Regulating social finance: can social stock exchanges meet the challenge

Submitted by vasil.boychev@… on
Social finance is fast becoming a mainstream source of funding for goods and services that target poor people across the globe. With social finance, impact investors put their capital behind enterprises that profitably cater to underserved populations by expanding access to critical goods and services, such as healthcare, affordable housing, credit, and quality employment. Social finance is hybrid in that it is driven by both social and commercial imperatives: Impact investors and social businesses want to generate financial returns alongside a positive social impact.

Proposed Approaches to Social Impact Measurement in European Commission legislation and in practice relating to EuSEFs and the EaSI

Submitted by vasil.boychev@… on
The Single Market Act II states that “the Commission will develop a methodology to measure the socio-economic benefits created by social enterprises. The development of rigorous and systematic measurements of social enterprises’ impact on the community ... is essential to demonstrate that the money invested in social enterprises yields high savings and income”.

Progress for Microfinance in Europe - Working paper

Submitted by vasil.boychev@… on
In November 2009, EIF issued a working paper on the European microfinance market. In this study, we found that there are wide spectra of final beneficiaries and intermediaries and concluded that here is no common microfinance business model in Europe. While our findings suggested that the microfinance market is immature and fragmented, they also pointed to its growing importance as a market segment with a potential to counter poverty and unemployment while fostering financial and social inclusion.

New Investment Approaches for Addressing Social and Economic Challenges

Submitted by vasil.boychev@… on
This paper aims to provide an introduction and overview about the social investment market for OECD member countries. Social investment is becoming increasingly important as a way to address both social and economic challenges. Several OECD member countries have been active in creating policies and support mechanisms for social investment. This paper seeks to provide background information on social investment, demonstrate how the market is evolving and highlight the role that policy makers can play in facilitating the development of the market.

Microfinance and non-financial services: an impossible marriage

Submitted by vasil.boychev@… on
Microfinance institutions (MFIs) can - in addition to their classic products - develop non-financial services: vocational training, technical assistance, agricultural or health education. The comparative assessment of five Latin American MFIs (including FINCA Peru) shows that performance varies depending on how non-financial services are integrated into usual activities, but that this diversification is possible and even seems to make a great improvement to the quality of the portfolio.

Measuring Financial Inclusion: Core Set of Financial Inclusion Indicators

Submitted by vasil.boychev@… on
More and more, policymakers are recognising the importance of evidence-based policymaking and the critical role data plays in the policymaking process, from design and implementation to monitoring and evaluation. With rigorous, objective, and reliable data, policymakers can accurately diagnose the state of financial inclusion, judiciously set targets, identify existing barriers, craft effective policies, and monitor and assess policy impact. While there is consensus on the importance of collecting financial inclusion data, no standard exists for what to measure or how to measure it.

Dutch financial instrument promotes high-tech business innovation

Dutch financial instrument promotes high-tech business innovation

A new fi‑compass case study shows how a financial instrument from the Eastern Netherlands has used European Regional Development Fund assistance to support innovation investments by small and medium‑sized enterprises (SMEs).

This 'Innovation Fund East Netherlands' was designed to help improve access to finance for the region's most promising entrepreneurs during the global economic crisis.

The fund manager, Participatiemaatschappij Oost (PPM Oost), provided equity and loans that many banks, venture capitalists, and business angels were considering too high risk.

PPM Oost also offered networking, training, and coaching opportunities. Results led to 33 SMEs investing EUR 25.7 million which created 325 new jobs.