Consider the concept of expansion, of stable economic expansion. 

As a small-to-medium sized enterprise (SME), economic expansion is a signal of success. Stable economic expansion is understood as business operations able to increase production and employment and generate a positive ripple effect: increasing household incomes and thus household spending.  

Why stop there? Social Finance for Social Greening (SOFIGREEN) is a programme that understands exponential economic expansion is not only possible, it is needed. Global challenges of pollution, climate change and biodiversity loss, along with social exclusion and unemployment, demand expansion. Traditional economic paradigms that disproportionately value profit must expand to survive, bringing profit in line with the ability to deliver positive impact to the public interest. This is a green social economy, and the agents of change are social entrepreneurs. SOFIGREEN serves small-to-medium sized enterprises (SMEs) that can become leaders in the green social economy.  

European vision  

SOFIGREEN is a European project geared to help deliver the European Green Deal vision to establish Europe as the first climate-neutral continent. The European Green Deal can only be achieved by empowering local and regional authorities with all local stakeholders in order to sustain a fair and green transition.  

A successful transformation is led by transformational agents. According to the EU expert group on social economy and social enterprises (GECES) report on Clusters of Social and Ecological Innovation (CSEI), specific significance is given to the role of Social and Solidarity Economy ​(SSE) clusters and SSE business support organisations (BSOs) in the transformation. These entities advance key components of transformation, such as knowledge exchange, mutual learning, innovation and large-scale citizen mobilisation.  

SSEs are increasingly being recognised for their contribution, such as in 2011 when the European Commission presented the Social Business Initiative (SBI) which established an EU level action plan with concrete measures to establish a favourable environment for social enterprises (SE) which led to the European Action Plan for SSE in 2022. The net result is that currently, European institutions are paying increased attention to the SSEs as a driver of sustainable development engaging in an inclusive and fair green economy. 

SOFIGREEN connects to the European Commission vision to explore scenarios for a “transition pathway” to accelerate the green transition of the social economy, as part of the Proximity and Social economy industrial ecosystem, involving engagement with all interested subjects. The programme works with SMEs to ensure that they play a crucial role among these changemakers, fostering capacities and skills of SMEs to be able to improve sustainable management and green operations.  

How we expand success: 

SOFIGREEN is a programme to ensure that SMEs can fulfil their potential to create substantial global improvement. One of the great challenges in the business of a green transition is overcoming the gap in finance, particularly social and adapted finance. Facing the large-scale challenges of a green transition requires allocated financial support. Often, SSEEs face reluctant private investors and difficulty in accessing public funding.  

Therefore, the heart of the SOFIGREEN programme amplifies the expanded value of relationships. The power of a sole business to understand, access and achieve success is much lower than that of a business that is connected to opportunities for multi-stakeholder collaborations. For example, mainstream SMEs, research institutions, public authorities and civil society each hold valuable insights and access to resources that can benefit social entrepreneurs. This can take place locally, regionally and across borders.  

SOFIGREEN addresses these complex challenges ​​by utilising transnational cooperation to support SMEs in establishing a healthy level of investment readiness. SOFIGREEN partnerships draw together clusters of SSEs, social finance intermediaries, business support organisations (BSOs) and philanthropic foundations from three advanced social economic areas: Auvergne-Rhone-Alpes in France, Southern Italy regions and Andalucia in Spain. This process involves increasing awareness and access to financing instruments. Building on the multi-stakeholder and cross-border collaboration, knowledge sharing and mutual learning, SOFIGREEN drives a skill pathway to support SSEEs with capacity building, coaching, mentoring and financial support. This will result in empowered SSEEs able to: 

• Reshape their business models towards a triple bottom line sustainability;
• Access adequate finance for the implementation of the needed investments for transition; and
• Develop strong multi-stakeholder (mainstream SMEs, research, public authorities, etc.) and multi-level (local, regional, cross-border) collaborations to become transition leaders.

​​SOFIGREEN will select 90 enterprises based on the following principles:

• An SME belonging to the social economy sector;
• In a start-up or growth phase;
• Presence of a clear potential to improve environmental performance;
• Willingness to follow the path constantly;
• Gender and age balance within the company; and
• Preference to participants who demonstrate knowledge of foreign languages to ensure effective participation in transnational events and continuation of relations even beyond the events themselves.

Two capacity building courses, one for start-ups, one for growth enterprises, will be delivered in the target areas of Italy, France and Spain. A minimum of 90 Social and Solidarity Economy Enterprises (SSEEs) will be selected; 60 of which will receive further financial support and coaching to boost their investment readiness and ​​ecosystemic approach. Ultimately, the SSEEs will be able to access necessary finance for their green transition. Upon completion, SSEEs will be able to:

• Identify and evaluate skills to identify infrastructure and related investment needs required to meet climate targets in the long term;
• Understand the required economic-financial planning to carry out such investments and access to finance opportunities;
• Perform preliminary internal assessment of the sustainability performance, identifying strengths and weaknesses;
• Analyse and map stakeholders with an ecosystemic approach;
• Draft a business plan showing the economic sustainability of the planned investments; and
• Seek impact finance.

To ensure that the goals of the SOFIGREEN are achieved, the consortium of participating partners will co-design a financial instrument targeted for SMEs launching a European Venture Philanthropy Fund. This will connect a network of local funds and financial intermediaries designed to invest patient capital in SSEEs. This model is relevant and useful for other territories to help scale financial resources for SSEEs engaged in the green transition.  

Cross-border cooperation will be built through six transnational peer-learning and capacity-building sessions, involving target SMEs, partners and relevant stakeholders. Partners’ networks cover more than 60 EU territories and the MENA region, allowing for a wide dissemination and successful replicability.  

Key indicators: 

• 12 trainers trained to deliver the capacity building path;
• 9O SSEEs receiving capacity building;
• ​​​225 responsibles from these enterprises receiving the training (10 sessions of 4 hours, over 8 weeks)
• 60 SSEEs selected of the 90 trained will receive coaching (at least 2 sessions per enterprise)
• financial support through vouchers to consolidate their green investment projects (60 evidence-based projects and 60 access to finance proposals)
• 10 cross-border business partnerships engaging in at least  20 SSEEs
• 8 cross-border events

Through supported restructured business models, SOFIGREEN helps SMEs raise the finance necessary to make the leap that will put them at the forefront socially, environmentally and economically. The ripple effect of this expanded success will spread throughout wider territorial ecosystems, positioning the SMEs as hubs of collaboration between large and small firms, research organisations and the public sector. 

Partnerships for Expanded Success: 

The SOFIGREEN capacity building package is designed to combine access to finance with an ecosystemic approach, effectively drawing on and combining the expertise of each partner organisation.  Management of financial support for beneficiaries is carried out mainly by Fondazione con il Sud in Southern Italy and MedWaves in the whole Mediterranean basin. Mainstreaming the approach and instruments developed during the project is ensured at a national level by the local partners and at the EU level by EU networks FEBEA and REVES. MedWaves will mainstream them in the Mediterranean basin. 

Recognised clusters of social and environmental innovation:

• MeSSInA Foundation (IT) – Leader partner, non-profit Foundation which spearheads a wide social economy cluster based in Messina;
• ARCHER GROUP (FR) – Social enterprise that currently employs 1,200 people and operates in 20 areas of activities. Its primary objective is to create jobs and to promote the economic, social and ecological development of the region;

BSOs’ networks for social economy: 

• MedWaves (ES) – the UNEP/MAP Regional Activity Centre for Sustainable Consumption and Production;
• FAECTA (ES) – Andalusian Federation of Worker Cooperatives;

Social finance intermediaries:

• BANCA POPOLARE ETICA (IT) – Cooperative ethical bank that operates in Italy and Spain;
• La NEF (FR) – Cooperative ethical bank established in France.

Philanthropic organisations:

• Fondazione con il Sud (IT) – The first grant making organization to invest in the development of Southern Italy entirely through private;

EU networks:

• FEBEA (BE) – European Federation of Ethical and Alternative Banks and Financiers;
• REVES (BE) – European Network of Cities and Regions for the Social Economy.

MedWaves’s role:  

Given MedWaves’ extensive experience in the design of capacity building methodologies to boost sustainable entrepreneurship, MedWaves is leading the co-design process of the capacity-building package, developing the training tools and methodologies that will be used to equip SSEEs from France, Italy and Spain with essential skills to greening their business models and enhancing their access to finance.

MedWaves is also responsible for disbursing f 6000€-9000 € grants to those participants who successfully finalised the training, to be used in financial coaching services. This targeted assistance aims to elevate the readiness of these enterprises for investment, a pivotal step in their growth trajectory. Moreover, the coaching extends beyond financial aspects, encompassing a holistic approach to sustainability.