The proposal is aiming at the establishment of a social finance local partnership, on an initial level in Karditsa, Thessaly, Greece and in the course of its development, its replication and scalability into other regions of the country that would lead to a sound national social finance instrument.
The evolved financial ecosystem for a Social Finance Partnership (SFP) which is a subsystem of a potential greater social financial ecosystem contains three distinctive but interwoven areas of stakeholders:
A) The Demand side that contains the social enterprises of various types (i.e. social cooperative enterprises, social business, associations, etc)
B) The Intermediaries’ side which is comprised of the Social Finance Partnership itself, the Cooperative Bank of Karditsa, the Development Agency of Karditsa (AN.KA. S.A), and the Hellenic Agency for Local Development and Local Government (E.E.T.A.A. S.A.), i.e. applicant and co-applicants in this call committed to create a social finance instrument. These initial partners benefit from the participation and expertise of the European Association of Ethical and Alternative Banks (FEBEA, co-applicant) who is expected to assist in strengthening the partnership and in creating the conditions for the successful introduction of a social finance instrument in Greece
Finally the system is integrated with
C) The Supply side, hitherto the individual and the institutional investors, (i.e. private/professional pension funds, public pension funds, crowd funding platforms, private investors, social venture capitals) as well as other organizations and institutions with strong commitment to offer to society and those in need. The schematic representation of the model is below.
SOURCE: “Enriching the Social Finance Ecosystem: The Design of a Social Mutual Fund”,
Manolis Tzouvelekas, EMPA PhD Researcher, Dpt of Public Administration, Panteion University Athens
The value architecture of the Social Finance Partnership is to empower social and financial change through socially innovative finance tools and institutions.
The steps taken to serve the emerging and existing demand are the following:
Step 1: Training members & employees of the social enterprises in understanding social finance tools, the usefulness and applicability to their sector. Training on Social Audit, Accounting and Reporting
(Social Audit and Accounting is run continuously as a feedback system, on all steps, running down the whole structure).
Step 2: Setting up a discussion platform ith various strategic stakeholders (investors) on a local and regional level in regard to the Social Finance Partnership
Step 3: Discussion in depth with legislators, Ministries, of Labor, Finance, Development & Competitiveness
Step 4: Follow-p with comments; objections; enhancing the Social Finance Partnership model.
Step 5: Final feedback and fixing deficiencies, promotional campaign.
Step 6: Setting up the Social Finance Partnership and finalization of all the necessary formalities.
Step 7: Initial stage organizational preparations.
Step 7a: Launch of the Social Finance Partnership.
The created value for customers is that collective investments raising social capital, a new scope and paradigm on investment (ethical, alternative, sustainable), will probably act as a catalyst for creating other social finance tools in Greece.
The impact of the Social Finance Partnership is to empower social change through socially innovative financial tools and institutions. During the first year of operations the aim is to engage players of various capacity, influence and knowledge on the issue of Social Finance and its potential.