Ulrich Grabenwarter, EIF: social enterprise must first meet social objectives before returning profits to investors

The notion of social entrepreneurship is very broad.  However, one common element is to have respect for all parties in the value chain of the social enterprise.

We at the European Investment Fund have designed the Social Entrepreneurship Fund as a knowledge exchange platform, which brings together the European Investment Bank, the European Commission, and the private sector.  The objective is to raise EUR 200-250 million to support social entrepreneurs on the continent.

The objective is to show that these are worthwhile investments, and in the process, to make ourselves redundant.  Over time, we hope the private markets will be able to meet the needs of social entrepreneurs independently.  We take the position that the solution of a social problem should be the core focus of the enterprise and that profits that are generated and distributed are subordinated to meeting the objectives of the social mission of the company.  We don’t preclude that profits could be returned to investors, but before that can be done, the enterprise must first demonstrate that it met its social impact goals.