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EU's £9.5bn structural funds can boost social innovation in the UK EU's £9.5bn structural funds can boost social innovation in the UK
(about 1 month later)
Last week the UK government confirmed that £9.5bn from EU structural funds 2014–2020 will be divided across England, Scotland, Wales and Northern Ireland to help deliver strong, sustainable growth and assist in rebalancing the economy.Last week the UK government confirmed that £9.5bn from EU structural funds 2014–2020 will be divided across England, Scotland, Wales and Northern Ireland to help deliver strong, sustainable growth and assist in rebalancing the economy.
The BIS minister, Michael Fallon, has been listening to representatives from social enterprise and civil society as there are opportunities in the new programme to make a difference to peoples' lives. The BIS minister, Michael Fallon, has been listening to representatives from social enterprise and civil society as there are opportunities in the new programme to make a difference to peoples' lives. 
I'm glad reading the announcement to see the British government acknowledges the benefits of European policy and public investment. BIS say structural funds in 2007-13 helped create more than 50,000 jobs, assisted the start-up of more than 20,000 businesses and supported more than 1,300 research and technical development projects.I'm glad reading the announcement to see the British government acknowledges the benefits of European policy and public investment. BIS say structural funds in 2007-13 helped create more than 50,000 jobs, assisted the start-up of more than 20,000 businesses and supported more than 1,300 research and technical development projects.
So what role can we envisage for civil society and social enterprise this time round?So what role can we envisage for civil society and social enterprise this time round?
Social innovation is the entry point for civil society and there is extra European money for it. The European commission's guide to social innovation explains in some detail how European social fund (ESF) and European regional development fund (ERDF) can fund it. Most important, social innovation is a priority for the commission and an extra 10% of co-financing from Brussels can come to initiatives identified by the UK as social innovation.Social innovation is the entry point for civil society and there is extra European money for it. The European commission's guide to social innovation explains in some detail how European social fund (ESF) and European regional development fund (ERDF) can fund it. Most important, social innovation is a priority for the commission and an extra 10% of co-financing from Brussels can come to initiatives identified by the UK as social innovation.
One example from a previous programme (2000-2006) is the Yorkshire Key Fund. It received €3m from ERDF to provide loans up to €25,000 (6.5% for 5 years) and grants of €2–5,000. For established social enterprises YKF provided loans up to €150,000 and equity shares up to 10%.One example from a previous programme (2000-2006) is the Yorkshire Key Fund. It received €3m from ERDF to provide loans up to €25,000 (6.5% for 5 years) and grants of €2–5,000. For established social enterprises YKF provided loans up to €150,000 and equity shares up to 10%.
Social investment is a real opportunity in this round: Social Investment Business is working on a proposal with partners in the sector for a loan fund from structural funds to encourage private equity investment. This is a contribution to make the UK an international hub of social investment and could be reinforced if it is combined with parallel EU initiatives. The European investment fund is about to launch a fund of funds to experiment in the field.Social investment is a real opportunity in this round: Social Investment Business is working on a proposal with partners in the sector for a loan fund from structural funds to encourage private equity investment. This is a contribution to make the UK an international hub of social investment and could be reinforced if it is combined with parallel EU initiatives. The European investment fund is about to launch a fund of funds to experiment in the field.
Another source of money is the Programme for Social Change and Innovation managed by the commission. A €95m fund for social entrepreneurship; €87m microfinance facility; and €9m for capacity building. The guide on social innovation recommends combining this programme with ESF and ERDF.Another source of money is the Programme for Social Change and Innovation managed by the commission. A €95m fund for social entrepreneurship; €87m microfinance facility; and €9m for capacity building. The guide on social innovation recommends combining this programme with ESF and ERDF.
Prize challenges are an exciting tool for community-led ideas which can be turned into solutions. Euclid Network piloted an international competition for some tough challenges in Naples in 2011. Our experience is that private finance is interested in supporting this kind of approach: Unit Credit Bank Foundation provided €0.5m. We attracted 200 entries and are launching two companies from the seven prize winners. The main lesson for us was that you have to put time into mentoring support, especially financial expertise, which is crucial for implementation. So using an element of structural funds for investment readiness providing customised support locally will be crucial.Prize challenges are an exciting tool for community-led ideas which can be turned into solutions. Euclid Network piloted an international competition for some tough challenges in Naples in 2011. Our experience is that private finance is interested in supporting this kind of approach: Unit Credit Bank Foundation provided €0.5m. We attracted 200 entries and are launching two companies from the seven prize winners. The main lesson for us was that you have to put time into mentoring support, especially financial expertise, which is crucial for implementation. So using an element of structural funds for investment readiness providing customised support locally will be crucial.
The UK has expertise: Nesta established a center for prize challenges; UnLtd and Network for Europe are good examples of UK organisations with business mentoring expertise.The UK has expertise: Nesta established a center for prize challenges; UnLtd and Network for Europe are good examples of UK organisations with business mentoring expertise.
Local Enterprise Partnerships (LEPs), business led with local authority input, are the infrastructure that will invest structural funds across England. The sector would like to see some injection of expertise from civil society and social enterprise. I think the European code of conduct on partnership, part of the structural fund regulation, may help. Article 5 makes it mandatory for managing authorities (LEPs in this case) to engage all stakeholders in planning, monitoring and evaluating structural funds.Local Enterprise Partnerships (LEPs), business led with local authority input, are the infrastructure that will invest structural funds across England. The sector would like to see some injection of expertise from civil society and social enterprise. I think the European code of conduct on partnership, part of the structural fund regulation, may help. Article 5 makes it mandatory for managing authorities (LEPs in this case) to engage all stakeholders in planning, monitoring and evaluating structural funds.
LEPs will follow the guidelines to assure the inclusion of civil society and social entrepreneurs' expertise. It is anticipated in the code that funding can be used for capacity building to assure participation of stakeholders. And the code requires regular self assessment of the effectiveness of partnership which could help to demonstrate the added value of inclusion of stakeholders.LEPs will follow the guidelines to assure the inclusion of civil society and social entrepreneurs' expertise. It is anticipated in the code that funding can be used for capacity building to assure participation of stakeholders. And the code requires regular self assessment of the effectiveness of partnership which could help to demonstrate the added value of inclusion of stakeholders.
Euclid Network is gathering good practice from other countries for the new programme. It is looking at how the Italian government piloted the first online platform to allow citizens to monitor every project funded with structural funds.Euclid Network is gathering good practice from other countries for the new programme. It is looking at how the Italian government piloted the first online platform to allow citizens to monitor every project funded with structural funds.
Structural funds are the largest injection of public investment to make a difference across the country. This is an opportunity that social innovators can't afford to miss.Structural funds are the largest injection of public investment to make a difference across the country. This is an opportunity that social innovators can't afford to miss.
Filippo Addarii is the executive director at the Euclid Network, a network that connects 300 members from 31 countries for a more innovative, professional and sustainable European civil societyFilippo Addarii is the executive director at the Euclid Network, a network that connects 300 members from 31 countries for a more innovative, professional and sustainable European civil society
This content is brought to you by Guardian Professional. To join the Guardian Social Enterprise Network, click here.This content is brought to you by Guardian Professional. To join the Guardian Social Enterprise Network, click here.
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