style. It is part of the way they communicate.
Social ventures should see branding as a flame that indicates a presence and attracts people
Some ventures go further and make their workplace into a working gallery or museum. They demonstrate much of their work
It is always a useful exercise for a venture 4 76 THE OPEN BOOK OF SOCIAL INNOVATION
much more important for social ventures than commercial ones. They allow a wider group to share in the spirit of the venture
141) Open forms of intellectual property to maximise the spread and diffusion of the idea or service.
Social ventures have an interest in adopting open forms of intellectual property. They stand to benefit
venture that initiated the zero carbon development at Bedzed) recently placed its most valuable technical information on the web for open
For some ventures this may involve the foregoing of possible income streams from the sale
training and shared orientation of those engaged in the venture plays a critical role in providing cohesion to social ventures.
It informs the articulation of the venture†s central purpose. It provides meaning for those working for the venture, for investors and volunteers, and it gives
to the venture a living, reflexive power that is not limited to particular individuals or levels in the organisation,
but to all those involved. This is important also, for public innovation, through, for example, bodies like
not only for the venture itself, but to create a group of individuals able to put the ideas into practice more widely.
expense, but there is great potential value to a new venture if it makes one of its goals the attraction and effective employment of a wide
like the social housing venture Habitat for Humanity, are primarily volunteer organisations of this kind
Venture finance Every innovation process requires some finance. For social ventures it is key that the sources of finance should share the venture†s social goals as the
primary driver of the enterprise. This may not always be possible. Raising capital may involve some compromise with the providers of capital, but the
To finance new ventures there are a range of ethical banks and social funding agencies devoted to supporting new and expanding ventures.
All forms of finance bring with them power relationships, which can sometimes threaten the values and relationships which the venture is built on.
To guarantee that the initial venture funding remains subordinate to the values of the social
mission, enterprises can raise social equity, limit the quantity of common shares, and seek subordinated loans from sources ready to share early risk
145) Grant funding is provided sometimes to grow social ventures This usually depends on one or two wealthy philanthropists having
much of the loans now being made for social ventures are coming from specialised social finance organisations, sometimes seeking security
an advantage over venture capital funding in that they can tap investors who want to make social impact their primary incentive rather than
151) Venture philanthropy uses many of the tools of venture funding to promote start-up, growth,
and risk-taking social ventures. It plays an important role in diversifying capital markets for nonprofits and social
in Estonia, Invest for Children (i4c) in Spain, Oltre Venture in Italy, and both Social Venture Partners and Venture Philanthropy Partners in the
US Sustaining innovations through the public sector Sustaining ideas in the public sector involves different tools to those needed in
markets or for social ventures. There are similar issues of effective supply (the proof that a particular model works) and effective demand (mobilising sources
A venture may take it on itself to ensure this synchronisation of growth, but it is undertaken also by
developing the venture and the way it connects, and is held together by a common core of meaning
of tools in use in banking, venture capital and other fields of investment which assess current and future cash flows, asset values, etc
228) Outcome benchmarks, such as the local surveys now undertaken to measure answers to questions such as how well people get on with each
challenge for bottom-up ventures is how to access the power and money to 6 110 THE OPEN BOOK OF SOCIAL INNOVATION
or any benchmarks to draw on. Instead, assessments need to include some judgement of the broader direction of change in the field as a
specialists in technology transfer, venture capital firms, conferences, and academic journals †which sit alongside consultants adept at looking at
that any new venture needs to be based somewhere, and people tend to like to congregate with others like them
range of social ventures to become more effective in tackling social problems We†ve suggested that much social innovation comes from linking up the
ventures; places to access experience, knowledge, finance and markets And above all, places for making connections
others act as internal public venture funds, such as the UK€ s †Invest to Save†budget for crosscutting innovations,
model that seeks to create new ventures and back social entrepreneurs †with a multidisciplinary team, a staged investment model, and an
cent of turnover as a rough benchmark (similar to the proportion of GDP now devoted to government support for technological and scientific
324) Dedicated innovation funds and internal public venture funds, such as the UK€ s †Invest to Save†budget for crosscutting innovations, The
funding for community ventures 351) Socialising risk. New forms of social insurance for long term care â€
entrepreneurship and venture philanthropy have also been better at supporting individual projects than making them more than the sum of their
smaller, but visible, trend has been the growth in venture philanthropy, with much greater involvement of donors in projects and organisations.
United Way, Social Venture Network, or the North Virginian Giving Circle of HOPE (Helping Other People Everydy.
420) Venture philanthropy focused on innovation in particular sectors, such as the Robert Wood Johnson Foundation†s (RWJF€ s) Pioneer Portfolio
425) Metrics for venture philanthropy such as those developed by Homeward Bound, a project to end homelessness in the US, or †blended
Venture philanthropists, including Private Equity Foundation and Impetus Trust, are now using the skills of the
4. John, R. 2006) Venture Philanthropy: the evolution of high engagement philanthropy in Europe. †Skoll Centre for Social Entrepreneurship Working Paper. †Oxford:
/Documents/Venture%20philanthropy%20in%20europe. pdf. For large scale developments in this field, see: Bishop, M. and Green, M. 2008) †Philanthrocapitalism. †London:
Ventures in Australia 444) Consumer co-ops such as the Japanese food co-ops which have 13 million members.
BASF †Grameen venture, also in Bangladesh, which hopes to improve health and business opportunities for those on low income in the
458) Social enterprise funds including the new venture capital fund, set up by Triodos Bank, which invests in high impact and commercially
459) Social venture funds that use equity-like investments for start-up and early-stage social ventures where loan financing is unsuitable
Examples include Bridges Community Ventures in the UK, which invests in businesses based in regeneration areas and in sustainable business
sectors, including the environment, education, and healthcare 460) Microcredit for microproduction. Grameen, BRAC and ASA in
can invest in the start-up equity of social ventures, as with the Mustard Seed charity†s investment in the fair trade Community Interest Company
474) Business angels provide finance for social ventures, often with advisory roles, and sometimes supported by networks to link investors and
Bridges Community Ventures 186 Brokers 134 212 THE OPEN BOOK OF SOCIAL INNOVATION Brookings Institute 48
For new ventures 78-80 For systemic change 121-122 Public economy 149-161 budgets to promote internal
Oltre Venture 80 One Click Organisations 68 Open Open Access Journals 200 Open Brands 83;
Social Venture Network 171 Social Venture Partners 80 218 THE OPEN BOOK OF SOCIAL INNOVATION
Sonoma Mountain Village 112 Space 18; 36; 45-46; 114; 129; 130; 148 153; 197;
Venture Philanthropy 80,167-168,172 175 Visiting 36,205 Vodafone 183-4, 219 Voting 41,65, 153-154
Work Ventures 183 Working Rite 66-67,220 World bank 19,38, 89 Worldchanging 178 WRAP 135 X-Prize 39
success with ventures such as the Open university, †Which? â€, the School for Social Entrepreneurs and Healthline (the precursor of NHS Direct.
over 40 ventures at any one time, with staff in New york and Paris as well as London and Birmingham in the UK
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