How Digital Solutions May Enhance Social Financing

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Topic

RESULTS OF MULTI-STAKEHOLDER REFLECTIONS AND WORKING SESSIONS

Hypotheses / Findings

High costs of mapping It lacks a place where social entrepreneurs can search for available and appropriate bundled information about different funding opportunities. opportunities It lacks robust data and information on the social enterprise market. This is a major obstacle to market attractiveness. Information asymmetries There is a high level of information asymmetries in the market, leading to inefficiencies in matchmaking. Particularly in early stages, social entrepreneurs often require capacity building to understand the financing jargon and success factors for fundraising and they often don’t know what type of financing they actually need and what is out there. There is a high need for training social entrepreneurs on how to do accounting properly. Social investors often have a financing background with little knowledge about the complexities of creating different types of social impact. Lack of ability to translate For social enterprises, it is sometimes difficult to develop / contextualize business an impact thesis that makes sense in the larger context that models in larger context matters to social investors. Insufficient collaboration with local capacity builders

There is a large capacity gap that needs to be filled by experts with specific local know-how. It is difficult to identify providers of capacity building services that are verified regarding their quality of services.

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