EU Programme for Social Innovations (EaSI) and Its Impact on Social Enterprises
The European Union (EU) has been at the center of promoting social cohesion and economic resilience among member countries. One such example is the birth of the EU Programme for Social Innovations, EaSI. This program aims to be a financial instrument that helps foster social innovation and promote employment. By doing so, it guarantees better working conditions and adequate social protection, and combats social exclusion and poverty.
Since its inception, EaSI has fulfilled its goal of supporting small businesses, specifically social enterprises. This article thus delves into the EaSI program and its impact on social enterprises across Europe.
What is the EaSI Programme
The EaSI program is a financial instrument that was launched in 2014. It was made to integrate three existing European Union initiatives, including:
- PROGRESS,
- EURES, and
- The European Progress Microfinance Facility.
This three-in-one program thus aims to address various social challenges by providing financial and technical support. EaSI is specifically for individuals and organizations battling issues such as unemployment, poverty, and social exclusion.
Key Branches of EaSI
EaSI operates through three main axes:
PROGRESS Axes
PROGRESS stands for Program for Employment and Social Solidarity. This branch focuses on modernizing employment and social policies to improve policy-making. It does this by funding initiatives that test social innovations, share best practices, and support analytical work.
EURES Axes
EURES, European Employment Services, is a European network of employment agencies. It is the axis in charge of improving mobility and job opportunities in the EU. EURES provides information and recruitment services for job seekers and employers.
Microfinance and Social Entrepreneurship
This aims to enhance financial access for vulnerable groups while supporting the expansion of social enterprises in Europe.
EaSI’s Impact on Social Enterprises
Social enterprises are businesses that prioritize social goals over profit. They reinvest their excess resources into a mission to address societal problems, including poverty, unemployment, and climate crisis. These enterprises are integral to social stability, and the EaSI program has had a notable impact on their development across Europe:
Improved Access to Finance
Many social businesses have limited access to financial aid because conventional banking services view them as high-risk. As a result, they are not willing to offer these enterprises the financial support they need because they focus on social outcomes instead of profit maximization.
However, the EaSI addresses this by providing guarantees to lenders and equity investors. In doing so, the program facilitates access to loans and social investment funds, allowing social enterprises to upscale and expand their impact.
For instance, the EaSI created the Guarantee Financial Instrument. This system allows thousands of social enterprises to gain access to much-needed capital to finance their projects and create jobs. This came in handy, particularly during the COVID-19 pandemic, when many social enterprises experienced financial difficulties.
Job Creation
Through the support of the EaSI program, social enterprises have created job opportunities for the unemployed. As a result of the financial support of EaSI, social enterprises have been able to upscale, leading to increased job creation. This helps support those who face barriers to employment, including migrants, people with disabilities, rehabilitated individuals, etc.
Technical Support and Capacity Initiatives
EaSI also provides technical services and capacity-building initiatives to social enterprises. These services aim to help social entrepreneurs develop business models, improve and manage their finances, and increase their ability to attract investors.
By enhancing the capacity of social businesses, the program ensures that these organizations are equipped to achieve their mission and sustain operations. Thus, the EaSI offers training, mentoring, advisory services, and networking opportunities.
Better Social Innovation
The EaSI program promotes social innovation across Europe through its PROGRESS axis. It achieves this by funding pilot projects and social experimentations to tackle pressing social issues. These projects often serve as testing phases for innovative solutions that the EU can then scale up and replicate. Thus, they encourage the development of new approaches to address unemployment, social exclusion, and the aging population.
Takeaway
The EU’s Programme for Employment and Social Innovation (EaSI) has played an integral role in supporting social enterprises. It provides financial and technical support and fosters social innovation. As the EU keeps prioritizing these enterprises, the impact of the EaSI is sure to drive positive social change and contribute to a more equitable future.
