Details
Year: 2026
Published in: EUROPEAN COMMISSION
Directorate-General for Employment, Social Affairs and Inclusion
Directorate G — Funds: Programming and Implementation
Unit G.3 — Social and Inclusive Entrepreneurship
Cited as: Varga, E., (2026). Mutual Learning Workshops for successful projects under call ‘Actions to boost the development of finance markets for social enterprises (ESF-2023-SUPPLY-DEMAND)’: Thematic Discussion Paper Workshop 1 – Addressing gaps on the demand and supply sides of social finance: investment readiness and capital mobilisation. EUROPEAN COMMISSION
Directorate-General for Employment, Social Affairs and Inclusion
Directorate G — Funds: Programming and Implementation
Unit G.3 — Social and Inclusive Entrepreneurship
Subject
This paper is the second in a series of thematic papers that are written to support the mutual learning workshops for successful projects under the call ‘Actions to boost the development of finance markets for social enterprises (ESF-2023-SUPPLY-DEMAND)’ by laying out the social investment landscape in EU countries, synthesising learning from previous EU-funded programmes, identifying best practices for boosting the supply and demand side of the social finance markets, and discussing outstanding questions. A kick-off workshop was held in March 2025, bringing together representatives from nine projects selected under the call. Four additional workshops are being organised, and this paper is intended to support the full series.
This workshop series is aimed at the consortia implementing the nine projects selected under the “Supply-demand call”, which fall into two groups: those in young or nascent social economy ecosystems (AFIN, EcoVolve, EPSI, ImpactBaltic, ImpactSeed); and those in more advanced or mature ecosystems (MKSFFG, TOUCH, SCFL, SEIMA). Implementation of most projects is well into their first year, with market and needs assessments for financing instruments and investment readiness support completed.
Abstract
Project activities are carried out in the context of growing interest in social enterprise finance, with both supply and demand sides evolving. On the supply side, new players, including philanthropic investors, are slowly entering the space, while social investing, catalytic capital, and innovative financing solutions are expanding. Mainstream finance is also becoming more accessible to social enterprises and, at the same time, impact investing is criticised for failing to fill the space between philanthropy and commercial finance. On the demand side, the pool of impact enterprises and the need for repayable finance are increasing, supported by improved investment readiness, recognition by government and independent social impact labels, making it easier for investors to identify opportunities. Despite positive developments, challenges remain in raising capital, attracting investors, generating an investible pipeline of enterprises, sustaining and scaling investment readiness initiatives, and measuring social impact at both enterprise and fund levels. These are the challenges that the current cohort of projects has set out to meet with the upcoming mutual learning workshop focusing on investment readiness programmes and raising capital.
