The “Kick-starting the nascent social finance market in Estonia” (SoFiMa) project has started its activities.

Baltic Innovation Agency has started its activities in the “Kick-starting the nascent social finance market in Estonia” (SoFiMa) project that aims to develop finance instruments that would support social enterprises in their various stages of development. The project also seeks to increase the awareness of social entrepreneurship and creates possibilities to engage various stakeholders.

Social entrepreneurship and the social economy in Estonia are in their early development stage and faces various challenges. Current financing instruments for social enterprises are fragmented and depend upon the legal status of the organization; there is a lack of a clear definition and the awareness of social economy is lacking. There are market challenges both on the demand and supply side of social finance. The challenges above will be tackled within the SoFiMa project.

The main goal of the project is to achieve cooperation between various sectors and stakeholders in developing the current situation of social entrepreneurship in Estonia. The project engages with representatives of businesses, non-profit organizations, scientists, investors, representatives of banks and local as well as national-level policy makers. The final result of the project will be a Memorandum of Understanding for the future creation of a new social finance instrument meeting the needs of the Estonian market.

The project ends with the signing of a memorandum between the parties, which agrees on the future of financing opportunities for socially responsible companies in Estonia. A more detailed project description can be found HERE.

The project consortium includes: Baltic Innovation Agency, Tallinn University, Development Centre of Võru County, Estonian Social Enterprise Network. The project is also supported by AS SEB Bank and startup accelerator Buildit.

The project is co-financed by the European Commission through the Employment and Social Innovation “EaSI” 2014-2020 programme.

The information contained in this publication does not necessarily reflect the official position of the European Commission.