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The emerging Dutch social enterprise sector The emerging Dutch social enterprise sector
(about 2 months later)
Fellow European policy makers have been referring to the Dutch social enterprise support system as a 'black hole'. With limited attention for the topic, the Dutch are indeed been far behind other European countries in the attention, awareness and support available for social entrepreneurs. To date the Dutch government has done nothing to support social enterprises, and do not yet officially recognise the term.Fellow European policy makers have been referring to the Dutch social enterprise support system as a 'black hole'. With limited attention for the topic, the Dutch are indeed been far behind other European countries in the attention, awareness and support available for social entrepreneurs. To date the Dutch government has done nothing to support social enterprises, and do not yet officially recognise the term.
Yet something has begun to change in this past year. It seems the social enterprise sector is finally gathering some momentum.Yet something has begun to change in this past year. It seems the social enterprise sector is finally gathering some momentum.
Repeatedly named as one of the most entrepreneurial countries in the EU, the Dutch seem to possess the right 'DNA' for social entrepreneurship; they are innovative, business savvy and socially engaged. So why is social entrepreneurship not a thriving sector in the Netherlands?Repeatedly named as one of the most entrepreneurial countries in the EU, the Dutch seem to possess the right 'DNA' for social entrepreneurship; they are innovative, business savvy and socially engaged. So why is social entrepreneurship not a thriving sector in the Netherlands?
The report 'Opportunities for the Dutch Social Enterprise Sector', highlighted several barriers for growth. First of all, like in most countries, social enterprise models are relatively unknown and ill understood by the general public. Social impact has traditionally been a non-profit or governmental affair, so there is an inherent distrust of any entrepreneur who tackles a social mission with a business model. Then there is the problem of access to capital. Patient growth capital has been scarcely available thus far. And finally, most importantly, the Dutch government has done very little to support the sector. Forcing social impact entrepreneurs to construct complicated entities to capture their social mission.The report 'Opportunities for the Dutch Social Enterprise Sector', highlighted several barriers for growth. First of all, like in most countries, social enterprise models are relatively unknown and ill understood by the general public. Social impact has traditionally been a non-profit or governmental affair, so there is an inherent distrust of any entrepreneur who tackles a social mission with a business model. Then there is the problem of access to capital. Patient growth capital has been scarcely available thus far. And finally, most importantly, the Dutch government has done very little to support the sector. Forcing social impact entrepreneurs to construct complicated entities to capture their social mission.
Yet change is underway and the glimpses of an emerging movement have become apparent in the last year. The visibility of the sector is slowly increasing. With no legal structure or mark to differentiate social enterprises from its commercial competition, recognition has to come from common branding. The newly established platform organisation Social Enterprise NL is bringing together social enterprises to provide support and lobby on their behalf. Since its inception last summer over 100 social enterprises have joined the platform and the number is growing steadily.Yet change is underway and the glimpses of an emerging movement have become apparent in the last year. The visibility of the sector is slowly increasing. With no legal structure or mark to differentiate social enterprises from its commercial competition, recognition has to come from common branding. The newly established platform organisation Social Enterprise NL is bringing together social enterprises to provide support and lobby on their behalf. Since its inception last summer over 100 social enterprises have joined the platform and the number is growing steadily.
The government has finally caught on to the topic and has started to realise that social entrepreneurship could just bring the type of social innovation that can strengthen social fabric and bring in new tax revenue at the same time. The Netherlands has recently joined talks at the Social Business Initiative in Brussels while Social Enterprise NL and the ministry of economic affairs are now exploring which policy measures are most suited to stimulate social entrepreneurship. All signs of the government's willingness to engage more actively with the sector.The government has finally caught on to the topic and has started to realise that social entrepreneurship could just bring the type of social innovation that can strengthen social fabric and bring in new tax revenue at the same time. The Netherlands has recently joined talks at the Social Business Initiative in Brussels while Social Enterprise NL and the ministry of economic affairs are now exploring which policy measures are most suited to stimulate social entrepreneurship. All signs of the government's willingness to engage more actively with the sector.
Big steps have also been made to increase the availability of patient growth capital for social enterprises. A new investment organisation will be established in the next few months, which will attract capital from different impact funds and investors while supporting entrepreneurs in managing capital injections. Meanwhile ABN AMRO, one of the biggest mainstream banks similarly allocated €10m (£8.5m) to its own impact-investing fund.Big steps have also been made to increase the availability of patient growth capital for social enterprises. A new investment organisation will be established in the next few months, which will attract capital from different impact funds and investors while supporting entrepreneurs in managing capital injections. Meanwhile ABN AMRO, one of the biggest mainstream banks similarly allocated €10m (£8.5m) to its own impact-investing fund.
Social entrepreneurship has thus far been mostly absent from University course catalogues. Yet two major universities have recently announced that they are now incorporating the subject in their course curriculum as part of their graduate programmes.Social entrepreneurship has thus far been mostly absent from University course catalogues. Yet two major universities have recently announced that they are now incorporating the subject in their course curriculum as part of their graduate programmes.
So how can we capitalise on these small, early successes and move from here? Most is to be achieved at the government level. They should move from the awareness that the sector is important, to adopting concrete policy measures that can boost the ecosystem for social enterprises. This could require looking into fiscal benefits for innovative social start-ups, adopting social procurement regulations and possibly even a special judicial structure. But they should start by taking on a definition of social entrepreneurship.So how can we capitalise on these small, early successes and move from here? Most is to be achieved at the government level. They should move from the awareness that the sector is important, to adopting concrete policy measures that can boost the ecosystem for social enterprises. This could require looking into fiscal benefits for innovative social start-ups, adopting social procurement regulations and possibly even a special judicial structure. But they should start by taking on a definition of social entrepreneurship.
Existing social enterprises should continue to come together. Building a sector starts from identifying the common ground and moving forward from there.Existing social enterprises should continue to come together. Building a sector starts from identifying the common ground and moving forward from there.
Building relationships, sharing experiences, best practises and identifying common opportunities will ultimately help the sector as a whole.Building relationships, sharing experiences, best practises and identifying common opportunities will ultimately help the sector as a whole.
We need more success stories. Triodos bank has been a well-known social enterprise in the financial sector and there are some other promising younger enterprises like Taxi-E, Peerby and Waka Waka light, which are scalable and are growing fast. These pioneers need support from government, investors, clients and consumers to build resilient organisations, which have the potential to become national examples. Only by growing a stronger support structure across different institutions can we continue to boost the emerging sector in the Netherlands.We need more success stories. Triodos bank has been a well-known social enterprise in the financial sector and there are some other promising younger enterprises like Taxi-E, Peerby and Waka Waka light, which are scalable and are growing fast. These pioneers need support from government, investors, clients and consumers to build resilient organisations, which have the potential to become national examples. Only by growing a stronger support structure across different institutions can we continue to boost the emerging sector in the Netherlands.
Nina Koopman is programme director at Social Enterprise NL, the Dutch National Platform for Social EnterprisesNina Koopman is programme director at Social Enterprise NL, the Dutch National Platform for Social Enterprises
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